Divorce is unfortunately still a common phenomenon today. A difficult and intense period is dawning, certainly due to the fact that the emotions surrounding divorce can run high. When you have bought a house together, the financial situation does not always improve. Having to sell your house in the current housing market often results in a residual debt.
Financing of residual debt in the event of divorce
Staying behind with a residual debt can put you in serious financial trouble. The lender wants to see his money back at all times and in the vast majority of cases you are jointly and severally liable for the remaining debt. When it comes to residual debt when selling your home, it almost always involves substantial amounts. Savings balance is usually insufficient to meet the remaining debt. Fortunately there are financing options to get rid of this problem. This gives you financial breath again. Breathe that you desperately need to know what else is involved in handling a divorce.
One possibility that you have to pay the residual debt in one go is to take out a personal loan, also known as “PL”. The operation of this product is relatively easy. You borrow the amount you need. With this amount you then pay off the remaining debt. What remains is that you now repay an amount monthly on your personal loan. The big advantage of the “PL” is that the term is fixed, as well as the monthly amounts to be repaid. This way you can be sure that after a certain time you have repaid the personal loan in full. In some cases you can also repay additional fine without penalty, this of course shortens the term and you are sooner off your loan.
A revolving credit is often referred to as “DK”. It is a more flexible form of borrowing, where the term is not fixed by definition. If you choose to take out a revolving credit, you can also borrow the amount you need to pay off the remaining debt. Amount is transferred to your account and you actually use it to pay off the remaining debt. Just like with a personal loan, you will repay the repaid credit on a monthly basis. You can often redeem the repaid amounts if you just need a little more financial room. The term is therefore not by definition fixed, partly because the interest is often variable. The monthly amounts to be repaid may also vary in height.
What is the best solution
Borrowing money always costs money. This also applies to a personal loan and a revolving credit. However, entering into a “PL” or “DK” can be a great solution to save you more financial worries. Every situation is different. You can expect the lender to advise the product that best fits your personal situation. This is regulated by law and is also called a financial duty of care. A personal loan or revolving credit may offer you the opportunity to put a line under a number of (financial) issues, so that you can focus on the future again! The tax authorities also have interesting information about residual debt.