Consolidation is a change in the validity period of already issued loans, either increasing (usually) or decreasing. It involves easing the terms of debt repayment in the form of deferred payments and repayments. It is possible to combine consolidation with conversion.

Unification of loans is the combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. The goal is to reduce the number of types of securities in circulation at the same time, which simplifies work and reduces the state's debt servicing costs. The unification of government loans is usually carried out together with consolidation, but can also be carried out outside of it.

In some cases, the government can exchange bonds using a regressive ratio, that is, when several previously issued bonds are equal to one new bond, which relieves the government of the need to make payments on bonds in full money (interest payments and (or) redemption of bonds), previously placed in a currency that was depreciated at the time of settlement.

Deferment of loan repayment differs from consolidation in that in this case not only the repayment period is postponed, but, as a rule, the payment of income is stopped.

Conversion, consolidation, unification of government loans and exchange of government bonds are usually carried out only in relation to domestic loans. As for deferring the repayment of obligations, this measure is also possible in relation to external debt. Deferment of repayment of an external loan, as a rule, is carried out in agreement with creditors, and this operation does not necessarily involve the suspension of interest payments on the loan.

Cancellation of public debt refers to the complete renunciation of the state's obligations under issued loans.

The main task of managing Russia's public debt is to change the debt strategy and move from a policy of deferring payments to a policy of debt reduction. Due to the current circumstances, this applies to the greatest extent to external debt. And here it is advisable to turn to the timely world experience of financial conversion methods for settling external debt, as the most flexible and adequate to the current state and credit capabilities of Russia.

The financial mechanism of the conversion scheme consists of eliminating part of the external debt by exchanging it for national assets - national currency, bonds, shares, goods, financial assets, etc. The following options may be the most acceptable for Russia.

Debt in exchange for exports. This does not mean export of raw materials, but export of finished products. This option allows you to support competitive production in the country, develop exports, develop new markets, and therefore preserve jobs, ensure the receipt of taxes and repayment of debts, as well as financing investments. It is important to support industries that have significant export potential (space, aluminum, aviation industry, etc.), which are already producing products that meet international standards and can contribute to the growth of the economy as a whole.

Debt in exchange for property. This option is carried out, as a rule, within the framework of a privatization program, and also involves the exchange of debt obligations for shares of privatized enterprises and the attraction of strategic investors. In this case, it is important to assess the value of domestic enterprises in accordance with world market standards, and the exchange of debt for shares should be carried out at a rate favorable to Russia. It is also important to determine the share of shares (company) in ownership during debt conversion.

Debt in exchange for taxes. In this case, it is proposed to legislatively establish such tax benefits for investors - holders of external debt, which would encourage them to invest. Permission for conversion should be granted only when making investments that are important for the Russian economy. In this case, the external debt will be repaid using future income.

Payment of interest payments on external public debt in local currency. This option is used in world practice in some cases. Payments are made at an attractive rate for creditors, but money is transferred for interest payments to special investment accounts in domestic banks, and funds from these accounts can only be used to make direct investments in the debtor’s economy. All other manipulations with such funds and income from these investments can be carried out only after the expiration of the period established in the conversion agreement (at least a year later).

Debt for cash. Involves repurchasing debt at a discount on the secondary market for external debt obligations. In this case, the nominal debt is reduced and there are savings on future interest payments. The procedure for this operation is as follows: the government appoints an agent with sufficient experience in the purchase and sale of foreign debts (usually a large commercial bank) and sets a discount to the face value of the debt, according to which it is ready to buy back the debts purchased by him from the agent.

Debt restructuring. This method of debt management is very common in modern conditions. Restructuring refers to the repayment of debt obligations with the simultaneous implementation of borrowings (assuming other debt obligations) in the amount of repaid debt obligations with the establishment of other conditions for servicing debts and the timing of their repayment. Debt restructuring can be carried out with a partial write-off (reduction) of the principal amount.

Many of the described techniques were used in bringing Russia out of the 1998 default. In particular, we can mention such methods as: restructuring of bond loans into bonds with a later maturity; negotiating with creditors to defer payments; use of various offset schemes to reduce loan debt; attracting bank loans for payments on bonds; acceptance of bonds for tax payments, in exchange for housing certificates, etc.; repurchase of your obligations at a discount; early redemption of its obligations.

Taking advantage of the low level of prices for their obligations and the growth of their budget revenues, the procedure for repurchasing Eurobonds was carried out by Moscow and St. Petersburg. So, in 1999-2000. Moscow bought back Eurobonds due in 2000 in the amount of $220 million, St. Petersburg also made an early redemption of its Eurobonds in the amount of $80 million, and in 2001 – in the amount of $100 million.

Russian legislation, in particular the Budget Code of the Russian Federation, provides for a number of organizational methods for managing public debt. The right to carry out state external borrowings of the Russian Federation and conclude agreements on the provision of state guarantees, guarantee agreements for other borrowers to attract external credits (loans) belongs to the Russian Federation or on its behalf - to the Government of the Russian Federation or a federal executive body authorized by the Government of the Russian Federation. The subjects of the Russian Federation, whose budgets did not receive financial assistance to equalize the level of budgetary security, initially had the right to carry out state external borrowings. At the moment, a ban on external borrowing has been introduced for the constituent entities of the Russian Federation (for municipalities they were not provided for) - the corresponding amendment to the Budget Code came into force on January 1, 2002. External borrowing is allowed only to regions that already have external debt, for its refinancing within the limits financial year.

In this case, a mechanism called loan consolidation comes to the rescue. To manage money effectively, you need to be able to correctly use this financial instrument. Any debt obligations can be transformed if the borrower is given the right to do so in the relevant agreement.
Do not confuse consolidation - combining credit obligations, with refinancing - obtaining a new loan with which the client covers previous obligations.

Let’s assume that the client has a large number of different loans, both small ones, taken for the purchase of household appliances or overhead expenses, and large ones, spent on training, repairs, travel, medical care, and in a fairly large number of banks. After all, one bank may not lend large sums of money at once.

Loan consolidation should be carried out when all the components of this mosaic coincide. You need to understand that not every bank today undertakes such an operation. After all, sometimes a credit history is so burdened with penalties and interest that even specialists will not undertake to untangle this tangle.

The following facts speak in favor of consolidation.

1. All current obligations of the borrower are subject to consolidation. There are banks that consolidate selective loans. If such a calculation is beneficial to the client, then you can agree to partial consolidation, which will alleviate the debt.
2. During the consolidation process, one bank becomes the new lender for the client, which is very convenient. Now you will not need to remember all the terms and other conditions of all loan agreements. There will be one consolidated loan agreement. Instead of a large number of small amounts, you will now have to pay one large one once a month.
3. The terms of the consolidated loan are selected to be the most favorable in comparison with the aggregate terms for all previously assumed obligations. This will need to be taken care of by the client himself. Carefully read the new agreement, recalculate all loan amounts, conditions for early repayment, and so on.
4. Often the bank itself offers the client to consolidate all his debts, putting forward the most favorable conditions for his future loan agreement (flexible payment schedule, payment terms, reduced interest rates, reducing the amount of debt by increasing the amount of overpayment).
5. The advantage of this mechanism is that the consolidated loan will release previous obligations from collateral. At the same time, it is necessary to understand that the bank will require new guarantees for new loan obligations. In this case, you need to be prepared to provide new, equivalent and liquid collateral. Although there are often cases when a new loan was provided without collateral. This depends on the borrower's credit history and other factors.

The following facts speak against consolidation.

1. Only professionals can understand all the intricacies of this process. When concluding a new agreement, it is necessary to analyze all the client’s existing loan agreements, draw conclusions, outline a diagram and sequence of actions, write the required requests to banks, and attract the necessary credit brokers. This process may take a long time. At a certain point, it will be necessary to correctly and legally record all credit debts, issue written reconciliations, assignments and agreements with the credit commissions of all banks participating in the consolidation, and negotiate debts. It is precisely because of these difficulties, and often because of the emerging need to pay additional commissions for these services to brokers or a bank, that it becomes impractical to carry out this operation.
2. Some banks will not agree to consolidate loans if at least one of them has been overdue or fined. In this case, the client’s reputation must be impeccable. Before receiving a consolidated loan, you will need to request a personal report from the Credit History Bureau.
3. Cash is excluded from consolidation. This is not even a minus, just note that the new lender will have to make timely cashless payments and close existing loan agreements. This is what the client will need to check, making sure that he has been fully cleared of previous obligations. If a new loan is proposed to be issued in cash, and the client himself takes it to the banks, then this is called refinancing and the responsibility for it is assumed entirely by the client.

Despite all the disadvantages, for some consumers, loan consolidation can be a lifesaver that will help you deal with your debts and get rid of the risks of delinquency and save money. It is necessary to understand that consolidation will not get rid of debts, but it will certainly help to organize and control existing loans.

Consumer loans allow you to own something now. Buy immediately, rather than saving and postponing. This is a temptation for many. As a result, the desire to possess wins over common sense. A person buys into tempting offers from banks and the opportunity not to pay for the first two months. He takes out one loan, a second, a third... And then suddenly he realizes that the credit burden has turned out to be unbearable. What to do in this situation?

One option to solve problems is consolidation. In addition, this is the most economical option.

Loan consolidation

If you look at the names of bank loan offers, you won’t see consolidation often. In most cases, refinancing is offered. Many banks and their clients do not share these concepts at all. But first things first.

What is loan refinancing? This is the replacement of an existing debt with a new one under certain conditions. That is, the bank issues a new loan to repay the old one. A new loan is issued on more favorable terms for the borrower.

What is consolidation? This is a combination of existing credit debts with different terms and payment dates into one.

Why are they confused? This is due to the fact that banks, when offering refinancing, often imply consolidation. That is, consolidation is also refinancing - issuing a new loan. But not in exchange for one, but for many loans at once. A new loan is issued for the total amount of credit debt for all old ones.

Pros and cons of consolidation

Benefits of consolidation:

1. The ability to pay one debt instead of several. Accordingly, several monthly payments with different amounts and dates are replaced by one. If the client pays not through online methods, then he will have to visit one bank office (or ATM) instead of several. Of course it's convenient.

This is also an advantage for the bank. A significant part of overdue debts with a short period of delay in payment arises due to the client’s absent-mindedness and forgetfulness. And if it is easier for a client to control one payment than five, then the likelihood of making each payment on time increases.

1. Possibility of changing the loan term. If the financial burden turns out to be unbearable, one of the ways to regulate it is to increase the repayment period. This allows you to reduce the size of each payment. True, the extension of the term is accompanied by an increase in the total overpayment in favor of the bank. But it is easier to pay a smaller amount. In any case, this issue needs to be carefully thought through and calculated before drawing up a new contract.
2. Possibility of reducing overpayments by reducing the loan price. Typically, the rate on a consolidated loan is lower. In addition, if the loan had, in addition to interest, other additional payments to the bank, these can also be canceled. For example, a loan was issued using a card. This, by the way, is the most expensive loan option. In addition to interest, it may contain a service fee, SMS banking fee, etc.

Disadvantages of consolidation:

1. In order for consolidation to be truly profitable, you need to be able to calculate all possible options and take into account all the nuances. As practice shows, not all ordinary people do this. Some take the bank's word for it. Others simply don't know how to count.
2. Before approving a new loan, the bank carefully studies the borrower. It is quite possible that the bank will refuse the client if at least one of the available loans had late payments. Well, only a borrower with a good credit history can count on a low cost.
3. The bank will not issue funds for the new loan to the client, but will transfer them to the creditors’ account to repay previous debts. This feature of the association is classified as a disadvantage, since the client does not receive the money personally. But in fact, this is more of a plus than a minus. After all, if you give money to a client, he may not bring it to the bank and may not pay off previous debts. This will increase the debt burden and worsen the situation.
4. The need to negotiate with previous creditors and prepare the relevant documents. In most cases, a certificate is required - a statement about the balance of debt on the refinanced loan.
5. In some cases, you will have to pay a penalty for early repayment of the loan.
6. Additional costs of time and money associated with collecting a package of documents to apply for a new loan.

Which banks pool loans

Currently, this service is offered by many credit institutions. Let's look at the features of consolidation by the largest banks.

Consolidation of loans in Sberbank

Sberbank calls the merger programs “Loan Refinancing” and is offered in two options: mortgage refinancing and consumer loans for loan refinancing. Within the framework of these programs, it is possible to combine up to 5 loans from different banks.

Index	Mortgage refinancing	Consumer loan for loan refinancing
What loans are subject to consolidation and refinancing	Mortgage and other loans obtained from different banks	· Consumer and car loans received from other banks, debit overdraft and credit cards. · Consumer and car loans from Sberbank
Amount of credit	1 – 7 million rub.	30 thousand rubles. – 3 million rubles.
Credit term		3 months - 5 years
Interest rate
Security	Pledge of real estate	Not required

Consolidation of loans at VTB

At VTB, the merger program is also called refinancing and is presented in the form of consumer loans. Up to 6 credits are subject to consolidation as part of the consolidation program. Terms of the new loan:

• amount up to 3 million rubles;
• up to 5 years;
• rate from 12.9 to 17%.

Consolidation of loans in Rosselkhozbank

At Rosselkhozbank, the consumer loan refinancing program allows you to combine several loans from different banks. Terms of the new loan:

• the amount is determined individually based on an assessment of creditworthiness and based on the balance of debt on refinanced loans;
• term up to 7 years;
• rate from 12.9 to 21%.

Other banks for loan consolidation

Many credit institutions have loan consolidation programs. They are almost always called “Refinancing”. However, you need to be careful here. In some cases, these programs simply mean refinancing, without the possibility of consolidation. For example, in Binbank and Gazprombank it is possible to refinance only one loan.

Let's consider the programs for consolidating consumer loans of banks - leaders of the banking system, with the exception of those whose conditions were indicated above.

In general, you can consolidate up to 5-6 different loans into one. Terms of the new one: rate from 11.9% per annum, amount up to 3 million rubles, term up to 7 years.

Example

There are 2 loans, the balance of the debt is 142,462 rubles. and 20,708 rub. For the first, there are 10 contributions left to pay to the bank, for the second – 12. Detailed information is shown in the table.

payment number	Credit 1 (payment amount 15861)		Credit 2 (payment amount 2032)
	Principal debt, rub.	Interest, rub.	Principal debt, rub.	Interest, rub.

Data for loans 1 and 2 are filled in based on payment schedules.

The borrower considers the terms of the loans unfavorable and wants to consolidate the loans on acceptable terms. To do this, he submits an application to Sberbank and receives approval at a rate of 13.5% for 12 months in the amount necessary to repay the two previous loans of 163,370 rubles.

In the table below we show the total payments on the old loans and the new combined one.

payment number	Total payment on old loans (17,893 rubles, except for the 11th and 12th payments, which include 2,032 rubles)		Consolidated loan (payment amount 14,612 rubles)
	Principal debt, rub.	Interest, rub.	Principal debt, rub.	Interest, rub.

The table shows that the new loan is preferable to previous loans. The total amount due for 12 months is RUB 175,344. versus the old amount of RUB 182,994.

For clarity, we will show the amount of monthly payments to the bank on a histogram.

Loans are repaid in equal installments. Moreover, the first 10 installments are larger under the old contracts. The situation changes in the 11th and 12th payments, since one of the old loans must be closed by this time. But, as noted earlier, the total amount of all payments on a consolidated loan is less.

However, the borrower is concerned not only with the size of the payment, but also with the amount of the overpayment. He wants to get a loan cheaper. The overpayment on two existing loans totaled RUB 19,824. And in the combined loan 12,181 rubles. This is 39% less than the previous version.

It happens that consolidation is required not only for the purpose of saving, but also to reduce the current payment. If the borrower's financial condition has deteriorated, it becomes difficult to pay large amounts. In this case, it is possible to provide for an increase in the period. Under the same conditions of Sberbank, we will change the period from 12 to 24 months. As a result, the monthly payment amount will decrease, as can be seen in the table.

Reducing the payment will make it easier for the borrower to repay the loan. But in this case, the overpayment increases almost 2 times. Therefore, increasing the period is not suitable for the saving option.

Algorithm of actions

1. Study loan offers from various banks and choose the best option.
2. To make a final decision, make a calculation. Make sure that consolidating loans will not only make your life easier, but will also be cost-effective.
3. Collect a package of documents. In addition to the standard ones (as for a regular consumer loan), documents on loans to be consolidated will be required. The list of documents in each specific case is specified by the bank.
4. Submit an application to the selected bank and provide documents.
5. Draw up a loan agreement.
6. Pay one loan instead of several.

Reasons for refusals

The bank does not specify the reason for the refusal. But in most cases the reasons are the same as in other loans. If according to all the criteria of this program (age, length of service, registration, etc.) the borrower “suits” the bank, then the main reasons for refusal may be:

1. Insufficient income.
2. Bad credit history.
3. Special information received by the bank upon request from the relevant authorities. For example, about cases of fraud.
4. Inaccurate information about the amount of debts to other banks. For example, if part of the loans is refinanced, but the client kept silent about the other part.
5. Availability of overdue payments on the combined loans.

So, loan consolidation is in most cases profitable and convenient, but before you decide on it, you should weigh and calculate everything correctly.

Consolidation, or combining loans into one, is not the most popular service among borrowers, because some do not know about its existence, others remember about it when financial difficulties arise.

People responsible for loan obligations need to plan their budget with special care. But none of us is immune from an unfavorable scenario of events. If, nevertheless, a threat looms in the distance - the loan repayment period is approaching, but there are not enough funds to close the debt - the bank leaves the borrower room for maneuver.

It is important to make a choice in time before the next payment is overdue. Otherwise, you will be considered a debtor, the creditor will charge a fine - your credit history will be damaged.

You can get out of this situation using:

• credit holidays (deferred payment);
• debt restructuring;
• refinancing, or refinancing.

How to combine loans: features of the procedure

If, under the current circumstances, you have several debt obligations, then you can combine all loans into one, which will increase the repayment period by reducing the monthly payment amount.

The consolidation procedure should not be confused with the refinancing program. The goal of both instruments is similar - to reduce the final cost of the loan, but the methods used are different. The essence of the first is to combine several cash loans and transfer them to one bank. The second point is to obtain a new loan to pay off the current loan debt.

The consolidation mechanism works well for loans without collateral - microloans, consumer loans, credit cards, overdrafts, cash loans. For example, you took out several loans from different banks without any collateral - you got a credit card, bought household appliances on credit and took out a loan to make repairs. From the point of view of banking “mechanics”, they can be easily combined into one product.

It is believed that it is possible to combine collateralized loan products – a mortgage or a car loan. But in reality, this is a rather complex and clumsy mechanism that requires re-registration of collateral movable or immovable property. Banks are very reluctant to take such a step. Transferring the collateral - an apartment or a car - is a long procedure that requires additional expenses. Therefore, they “give the go-ahead” for the merger of such products only as a last resort, when it is impossible to get rid of the problem loan in any other way.

In what cases is consolidation of several cash loans required?

The reason to combine loans into one may not only be to reduce the financial burden under the pressure of unfavorable circumstances.

This procedure will help the borrower:

• optimize monthly payments with different dates and methods of making all outstanding loans;
• if necessary, transfer loans to another currency;
• increase the amount of total debt.

Pros of the program

Among the obvious advantages are the following points:

1. Suitable for fans of so-called “quick” loans, which do not require the borrower to carefully collect documents, but are given at the highest interest rates. Consolidating all the loans into one will allow them to lower the interest rate.
2. Reduce the financial burden on the budget in an unfavorable situation for a borrower with several debt obligations.
3. By extending the payment period, the interest rate becomes lower and the monthly payment amount becomes smaller.
4. The process of servicing loans is simplified - repaying them in one day is easier and faster.
5. The borrower combines all of its loan obligations in one financial institution.
6. A positive credit history is being formed.

Disadvantages of the program

The disadvantages include:

1. A small selection of organizations providing loan consolidation services.
2. When you try to transfer your debt to another bank, you may encounter resistance from the original creditor organizations - even penalties for early termination of the contract.
3. There may be a delay in payment if the bank delays processing your application.
4. Related expenses (costs for issuing funds, filling out an application, assessing the collateral, insuring it under a new contract).
5. In addition to information about current loans, you will need to collect a new set of documents.

However, the debt consolidation service is not available to all borrowers. It has the following limitations:

1. A citizen with a bad credit history will not be able to use it.
2. If you have chosen annuity payments and have already paid off more than half of the debt, then this service no longer makes sense. According to the payment schedule, with this type of payment the interest is repaid first, and only then the loan itself or the “loan body”.
3. Those who have less than 6 months left to repay the loan (sometimes this period is reduced to 3 months) will also not be provided with financial assistance.

Which banks provide consolidation services?

There are programs for combining loans issued by one bank and consolidating loans from different banks.

How to combine several loan products in one bank

Note that many credit institutions use this product in order to attract more clients or transfer clients from other banks to long-term servicing.

It is better to turn your gaze towards large and reliable financial institutions.

Thus, they propose to combine all available loans into one: Sberbank, VTB24, Rosselkhozbank, Alfa-Bank.

You can compare the conditions of several financial programs here:

Sberbank	Bank of Moscow	Rosselkhozbank	Alfa Bank
Maximum loan amount, rub.	1 million	3 million	3 million	3 million
Loan period	Up to 5 years	Up to 5 years	Up to 5 years	Up to 7 years
Credit rate	From 13.9%	From 12.9%	From 11.5%	From 11.99%
Period until the end of the current loan	At least 3 months	At least 3 months	At least 3 months	At least 3 months
Maximum number of available credits	5	6	3	5
Borrower's age	21 – 65 years old	21 – 70 years	23 – 65 years old	From 21 to 64 years old
Additional terms		No late payments for the last six months	No late payments for the last 12 months	Does not lend to founders and individual entrepreneurs, combines easy loans and mortgages

Obviously, it is more convenient for both parties to consolidate several loan obligations at the original creditor bank.

However, before you settle on this option, be sure to ask about the conditions of financial managers from all credit institutions where you took out loans.

In addition to the basic conditions, you may be offered some additional benefit that will ideally match your needs.

For example, part of the loan may be given to you in cash, you may be offered a choice of form of payment - differentiated or annuity, or the opportunity to combine mortgages and microloans.

How can you combine loans from different banks into one?

In this case, the borrower consolidates all of its loan obligations from different creditor organizations into one financial institution. If you are planning to combine loans from different banks into one, then pay attention to the most attractive programs:

• Alfa-Bank – from 11.99%;
• VTB Bank of Moscow – from 12.9%;
• Rosselkhozbank – from 12.9%;
• Sberbank - from 13.9%.

It is worth noting that when transferring to a pooling loan, some banks simplify the procedure for collecting documents for their payroll clients.

Alfa Bank - profitable refinancing of existing debts

This financial institution is ready to offer both new and existing clients very attractive conditions. So, it will take no more than 15 minutes to review the application. In this case, the maximum amount that can be approved is 3 million rubles. And loan terms can be equal to 7 years.

In total, up to 5 loans from different organizations can be combined in this way. At the same time, the bank does not impose compulsory insurance services; it can be obtained at will. In addition, if after the closure of previous debt obligations there is still a certain amount of funds left, you can spend it at your own discretion, for example, make any large purchase.

Read the detailed conditions and submit an online application to Alfa-Bank →

On-lending loans to VTB Bank of Moscow

Another interesting proposal for consolidating debts of other banks in one place is provided by the Bank of Moscow. This organization is ready to offer the most favorable interest rates to corporate and salary clients, as well as healthcare workers, teachers, government employees and other preferential categories of citizens.

In addition, it is possible to use the “credit holiday” service if at some point you want to take a break and postpone the upcoming payment. In the same way, you can initially choose a convenient debt repayment date.

Find out more and use the refinancing service at VTB →

As for insurance, here it is also not mandatory and does not affect the bank’s decision on the client’s application.

Bank "Pervomaisky" - consolidation of loans from any banks without restrictions

One of the largest banks in the South of Russia offers its services for consolidating several loans at once. The only point is that the organization works exclusively in the cities of the Southern Federal District, mainly in Krasnodar and nearby. Thus, only residents of these cities will be able to take advantage of this offer.

In general, the institution is ready to offer very tempting conditions for citizens who apply. Thus, the number of combined loans is not limited. The loan term is up to 5 years, the maximum amount that can be approved is 1 million rubles. In addition, you can receive additional funds for any purpose of the borrower, as well as open a debit card as a gift.

Get more detailed information and leave a request at Pervomaisky Bank →

1. Be sure to pay attention to the time costs and other additional costs that loan consolidation entails.
2. Carefully study the agreement with the original creditor before concluding whether it provides for sanctions for early termination of the agreement.
3. If all these expenses, together with the terms of the future consolidation transaction, do not exceed the profit by at least 2%, there is reason to think and look for another program or bank, or even leave everything as it is.
4. Choose reliable and trusted financial organizations to consolidate loans.
5. Consider not only the basic conditions, but also additional benefits.
6. Keep track of deadlines. Do not allow the consideration of your application to be delayed and cause a delay in the next payment.

The reality is that to remain a borrower with a positive credit history, it is not enough to pass the filter and get approved for a loan. It is also necessary to foresee your actions in an unfavorable scenario and be able to use banking instruments to your advantage. A financially literate borrower will always figure out how to combine several loans into one if the need arises.

When managing public credit, government authorities use a wide range of instruments.

Among the tools used in managing public debt, the most common are: debt restructuring, refinancing, conversion, consolidation, unification, extension. Their joint consideration can be explained by the fact that they are all associated with changes in government debt obligations.

According to Art. 105 BC RF under restructuring means the termination of debt obligations constituting public debt based on an agreement, with the replacement of these debt obligations with other debt obligations providing for other conditions of servicing and repayment. Debt restructuring can be carried out with a partial write-off (reduction) of the principal amount.

Before the introduction of the Budget Code of the Russian Federation, the following tools for managing public debt were used: conversion, consolidation, extension, unification, deferment, cancellation.

Prolongation public debt means an extension of the duration of the obligation and is made with the aim of facilitating the payment of the debt.

Conversion represents a change in the profitability of a government loan by decreasing or increasing the interest rate of income paid by the government to its creditors. There are several types of conversion - optional (creditors can refuse or agree to new conditions), mandatory (creditors can accept new conditions or receive the amount paid back), forced, which involves a unilateral change in the terms of loans1. Conversions of government loans are used in cases where the government does not have sufficient financial resources to repay debts.

Consolidation is to change the validity period of previously issued loans for the purpose of legally deferring payment.

A number of scientists understand consolidation as “the combination of several loans into one longer-term loan with a change in the borrowed interest.” Conversion is more broadly defined as “a change in the fundamental terms of the loan agreement.”

By decision of government bodies, conversion and consolidation can be combined with unification. Unification - consolidation of circulating loans into one issued4. The peculiarity of this operation is that it is carried out, as a rule, simultaneously with a change in the interest rate (conversion) and (or) the maturity period (consolidation).

In addition to using the above instruments, the state uses refinancing to pay off the accumulated part of the debt in cases of insufficient funds from the centralized monetary fund. Refinancing refers to the issuance of new loans to cover previously issued debt obligations.

In addition to the above-mentioned tools for managing public debt, the financial science identifies the following: exchange of bonds using a regressive ratio, when several previously issued bonds are equal to one new bond; deferment of loan repayments; cancellation of public debt.

Deferment of loan repayment is carried out when further active development of operations to issue new loans is ineffective for the state. Cancellation of public debt refers to the state's refusal of debt obligations.

However, in modern conditions of state economic development along a market path, these instruments are not used, since their use leads to damage to the state’s reputation as a borrower.

Some new tools actively used by the state to manage public debt at the present stage are: swaps (operations but exchange of obligations to improve them), futures And options (transactions of purchase and sale of securities with deferred execution on the exchange and over-the-counter markets).

Swap as a tool for regulating external debt by exchanging debt for various assets has become widely used in world practice since the 1980s. Current international practice distinguishes several types of swaps depending on assets:

• - swap operation - exchange of debt for cash;
• - a swap transaction in the form of exchanging debt for exports;
• - swap in the form of exchanging debt for shares (property);
• - swap in the form of exchanging debt for debt.

However, these instruments have not yet received a well-established normative, and even more so legislative, codification in Russian law.