The Difference Between Summary Loan and Debt Consolidation


Are you in debt from multiple vendors, making repayment difficult?

You may be wondering if you can consolidate your current debt with a single loan or sort out your debt with debt consolidation. A summary loan is a service in which a single loan company consolidates multiple debts.

By unifying debt, not only will one repayment window become one, but it will be very attractive if the interest rate goes down. On the other hand, I think there are so many people who know in detail about debt consolidation. Debt consolidation results in “debt reduction and exemption”, and a stable life and economic and mental allowance will be returned.

However, because of the guilt of having borrowed money and the sense of responsibility to return the borrowed money, it seems that few people think positively about debt consolidation. Debt consolidation is a government-approved debt reduction and exemption system.

Now, if you feel that your life is difficult due to multiple debt repayments, do not you think that it is a chance to recover a comfortable life and start from knowing debt consolidation? This time, we will compare your loan and debt consolidation, and explain in detail the merits and demerits. Find the best solution to your debt problem!


The difference between summary loan and debt consolidation

The difference between summary loan and debt consolidation

If you already have multiple debts, you may already know to some extent about your combined loan.

If you do not know the difference between a loan and debt consolidation, you need to have an accurate knowledge of debt consolidation.

The right knowledge will make the best decision for you.

Even if you make a mistake, let’s get to know what a summary loan is and what debt consolidation is.


“Summary loan” is a financial service that can consolidate multiple debts into one

As I said at the beginning, a summary loan is a service in which a single loan company consolidates debts from multiple financial institutions into one .

It is also called “transfer loan” or “refinance loan”.

Because multiple debts are combined into one, the loan amount is high and the interest rate is generally lower than before consolidation.

In addition to lower interest rates, there will be a single point of repayment, which is expected to alleviate some economic and mental stress more than now with multiple debts.

It is recommended for those who are confident that they will continue to pay back without problems, but don’t forget that the loan is a debt as well!

Multiple debts can be combined into one.


“Debt consolidation” is a system where debt is reduced or exempted

Debt consolidation is a procedure that allows you to be freed from a life with debt by reducing debt and reserving payment.

Depending on the amount borrowed and living conditions, you may be exempted from repayment.

There are three main ways to arrange (= reduce / exempt) debt (= debt).

  • Arbitrary arrangement

    How to negotiate with a creditor (optionally) without passing through a court and have the debt reduced.
    We ask you to cut interest and divide only the principal (the amount you borrowed) in 36 times, and recommend it to anyone who has an income that can be repaid monthly.

  • Personal reproduction

    It is used when there are a lot of debts so that repayment is difficult even if it reduces by arbitrary arrangement.
    Debt is reduced to 1 million yen or one-fifth, and there is a merit that it is not necessary to give up property (house, real estate).
    The ability to repay the reduced amount allows for personal revitalization.

  • Personal bankruptcy

    You can be relieved of your debt repayment obligation.
    It is judged from the living conditions and borrowing reasons whether it can be exempted.

※ “Receiving too much interest” to “pay overpayment” · “prescription of the aid to the prescription of the obligation to repay debt that has not been repaying for a long time” is also included in debt consolidation, but this time to debt reduction / exemption It is limited.


Which is better with a consolidation loan or debt consolidation? Compare benefits

Which is better with a consolidation loan or debt consolidation? Compare benefits

It turned out that the difference between the summary loan and debt consolidation is the difference between continuing to return debt or opening from debt repayment .

Let’s recognize that the two are completely different.

Summary It is different for each one that the loan and debt consolidation are completely different.

So let’s think about which method is better for you, comparing the two benefits.

The merit of the summary loan is that the interest rate of debt decreases and repayment becomes easy

Consolidating multiple debts into one company with a combined loan offers the following benefits:

Repayment management becomes easy

If you have multiple lenders, you have to go to an ATM etc. to repay several times a month.

In addition, if you are in a situation where repayment is putting pressure on the cost of living, you have to pay money for each repayment, and you are always in a state of stressful repayment.

If you put together a single loan, the repayment date and repayment destination will be one, so management will be easier, and you will be able to prevent a repayment.

The fact that one repayment destination makes it easy to understand the remaining repayment amount is also an advantage.

Interest rate goes down

If multiple debts are consolidated into one, the interest rate will be lower because the amount of debt will be larger.

In particular, if the loan balance exceeds 1 million yen in total, then if you make a combined loan, the interest rate will surely fall.

That is because it is decided that the limit of interest rate is up to 15% in the loan of 1 million yen or more by the law called interest restriction method.

The maximum interest rate of 100,000 yen or more and less than 1 million yen is 18.0%, and it is better to repay 1.2 million yen at 15.0% interest rate collectively rather than borrowing 600,000 yen by 2 companies and paying an interest rate of 18.0% to each It will save interest.

Furthermore, with bank card loans, you can borrow money at lower interest rates.

For example, in the case of Mr. Card Loan “Standard Course” of Sumishin SBI Net Bank, the interest rate will decrease according to the amount of borrowing as shown in the table below.

Borrowing amount interest rate
10 million yen 14.69%
One to two million yen 11.89%
2 to 3 million yen 8.89%

※ See) Mr. Card Loan

You can reduce the monthly repayment amount

One of the goals of the summary loan is to reduce the monthly repayment amount.

Of course, in some cases the repayment amount may not change, but basically the monthly repayment amount is often reduced by consultation and examination.

It would be very nice if the monthly burden could be reduced and repayment could be continued and finally paid off.

The merit of debt consolidation is that monthly repayments and reminders will stop and debt will definitely decrease

Let’s look at the benefits common to the three debt consolidations (arbitrary consolidation, personal revitalization, self-bankruptcy).

The first merit is that debt consolidation will stop prompting for repayment .

If you ask a lawyer or judicial scrivener to settle the debt, the lawyer or judicial scrivener will send a notice of acceptance to the lender (creditor).

Then, the creditor who receives the notice of acceptance is prohibited to collect the debt according to Article 21 paragraph 1 of the Money Lending Business Act.

And, during debt consolidation, there is no need to repay . This is the second advantage.

In the meantime, you will be able to spend money on lawyers and living expenses as you will not have to repay.

Let’s take a look at the merits of any sort of organization, personal reproduction, and personal bankruptcy.

Arbitrary merit of organization

The nice thing about discretionary arrangement is that you can cut the interest you were planning to pay in the future .

You can also zero the interest accrued due to arrears.

In addition, it is possible to negotiate to have the principal repayment number 36 to 60 times.

As the number of repayments increases, the monthly repayment amount can be reduced, so you can repay without difficulty.

Debt etc. with a joint guarantor can be considered as an advantage because it can be excluded from the object of the consolidation and not bothersome.

The debtors and creditors can negotiate direct debt reductions, not through the courts, so there is no need to be barred by family members or acquaintances.

Merit of personal reproduction

If you can not pay back even with the optional arrangement, you can reduce the interest as well as the principal by proceeding with personal remediation.

If the amount of debt is 100 to 5 million yen, it can be reduced to 1 million yen, and it can be reduced to 1/5 with the amount of debt of 500 to 15 million yen.

It is always reduced because the court decides.

It is possible to process even gambling debt which is impossible in personal bankruptcy.

You can reduce your debt without giving up even if you have property (home, real estate on loan).

Merits of personal bankruptcy

If your bankruptcy is allowed, you will be exempt from all debt repayment obligations.

It means that you will be freed from debt without repaying your debt.

That’s it for the benefits of debt consolidation.

If you compare the summary loan and debt consolidation in merit, you will find that debt consolidation has a great advantage in that debt is definitely reduced and exempted .

Compare Debts of Debt Consolidation and Debt Consolidation

Compare Debts of Debt Consolidation and Debt Consolidation

When comparing the merits introduced earlier, I felt that the merits of “debt consolidation” with a steady reduction in debt are greater.

“Debt” is “debt”, even though it is a summary loan.

Conclusion Choosing a loan does not mean that you will lose debt.

So, is there any merit to debt consolidation? If it is asked, it is not so.

There are disadvantages to both summary loans and debt consolidation.

Next, we will introduce the disadvantages of loans and debt consolidation, so let’s understand the advantages and disadvantages and choose the method that is best for you.

The disadvantage of the summary loan is that it is difficult to pass the examination and the debt does not decrease

For people who borrow money from multiple companies, a combined loan is a relatively easy debt solution.

Interest rates will go down and repayment destinations will be one, making debt repayment easier! And there are those who choose a loan as a whole.

However, if you only look at the good part of your summary loan, you will always lose money.

Let’s compare the disadvantages with the demerits to see if the loan really benefits you.

Interest rate does not go lower than I thought

As a merit of making a summary loan, there is a point that the interest rate goes down, but depending on the amount of the summarization, the interest rate may not go down than expected.

In fact, there is no big difference in interest rates unless you borrow more than 3 million yen, compared with consumer finance and banking companies.

※ However, the larger the amount, the harder the examination.

Acom’s benchmark interest rate
Up to 990,000 yen 7.7 to 18%
100 to 3,000,000 yen 7.7 to 15%
One to five million yen 4.7 to 7.7%
Rakuten Bank’s base rate
Up to 990,000 yen 14.5%
One to two million yen 9.6 to 14.5%
2 to 3 million yen 6.9 to 12.5%
300 to 3.5 million yen 4.9 to 12.5%

In this way, it is considered unlikely that you will receive the benefit of “lower interest rates” if you do not exceed 3 million yen by refinancing your loan.

However, it can be said that the burden can be reduced in that respect as it can be reimbursed to one company.

Interest expense may increase more than before closing

I tried to simulate a total of 1,300,000 yen debt borrowed from Acom, Aiful, and Banquik, combined with Resona Bank.

Summary loan simulation

In the figure above, the total amount of interest paid is increased by ¥ 100,000 and later.

In summary, interest rates will be lower, but the period for which they will continue to pay interest will be longer, and ultimately the interest payments will increase.

On the other hand, if the number of payments is shortened to reduce the interest expense, there is a disadvantage that the monthly repayment amount will be high.

You have to choose between reducing your monthly repayment and paying more interest, or increasing your monthly burden and reducing your interest as much as possible.

It will be difficult to repay immediately if you increase debt after the conclusion

Originally, many people say that they are refinancing loans in a lump because they have trouble with multiple debt repayments.

If such people “have reduced the monthly repayment amount” and increase the borrowing for living after the conclusion, the monthly repayment amount will be increased further.

In that case, there is no prospect of completion, and to continue paying the principal + interest over a long period of time.

Far from solving debt, life will not be rich.

As you can see, it is difficult to make life more stable now, as the summary loan is simply debt.

Still, some people may be looking at a summary loan, hoping that their monthly repayments will be even slightly reduced.

However, there is a big pitfall in the summary loan before that.

Summary A major pitfall of a loan is that it does not pass screening.

Summary loans are debts that are difficult to borrow in the first place.

There are three reasons.

  • The total debt is over the limit which can be borrowed with a lump sum loan and it does not pass the examination

    The limit of the summary loan is decided by the examination.
    If the amount you want to borrow is more than a third of your annual income, it is extremely difficult to pass the examination.

  • The number of applications is too large to pass the examination

    Because the summary loan is hard to judge, there are many people who are not judged.
    If the person who failed in the examination “is other financial institution passing?” And applies for the examination easily, application information is registered for six months to credit information agency.
    Generally, those with a large number of applications are difficult to pass.

  • The number of borrowings is too large to pass the examination

    Even if the total debt is small, if the number of borrowings is large, it will not pass the examination.
    The low credit limit can be said to be low credit.
    Basically, if there are four or more companies, there is a high possibility of falling into the examination.

In addition, lenders use their own screening rules to determine whether they can lend.

Summary Let’s think that a loan can not be borrowed easily.

Demerit of debt consolidation is that credit information is damaged and it costs

Debt consolidation has a common disadvantage, regardless of which method you choose.

Information on debt consolidation is registered to the credit information agency

There are three credit information agencies: CIC, JICC and KSC. The registration period of the information and debt consolidation information registered with each agency differs as shown in the table below.

Credit information agency Main type of industry registered
CIC Credit card, mobile phone company, credit sales company, major consumer finance, some banks, etc.
JICC Major consumer finance, middle-sized consumer finance, bank card loan, credit card, mortgage
KSC Financial institutions across the country (banks, credit unions, agricultural cooperatives, etc.)
Credit information agency Registration period
CIC [After debt consolidation]
Until 5 years have passed from completion of payment
KSC 【After court information registration】
Until 10 years pass

During the period when the information is registered, you can not make a contract with the type of business registered with the credit institution and a contract (such as a loan, credit card, or installment agreement).

Further debt consolidation will make it impossible to use the credit card currently in use.

In particular, KSC is a member of banks across the country, and it is said that it is difficult to go through mortgage screening for 10 years.

Attorney expenses and judicial scrivener expenses

Debt consolidation is very difficult to do on an individual basis, and it is common to ask a lawyer or judicial scrivener.

If you ask a lawyer or judicial scrivener, you will be charged.

The price of each is as follows.

  lawyer Judicial scrivener
Arbitrary arrangement One company 40,000 yen + α One company 20,000 yen …
Personal reproduction 3 to 500,000 yen 200,000 to 300,000 yen
Personal bankruptcy Simultaneous abolition … 200,000 yen …
Duties case · · · around 500,000 yen

※ The simultaneous abolition is self-bankruptcy method that person who does not have liquidable property to carry out performs ※ When there is property (house, car) that can be settled other than good property to leave with administrative property case

As mentioned above, I found that debt consolidation also has disadvantages.

If you know the disadvantages, you may not feel that you are anxious about debt consolidation without knowing how much your debt will go down.

Now, I will explain concretely how much debt will decrease by debt consolidation.

How much is debt reduced by debt consolidation?

How much is debt reduced by debt consolidation?

As I said at the beginning, debt consolidation is a system of reduction and exemption of debt that the country has approved.

And there is no debt problem that can not be solved by debt consolidation.

If the debt of 1.3 million yen (ACOM 500,000 yen, Iful 300,000 yen, and Banque 500,000 yen) mentioned in the demerit of the summary loan is taken as an example, how much it will be by each debt consolidation method Let’s take a look.


Interest is zero in the optional arrangement! Monthly payment is reduced and debt can be returned quickly

Arbitrary consolidation is a debt consolidation that the requested lawyer or judicial scrivener “concludes interest cuts and negotiations to reduce monthly repayment amount (by increasing the number of repayments)” .

If the general negotiation is successful, the interest will be zero and the interest of 440,000 yen that would have been paid will be reduced as shown in the example below.

In addition, in the case of Banquik, what was paid 60 times (5 years) can be paid off in 36 times (3 years).


Besides the example, if you want to reduce the monthly repayment amount, you can also increase the number of payments depending on the negotiation.

Arbitrary consolidation is a very profitable method of debt reduction that allows you to zero the interest and determine the number of payments you can make.

Click here if you would like to know more about the flow of the optional arrangement procedure


How much is debt due to personal reproduction? Pay attention to reduction criteria

As personal rebirth, reduction standard is established, depending on the amount of debt, we may not recommend.

The reduction criteria for personal reproduction are as shown in the table below.

Debt Amount after reduction
Less than 1 million yen No reduction
1 to 5 million yen or less One million yen
5 to 15 million yen or less 1/5

From the reduction criteria, it can be said that the debt of 1.3 million yen is only reduced to 1 million yen in the case of the previous example, so it is not suitable for personal reproduction.

The effect of the reduction is greater for individuals with more debt, such as 3 million yen and 4 million yen.

If there are many debts, there are assets that you want to leave, and repayments after reduction are possible , why not consider individual rebirth.

Click here if you want to know more about the flow of procedures for personal reproduction


Debt consolidation method that will be free from debt (zero) for personal bankruptcy

Self bankruptcy is a debt relief debt consolidation method, so all debt is gone.

However, it is not that unconditional bankruptcy is recognized.

As a result of detailed investigation and examination of the present conditions such as gross debt, repayment ability (including income, living expenses), property, etc., the exemption of debt is recognized for the first time.

In addition, self-bankruptcy is a debt consolidation method that loses all property such as a house or a car instead of zero debt.

Think of it as a last resort if you really can not pay back.

Click here if you would like to know more about the flow of procedures for personal bankruptcy


【Caution】 You may not be able to settle debts immediately after closing your loan!

Personal revitalization and personal bankruptcy are the debt consolidation methods that you claim through the court.

In addition to the total debt, repayment ability, property of the person who has made the procedure, the situation that has reached now etc. is also checked in detail.

It is also subject to surveys such as passbook submissions, household accounts for the past two months, and family income.

If you put a single debt into a single loan and it becomes impossible to repay in a short period of time, there is a possibility that you will not be able to reinstate your own bankruptcy as a debt for debt consolidation premise.

In addition, please think that reduction is difficult even if we negotiate debt reduction immediately after borrowing about arbitrary arrangement.

The amount of money that can be repaid is very dangerous.

Be sure to consult a lawyer, judicial scrivener, or other expert who is familiar with debt problems.


Payment of debt consolidation costs is not difficult! Lawyers and judicial scriveners are available for free consultation

Payment of debt consolidation costs is not difficult! Lawyers and judicial scriveners are available for free consultation

Debt consolidation has the disadvantage of having to pay a lawyer fee.

“I can not pay high attorney fees despite having debt!”

Thinking so, some people may not be positive about debt consolidation.

However, when you request debt consolidation , debt repayment will stop!

There are also many law firms that offer advice on how to pay for expenses depending on your income.

Here is an example of how to pay for lawyers.

  • During debt consolidation, deposit a fixed amount with a law firm.
    After debt consolidation, deposit money will be used for attorneys’ fees and the rest will be refunded.
  • If the expenses such as personal regeneration are high, installment payments are also possible.
    In the case of personal bankruptcy, there is almost no property, so there is also a monthly payment of 10,000 yen.
  • How to use the legal terrace from the law office you requested and have the expenses paid.

In addition, most law firms offer free consultation.

We can decide whether to ask a lawyer or not after consultation, so we recommend that you consult a lawyer or judicial scrivener first if you have trouble.

  • Number of borrowed items
  • Total amount of my debt
  • Monthly payment amount
  • Monthly income
  • Family and working situation

Organize this information and consult it will tell you the best way for your situation.

Next, I will introduce a law firm that offers some free consultation and email consultation.

The contents of the consultation are not barred to the family and acquaintances.

Let’s talk about the debt before we get together with your loan.



[Summary] Debt consolidation is advantageous when comparing loan or debt consolidation

[Summary] Debt consolidation is advantageous when comparing loan or debt consolidation

Summary I have seen the difference between loan and debt consolidation.

The summary loan has the merit that management becomes easy and the interest rate can be lowered by making the debt which has been borrowed from multiple financial institutions one.

However, due to the large number of debt borrowings, it is difficult to go through the screening, and even if it succeeds in one thing, interest rates may not fall much and it may be disappointing.

In addition, although it is possible to reduce the amount of monthly repayments with a summary loan, please be aware that the total repayment amount may be higher after the summary after the repayment period is extended because the amount of monthly repayment decreased. .

Debt consolidation, on the other hand, is a system in which debt is reduced or exempted, and there is no need to reimburse or repay during debt consolidation.

It will cost lawyers and judicial scriveners, but I recommend leaving it to a professional to make sure that the debt burden is lightened.

There are many cases where debt consolidation after conclusion is not easily recognized, so if you are confused about summary or debt consolidation, consult an expert first.

If you know the difference between the loan summary and debt consolidation that you introduced this time, in order to get a more economical and mentally comfortable life, why not think about debt consolidation that can reduce and eliminate debt? Hm?


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