Debt consolidation

It is possible to consolidate debts by taking out a restructuring loan. A restructuring loan is used for paying off separate loans, leaving you with just one loan to repay. You may be able to negotiate a longer payment period and a lower interest rate for the restructuring loan than for the original loans.

There are two types of restructuring loans. You may apply for a voluntary restructuring loan from a bank or a credit institution. You will get a voluntary restructuring loan with a lower interest rate and costs if you can provide a collateral or a guarantor for the loan.

Another option is a social loan granted by a municipality or a guarantee for a restructuring loan granted by the Guarantee Foundation, for which you do not need to have a collateral or a guarantor. You can be granted a social loan or a guarantee of the Guarantee Foundation even if you have a payment default entry.

A restructuring loan is used for combining your debts and overdue bills you cannot pay into a single loan. If the restructuring loan does not cover all of your debts (for example, a student loan), make sure that you have enough money both for the repayments and for your necessary expenses.

Plan in advance how you will repay the restructuring loan. For assistance in planning your use of money, see the ‘Managing you finances’ section or contact the financial and debt counselling services.

Voluntary restructuring loan

You can ask for a voluntary restructuring loan from any bank or credit institution. Remember to compare the interest rates and costs of loans. It may be difficult to obtain a voluntary restructuring loan if you have a payment default entry.

Social lending

Some municipalities grant social loans to their residents for larger purchases or debt restructuring purposes. Contact your municipality of residence to find out if they offer this possibility. Read more about social lending.

Guarantee Foundation grants guarantees for restructuring loans

You can be granted a guarantee for a restructuring loan by the Guarantee Foundation if you have a stable life situation and the reasons for your indebtedness are under control or no longer exist at all.

You can obtain a guarantee even if you have debts in collection or enforcement, provided that you meet the other conditions. You cannot, however, be granted a guarantee if you have any other reasonable means of coping with your debts. You can be granted a guarantee only once.

Read more on the website of the Guarantee Foundation (in Finnish).

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