In 2024, requests for credit consolidation increased by more than 50% compared to the previous year.
Consolidated credit is a financial solution that allows you to group several credits/loans in a single contract and installment, preferably with more advantageous conditions, such as lower interest rates and longer payment terms.
The increase in demand for this type of credit is related to the high effort rate of households, which is associated with multiple consumer loans, including personal loans, cars, and credit cards.
However, in 2024, only a small percentage (less than 1 %) of those applications were approved, notably due to a lack of capacity to provide additional guarantees.
The outlook for 2025 is that the number of requests for credit consolidation will continue to increase and that the number of requests answered will remain low.
In order to avoid non-compliance with financial obligations, or the worsening of an already non-compliant situation, the solution may involve resorting to a special revitalization process (negotiation with creditors) or, as a last resort, insolvency proceedings.
VCA has a team specialized in insolvency and recovery, which can help you evaluate the best solutions for your specific case.
Insolvency, PER and PEAP Department
Hugo Martins Braz | Rita Cortes Maia | Mariana Lacueva Barradas
