Want to see the effects of a pool of credits on your finances? (only one monthly payment, reduced up to 60%, possibility of request for cash, a single interlocutor…)
From credit to finance his studies to mortgage credit, through consumer credit, access to a loan is, for many, a must.
But when the number of credits subscribed becomes too important, it can unfortunately lead to delicate financial situations. One solution exists: the credit redemption. Simple, it reduces the weight of monthly payments and rebalance its budget.
You just have to find a credit redemption organization that accepts easily with a minimum of evidence.
First, the individual can use the credit redemption simulator which is a very simple tool. It quickly reveals the potential value of engaging in these approaches.
What is a credit redemption?
A credit redemption is a simple operation that allows a borrower who has multiple outstanding loans to group all of them into one. This can have multiple benefits:
- One monthly payment
- A reduction in debt
- Better visibility on all refunds
- A reduction in monthly payments
- Funding for a possible new project…
It can also be a very good opportunity to renegotiate your home loan: indeed, real estate rates have been on the floor for a few months compared to those proposed only a few years ago.
A renegotiation can be a very good operation and result in lower monthly payments or a shortening of the repayment period.
In which cases to resort to the repurchase of credit?
Under French law, any borrower whose repayment amount exceeds one-third of his income is considered to be in a state of over-indebtedness.
Of course, beyond this simple ratio, other parameters are to be taken into account to study the financial situation of a borrower and the opportunity of a repurchase of credit:
- all annual charges (fixed, variable, current or planned…)
- projects of family members (children’s studies, real estate…)
- predictable variations in cash inflows
- number of credits subscribed, their amount
- cash needs…
Even below the threshold of over-indebtedness, the repayment of several credits for an individual requires rigorous management of income and different deadlines. Having only one monthly payment to honor provides more serenity. It is then easier to determine the amount available for other current expenses or savings.
As a first step, the use of the credit redemption simulator already makes it possible and simple to summarize the situation and quickly obtain an estimate of the results of this approach.
What are the steps to follow ?
Firstly, an inventory of committed appropriations should be carried out:
- what are they ? (list them)
- What is their amount?
- What are the monthly payments of each?
- What is their respective duration? (accurately determine the due date)
- What was the subscription date? (in order to compare the rate subscribed with the rates currently in force)…
Then enter these and other income-related data into the credit redemption simulator to obtain an overview of the repayments after debt consolidation.
Finally, contact different providers and compare their offers.
Which address ?
Banks and various organizations offer to buy back credit. It is also possible to contact a broker.
The latter then has the task of determining the best solution for the borrower who has requested his services. He must inform his client and accompany him during the steps to be taken.
In all cases, it is important to opt for a credit repurchase body that accepts easily. It is necessary to compare the offers but also to take into account the conditions and the required justifications.
By reducing loans to a single debt spread over time and reducing monthly payments, the purchase of credit helps to clean up its finances and really bring a breath of fresh air. The process is not insurmountable.
It is enough to be attentive to any consequences on the lengthening of the repayment period. Anyway, it remains a very interesting solution to simplify its situation and to have a good readability on its expenses related to credit.