Do you have several loans to repay? Would you like to reduce your monthly payments? So, opt for a repurchase of credit. This is a banking technique aimed at facilitating your payment capabilities. How is this possible? How does the repurchase of credit work? What are the advantages ? Explanations here!
The repurchase of credit consists in grouping together all of your credits, in order to reduce your monthly payments. Therefore, instead of repaying 3 credits at a time, you owe only one payment to the lender.
The use of this mechanism has advantages. Already, the repurchase makes it possible to reduce the amount of your monthly payments. Quite simply because the rate and the charges will be lowered. In other words, they will be adapted to your financial capacity.
Believe me, buying back credit saves you from over-indebtedness, an undesirable situation for everyone. In addition, it is interesting from a financial point of view, provided you find the best rate of course.
If you are interested in buying back credit, you have the choice between 3 systems:
The first allows you to collect only consumer loans. Here, I’m talking about auto credit, revolving credit, motorcycle credit… which you can combine into 1 single credit. Of course, the rate, the amount of the monthly payments and the duration depend on your financial situation. The main thing is to find the right organization offering the best offer.
As its name suggests, the repurchase of real estate credit only concerns mortgages. You can benefit from it, whatever your status (tenant, owner, or occupant of professional accommodation). However, it will be necessary to negotiate well, in order to find the right contract.
The third type of redemption allows you to consolidate several credits, whatever their nature (consumer credit, mortgage, etc.). As for the nature of your new contract, it depends on the dominant credit. For example, if you are still indebted for a consumer loan up to 60%, then it is a consumer credit.
Thanks to the repurchase of credit, you are protected from over-indebtedness, since it lowers your debt ratio by reducing your expenses. The lender is based on the amount of your income to set your new monthly payment. It ensures that it is less than a third of your monthly resources.
Alongside the benefits of over-indebtedness, the repurchase of credit also facilitates the management of your budget. Instead of paying several credits at different rates every month, you will only have to repay 1 single monthly payment, on a fixed date and at a single interest rate.
And if your budget allows it, the repurchase also makes it possible to envisage other investments, since your monthly payments were revised downwards.
However, the repurchase of credit has some disadvantages. For example, it lengthens the repayment period of your debts, especially if you want to reduce your monthly payments.