The redemption of credits (or consolidation of credits) is a method of having several existing credits redeemed by a single organization. In this way, the credit subscriber can benefit from a single interlocutor and a single deadline for all the sums borrowed previously. In fact, all the loans taken out are repaid in advance with the organizations and banks concerned.
Retirement is often synonymous with a lower standard of living. However, when you are in your sixties and have many credits in progress, retiring can become a very complex event. I advise you to study the advantages linked to the repurchase of credits by a single establishment which can thus make it possible to make ends meet every month, without worrying about its financial situation, and without fearing a possible procedure or seizure on the part of one of your creditors. To study the feasibility of such a project, it will be necessary to understand how a grouping of credits works and what are the implications to be taken into account by this new financial situation.
As part of a loan consolidation, a new loan is taken out by the beneficiary. Indeed, the objective of the operation is to take out a new single credit which will include:
The new credit thus subscribed will allow the beneficiary to repay in advance all the credits from which the latter had been able to benefit from organizations and banks specialized in the repurchase of credits. The various real estate loans taken out, personal loans, but also loans related to work carried out on a building or having been used to acquire a vehicle can thus fall within the scope of the grouping of loans. It is simply necessary that the beneficiary of the credit consolidation is the beneficiary of each of the credits whose early repayment is envisaged.
In addition, I inform you that installment purchases (payment in installments offered by certain merchants) cannot be part of a purchase of credits, since these purchases do not constitute a credit in the legal sense of the term.
The grouping of credits brings many advantages to those who benefit from it, in particular when preparing for their retirement period. First of all, grouping your credits allows you to deal with a single point of contact, which is very practical for facilitating the management of your finances. In the event of a request for a maturity extension, the beneficiary of the global loan will only have to make one request, whereas he should have sent one to each credit professional with whom he had previously taken out a loan.
In addition, the amount of the maturities may be reduced in the event of consolidation. In his initial situation, the beneficiary of several credits had to pay several separate monthly payments each month. When redeeming credits, it will be possible to extend the total duration of the credit, and thus reduce the amount of monthly payments . I confirm it to you, grouping your credits also means ensuring a better financial situation for the future.
Finally, a final advantage of grouping credits would be to have a due date levy on a single date . In this context, the beneficiary of the repurchase of credits could choose the date which suits him best at the time of the subscription of his credit, which would further simplify his financial management, and could protect him from unpaid bills.
I see that many people are interested in using credit consolidation when they retire, in order to simplify their financial situation for years to come. Some banks are ready to stagger loans up to an age of around 85 years. Under these conditions, the grouping of credits for retirement must be thought out and subscribed at the time of the end of the professional activity . By taking the necessary steps around the age of 60, the person concerned can hope to have a staggering of the duration of the credit over about 25 years, which represents a significant advantage depending on the loans he had previously taken out.
In addition, whatever the duration of the credit and the state of your indebtedness, the banks will always be more open to offering a repurchase of credits around 60 years than 20 years later . In the case of a mortgage, the credit institution you use may also offer you, as a guarantee, to take out a mortgage on the property concerned. It will then be necessary to take care to lift the mortgage previously subscribed by the first credit institution.
At the time of the meeting with the credit counselor, I advise you to specify your retirement . The new credit subscribed, its amount and its duration will be calculated according to your retirement pension, and any other income you receive (real estate rental, financial products, etc.).
The credit institution will then make you a credit proposal, ensuring that the latter does not make you exceed a debt ratio of 35%, often considered by banks as a threshold not to be crossed. Your credit counselor may also be able to offer you ancillary credit insurance. If the latter is not compulsory, its subscription can only play in your favor since it will reassure your financial partner . The guarantees provided by the insurance must be subscribed at the time of the subscription of the credit, it is a modality to be carried out at the time of the loan application.
I conclude by telling you that the repurchase of credit is therefore an interesting financial technique for anyone planning to retire and still wants to be bound by several credits in progress. Updating the amount of the loan and setting new maturities thus makes it possible to benefit from advantageous conditions to start your retirement peacefully and make the most of this period.