The repurchase of credit is a financial operation more and more common in France. The accumulation of loans and the increase of fixed charges can generate budgetary problems. Debt restructuring is often an unavoidable solution to finding a sustainable budget balance and finally thinking of new projects.
The interest of the redemption of credits
The redemption of credits is above all an effective way to make monthly savings. The goal is to consolidate into a single loan all outstanding loans home. As a result, it avoids accumulating several Borrower Insurance contributions, or even the costs associated with the accounts opened in each creditor bank.
Households with too much debt are struggling to meet their monthly expenses, which implies overdraft fees (flat rate agios, expenses related to late payment of monthly payments, fees associated with mail after overdrafting, etc.). These bank charges are not without consequence, they are very often at the origin of the setting up of a true vicious circle, they increase the weight of the indebtedness.
The purchase of credits is the ideal procedure to simplify the family budget. Instead of having to manage many financial charges and several accounts, this operation aims to bring everything together. The calculation of the budget is then much simpler and the financial management can finally be done serenely.
By smoothing your repayments over a longer period, the financial restructuring opens new doors to life projects and helps to cope with stress-free events. In this sense, your financial burden will be lightened. In order to best estimate it and maintain a sustainable budget balance, future events within the household (birth of a child, studies of children, retirement) must be taken into account.
Success factors for credit redemption
Some tips for a successful consolidation of credits, before accepting a proposal to buy credits, it is important to compare the total cost of receivables before and the cost of buying back credits. If the amortization period is extended, the cost of the repurchase of credit can be higher. Nevertheless, it must be ensured that it remains acceptable and that the monthly gain is interesting for you.
As part of this transaction, the loan redemption broker is a privileged interlocutor. The latter aims to find the most appropriate solution to the situation of customers with a bank specializing in buyback credits. It is therefore essential to inform him of the expectations in the context of this financial operation.
The redemption of credits requires the establishment of a new loan insurance. When submitting the proposal of the broker usually advocates an insurance contract. You should know that it is also possible to choose a delegated insurance. This can be interesting to compare the cost, while making sure to keep extensive coverage (in case of illness, disability or death).
Finally, it is important to read the final offer of credit redemption that is sent by mail. This document contains all the conditions of The Holy. The planned amount must take into account the outstanding balance of the current loans and a possible cash envelope that is paid into the credit account.