To face a debt , the household has two solutions: file a file for over-indebtedness commission with the Bank of United States or have recourse to the solution of credit redemptions from a financial institution? Why choose the consolidation of credits? When to worry Is it really an advantage to opt for this solution? Is credit consolidation a quick fix? We take stock with you on the subject.
Quick credit redemption: good or bad idea?
You should know, above all, that filing an over-indebtedness file with the Commission of the Bank of United States is not without consequences: banks do not grant, for example, more loans which can put a brake on your projects or when you have to face a difficult situation ( divorce , death, dismissal…). To avoid this problem, banking organizations can offer you to buy back your current loans and, thus, reduce the monthly charges you have.
When should you think about having recourse to a consolidation of your credits? Here is a question that deserves a sincere answer. Indeed, reacting quickly to get out of a difficult period is essential. So, consider the idea of reducing your monthly payments when:
- The bank rejects your direct debits .
- The bank charges premiums because you have spent the authorized overdraft amount.
- You are no longer able to pay your debts on the dates set.
- You have real difficulties in meeting your basic needs ( buying food for example ).
- Receipt of a formal notice or even a mortgaged property likely to be auctioned.
The repurchase of credits is a fast option which, by reducing the amount of the monthly repayments of credits in progress, increases your monthly resources and thus increases your purchasing power. Of course, a banking establishment cannot offer you this possibility if your over -indebtedness rate is too high. Hence the importance of not waiting too long before reacting. The accumulation of bad debts only increases the severity of the financial situation you are going through.
Who can use credit consolidation?
In general, loan consolidation is open to everyone, tenants as well as owners, TNS as civil servants or employees. People in the Bank of United States can also claim it under certain conditions.
In short, the repurchase of credits can be considered as a solution to optimize its budget . The fact of obtaining a new loan at a fixed rate from a single interlocutor offers flexibility in the management of budgets.