The answers to your questions about credit consolidation.
Better consumer loan repurchases
Stop the prejudices! A person in debt who has recourse to a repurchase of consumer credits is not a poor person. She is simply looking to find an intermediate solution to readjust her financial budget while increasing her purchasing power . For creditors and financial experts, these are responsible people. What are the causes of debt? What will be the benefits of buying back consumer credit? Which organization to confide in? This article answers all your questions.
The repurchase of credits; a credible solution?
Thirty years ago, a citizen who felt he was in debt had to file a case with the over- indebtedness commission of the National Bank of United States. It was the only recourse possible to freeze his debts and be able to get his head out of the water. At that time, the source of debt was caused by the accumulation of consumer loans . Today, the lifestyle of French consumers has changed greatly and the causes of debt are very different. According to statistics from the National Bank of United States, the main cause is caused by an unforeseeable accident in life such as dismissal or divorce . Its situations, which are more and more frequent, accentuate the financial difficulties. The country's economic situation also puts citizens' budgets at risk. The observation prompted the credit organizations to invent a new financial product; the repurchase of credits . This solution is nothing more or less a repayable loan that will have to be repaid regularly over years.
What is the difference with other credits available for consumption?
Here, the product does not relate to the financing of a new project (even if certain banking organizations propose it). This involves bringing together consumer loans ( credit for the purchase of a vehicle such as revolving credit taken out from a shop ) in order to lower the interest rate , extend the term and decrease the amount of monthly payments to be paid . Thus, the borrower has only one current monthly payment, which allows him to better manage his financial budget.
The repurchase of consumer loans is, above all, a solution to avoid being stuck in the Bank of United States and suffering the consequences ( ban on the use of payment instruments for example ). It is therefore necessary to make an in-depth analysis of its needs and its repayment capacity . If a consumer feels caught by the throat at each middle or end of the month, it is best not to give in to the temptation to incorporate new financing into their loan buyback.
Which organization to turn to to make this redemption?
If you are by nature a little curious, you must have noticed that hundreds of organizations (loans as well as banks) offer the buyback of consumer loans ( Crédit Agricole, Crédit Go, CSF, municipal credit, Finadéa, Cofinoga , Sofinco… ). This plurality complicates things since we no longer know which organization to entrust with its project of pooling credits.
What is a good establishment?
It is impossible to say that one organism is better than another. Everything will depend on your needs and current promotions ! What is excellent for a consumer in debt one month will not necessarily know for another the following month.
There are a few factors that can help guide you:
Check the reputation of the financial organization.
Check that the company is not in liquidation.
Check that the study of the file is not invoiced (the law requires that the study be free).
Look at the interest rate fixed (the rate must be lower than the average rate of your consumer loans before redemption).
Take an interest in the amount of the administration fees .
Focus on the various services such as the postponement of monthly payments .
By using an online comparator , you will be able to make a quick, free and efficient comparison . Do not hesitate to take this step to obtain quotes in a few clicks.
To help you in your quest, we have established a ranking of the best consumer credit organizations . Of course, this is not about advertising for any credit institution. We have just made a brief inventory of the best credit redemption organizations based on consumer opinions and the factors likely to help you make a real choice (cited above).