To protect consumers and limit over-indebtedness , French law has chosen to put in place a good number of rules ( Scrivener law, Neiertz law, Murcef law , financial security law, Châtel law or Lagarde law ). All these laws relate to loans, including the repurchase of credits. It should be remembered that the restructuring of credits is a financial operation making it possible to reduce the amount of monthly payments , but which does not exclude repayment . However, for this operation to be beneficial, it is essential to handle it with responsibility. What are the risks of buying back credits ?
What are the dangers of pooling credits?
- The first danger is the total cost of repurchasing the credits. To lower the monthly payments, the financial partner plays with two factors: the interest rate and the duration of the loan. The longer the repayment period, the lower the monthly payment. Conversely, the total cost of credit is high . It therefore goes without saying not to focus solely on the amount of the monthly payment before committing.
- The second danger is the loss of the benefits of mortgage credit . The government has plans in place to allow consumers access to home ownership. It is not advisable to renegotiate your loans at minimum rates ( PTZ , PTZ +, loan at 1%). It is also important to analyze the losses linked to the various government measures ( Scellier law for example).
- The third danger is bad debts. If you opt for a renegotiation of home loans, you put your property in the hands ( mortgage your property) of your financial partner. In fact, if you can no longer honor the monthly drafts, your property can be put up for auction . You should also know that the agios invoiced for unpaid bills are high. In the event of recurring unpaid bills, it is advisable to file a file with the Commission of the Bank of United States . A Bank of United States card has other harmful consequences ( banking ban, checkbook ban, etc. ).
- The fourth danger is the cost of ancillary costs . If the purpose of renegotiating loans is to optimize your budget , you should not omit the additional costs which are often expensive ( management costs, administration costs or even compensation for early repayment, etc. ). It is necessary to learn well about the laws governing the prepayment of credits. The ancillary costs inflate the final score. We recommend that you include its costs in your loan.
- The fifth danger is the increase in the remainder to live . The borrower can earn hundreds of us dollars per month ( decrease in the amount of the monthly payment by up to 60% ). To give a more concrete example, a consumer repays $ 460 in consumer credit every month. He still has € 13,500 to repay. A financial partner who buys back the remainder due at a rate of less than 10% can offer a monthly payment of around $ 220. For this assumption, a gain of 240 $ every month which can quickly turn heads! Be careful! We must not fall into the vicious circle. The more resources there are, the more consumers tend to spend. We must therefore remain responsible and vigilant. The repurchase of credits is a product to help you not to sink, but it should not in any way turn into a bait to consume even more. Better to save the surplus than to play on consumption!
Compare credit redemption solutions
Requesting quotes from various financial partners and playing against the competition remain your best assets. The repurchase of credits is not more dangerous than a consumer credit or the contraction of a mortgage. We just need to be responsible and careful .