By definition, consumer credit is a financial loan granted either by a bank or by a credit institution to finance a consumer's projects . It comes in different forms: personal credit ( financing of a vacation project for example ), car loan ( financing of a vehicle ), revolving credit ( financing of daily consumer goods such as smartphones or household appliances and movable goods. ). Contracting a consumer credit allows a consumer to acquire a good without having to save. However, the loaned amount is subject to a higher or lower interest rate and must be repaid.
The repurchase of consumer credit: what is it?
If you are reading this file, it is certainly that you are looking for a solution to finance a new project or to reduce the monthly payments of your various credits. You should know that if the over -indebtedness rate , which is calculated according to your income and your expenses, must not exceed 33% . If this is your situation, you are considered, for financial organizations, as over-indebted. Of course, you are fully entitled to file an over -indebtedness file with the Commission of the Bank of United States. However, it is not certain that your file will be considered admissible. You should know that more than 1000 files were rejected in December 2015. We must therefore look for another solution.
In fact, how do you get your head out of the water so as not to fall under debt? The repurchase of credits can be your solution. The principle of buying back consumer loans is simple. It consists of bringing together your loans (consumer credit, mortgage or both) in a single loan. This regrouping makes it possible to reduce the monthly payments thanks to an extension of the duration of the loan. Be careful, however, some credit organizations only offer the consolidation of consumer loans, excluding real estate loans . It is your duty to educate yourself well before taking out this kind of long-term loan.
Why apply for debt redemption?
It is possible to make a request for repurchase of credits for two reasons: the reduction of its monthly payments with a reduction in the debt ratio and thus to be able to benefit from its purchasing power or to finance a new project.
- Buy back loans to reduce monthly payments
Accumulating loan on loan leads consumers into an infernal spiral that decreases their income and which, by deduction, reduces their purchasing power and their quality of life. While it is true that consumer credit can be of precious help for its projects, it is essential to assess its repayment capacity at the risk of finding itself in the delicate situation of debt. Debt is by definition a situation where the consumer finds himself at the limit of bank overdraft each month, no longer being able to have fun, but able to pay all of his debts and bills.
- Buy back credits to finance another project
The request for the collection of credits can also be considered if the consumer plans to acquire a new good . As said previously, the repurchase of credits decreases the debt ratio and, consequently, opens rights to consumer credits. It is good to remember that it is necessary to avoid having recourse to consumer credits : revolving loan, credit for the purchase of a car or a motorbike, loan to furnish your new home .
In addition, organizations can include a new loan in the repurchase of credits. This type of product is only intended to help you out and not to support you. It is sometimes preferable to postpone major projects until later at the risk of falling into the cycle of consumer credit. Purely as an indication, an indebted consumer who does not know how to manage his budget may be banned from banking .
Where to go?
There are a large number of organizations that offer credit redemption; from traditional banks ( BNP Paribas, CIC, Crédit Agricole, etc. ) to specialized organizations ( Creatis, CFCAL, etc. ), including credit companies ( Cofinoga, Cetelem, etc. ) and brokers (Empruntis, etc.). However, the offers differ from one agency to another as well as the conditions for obtaining them. You must therefore analyze your needs before embarking. There are many online simulators; now is the time to use them to compare offers like interest rates. However, we recommend that you list your resources and loads before running an online simulation . And for good reason, the more the amounts entered are correct, the more you will have an overview of the advantage provided on your financial state by a repurchase of credit.