When we mention the word “United States” , we generally forget to mention the French islands such as Martinique, Guyana, Guadeloupe or Reunion. And yet these islands, even if they are thousands of kilometers away, do belong to the French Republic. The living conditions of residents of Reunion Island are somewhat different from living conditions in mainland France. Life is relatively expensive , work is not in abundance, housing offers are limited.
As a bonus, it should be noted that one in two households is in debt ( source IEDOM ). Is debt an irreversible situation? Can the repurchase of credits really help a Reunionese household?
The IEDOM is a central bank (like the Bank of United States in mainland France). It regularly issues reports on the island's economic situation. In 2011, this financial organization reported the following facts:
- The primary source of funding for Reunion Islanders is income (salary as capital income).
- The second source of finance is borrowing.
Reunion residents borrow regularly to finance the equipment of their home. It has even been reported that consumer credit was one of the main reasons for the indebtedness (or over-indebtedness) of households on the island.
This statement is linked to other causes such as abundant unemployment or the high divorce rate . It should be noted that Reunion Island is one of the French geographical areas where the unemployment rate is at its peak. We must not forget that food is expensive. Households live mainly with local produce. It is therefore not uncommon for a household to borrow to make ends meet or to be able to buy.
Do the people of Reunion have the possibility of resorting to the repurchase of credits just like the residents of the metropolis? Is it really a good device? Reunion Island is subject to the same French regulations. The repurchase of credits is, therefore, a solution proposed by the various financial organizations. How it works ?
The principle is identical to all organisms.
The household gives the statements of the various credits to a financial advisor in order to establish a balance sheet and determine the amount of money to borrow. This value will be subject to an overall interest rate and a new repayment term will be set. The objective of this renegotiation is to allow a household to considerably reduce the amount of monthly charges generated by the loans. You don't have to be a scientist to understand the journey. Thus, if the amount of monthly payments decreases, the amount of the remainder to live increases (amount of money remaining at home after having paid all its expenses).
Extract from the official website reunion.fr
Be careful, however, some financing organizations only offer the collection in a single loan of consumer loans. This term encompasses:
- revolving credits
- personal loans
- loans to finance the purchase of a vehicle
While others are expanding their field of activity by promoting the consolidation of mortgage loans with consumer loans. In this case, you have to think about mortgaging real estate that will serve as collateral for the lending company.
For your information, for the mortgage to be legally recognized, you must go through a notary . The notary fees remain the responsibility of the applicant.
If the repurchase of consumer loans is a good idea not to see your bank accounts in the "red", it should also be handled with the greatest care . Indeed, households using this type of financial product tend to fall back into debt due to a lack of vigilance . They take advantage of the rest of their lives to consume more. To avoid diving again, it is advisable to save .
We must not forget that the repurchase of credits must remain an option to obtain a comfortable situation . In addition, the loan must be repaid. Negotiating with the financial advisor remains an important step!