Luxembourg is a European country, neighbor of the United States. Although its economic situation is more idealistic than that of the French country, Luxembourg households still encounter financial concerns . It should be noted that in 2014, a report estimated the average outstanding loan for a Luxembourg household at $ 149,500 while in United States, the average outstanding amount of less than $ 50,000. What do the credit institutions or the Banks of Luxembourg offer to help them get out of debt ? Is the consolidation of credits possible?
If we take the time to compare the indebtedness of households in European countries on the reports of the Observatory of European Savings , we see that Luxembourgers are more and more indebted just like English households or French.
When we talk about the word “ indebtedness ”, we must understand that the household is still able to honor its debts , but that its financial situation is unstable. Unlike over-indebtedness where the household no longer has enough resources which leads to more serious consequences such as the seizure of property .
Being in debt is therefore not irreversible . You should also know that in Luxembourg more than 60% of owners are in debt. This indebtedness is caused mainly by the inflation of house prices. There are, of course, other cases such as:
- dismissal ,
- overconsumption of credits.
The report of the Observatory of European Savings specifies that an indebted household repays at least one loan.
What strategy to choose to regain a comfortable financial situation ? This is, of course, the question you have in mind as you read this article. Know that there are multiple such as:
- budgetary restriction,
- the pledge on loan,
- the loan in fine,
- borrowing from a loved one.
However, these measures are not always sufficient, or even impossible. Renegotiating mortgage loans can be a lifeline!
The renegotiation of its mortgage loans will cause:
- a depreciation of the overall interest rate ,
- an extension of the term of the loan
- a significant reduction in the monthly repayments.
The sum of these three factors increases your purchasing power . Banks (or credit institutions) also offer to combine your consumer loans in a single loan . The operation is identical to the renegotiation of mortgage loans .
Although these financial tips are partners for Luxembourg households in debt, it is important to anticipate . Indeed, the implementation of such a process, whether it is the consolidation of real estate loans or the meeting of consumer loans, has a cost. The cost is higher or lower depending on the situation:
- compensation for early repayment ,
- management fees,
- guarantees .
Before embarking, you must therefore calculate your needs and the real benefits that such an operation will provide on your family budget.
Financial experts are, of course, at your disposal to help you in this process. They know the different laws and will not agree to intervene if the situation is too critical. For the study of your needs, it is essential to provide all the information necessary for the constitution of your file . Guarantees will support your request.
To conclude quickly, the consolidation of credits of any kind is a boon to be handled with care. This transaction is a loan that you must repay. It is essential to estimate your real needs before comparing the different market proposals.