Lower Normandy is one of the French regions most affected by debt, just like Upper Normandy. Dismissal, divorce, restriction in employment, accidents in the life are the four main indicators. Moreover, Caen, Saint-Lô, Alençon are three cities affected by unemployment according to INSEE. How to get out of this difficult financial period? Is the repurchase of credits a possible option?
Debt and the region of Lower Normandy
If we look at the newsletters of the Confédération Syndicale des Familles , families in Lower Normandy with high incomes are as affected by over-indebtedness as families with modest incomes. This statement helps put an end to rumors. Debt is no longer a synonym of poverty. It is simply engendered in one in three cases to an unfortunate situation that must be faced with bravery:
- divorce ,
- long-term illness ...
If we look at the statistics issued by the Bank of United States, we can see that at the end of 2015, the unemployment rate in Calvados was 10.1%, in Manche, 8.5% and in Orne 9.8%. These ratios are high, which may explain why consumers in the Lower Normandy region encounter real difficulties in making ends meet financially. If we dig into the statistics, we see that the typical profile of an over- indebted consumer is as follows:
- average age of 25 to 35 years,
- couple situation (with or without children)
- hosted free of charge .
What to do to increase your purchasing power?
The consumer needs resources to live in good conditions. To increase purchasing power , it is necessary to lower the amount of its expenses. The repurchase of credits is a possible solution to considerably reduce the total amount of repayments of credits in progress. These can be consumer loans as well as mortgage loans. The grouping of mortgage loans with consumer loans is called mixed ( or mortgage ) credit and is only offered by certain financial institutions. The lender is entitled to demand guarantees ( co-borrower, mortgages, etc. ).
The repurchase of credits: how does it work?
The financial body allocates a sum of money to the borrower. This sum will make it possible to liquidate the current credits. Generally, it is the lender which is responsible for closing the loans with the various creditors. The borrower therefore has only one credit in his possession which is subject to a single rate . Monthly drafts are reduced and, automatically, purchasing power increases.
The repurchase of credits is a financial transaction which commits the consumer over a long period. You must therefore remain responsible by checking your repayment capacity and your ability to commit. In addition, you should know that the early repayment of consumer loans (with the exception of revolving credit) involves additional costs.