Over-indebtedness does not only affect residents of the French metropolis. In Guyana, a French island, one in two households is in debt. Faced with a high rate, the Guyanese are filing more and more over -indebtedness files in the Bank of United States. Isn't there another solution to straighten out your bank account while taking advantage of a suitable purchasing power? Financial institutions offer the solution of the repurchase of credits . Let's take a look at the subject.
Guyana: a French island with low purchasing power
Guyana is an island where life is good. The tropical climate, the mentalities of the locals, the family values and the atmosphere of solidarity make this French local authority a unique place. Unfortunately, life is expensive . The majority of products ( food, energy, clothing, etc. ) are imported, which means that the prices are relatively high . In addition, you should know that the unemployment rate is particularly high. The consequence of price inflation and rising unemployment : steadily declining purchasing power. Debt and over-indebtedness are therefore frequent on the French island. How to regain purchasing power when living in Guyana? This question is controversial since the Guyanese are waiting for state aid to remedy this crisis. While waiting for the miraculous solution, many banking organizations offer the solution of the repurchase of credits. This device makes it possible to reduce the monthly repayment installments and, incidentally, to increase purchasing power.
Principle and operation of credit redemption
The repurchase of credits, also called consolidation or renegotiation of credits, is a financial concept which consists, as its name suggests, in bringing together all the credits in progress (unpaid and bank overdrafts included) in a single loan. This process offers many advantages:
- The existence of a single credit organization . The other loans are settled. There is only one single monthly payment .
- Simplified budget management.
- A reduction in monthly payments . The fact of bringing together all the credits in one makes it possible to spread the repayments over a longer period. Mechanically, the amount of the monthly payment falls.
- A decrease in its debt ratio. The amount of the monthly payment having been revised downwards, the debt ratio decreases (ratio between resources and charges).
- A single rate loan. All grouped credits are subject to the same rate.
This solution offered by the majority of credit organizations and banking establishments can really allow a household to live comfortably. Please note, some organizations only offer the consolidation ofconsumer loans while others offer the possibility of combining consumable loans with the mortgage . Find out by talking to a financial expert such as a broker (there are many in Guyana) or a financial organization offering this kind of product.
Are there other possible remedies?
Guyana benefits from the same laws as a French person living in metropolitan France. Before asking for help from a financial organization, it is possible to try to reassess your expenses by playing on the laws governing consumers (Hamon law for example) or to ask for help from social organizations such as CAF . Social organizations can grant you financial aid for the payment of rent, while the Hamon law grants the early termination of certain insurance contracts ( home, car, motorbike, etc. ) in favor of a cheaper insurance contract. Lowering contract dues can be a good idea to increase your purchasing power .