The answers to your questions about credit consolidation.
Repurchase of renewable credits
What is a consumer credit ? This term used by credit organizations includes conventional loans ( loans to carry out work, loans to finance a vehicle, loans to fit out its interior, etc. ) as well as revolvingloans ( loans which are renewed automatically when the reserve of money borrowed is reimbursed like the credit cards offered by the majority of department stores ). When a consumer takes out too much consumer credit, he quickly finds himself overwhelmed by debt. How to get out?
The repurchase of renewable credits: why?
As said earlier, revolving credits are credits granted to consumers to finance purchases . This type of permanent credit (also called revolving credit) is most often associated with a credit card (or loyalty card). The consumer therefore has cash (from $ 500 to $ 5,000) to finance his purchases that he can use in whole or in part . The principle of revolving credit is to permanently leave a sum of money to a consumer. In fact, once the borrowed amount has been repaid, the cash is available again.
Consequences of an accumulation of revolving credits
Accumulating too many revolving credits can quickly plunge you into the downward spiral of over- indebtedness . Your monthly debts are gradually becoming more important than your resources. Consequence: your bank account is found in the red. We must react quickly before the situation escalates!
The repurchase of renewable credits is a solution which will allow you to find a good financial balance .
The repurchase of renewable credits: how does it work?
Combine the loans contracted with the various creditors to make them one; here is the basis of the repurchase of credits. Here, the credit institution (or the banking establishment) offers you to take back all your revolving credits.
In theory, how does the repurchase of renewable credits work? To explain how it works, we have decided to list the process for you.
The financial advisor analyzes your debt ratio (ratio between resources and debts).
The financial advisor analyzes your current credits (revolving credits like conventional credits).
The financial advisor draws up an assessment of the situation and draws up the total amount remaining due to the various revolving credit organizations.
If the file is admissible, the financial advisor offers several offers to buy back credits with different monthly payments and durations. The financial advisor can also offer you cash to settle your unpaid bills or finance a new project.
The applicant analyzes the different offers. Tip: do not stay fixed on the amount of monthly payments. Take the time to compare to choose the most advantageous offer.
The applicant accepts an offer by affixing his signature.
The financial advisor balances all outstanding loans. The applicant has only one loan with a single monthly payment .
Making an early repayment of revolving credits is not without consequences. Generally speaking, organizations apply fees for early termination . It is therefore necessary to inquire in order to include the amount of the costs in the offer to buy back renewable credits.