Welcome to immo-gironde.com and consult for free all the help necessary to understand the credit consolidation as a whole, to understand the workings, the functioning and the things to do or not to do (the good practices in short ).
First of all, it is imperative to know that a repurchase of credit or a loan commits you, this is why such a decision is not taken lightly and that you must think about it seriously before taking out anything it would be.
It is our goal to explain to you the ins and outs of the repurchase of credits, for this we present to you the various banking companies and organizations proposing regroupings of loans through explanatory pages and detailed advice sheets. You also have free access to various explanatory tutorials to help you in your efforts, especially in online simulation.
A loan buyback is a grouping or restructuring of all your loans (consumer loans, revolving credit, real estate credit, car loan, personal loan, mortgage loan, bank overdraft…) into a single loan.
Banks and companies specializing in loan redemption offer solutions tailored to your situation, so you can ask a bank other than yours.
Namely: if the restructuring of credits (repurchase of credits) includes a revolving credit, the lender must offer to the borrower to repay these credits.
Is having bad credit ok? Some institutions automatically exclude real estate credit in the repurchase of credits because this is mostly the reason why lendees have bad credit. Very often, a prohibition on taking out a new loan appears in the clauses.
Article 1311-5 (law on consumer credit of July 10, 2010) governs the favorable publicity which is made around the repurchase of credits. It should not suggest that the repurchase of credits generates an increase in income, improves the financial situation of subscribers.
The consumer has a right of withdrawal of fourteen days after signing his credit redemption contract.
Who may need it or who can benefit from it?
To balance their budget and avoid an insurmountable situation, filing with the Bank of United States, indebtedness or even over-indebtedness, some households are forced to buy back credits. Over-indebtedness is a situation during which we can no longer cope with loan maturities and essential household expenses (water bills, electricity, nursery, canteen, rent, food…). Too much debt has accumulated and salaries cannot cover all monthly expenses.
- In theory, in order not to end up in a critical situation, the total credits should not exceed one third of the monthly income. -
Advantages and disadvantages of credit redemption
The advantages are significant:
- Reducing the amount of monthly payments and less straining the family budget in the short term.
- Make it possible to pay incompressible expenses (water, gas, electricity, food, canteen, etc.) while avoiding the accumulation of payment defaults.
- Have better visibility of your debts: a single loan, a single fixed-date monthly payment, a single debit date.
- Have only one interlocutor who takes care of the repayment of your credits to your creditors.
The disadvantages are numerous:
- Administrative fees for opening the loan redemption file are to be expected.
- The repurchase of credits costs more in the long term, the interest rates being relatively high.
- Additional costs which increase the total cost of the loan may be claimed: cost of insurance (death, disability, temporary incapacity for work, loss of employment, etc.).
- Guarantees are requested: a mortgage, a deposit from a third party, etc.
- The duration of the repurchase of credits can be lengthened.
- The bank may require that you open your bank account at their establishment.
- In the context of a repurchase of credits including a mortgage, compensation for early repayment of the original loan can be claimed, in particular if you change banking establishment.
It is very important in a situation of redemption of loans and over-indebtedness to reduce your expenses to the strict minimum so as not to worsen your financial situation.
Hence the alert that you can read everywhere: “a loan commits you and must be repaid. Check your repayment capacity before you commit."