Many French households and businesses today find themselves under the weight of debt. After having accumulated various loans (mortgage, car loan, personal loan, work loan and others) whose monthly payments end up exceeding them, they find themselves having to renegotiate them without always knowing how to go about it. A credit buyback is an ideal solution. But first, you have to know its principles and advantages in order to choose it better. You will discover through this article all the information you need for a good credit redemption.
Credit buyback: a good all-in-one solution
The repurchase of credit or simply consolidation of credit is a solution of financial organizations to make our life easier. It is based on a very simple principle which aims to replace by one, all the credits of an individual or a company. This allows simpler management and above all communication to a single interlocutor. The monthly payments here are relatively very small, but the repayment term will turn out to be much longer. If this solution has been widely adopted by many borrowers to date, it is because it has certain advantages.
The advantages of a credit redemption
In addition to allowing a considerable reduction in the amount of your monthly payments, the repurchase of credit has several other advantages. It allows individuals and businesses to better cope with their debts by spreading them even further over time. These individuals and businesses then gain time to breathe and stress less because of receivables. In addition, the solution makes it possible to protect against over-indebtedness, a situation which very easily leads to the FICP filing of the bank of France.
The approach used by financial organizations
To offer you a credit buyback that suits you best, the financial organization will first accumulate the total amount that you must repay at the end of your various current loans. Then, it calculates your remainder to live by subtracting your income on the one hand, your various current expenses and your reimbursements on the other. This calculation gives the financial institution a clearer idea of your repayment capacity and your degree of indebtedness. Another very important index that is often taken into account is your debt ratio calculated by making the quotient of your recurring charges (monthly payments, rent, alimony paid, etc.) and your income (salary, state aid as well as pensions received…). In addition to these parameters, the financial institution may also be interested in some of your personal information such as your profession or your family situation. There are specific budget and economic tools on the Web that will be very helpful in learning more about credit redemption procedures.
In sum, the repurchase of credit is a very beneficial solution which is offered and necessary when the number of credits becomes too heavy.