Credit Redemption: Debt Consolidation

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In which situations to consider a credit redemption?

credit redemption

The repurchase of credit is particularly indicated in order to face a change in your personal and / or professional situation or following an unforeseen event. This may be, for example, a retirement or an accident.

Consumer loans (personal loan, bank overdrafts, loans “auto loan”, “loan work” …) and mortgages can be integrated into a credit redemption. The grouping of these debts into a single loan makes it possible, in the vast majority of cases, to obtain an immediate gain in purchasing power by the substantial decrease in your monthly payments. In addition, you only have one contact to whom you can send your requests throughout the repayment phase (monthly payments, delays, various negotiations …)

In addition, it is worth mentioning the specificity of the repurchase of a single real estate loan. It is not necessarily a question here of facing a difficult financial situation but of obtaining more advantageous terms of repayment, in particular following the failure of a renegotiation attempt with the banker who granted you the loan initially. Buying a mortgage can be a very interesting opportunity. The rates are, indeed, much lower than a few years ago. Nevertheless, this choice must be reserved for loans for which the ultimate repayment term is still relatively remote and when the interest rate differential is greater than 1 point.

Credit Redemption Guides

Credit Redemption Guides

– Benefits of credit redemption
– Questions answers
– The lexicon of the purchase of credit
– Calculate the APR Total Effective Rate
– Credit redemption simulation
– Purchase of credit cetelem

Make an informed and informed choice

When you are considering buying back credit, it is important to compare the offers on the market. Most banks and specialized brokers offer online simulations without any commitment. A reply in principle is then sent to you within 24 to 48 hours.

In the case of amalgamations or restructurings of credits, it is crucial to pay particular attention to the rate increase, the new repayment term as well as any fees and penalties. With regard to the repurchase of mortgage credit, it is necessary to verify the existence and, where appropriate, the amount of the prepayment penalty.

Lastly, recourse to the repurchase of credit should not be a way to reduce artificially its debt ratio in order to subscribe a new credit in the framework of a financial situation already badly deteriorated. Indeed, the consequences of such an undertaking can be very heavy and force the borrower to file an over-indebtedness file with the Francia Bank. This deposit results in particular the registration in the file of Incidents of reimbursement of Credits to Individuals (FICP) and the impossibility of taking out new loans in the future. It should be noted that credit repair institutions and brokers are more vigilant than in the past and systematically reject files submitted by households in a situation of over-indebtedness.

Types of credit redemption

Credit institution Mortgage Credit redemption simulation Questions answers Credit redemption that easily accepts

By grouping your credits, you can finance your work. Different types exist, namely the personal loan for small jobs (painting, tapestry, etc.), the loan allocated for the average work (kitchen, bathroom, etc.) and the mortgage for major works.

Auto loan buyback

The auto budget occupies a large share of households (15% on average) and the lease with option to buy can weigh on their portfolios. If you wish to redeem your credits to finance a new or used car, simply submit an estimate or an invoice to the financial institution.

Loan purchase of personal loan

Loan purchase of personal loan

As previously mentioned, the personal loan can be used, for example, for small jobs. It is a form of unrestricted credit and the financial institution does not know how you use it. If you have several personal loans, pooling credit is a possible solution.

Purchase of revolving credit

The revolving credit provides the borrower with a cash reserve that can be used at any time. Despite the importance of availability at all times, clients are often poorly informed and interest rates are high (over 15%). You can opt to redeem your revolving credits with the advantage that you do not pay any early redemption penalties.

Redemption of bank overdraft

Redemption of bank overdraft

The negative balance in your account may or may not be accepted by your financial institution. If you exceed the threshold, fees and fees may be charged. If you want the grouping of your bank outstandings, it allows you to gather in particular your authorized overdrafts or not.

Redemption of mortgage

Redemption of mortgage

Regarding the repurchase of mortgage, it consists of buying back your mortgage. Often combined with the loans mentioned above, the grouping consists in prepaying your current loans. You will therefore have FRA (Anticipation Reimbursement Fee) as well as mortgage fees.

Buy back your consumer loans

Buy back your consumer loans

Redeeming your consumer credit is a great way to simplify and reduce your monthly payments. Whether consumer loans, for work, for the purchase of a vehicle or bank overdrafts, a grouping of credit is possible. With a lighter regulatory framework, the purchase of consumer credit is fast and does not require a mortgage guarantee on your personal property. You will still need to be vigilant about the rate proposed by your financial institution as well as the duration envisaged. Do not hesitate to solicit several proposals in order to obtain the best conditions.

Consolidation of consumer loans and a mortgage

If you are the owner of your principal residence, you may have both home loans and consumer loans. Although these types of loans are of a different nature, be aware that it is quite possible to have all of your debts grouped into one. Depending on the proportion of real estate loans versus consumer loans, your bank may consider taking out a mortgage guarantee on your home. In any case, this will allow you to be withdrawn only one monthly payment, and therefore, to clean up your situation and review your deadlines down.

The repurchase of a mortgage

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In a context of low interest rates maintained for several years, the repurchase of mortgage has multiplied. These loan buybacks adapt to all situations: house or apartment as a principal residence, second home or rental.

This is a great way to flatten out your entire monthly budget. With a better rate, you can choose to reduce the amount of your credit term. A second possibility is to keep the same loan term while reducing its duration.

 


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