Repurchase of Consumer Credit: Rates, Simulation, Quotation …

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By definition, consumer credit is a financial loan granted either by a bank or by a credit institution to finance the projects of a consumer. It comes in different forms: personal credit ( financing a holiday project for example ), car loan ( financing a vehicle ), revolving credit ( financing daily consumer goods such as smartphones or household appliances and personal property) ). Entering a consumer credit allows a consumer to acquire a good without having to save money. However, the amount lent is subject to a higher or lower interest rate and must be repaid.

The purchase of credit to the consumer: what is it?

The purchase of credit to the consumer: what is it?

If you read this file, it is certainly that you seek a solution to finance a new project or to lighten the monthly payments of your various credits. You should know that if the rate of over-indebtedness , which is calculated according to your income and your expenses, must not exceed 33% . If this is your situation, you are considered, for financial organizations, as over-indebted. Of course, you are fully entitled to file an over -indebtedness file with the Banque de France commission. That being said, it is not certain that your file is considered admissible. It should be known that more than 1000 files were rejected in December 2015. So we must look for another solution.

In fact, how to get your head out of the water so as not to fall under the debts? The redemption of credits can be your solution. The principle of buying back consumer loans is simple. It consists of collecting your loans (consumer credit, mortgage or both) in a single loan. This grouping makes it possible to reduce the monthly payments thanks to a lengthening of the duration of the loan. Beware, however, some credit organizations offer only the consolidation of consumer credit excluding real estate loans. It is your job to educate yourself well before making this type of long-term loan.

Why apply for debt redemption?

Why apply for debt redemption?

It is possible to make a request for the purchase of credits for two causes: the reduction of its monthly payments with a reduction of the debt ratio and thus being able to take advantage of its purchasing power or to finance a new project.

  • Redeeming credits to reduce monthly payments
    Cumulating Loan on Loan brings the consumer into an infernal spiral that decreases his income and, by inference, reduces his purchasing power and quality of life. While it is true that consumer credit can be of great help for its projects, it is essential to evaluate its ability to repay at the risk of ending up in the difficult debt situation. Debt, by definition, is a situation where the consumer finds himself at the limit of the bank overdraft each month no longer in the capacity to indulge himself, but able to pay all of his debts and bills.
  • To buy back credits to finance another project
    Demand for credit collection may also be considered if the consumer plans to acquire a new property . As said before, the purchase of credits reduces the debt ratio and, consequently, opens up rights to consumer credit. It is worth remembering that we must avoid using consumer credit : revolving loan, credit for the purchase of a car or a motorcycle, ready to furnish his new home …
    In addition, organizations may include a new loan on the redemption of credits. This type of products is only intended to help you out and not to make you live. It is sometimes better to postpone major projects to later risk of falling into the trap of consumer credit. As a guide, an indebted consumer who can not manage his budget can be banned .

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