Want to see the effects of a pool of credits on your finances? (only one monthly payment, reduced up to 60%, possibility of request for cash, a single interlocutor …)
Do you plan to redeem credits? You do not know how it works? We give you some information to understand the mechanism and to choose your bank! Make a simulation via our comparator!
A redemption of credits: what is it?
Right from the Anglo-Saxon countries, the purchase of credit is a common banking practice since the 2000s in France.
This technique consists in grouping several credits into one or to deal with the debts of any household.
This consolidation aims to reduce the rate of each loan and extend the repayment period. This is a good solution for over-indebted people to rebalance their budget.
What are the credits to group?
It is sometimes wise not to group all credits together. You may face penalties for early repayments.
Projects should be considered on a case-by-case basis as only the person concerned can make a decision. In general, mortgages and consumer loans or revolving credits can be grouped together.
Moreover, it is the same for tax debts whose taxes, donations and the list is not exhaustive.
Redemption of mortgages
With inflation, the variable rates of mortgages have soared. The goal is therefore to negotiate and obtain a fixed rate, which is much more advantageous.
Caution is advised regarding the amount of interest paid. We can exclude real estate loans at a rate of 0% and loans that qualify for PLA.
In general, you have to deal first with high-rate loans, including bank overdrafts. Thresholds and ceilings exist for the owners of their homes and, depending on the case, the real estate may or may not be subject to a mortgage.
If the borrower rents a home, then the credit can not exceed a specific amount and the repayment term can not exceed 12 years.
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The benefits of buying back credits
The vagaries of life such as a divorce, a period of unemployment or an accident lead to borrowing.
We must negotiate to reduce the monthly payments. Indeed, we must not wait to avoid falling into the spiral of over-indebtedness. D
on the other hand, the interest on loans is reduced and the rescheduling of debts reduces a household’s budget. This allows you to have a new custom credit at a very advantageous rate depending on your ability to repay.
Thus, the repurchase of credits adapts to the resources and charges of each one. The purchasing power is much better and it avoids the registration with the Bank of France or even the ban banking.
Faced with revolving credits, the classic credit shows a very correct rate. The same is true for real estate loans contracted a long time ago.
Traps to avoid
Several banking organizations are competing for the credit buyout market. So do not hesitate to play the competition and track the scams.
The first thing to watch is the overall cost of the loan. In fact, by reducing monthly payments or lengthening the repayment period, this substantially increases the overall cost of credit.
This concerns the advantageous rate and the duration of the capital remaining due. Meanwhile, interest continues to run.
Then come the mortgage fees and processing fees, so the overall cost of credit is more expensive than the original one. Finally, we must also pay close attention to organizations that offer variable rates and the reputation of the broker.