Published on : 03 March 20203 min reading time
Anyone can apply for a credit repurchase in the face of financial difficulties. This technique is a very effective way when a household is over-indebted. It makes it possible to group together only credits with a single due date. The aim of this grouping is to reduce the borrowing rate and extend the repayment period. It helps to balance the budgetary situation of a family and over-indebted individuals.
The different types of credit repurchase
Credit repurchase allows you to take advantage of various privileges in order to improve a household’s financial situation and divert over-indebtedness. This operation can take various forms, including consumer repurchase and mortgage repurchase. Consumer credit repurchase includes credits defined to carry out work, personal loans to pay one-off expenses, as well as car loans for the purchase of a new car. Revolving loans are also included in this type of grouping. If you combine certain types of loans, this is particularly effective in simplifying budget management and allows you to save considerably by grouping together in a single loan with a single maturity date. Since the amounts of consumer loans are small, the repayment period is therefore limited. As for the mortgage repurchase or home loan repurchase, this is one of the most common types of credit repurchase, and it contains some differences from the consumer credit repurchase. This type of repurchase has special features in terms of repayment period and amount. Buy-back can combine several mortgages in order to enjoy the most attractive rate of loan repayment with the appropriate repayment period.
The prerogatives of the credit repurchase
As part of the credit repurchase, it is possible to include all the credits in a single loan with a single and advantageous rate. This operation provides a solution to balance the family budget. In this respect, the monthly payments will be lowered to better adapt to finance. This aspect makes it possible to increase the purchasing power and optimize the cash flow of a household. Credit repurchase helps to remove the risk of over-indebtedness and to simplify financial management. In addition, knowing that he has only one monthly payment from one creditor, he can acquire a single borrower’s insurance.
Complications of credit repurchase
Credit consolidation has disadvantages in the transaction. The amount repaid will be lower monthly but the repayment period will last longer and at the end the amount repaid will become larger. In addition, the various fees and especially the file fees will have to be taken into account in the process. Finally, without neglecting early repayment indemnities and insurance premiums.