The repurchase of credit promises a decrease of 60% of its monthly payments but is it really realistic and what are the disadvantages of this operation of bank? Response elements.
Redeem credits and lower monthly payments
It is easy to see advertising displays announcing up to 60% on its current monthly installments of credits. These communications are simply associated with credit consolidation transactions, a financing that proposes to buy back a person’s loans against a new contract with adjusted repayment terms. The redemption of credits is often offered by credit institutions, accessible directly or through a network of independent brokers.
If the purchase of credit reduces the monthly payments, it is simply that the funding agency will pay off the debts, and postpone them for a longer period. Thus, the longer the repayment period, the lower the monthly payment will be. In some cases, we can reach 60%, to the detriment of a much heavier credit cost.
Longer duration and higher cost
If the repurchase of credit announces a monthly payment divided by half and more, it is to better hide a lengthening of the duration which results in a greater total cost. We must therefore remain cautious about the decline in monthly payments because if the ability to repay enough to moderate this relief, it is advisable not to go further, to avoid doubling the cost of its repayments. These particularities are not always part of the information but it is necessary to be informed.
Beyond the cost, the repurchase of loans still allows to find a more stable financial situation and to cut short a deterioration of the budget, which can lead in some cases to a situation of overindebtedness. A situation or no banking solution is possible. The interest of the repurchase of loans is thus to leave the good foot, but being aware of both the commitment and the parties to commit to have a smaller monthly payment.
Measure the decline in monthly payments
The lower monthly payment is specific to each situation and therefore to each borrower. Credit institutions through their financial advisers will systematically review each loan pooling request to first verify the feasibility of financing and secondly the solvency of the borrower, whether alone or with a co-borrower . This canvassing can be done freely, that is to say, it is necessary to deposit a request in bank branch or then to use the websites of the specialized organizations.
It is also possible to use intermediaries such as brokers who can apply to the various institutions for a brokerage fee or commission, it is a percentage calculated on the amount of the purchase of credits. For the most skilled new technologies, it is possible to use a credit redemption using online comparators or even mobile applications dedicated for this purpose. Note that any request is absolutely no obligation of commitment and that these steps remain completely free.