What you need to know about buying consumer credit
You have contracted several credits and can no longer manage your budget? The credit redemption can be the solution for you to reduce the amount of your monthly repayments. Let’s focus on this operation in the following lines.
What does a request for the redemption of credits mean? When should we do it?
Credit redemption is a financial solution that consists of substituting one or more existing loans with a single credit. This at a rate if possible lower, but repayable over a longer period, consistent with the income of the borrower.
This operation aims to reduce the overall amount of monthly payments by increasing the repayment period.
Indeed, in order to find a stable financial situation with a reasonable debt ratio, the borrower can choose to make the repurchase of credit. Depending on the drop in the amount of monthly payment he wants, he can integrate in this operation all his credits or only a part.
What are the advantages and disadvantages of a credit surrender?
The repurchase operation offers the borrower a better comfort in the management of his finances. He will be able to choose the repayment period that suits him according to his budget situation. This will enable him to know exactly when the contract is signed, the total cost of the loan and the amount of each payment.
In addition, since the new loan is at a single rate, the amount of monthly payments is reduced while the repayment period is extended.
It is, however, necessary to mention that to establish the amount of your new loan, the credit institution will add up the outstanding principal amount of the old loans as well as the prepayment penalties. Also, the longer you borrow, the higher the rate. Similarly, the total cost of credit will increase depending on the amount of credit to be repurchased.
How to apply for the purchase of consumer credit?
As with any loan application, the credit buyback operation starts with the formulation of a letter of application followed by a study verifying the borrower’s debt capacity according to its expenses and income. Moreover, an online credit redemption simulation is often available and you will be of great help. Expert advisors in the redemption of credits are obviously willing to assist you by telephone if needed.
You will then receive a contract proposal with all the terms of the new credit. If they suit you, you will only have to return the signed contract.
Note, however, that you have a 14-day cooling-off period during which you can change your mind and renounce the credit without justification or penalty.
In short, the repayment of several consumer loans is often a source of excessive debt, especially when it is associated with other planned or unforeseen expenses. Opting for the purchase of consumer credit can be beneficial in such cases.
With this formula, you can improve your purchasing power, think about the purchase of real estate or a car, make new projects, etc.