By consulting this site, you have already had the opportunity to discover many types of loans. Apart from these “traditional” credits, you should also know that there are certain specific formulas. We can notably cite the repurchase of credit: an offer that few people know, however it can be useful in certain situations.
As its name suggests, this offer makes it possible to redeem the credits contracted by the subscriber. The establishment you are contacting will arrange with your creditors. You then have to repay all of the debts that have just been redeemed. Of course, the banks do not do this out of altruism, in addition to your debts, you must also pay interest.
But what is the point then?
Well, you can renegotiate the terms of a new contract. You can then reduce the amount of your monthly payments and thus improve your financial situation. You can also pay more each month to pay off your loan faster.
The repurchase of credit: a solution to get out of a situation of over-indebtedness
Since all banks make loans more or less easily, many of us have given in to temptation. Some people have taken out several loans from different credit agencies.
Although it allows you to enjoy life for a while, the fall may be particularly painful. When you borrow a lot of money from banks, you also have to pay back a lot of money (with interest). Abusing the “generosity” of banking establishments can lead to over-indebtedness.
This can be seen when the monthly payments that you have to pay represent more than a third of your monthly salary.
Many say to themselves, “I’m in debt, so what?” “
Already, having only 2/3 of your salary to live can be quite difficult, especially if you are a tenant. In the event of unforeseen expenditure, that is likely to be particularly problematic. It is often in this situation that a banking ban comes to the fore. In the absence of a sufficient balance, some people issue bad checks.
In all cases, this will be the right time to subscribe to a credit repurchase. Thanks to this, all the loans taken out will be consolidated into one and you will be able to reduce your monthly payments to clean up your finances. A debt ratio of less than 30% (your monthly payments represent 30% of your monthly salary) would be ideal to avoid possible problems. By doing so, the loan repayment duration will lengthen.
A person who receives $ 2,500 per month and who pays $ 700 (28% of his salary) in monthly payments is not considered to be over-indebted. If this gentleman loses his job and then finds a new job paid $ 2,000 per month, he becomes over-indebted. The $ 700 will effectively represent 35% of his salary.
I wish you never to live this situation. But if the spell goes on you, you already know that it is enough for you to subscribe to a repurchase of credit to save you the setting.
A credit buy-back: to pay off debts prematurely
If you can reduce your monthly payments through a loan repurchase, you can also do it to increase the amount of monthly repayments. Don’t worry! It won’t be to throw your money out the window. By increasing the monthly payments you pay, you can shorten the term of the loan. So, if you’ve got into debt for 5 years. You can agree to reimburse everything in 3 years. Of course, your financial possibilities must allow you to make this choice. As a reminder, your monthly payments must not correspond to more than a third of your monthly salary.
In this context, you have to think carefully before getting started. If you manage to generate a fairly substantial income overnight, do not hesitate to opt for this strategy. Usually, it is possible to free yourself prematurely from a loan if this possibility was mentioned in the credit agreement. Otherwise, you can always subscribe to a credit repurchase to get around this little problem.
Use a credit buyout to take out a new loan
Some people approach an over-indebtedness situation after taking out a mortgage. This credit is essential to become an owner, however, it is often a question of repaying more than 100,000 USD in more than 10 years. The subscribers do not want to lengthen the repayment period too much in order not to pay significant interest. For this purpose, many households decide to tighten their belts.
If the person has to take out a new loan, it is strongly advised to opt for a credit repurchase. The monthly mortgage payments can be reduced. Likewise, he can borrow money from the bank and the borrowed capital will be included in the repurchase of credit. It is also convenient for not following lengthy procedures and would greatly reduce costs.
Normally, to take out a new mortgage loan, you will have to pay notary fees and pay a re-employment allowance. By choosing to buy back credit, you can save money.
Find the best credit buyout offer
As with all loans, you have the option of contacting a traditional bank or opting to buy credit online. This second option is much more advisable since you can use a comparator on the internet to find the best offer.
So, how to do ?
You just need to go to a credit buyback comparator before specifying what you are looking for. The tool will then show you the formulas with the best rates in a few seconds. It’s very practical and then you don’t have to wait.
The information you collect can also be used to better negotiate a credit consolidation in a traditional bank.
How to subscribe to a credit buyout online?
You must consult the site of the bank of your choice. Fine Bank, Agree Bank and other less known establishments offer this formula.
Before signing anything, you need to do a credit buy-back simulation. It’s much simpler than you think. You only specify the amount of the loan or loans that must be bought back as well as the repayment term of your loans. You then set the monthly payments that you would like to pay each month. The page then presents you with the offer that will best meet your needs and the money you will save. I may not have told you the best The interest rate applied for these formulas is quite low.
But, remain vigilant anyway, it is better to inform yourself before making your choice. To return to the simulation, you must then fill out a form which you return to the bank. The managers send you a standard contract which you must sign and which you must return with certain administrative documents. If they assess that your financial health is good enough, the agreement will be finalized later. It takes about a week before these procedures can be successful.