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What is the repurchase of credit?
It is in principle a gathering or a grouping of all your credits (personal loans from financial institutions or others) for consumption, auto credits, and all your debts in any form to constitute a single credit with a new repayment rate, a new monthly payment (the amount you must pay monthly following your loan which of course will generate monthly interest at a given rate) and obviously a new repayment period (which can range from several months to several tens of years).
The benefits of credit consolidation
Instead of worrying about a large number of monthly payments that you have to pay, when there are budget problems or financial contingencies, only one monthly payment will remain your responsibility and this monthly payment is variable according to your preference. Then, if you opt for a monthly payment much lower than the previous one, which is allowed for a reduction of even up to 60%, you will still have a very large possibility of wide monthly savings to undertake new personal projects.
How does it work and how to proceed to obtain a loan repurchase easily?
For you to be eligible for your request to buy back credit from a financial institution, the latter will check your debt ratio (part of your income devoted to repaying all your current loans, calculated using the sum of all the monthly payments in progress multiplied by 100 and divided by your net result, together safe and regular income), that is, beyond a given limit (the most frequent is 33%), your request will not be accepted. Each bank has its own way of calculating this rate while recognizing or not a type of income such as family allowances deemed seizable or not. The institution also takes into account the borrowing capacity equivalent to the total amount that can be borrowed, found for a practical monthly rate and a given repayment term. It will also observe your net balance which at a value below a given threshold will also lead to the refusal of your request to buy back credit. To help you, there are credit redemption simulators in which you could enter all your financial data, which will be processed; finally operations, these simulators will illustrate the possibility of redeeming or not your credits. Other credit and loan simulators can also be used to make your job easier.
How to calculate the monthly payments?
You have the amount of your monthly interest (obtained by product between the amount borrowed and the given rate), multiply it by the number of months of your repayment term. Add this last value with the amount you borrow and then make the ratio with the number of months of repayment.
(1) The reduction in the amount of the monthly payments leads to the extension of the repayment period and increases the total cost of the credit. A credit commits you and must be repaid. Check your repayment capacity before you commit. No payment of any kind whatsoever may be required of an individual before obtaining one or more money loans. The simulations carried out cannot have any contractual value. The results do not in any way constitute a recommendation to do or not to do. For any financing covered by articles L312-1 and following of the Consumer Code, you have a withdrawal period of 14 days from the acceptance of the credit. For financing covered by articles L313-1 and following of the Consumer Code, you have a reflection period of 10 days from receipt of the credit agreement.
