Avoid over-indebtedness thanks to the repurchase of credit

Posted on February 1, 2017 by Marion

Avoid over-indebtedness thanks to the repurchase of credit

The majority of households benefit from credit to acquire goods or benefit from advantageous services. When a person accumulates several credits, it risks in the long run, to create financial difficulties . Better to prevent than to cure, the repurchase of credit will make it possible to avoid over-indebtedness.

There is over-indebtedness, in fact, when a person's income no longer allows him to pay his debts, while bearing his usual charges (rent, electricity, gas, transport, etc.). However, this situation may appear if the cumulative loan repayments become more important every month. The repurchase of credit or consolidation of credits makes it possible to pay a lighter monthly payment.

The solution to manage over-indebtedness

How does the consolidation of its credits work? The debtor (the person who has several debts to pay) will consolidate his multiple debts and present them to a financing organization . It will be a bank or a financial institution. This is an important negotiation, the debtor could enlist the services of a bank broker to help you find a credit redemption at the best rate but also to be advised and followed throughout. of the process. The debts will be negotiated with a financial institution for the latter to pay the previous suppliers.

Before committing to a credit buyback, it is advisable to have a preliminary study of your credit buyback file carried out by specialists in the field. They are Intermediaries in Banking Operations or IOB who serve as a guide in all your steps .

Adequate debt ratio

Then, the debtor must be granted a single repayment rate on all the debts. Indeed, this single rate will be used to pay less money every month, and thus allow the debtor to find available money. This approach leads to operations sometimes called buyout of consumer credit or buyback of mortgage. In return for the lowering of the monthly amount, the payment period will be extended.

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