Accumulating consumer credits to meet the expenses of working life (purchase of television, refrigerator, automobile) allows a certain daily comfort.
But it also exposes to the risk of over-indebtedness: some households have to repay many loans, and ultimately have nothing to live on a day-to-day basis.
Anyone can take out several loans knowing full well that they cannot repay any of them: the end of the month arrives, and the over-indebtedness is there. The gear quickly sets up … this is why the buyout of consumer credit was set up.
The repurchase of credit makes it possible to group these loans in only one loan, which makes it possible to merge the monthly payments into a single monthly payment and adapted to the household incomes, so as not to exceed a debt ratio of 33%. The duration of the loan is therefore reviewed according to your income and your prospects.
Usefulness of this type of credit buy-back
The repurchase of consumer credit is useful on several points: it allows you on the one hand to decrease your monthly payments of credit to allow you to have more cash, and to sustainably clean up your budget. You can also, by negotiating with your bank, lower the cost of certain credits.
This operation also allows you to spread the repayment of your debts over the medium and long term, and anticipate a drop in income. In addition, the purchase of consumer credit gives you the opportunity to carry out a new project without increasing your budget. Finally, you can start saving, by putting money aside regularly by cleaning up your personal situation.
Difference with other types of credit buy-back
The purchase of consumer credit differs from other credit purchases in that it does not require collateral. However, a deduction at source from wages can allow it to be obtained, and your banker will undoubtedly be able to give you the benefit of more competitive rates.
In addition, the purchase of consumer credit has a maximum amount, and cannot exceed 12 years. It is quickly put in place. Please note: if you are registered with the Banque de France, you will not be able to obtain one, the banks being suspicious of this kind of case.
Advantages and disadvantages
The advantages of buying consumer credit are to reduce the maturity of the credit on the one hand, but also to reduce its amount by allowing the borrower to renegotiate the interest rate at which he borrows in order to have a better rate. You may or may not change banks, so this will either be a renegotiation of credit with your current credit institution or repurchase of credit by another bank. You can moreover by this means reschedule your loan and restructure your debt.
The drawbacks lie in the payment of the repayment penalties that you will have to pay to your credit institution. You will also need to complete a number of administrative papers to format your credit repurchase.
Do not forget to call on a professional consumer credit buyout to carry out your operation: some unscrupulous credit institutions may try to offer you always more borrowing, which would lead you to over-indebtedness.
The purchase of consumer credit is a solution against over-indebtedness, but we advise you to call on a professional able to help you in this process.