Redeeming your credits offers the possibility of combining several loans or credits into one. The purpose of this method is to lower the interest rate or monthly payments on your loans so as to extend the repayment period of your loan. The repurchase of credit thus allows a renegotiation of credit in a generalized single rate and a choice as regards monthly payment as well as a preliminary determination of the duration.
How is the loan buy-back a lifeline?
The repurchase of credit is known for many advantages, in particular, for the breath of fresh air which it brings to your purchasing power. Indeed, the extension of the duration of payment of your receivables that you get thanks to the loan repurchase allows you to benefit from a single monthly payment.
This means that the normal monthly payment rates will be lowered so that you can enjoy a longer period than the average repayment.
The loan repurchase is also the solution to indulge in a less stressful management of your interest rates since you will have only one fixed monthly payment. In addition, you will be able to better control your overall cost.
What are the conditions to be met to carry out a credit consolidation?
Indeed, credit consolidation is an initiative that may be undertaken in the face of a serious financial difficulty and which can release the yoke of having a debt to several creditors. However, the repurchase of credits also presents some disadvantages such as the rise in the cost of the contracted credit.
This implies, moreover, that the drop in monthly payments gives way to a spiral the longer your loan will be in the long term and the more your rate will rise. The entity that has bought back your credits will thus total the amount that you have left to reimburse to your old creditors, added to your delay in reimbursement in addition to the other costs and potential services that you may have contracted.