The acquisition of real estate, the purchase of a new vehicle, the financing of multimedia equipment and household appliances… It is not uncommon for a household to repay several loans (mortgage, car loan, consumer credit)., etc.) and sometimes shows a maximum debt ratio. How to finance a new project if one is already very committed to several loans? The repurchase of credit makes it possible to reduce the weight of these repayments and to release a cash flow for a new project.
Household debt is increasing
According to the Francia bank, household debt rose by 5% in 2018. Historically low rates of credit have their effect, but it is also the perceived decline in purchasing power and rising prices in the stone and automobile, for example, which leads to increasing debt to own a home or vehicle. There are also other situations that cause a household to take out a loan: to finance renovation works to save energy, to have the means to make a trip, to buy equipment and materials to install a machine. child leaving for his studies, etc. A household can thus contract several credits. So what if you need to finance a new project?
Calculate your debt ratio
Washing machine down, car to change, travel for the summer holidays… The need for funding is not lacking and do not always prevent. The first step before applying for a loan is to calculate your debt ratio, the ratio between income and expenses. The level generally accepted by banks is 33% but may be higher depending on the borrower’s income. In the event of a high debt ratio, the repurchase of credit can be a solution to finance a new project.
The redemption of credit to smooth your loans
The repurchase of credit consists in grouping all of its loans into one. All types of credits can be integrated into a credit redemption transaction: home loans, personal loans, car loans, loans, revolving loans and even bank overdrafts, considered as consumer loans. This operation consists of staggering the repayment over time so as to reduce the amount of the monthly payment and hence the debt ratio. By extending the term of the loan, the amount of the monthly payments decreases and thus reduces the monthly expenses. An additional amount can then be included in the credit redemption to finance the new project. It is possible to resort to brokers specialized in the repurchase of credit who study the file submit it to the lending organizations and compare the offers that they offer him. It presents the result to the borrower who only has to choose the cheapest financing and the most adapted to his need.