Consolidation of loans
Consolidation of credits: a single loan at a reduced rate!
You took out a loan a few months ago to finance a rather expensive computer? Do you own a home bought on credit? The same goes for your car? You have started work in your home with a loan work that you are still paying? Are you drowning in an astronomical amount of different loans and you can not find it? Your monthly payments are too high compared to your income? And if it was a solution? Discover the grouping of credits and breathe again!
Do not pay more than one lighter monthly payment: turn to the credit pool.
Consolidation of credits: instructions for use
Loan consolidation was previously called ” buyback of credits “. Credit Restructuring and Credit Consolidation are also terms that can be used to designate credit pooling.
Credit consolidation started in the eighties. It is mainly aimed at people or households in a situation of over-indebtedness. It consists in closing the various loans in progress by paying down their capital and then replacing them with a single credit, at the different lower monthly payments, payable over a longer period. The purpose of pooling credits? Stop the hellish spiral of over-indebtedness.
There are two types of loan consolidation:
- The consolidation of consumer credit : the consolidation of consumer credit, as the name suggests, includes all your consumer credit, namely auto loan, personal loan, work loan, holiday credit, credit studies, etc.
- Consolidation of real estate loans : the explanation is in the title, that the consolidation of real estate loans only relates to real estate loans.
The benefits of pooling credits
Now let’s look at the benefits of bundling credit :
- Lower monthly payments : the main advantage of pooling credits is to see your monthly payments melt like snow in the sun. Since the total sum due is distributed over a longer period of time, your monthly payments are logically reduced.
- A single expiry date : you have to pay your car credit every 15th of the month, your loan works 10 days earlier and your holiday credit 2. With the loan consolidation, since you are no longer the holder of only one debt, so you only have to worry about one deadline.
- A single interlocutor : in the same vein, you will also deal with only one interlocutor.
- A serene management : a single deadline, a single interlocutor, that should relatively simplify the task. No more drowning under the bills!
- Stop the spiral of over-indebtedness : thanks to lower monthly payments, you can live more comfortably, without the risk of having to take out new loans to pay the old ones. Say stop to the spiral of over-indebtedness.
- Increased purchasing power : once again, thanks to these reduced monthly payments, finally benefit from your hard-earned money rather than spending all of your salary to repay your debts.
- A cash that gets a smile : the pooling of credits is also an opportunity to have more liquidity. What could potentially start saving again!
New goals in perspective
Whatever loans you have contracted, thanks to this new organization allowed by the consolidation of credits, your accounts will be in balance again. While pooling credit not only allows households in debt distress to get their head out of the water, it also allows them to consider certain goals that were once considered unachievable.
The credit grouping guide
If you have too many credits, your debt ratio may be too high. In other words, your income is no longer enough to pay your debts. You can then opt for a pool of credits, regardless of the nature of your different credits.
Consumers who turn to credit consolidation are not necessarily compulsive buyers. We can all, one day or another, face a decline in income no longer allowing us to honor our various debts. Loan agencies and other banks, as you may know, do not tolerate late payments. In this type of case, the grouping of credits is therefore an interesting option.
How a credit centralization works
After taking out a car loan, a mortgage loan, an education loan, or even a holiday loan, you find yourself in the throes of your multiple debts, debts that you can not pay back against your income? By grouping these different credits into one single loan, you offer the possibility of reducing your monthly payments, while paying for a longer period than originally planned. Your expenses are lengthened and you find the possibility of living decently.
The grouping of credits or repurchases of credits thus consists of an alternative aiming to lighten your burdens, to limit the accumulation of the interests, while avoiding the problem of over-indebtedness.
The benefits of the process
Realizing a pool of credits is a relatively simple process. The process offers a single credit, a single interlocutor for a single and fixed monthly payment, known in advance. The amount of your monthly repayments will also be adjusted to your income. In fact, the monthly payment will be calculated according to your repayment capacity.
It is now the single point of contact who will take care of the credit payments with the old lenders when you will only have one more debt to pay.
Warning: despite lower monthly payments and a lower rate, the total cost of the new loan may be more expensive.