With the historic drop in current rates, many French households have taken advantage of the advantages of buying back loans to reduce their monthly payments and find a more balanced budget. Allowing you to group all or part of your consumer loans, revolving credits, mortgage, and other debts, the repurchase of credits has not only the advantage of leaving you each month a more important living, but it also allows you to request additional cash to fund new projects. Explanations…
How does the credit buyback work?
The repurchase of credits is a financial operation that consists of redeeming all or part of your old credits to replace them by a single loan on more advantageous conditions, whose monthly payment will be lower than the total of your previous repayments, for the most often an extension of the duration.
It can relate to several consumer loans such as revolving loans for personal loans, restricted loans. It can also make it possible to combine one or more mortgage loans with other loans in progress.
By this operation, you can also redeem other debts at the same time as your outstanding loans, such as late taxes or rents, family debts, amounts due to bailiffs, or bank overdrafts.
What are the advantages of buying back credits?
The first advantage of buying credit is that it allows you to take advantage of cheaper rates for the consolidation loan that replaces your old credits.
You will thus have the opportunity to gain purchasing power by reducing your monthly payments (more often by also extending the duration of your loans.)
It is therefore a great way to find a balanced budget by reducing the sum of your monthly repayments. It is also a good way to protect yourself against any risk of over-indebtedness.
After a loan repurchase, your financial situation is restored, you can for example also consider applying for a larger mortgage for the purchase of your home.
In addition, in addition to reducing your monthly repayments, buying back credits allows you to greatly simplify your management because you only have one line of credit left.
Finally, another major advantage, you can ask to include an additional amount of money in your loan buy-back.
Finance new projects with additional cash
When you submit your request for credit repurchase, you will have to establish the list of your credits, including those which you do not wish to redeem. At the time of this request, all the forms of credit institutions will ask you whether you want to obtain an additional amount to be included in your loan repurchase.
This additional amount can take the form of extra cash which will allow you to replenish your security savings. Limited to a maximum of 15% of the amount of credit repurchase, this is unrestricted cash, free to use, which will be released upon signature of the credit repurchase.
You can also request an additional amount to finance a particular project, thus avoiding the costs associated with a second loan.
For example, you use this amount to buy a car, finance work in your home, or even acquire household goods.
In this case, the amount will be included in your credit redemption and you will be asked for proof, paid quote or invoice, before the funds are released.