Do you have at least two credits at your disposal? Do you want to group them in order to simplify and rebalance the management of your budget? Credit consolidation is your financial solution. http://www.bodasms.com/payday-loans-consolidation-read-more-about-payday-loan-debt-consolidation/ has more information
What is a credit consolidation?
Credit consolidation, also called credit repurchase, is a financial technique consisting in consolidating different debts and different credits. The borrower combines them into a single loan rescheduled over an extended period. He therefore no longer assumes a single monthly payment in which the monthly repayment charge is reduced. It is a solution which aims to respond to a situation of over-indebtedness. Its goal is to reduce the overall amount of monthly repayments. Credit consolidation can lead to a reduction in monthly payments but by extending the repayment period.
This financial technique consists of replacing one or more already existing credits with a single credit. All this with a lower rate if possible, but depreciable in line with the income of the borrower. Thus, individuals can try to find viable solutions to their successive debt.
There are four types of repurchase of credit namely the repurchase tenant – the repurchase real estate – the repurchase of professional credit and the repurchase of credit by purchase / sale with repurchase.
There are several types of credit consolidation fees. We find the administrative costs of the bank that approves the financing, there are also the guarantee costs (mortgage or guarantee), the costs of early repayment of previous credits. Intermediation fees if the borrower goes through an intermediary in banking operations and payment services. If the home loan is one of the various loans combined, the borrower will have to pay the notary fees. Finally, the increase in the repayment period may lead to an increase in the total cost of the credit.
What are the advantages for credit consolidation?
Credit consolidation is above all a financial solution for borrowers in successive debt situations. This is a flexible loan that perfectly suits your needs and your situation. This financial technique offers an opportunity to review the monthly payment and / or the duration of the credit held in another organization. It makes it possible to group together in one loan several credits in progress, and this at a fixed rate. It also offers the possibility of financing new affected projects and making improvements to your savings capacity thanks to the simplification of the budget.