REPURCHASE OF CREDIT
Too many charges every month? And if you combine your loans and debts to pay only one monthly payment … The objective? Reduce your debt.
The grouping of loans (or repurchase of credit) meets several needs: reduce debt, regain purchasing power, invest in a new project or anticipate retirement.
«EFINANCE LTD» teams support you at each stage of the operation, advise you on possible arrangements and help you benefit from the best refinancing offers.
The repurchase of credit consists in regrouping in a single loan at reduced rate all your monthly payments of real estate credit and / or consumption (mortgage, personal loan, auto loan, revolving credit, tax debts …). The operation is carried out by a specialized establishment which balances all your current loans before offering you a single loan. You thus regain purchasing power.
Also known as credit consolidation, debt restructuring or refinancing, this transaction allows the borrower to reduce their monthly payments and thus reduce their debt ratio.
How does the credit buy-back work?
Your monthly charges are too heavy and you want to redeem your credits? Here is the principle of grouping loans:
1. You make a request for credit consolidation with a bank or a broker;
2. The latter contacts you and gives you an answer in principle;
3. You provide the documents requested for the preparation of the file;
4. A loan offer is sent to you. You sign it and then send it back;
5. The credit repurchase organization is responsible for contacting your creditors in order to repay your loans;
6. You only pay one installment. You reduce the level of your monthly payments.
Why carry out a credit consolidation?
The repurchase of credit makes it possible to:
• finance a new project. By reducing your monthly payments and your debt ratio, you find financial solvency, increase your living income and can thus invest in a project that is close to your heart (a real estate purchase for example);
• regain savings capacity. With the savings made on the monthly payments, you put money aside;
• reduce your expenses that have become too heavy, for example due to too high monthly payments, tax delays or a drop in your income (following a divorce, death or retirement …).
• get a better rate if the credit rates have dropped significantly since the signing of your current loan, and the loan repayment rate lowers the cost of your loan.
Types of credit repurchase.
There are 2 types of credit repurchase: consumer credit repurchase and mortgage credit repurchase.
The purchase of consumer loans.
First possibility, with the repurchase of consumer credit you only group your consumer loans. All types of consumer loans can be bought back: personal loan, work loan, car loan, leisure loan, revolving credit, etc. Tax debts and bank overdrafts can also be taken into account.
Once all your loans are combined into one, you decrease the level of your monthly payments. This one-time loan is considered consumer credit. Its repayment duration varies between 5 years (60 months) and 12 years (144 months).
The repurchase of mortgage credit.
The operation includes a mortgage, in addition to consumer loans. We talk about grouping “mortgage” credits because the establishment requires that you take out a mortgage on your property. This guarantee allows him to protect himself against possible problems of non-reimbursement.
The repayment duration of a home loan repurchase generally varies between 5 years (60 months) and 35 years (420 months).