Most of the time, to be able to honor a debt or to finance a project, we take out another loan. And so on. The problem is that at the end, we end up with a large number of credits, so several monthly payments. At one time or another, for professional or personal reasons, we are unable to meet deadlines. Suddenly, we risk having a big problem with the financial institution. Therefore, why not combine the current credits to pay only one monthly payment at a more attractive rate? Eh yes! You will have surely guessed it, we are talking about loan repurchase.
Principle of credit consolidation
Combining all the credits in progress to reduce the monthly payment, obtain a more advantageous rate and lengthen the repayment period, this is in fact the principle of buying back credit. Only, note that the redemption is a commitment and must be reimbursed. In addition, the extension of the term often leads to an increase in debt. That said, it is important to study your financial and personal condition carefully. The principle is simple: one person buys all your credits from several creditors. Thereafter, you just have to honor your deadlines with this unique person. The advantages of this procedure are numerous. If we just cite the fact that it allows you to reduce the monthly payments, which allows you to put a little money aside for possible unforeseen events.
Principle of simulation
Are you tempted? The best will be to know beforehand the amount of your future debt. To make it easier, use the simulation offered by Simulea, the online tool available to you to allow you to calculate and verify borrowing capacities. Being both free, without obligation and without registration, this tool lets you know several offers from several financial organizations in just a few minutes. Then, all you have to do is compare the offers according to your situation.