Credit buyback: the advantages
The repurchase or consolidation of credits consists of merge all his credits to make one. Home loan, consumer credit, personal or professional loan are combined, with the key to a single monthly repayment each month. Redemption is possible regardless of their interest rate or the duration of the initial loans.
The main advantage of a credit buyback is to facilitate repayments by simplifying and making your management more flexible and sometimes even avoiding over-indebtedness. The grouping allows in fact a reduction in monthly charges because they are recalculated according to new deadlines. They thus become more suited to your current means and will even leave you the possibility of having a little cash. It is also practical and simplifies the daily management of your budget because there is only one global monthly payment which includes the previous ones.
Credit consolidation also makes it possible to lower the cost of loan insurance. Indeed, no need to combine several compulsory loan insurance. With only one credit, only one insurance is enough!
Attention, the repurchase of credit involves in return an extension of the repayment period, which has the effect of increasing the total cost of credit. As with any type of financial file, you will be asked for processing fees, which vary between 1 and 7% of the amount redeemed. There may also be repayment penalties and guarantee fees (mortgage, loan insurance, etc.) or even brokerage fees if you contact a broker.
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