Over the years, but sometimes in the space of a few months, consumer credits have accumulated. How to deal with all these monthly payments without this becoming too heavy for the household purse? How to simplify the management of your budget? The answer may lie in the redemption of credits, which provides a stable solution. To best anticipate the consolidation of all its loans and provide the most appropriate monthly payment, it is best to use online simulation tools. By choosing a repayment period initially, it is possible to have a first estimate of the monthly repayment of credits, even in the long term. A good way to better prepare such an operation.
The benefits of buying back credits
One of the first benefits of credit redemption is that it greatly simplifies budget management. The establishment of a single credit to be refunded with a single monthly fixed date avoids the various monthly withdrawals on sometimes different dates throughout the month. The consolidation of all the loans makes it possible to settle all the credits in progress, a transaction which will be charged to the bank or the lending organization which granted the redemption of credits. The sole interlocutor of the borrower, this financial institution will deduct from its account the single monthly payment on a specific monthly date stipulated in the contract. Account management is simple and the calculation is quick, no need to keep a record of all monthly loan withdrawals.
Another advantage of the redemption of credits is to be able to reduce the amount of the monthly repayment. With several credits subscribed, personal loans that do not require supporting documents, allocated credits (car, motorcycle, work, etc.), revolving credits, store card loans, etc., rates can sometimes reach new heights. A general decline in interest rates has occurred in recent years and the curve has not yet recovered, so it is still time to take advantage. This overall decline in borrowing rates makes it possible to see great opportunities on the credit buyback market and the single monthly payment put in place can in some cases fall by up to 60% compared to the interest rates of the previous loans. The decrease in the monthly payment, however, implies an extension of the repayment period, which results in an increase in the total cost of the new credit subscribed.
The redemption of credits helps to gain financial comfort and free up the budget. This will allow to find more ease but also to enjoy more life, to find a savings capacity or to consider funding new projects. Renewable credits that are particularly expensive with very high interest rates can be easily cleared through the redemption of credits: the fact that the money reserve is renewed as soon as there is a use, makes it difficult to get rid of it.
For a redemption of credits is interesting
Credit redemption is a proposed banking operation either directly by a bank, or by a credit institution, or by specialists who are intermediaries in banking and payment services. To be justified, it must include at least two credits, one of which may be a home loan and the other a consumer credit, or both in each category. For it to be interesting, however, it is noted that it is from three loans that it is worth it. Its primary objective is to enable the borrower to benefit from a lighter monthly payment. From the outset the borrower knows the amount of the monthly payment since the borrowing rate is always fixed. The repayment period is also known from the signing of the contract, it is its lengthening that will reduce the monthly payment. The conditions are all established beforehand and the borrower is warned that the total cost of his credit is impacted by these different elements.
To best anticipate these monthly payments, the simulation tools are very effective. Each month the credit, which includes all the loans redeemed, is repaid on a fixed date with a single amount.
Online credit redemption simulation
The redemption of loans is available to owners and tenants alike, to civil servants as well as to employees, executives and non-managers, retirees and the liberal professions. The online simulation is done in a few clicks, it is free and without commitment. The mode of operation of the simulation is very simple because it is enough to fill a form in the most complete way possible. So the consultants and analysts who receive the request will be able to offer the best possible offer as well as the best rate.
It is possible to include all types of loans, real estate loans, consumer loans, mortgages, revolving loans, but also bank overdrafts or other forms of debt such as delays in a loan buyback application. rent payment or income tax. A need for additional cash can be granted and included in a credit buyback transaction.
Regarding the purchase of real estate loan, some high-performance simulation tools take into account in the proposed result the additional costs. These are notary fees that are variable for example in the case of a mortgage with mortgage or in the case of a guarantee by guarantee, but also the prepayment fees which are of the order a maximum of 3% of the outstanding capital.
Online simulators are generally reliable, as much for the purchase of consumer credit as for real estate loans because they accurately give all figures related to future credit. Based on the average rate practiced, a simulator is able just with the indication of the amount of the loan and its desired repayment duration, to define a monthly payment. In this, it is an excellent tool to guide his choice and especially to check if the project is viable.
The result obtained is based on the APR (annual percentage rate of charge), which includes all costs related to the proposed credit. It therefore includes the application fees, the nominal rate and the insurance costs. The comparator makes it possible to visualize concretely the possibilities of obtaining a credit and the methods of its refund. In this sense it gives an overview but also allows to adjust and adapt its request according to its needs and possibilities.
The calculation of the monthly payment makes it possible to anticipate the daily life of the borrower, so he will be able to know in advance the amount of money he will always have to pay for his expenses every day, and adjust his amount accordingly.. The simulator also makes it possible to compare the various offers and make a good choice. It automatically directs towards the best offers and thus allows the borrower to orient himself and to have a competitive intelligence.
In general, an advisor comes into contact with the applicant to take stock of his / her expectations and needs, in order to be able to propose all conceivable solutions, and then to send an offer to buy back credits.