Do you find it difficult to repay your monthly payments? Would you like to regain control over your finances and optimize your repayment capacity? Know that there are several solutions allowing you to lighten your monthly payments, thanks to the centralization of loans.
Through this publication, we return for a moment to the advantages of grouping credits, the main function of which consists first and foremost in avoiding the over-indebtedness box.
Centralization of loan: update on some concepts
The centralization of loans – also called centralization of loans, is intended first and foremost for debtors facing a situation of over-indebtedness or late payments. Indeed, it may happen that you are faced with several credits in progress, and therefore several monthly payments to be paid to different interlocutors. As a result, managing your savings tends to get more complex.
The centralization of credits makes it possible to overcome this difficulty because it allows the regrouping of all the credits in progress in only one. This type of loan can take many forms depending on the situation of the debtor, from mortgage credit to simple personal loan. Credit consolidation not only makes it possible to better manage a budget but to make real savings.
What are the advantages of credit centralization?
The first advantage in grouping credits is to have only one single contact available, with a single premium. You no longer have to worry about the different monthly payments remaining to pay! In addition, you make significant savings in terms of costs, and you reduce the amount of your monthly payments.
As an over-indebted borrower, you learn how to manage your assets better. Centralized credit offers many other advantages, such as having an advantageous interest rate.
What are the disadvantages of grouping credits?
Although the interest rate is advantageous in the situation of loan consolidation, this is generally done in favor of an extension of the loan or repayment duration. The borrower in a situation of over-indebtedness will, therefore, be possibly forced to give up any future project, for lack of sufficient funding.
In addition, by subscribing to a new credit organization to centralize all current credits, new compulsory handling fees apply. In short, if you want to reduce your monthly payments with a centralized loan and consolidate all of your credits (mortgage, personal loan, credit cards), it may be worthwhile to obtain the opinion of several experts in the matter.
It may, therefore, seem important to compare the different organizations with each other, through a simulation of credits, in order to obtain the best possible rate.