For many individuals, the redemption of credits is seen as a relief solution in case of budgetary asphyxiation. In addition, the redemption of credits is considered by some as a financial transaction badly seen by banking organizations. Prejudice is hard, so it is important to take stock of the difficult situations that can be solved in a financial restructuring.
Credit buyback: a boon for indebted households
Indebted households that are struggling to finish the end of the month will certainly find an answer through the establishment of a purchase of credits. Indeed, the purpose of this operation is to maintain a sustainable budget balance by reducing the household debt ratio at a respectable rate and especially with a sufficient living balance for household members.
In addition, some households with good professional income may feel that they are not enjoying it because of a heavy financial burden. The repurchase of loans is then a unique opportunity. By repaying outstanding loans in a single monthly payment and over a longer period than originally planned, the financial burden is greatly reduced. It is a new breath for borrowers who will again be able to make projects.
In addition, the accumulation of real estate loans and consumer loans generates a strong pressure on the family budget. It is a constraint for purchasing power, leisure… but also for saving. When the debt ratio exceeds 50% of income, it becomes difficult to cope with daily life so how to think about tomorrow as part of a savings. The redemption of credits is a useful tool to recover a savings capacity.
The credit buyback to rebound following a decline in revenues
When the debt capacity decreases, it may be worthwhile to solicit credit redemption to face it with confidence. For example, in the event of retirement, income is reduced (about 80% of the basic wage for employees and half for artisans, tradesmen and liberal professions). This means the reduction of the household’s debt capacity. The restructuring of outstanding loans then makes it possible to maintain an acceptable financial burden.
This fall in income can also be linked to a hazard of life. In the first place, we think of the unemployment of one of the borrowers who completely changes the family budget. If the loans have not been covered in case of job loss, the situation becomes complicated. Applying to an institution specializing in credit redemption is a solution to avoid a situation of over-indebtedness.
On the other hand, in the event of a divorce by co-borrowers, the redemption of credits is a means for the borrower who wishes to keep the property acquired within the framework of the community. The financial restructuring will therefore have to be paid to the spouse who is disengaging.
Finally, in the event of the death of one of the borrowers, the repurchase of credits is a significant aid for the surviving spouse who must honor the same borrowing expenses alone whereas before they were two.
In the end, the repurchase of credits is not reserved for overindebted households on the contrary. In case of over-indebtedness, the loan-buying broker will often be unable to do anything. It is essential to anticipate over-indebtedness issues in order to make the most of the advantages of buying back credits.