The redemption or consolidation of credits is a solution that allows you to restructure your credits in order to pay a single monthly payment. Thanks to this operation, the borrower also obtains an extension of the repayment period of his loans. Any borrower can use this option. However, this operation is aimed more particularly at certain borrower profiles for various reasons.

The redemption of credits for a family with a heavy budget

Credit consolidation is an advantageous solution for families who have little income and who have taken out many loans for the realization of various projects. With all these credits, monthly payments can weigh on the family budget and negatively impact income, the standard of living, and family balance. Thanks to the redemption of credits, you can avoid this situation. This operation allows you to reschedule the debt repayment period and reduce the amount of the monthly payment to be paid. It also prevents you from finding yourself in risky situations such as over-indebtedness.

When a family struggles to get by with its budget because of the many monthly payments to pay each month, the best solution is to buy back its credits. However, this operation comes at a cost. The overall price of credit increases with the increase in the repayment period. This is why it is recommended to any family interested in the operation to make a simulation of redemption of credits on a comparison site of credit consolidations. You will be able to have a precise idea of the amount you will have to pay in the long term. You will know in advance what you are getting into and will be aware of the steps you will need to take to comply with this new contract.

A repurchase of credits if the borrower has a high debt ratio

A creditor can also resort to the redemption of credits when its debt ratio is high and higher than its repayment capacity. The consolidation of credits is a good option when you regularly find yourself overdrawn at the level of your bank account after paying your monthly payments. By grouping all your credits into one, you can return to a normal rate or at least a low rate. The consolidation of credits allows you to extend the repayment period of your loans while paying a single and reduced monthly payment.

You will no longer have to pay several monthly installments. The one you will have to pay will be less than the total amount of the monthly payments you paid before the redemption. Over-indebtedness is a situation that can occur when you accumulate many credit charges. Having several monthly payments to pay during a month can increase the debt ratio. It is then necessary, as far as possible, to avoid accumulating credit charges after consolidation. Otherwise, the borrower risks unbalancing his budget. If necessary, however, you can opt for the redemption of credits with allocated cash.

The consolidation of credits: a solution to reduce your monthly payments

If a borrower wants to reduce the total amount of monthly payments he pays for the repayment of his various credits, the repurchase of credits is the solution. When loans are numerous, the monthly payments to be paid can weigh heavily on income. The grouping of credits makes it possible to transform several loans into one, but also to reduce the amount of the monthly payment to be paid. It also makes it possible to extend the repayment period of the new credit. With this operation, the borrower can easily have a fairly substantial rest to live after the payment of his monthly payments. This allows him to better control his budget and breathe new life into his finances.

Future real estate investor: the purchase of credits to carry out your project

The purchase of credits is an effective solution when implementing a real estate project. It is generally difficult to find the necessary funding for any project when other funds are already in progress. By grouping all your credits, you pay a single reduced monthly payment. In addition, it is possible to include a cash flow free of use in the new credit resulting from the consolidation of the old ones. You can use these new funds for the realization of your real estate project, whether for rental real estate or for the purchase of your own home.

This saves you from taking out yet another credit and having to pay another monthly payment without having paid the others. You can carry out your project without increasing your monthly payments. With several credits and a more or less high debt ratio, banks may refuse to finance your real estate project. By opting for the redemption of credits, you put more chances on your side. By reducing the number of loans, the amount of your monthly payments, and your debt ratio, you reassure the banks, which will then be more inclined to help you realize your real estate project.

Finance your wedding by pooling your credits

With the redemption of credits, it is also possible to finance your wedding. The grouping of credits into one and the reduction of the amount of monthly payments allow you to apply for a new loan, whatever the nature. This increases your credibility with banking institutions, which then allows you to apply for a new loan that respects your budget.

The other advantage is that it is possible to directly include this new loan in the credit consolidation operation. You get the funds to celebrate your union without increasing your monthly payments already in progress. On the contrary, you benefit from a longer period to repay the new credit with a lower monthly payment than the total amount of your old monthly payments.

The redemption of credits, a solution for the transition to retirement

Your financial situation changes during retirement because you see your income drop as soon as you stop working. This is a major concern for the future retiree. You usually wonder how to keep more or less the same rhythm of life, pay your monthly payments and finance your projects. Banks are also mostly reluctant to grant loans to workers close to retirement.

If you are in this situation, you can anticipate things by buying back your credits. It is an effective solution that will allow you to spend a serene retirement. With the consolidation of credits, you will have an additional cash flow that will help you compensate for the decrease in your income. You will also always be able to have a satisfactory rest to live, even after the payment of your monthly payments. With the redemption of credits, you have only one credit to repay. In addition, it is possible to use the additional cash to finance your personal projects:

travel
do landscaping work at the house level,
pay for your children's and grandchildren's higher education, etc.

Just ask for it during the buyback transaction. Instead of taking out a new personal credit with an expensive interest rate, the lender will integrate a reserve of money into the new consolidated credit. The monthly payment of this new loan is included in that of the repurchase of credits. The borrower thus proceeds to his repayment without feeling strong pressure at the level of his retirement budget.