With the number of over-indebted households , both banks and credit institutions have developed a new product; the redemption of the credits. There are several types of repurchases adapted to the situation and the needs of each one. How to choose your body? What are the criteria to consider? This post gives you practical advice.
Reduce unnecessary costs
Committing to a credit buyout is not a game. You have to be able to honor the debt over the term determined during the contraction of the credit. In fact, before choosing this solution, we invite you to take stock of your personal situation and draw up a summary of your financial statement. These reports will allow you, in a first time, to eliminate unnecessary charges . For example, you can:
- Earn a few USD on insurance by playing with the Hamon law.
- Reduce monthly expenses for a few months ( food shopping, leisure or clothing ).
- Ask for help from certain organizations ( CAF, Social Security, associations … ).
- Seek help from those around you
- Ladder debts ( ask for the monthlyization of taxes for example ).
Tightening one’s belt may not prevent recourse to the purchase of credits, but a significant advantage; borrow less to reduce the total cost of credit . Indeed, the shorter the duration of the credit surrender, the lower the total cost.
Define your needs
The owner does not have the same needs as the tenant? The person over-indebted by the accumulation of revolving credits will not have the same needs nor a person wishing to finance a new project. We must analyze its needs with the greatest attention by asking the right questions. What do you really need?
- Do you just want to reduce the monthly payments of your consumer loans?
- Do you want to collect your home loans with your consumer credit in order to recover purchasing power?
- Do you want to redeem your credits to lower your debt ratio and open a right for new financing?
- Once you have defined your needs , it will be easier for you to know which organization you are turning to.
Compare to find the best solution
The situation being established, it is now necessary to play the competition by playing with various credit organizations. Redeeming credits can go a long way in getting you out of debt, but the organization must not take advantage of your weakness. The use of online comparators will allow you to get quick and free quotes. All you have to do is analyze the quotes according to your balance sheets to find the most appropriate solution.