Discover the debt consolidation, a financing technique to optimize the management of all your loans.
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Debt consolidation refers to a financial transaction practiced by https://dedebt.com/ for the benefit of individuals and professionals.
It consists in grouping several credits already contracted into a single loan. This is a financing technique that has two main objectives. This method makes it possible to obtain a new mortgage or consumer credit with a rate more interesting than current loans.
In addition, the repayment period of the loan is extended thanks to this solution. It is clear that the repurchase of the loan constitutes a means of a great efficiency for the lightening of your monthly payments.
The borrower can thus free himself from the excessive monthly weight of his debts and get out of a complex financial situation. The redemption of loans is, therefore, a tool for optimizing the management of all your outstanding loans.
The interest of the grouping of credits also known as restructuring resides in its capacity to favor a reduction of the total amount of the monthly refunds. The beneficiary benefits from a reduction in monthly payments by spreading the repayment term over the long term.
Loan purchase and regrouping
Loan buyback is then a financial method that individuals or professionals can use to clean up their finances when they are in a situation of over-indebtedness.
There are many other benefits of this technique such as simplifying the management of your debt overhang. By using a credit redemption, you only speak to one person.
You only earn in time but also in money as you are no longer obliged to go to several lenders to repay your loans.
To meet the specific needs of borrowers including individuals, the different lending agencies offer two main types of credit surrenders: the purchase of consumer credit and the purchase of consumer loans.
The repurchase of mortgage
The repurchase of mortgage is certainly less used but remains an advantageous solution for people who contract mortgages at variable rates. Borrowers who use it have the option of consolidating their existing home loans into a single fixed-rate loan.
The idea is to shelter from a possible rise in rates. As for the purchase of consumer loans, it is the most widespread among households. It defines a financing technique whereby several personal loans are grouped into a single loan.
By renegotiating several loans in one go for the purpose of spreading them over time, you manage your personal accounts in a simplified manner.
Because it brings a real breath of fresh air to your finances, personal loan buy-back is a great way you can use to lower your monthly maturities in order to improve your borrowing capacity.
The purchase of professional credit
In addition, there is the repurchase of professional credit, the repurchase purchase/sale or the purchase of mixed credits.
Whatever the form in which it is presented, a loan buyback is intended to lengthen the repayment period over time by reducing monthly payments.
However, it should be noted that choosing this solution means agreeing to repay a larger debt over the long term. It is for this reason that lending institutions subject the benefit of the redemption of credits to a number of conditions.
In addition to personal data, several other criteria such as the debt ratio are taken into account when studying the file submitted by the borrower.