It’s easy to get overwhelmed by your current credits. If these solutions exist to facilitate the act of purchasing for households, you must be careful before contracting several and leave room for the unexpected. When this is not the case, the financial situation of the household can be unbalanced.
In order to be able to cope with the various repayments, it is possible to ask a banking establishment or a credit company to buy back all of the current credits or only a part of them. The idea is to offer a single monthly payment, over a period which has been revised upwards, to allow the restoration of a budget that has become difficult to manage.
What is buy-back credit insurance and what are the conditions?
Insurance is said to be optional, however, all banking establishments ask to take out one, especially if the credit is bought; with the extended repayment period, goes up to 144 months, or twelve years.
For the bank, it is nothing more or less than a guarantee, which allows it to be certain to review the amount it has been willing to grant to the household. If an imponderable has already managed to burden the budget once, it is not an illusion to think that it can happen again.
If two people subscribe to the credit repurchase and are therefore co-borrowers, insurance can be calculated in different ways, depending on the income of each, for that insurance; split between the two; reaches 100%.
What is important to note is that if the bank requests this insurance, individuals are not required to subscribe to it in this banking establishment and can put the competition to have the most attractive offer.
The insurance is available in 3 models: The death guarantee, the invalidity, and the death guarantee and the loss of employment guarantee. These are the first two which are mainly taken out by borrowers.
The cost of each insurance varies according to the guarantees offered, but other criteria are taken into accounts, such as the state of health of the people, their age, and the fact of being a smoker.
How do you buy back credit?
It may be useful to compare the different offers on the market, but you can also delegate this task to a broker.
By using a simulator and therefore by indicating the number of credits to be bought back, their nature, the sum, the rates, and the duration, we quickly know if the file can be assembled.
If this is the case, you will have to present to the chosen establishment all the documents inherent in the different credits, but also relating to household income and expenses.
If the application is accepted, the loans are bought back and new monthly payments, a new rate, and duration are announced so that the household can get back on track. The advantage of this system; in addition to preventing debt situations; is to offer people a new balance in finance.