The accumulation of credits can in a short time lead to over-indebtedness if you do not take the necessary measures in time. For purposes of a less difficult month, the solution is the redemption of credits or pooling of credits.
The repurchase of credit is a financial transaction that brings a restructuring of all your debts, in order to obtain a single less heavy monthly payment of up to 60%.
Such a decline is the result of the added effect of a lower rate and an extension of the repayment period.
The procedure is, however, subject to exceptional conditions and is not always open to all indebted persons.
Two situations can occur:
- Either you are in debt, so you have control of your expenses,
- Either you are bad debt that is to say that it is difficult for you to finish the month due to monthly repayments which become too heavy a burden.
It should be noted that the acceptable debt ratio (which is the ratio between the percentage of fixed charges and income) is 33%. But it can be higher if the incomes are larger.
The debt thus depends on the borrower: the rest to live depends on the level of income. So it is weaker and the rate of rest to live is important.
Bad debt must entail a regrouping of your credits in order not to plug in overindebtedness. A credit surrender is like any credit a commitment. In order to benefit from the repurchase of credits, that they are of consumer credits like real estate credits, you are led to constitute a file in conformity with the demand. For all your questions regarding the conditions of obtaining you can use our credit redemption forum or the comment area of this page.
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You must provide evidence that your financial situation is sound. This means that you are not in two situations:
- You are not on file with the FCC or the central check file. This department lists all issues of checks without provisions but also excessive users of a credit card;
- You must also not be registered with the FICP or the personal credit repayment incident file. It is managed by the Banque de France. This directory includes anyone who has been unable to repay their credit without having filed a file with the commission of over-indebtedness, which is the procedure that sometimes follows the registration to the FICP.
The supporting documents that you will need to communicate include pay slips, employment contract, regular non-professional income, last tax notice, bank statements, current loan schedules, rent receipts for a tenant, real estate assets if you own.
In the case where you are under a fixed-term contract, the purchase of credits is guaranteed by the duration of the employment.
You must also provide copies of the original documents, which will allow you to repeat the operation at several organizations.
You must have collateral (mortgage and/or guarantor)
The organization that validates your payday loan consolidation application will require collateral to avoid the risk of delinquency- dig this. Among the types of collateral is the mortgage of one of your real estate or a guarantor who could stand surety in the event that you do not own.
The mortgage is a notarial deed that is subject to the legal rate of land registration. This rate is 0.715% of the loan amount. The cost of the body that endorses, is included between 2% and 3% of the value of the loan. The guarantee fee may be included at the borrowed value instead of being withheld at the signing of the notarial deed. If the credit redemption request is more than € 80,000, you are required to be a real estate owner or in the process of acquiring owner status.
The age criterion
Age is an important criterion for validating an application to buy back credits. Your age must not exceed 75 years at the time of application. The loan will also need to be repaid before you turn 85 or 80 for some lenders.
Subscription to borrower insurance is the most important condition to an agreement of your new loan if it includes a mortgage. Such a guarantee is the loan repayment cover if you are in a situation of disability, work stoppage or in case of premature death that is to say before the end of the contract.