To protect the consumer and limit over-indebtedness, French legislation has chosen to implement a number of rules ( Scrivener law, Neiertz law, Murcef law, financial security law, Châtel law or Lagarde law ). All these laws concern loans, including the purchase of credits. It should be remembered that the restructuring of credits is a financial operation to reduce the amount of monthly payments, but does not exclude repayment. However, for this operation to be beneficial, it is essential to handle it with responsibility. What are the risks of buying back credits?
What are the dangers of pooling credits?
- The first danger is the total cost of buying back the credits. To lower the monthly payments, the financial partner plays with two factors: the interest rate and the duration of the loan. The longer the repayment period, the lower the monthly payment. On the other hand, the total cost of credit is high. It is therefore self-evident not to focus solely on the amount of the monthly payment before committing.
- The second danger is the loss of the benefits of mortgage credit. The government has put plans in place to allow consumers to access property. It is not advisable to renegotiate its minimum rate loans (PTZ, PTZ +, 1% loan). It is also important to analyze the losses related to various government devices ( Scellier law for example).
- The third danger is unpaid debts. If you opt for a renegotiation of real estate loans, you put your real estate in the hands (mortgage your property) of your financial partner. In fact, if you can no longer honor the monthly bills, your property can be auctioned. It should also be noted that the fees charged for outstanding payments are high. In the event of recurring outstanding payments, it is advisable to file a file with the Franu Bank commission. A Franu Bank bank card leads to other harmful consequences ( banking prohibition, checkbook prohibition, etc. ).
- The fourth danger is the cost of ancillary costs. If the renegotiation of credits is intended to optimize your budget, do not forget the ancillary costs that are often expensive ( management fees, fees or claims for early repayment… ). We must learn about the laws governing the early repayment of credits. The additional costs inflate the final score. We recommend that you include your fees in your loan.
- The fifth danger is the increase of the rest to live. The borrower can earn hundreds of USD per month ( decrease the amount of the monthly payment up to 60% ). To give a more concrete example, a consumer reimburses $ 460 of consumer credit every month. He still has $ 13,500 to repay. A financial partner who buys the remaining amount at a rate of less than 10% may propose a monthly payment of around $ 220. For this assumption, a gain of 240 $ every month that can quickly turn heads! Caution! We must not fall into the vicious circle. The more resources left, the more the consumer tends to spend. We must therefore remain responsible and vigilant. Credit redemption is a product to help you stay safe, but it must not be turned into a bait to consume even more. It is better to save the surplus than to play on consumption!
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Request quotes from the various financial partners and play the competition remain your best assets. The repurchase of credits is no more dangerous than a consumer credit or the contraction of a mortgage. You just have to be responsible and careful.