The repurchase of credit groups together all or part of the loans in order to be able to better manage its repayment schedules. Also called debt restructuring or consolidation of credit, the repurchase of credit gives the opportunity to the indebted households to lower the debt ratio while modifying the duration of repayment. Households that take the plunge nevertheless do so for different reasons: here are the 3 main ones.
1. Have only one monthly payment
A household that has taken out several loans whose repayments are still in progress risks spending a lot of time doing the administrative work so as not to get lost. And the slightest giddiness can strike a blow to his budget. Part of the French opt for the repurchase of credit in order to simplify the things and to have a better visibility of long term.
Indeed, with the repurchase of credit, the household treats with only one organization of loan and has only one and same date of withdrawal, which enables it to be able to anticipate in the event of difficulty.
2. Reduce the overall amount of monthly payments
The vast majority of French people who decide to buy back credit do so to reduce the overall amount of their monthly payments. The counterpart is that the repayments will be spread over a longer period which, overall, increases the total cost of the credit.
But households sometimes prefer this solution so as not to find themselves in a situation of over-indebtedness during difficult months and to have less pressure on a daily basis with lower monthly loan payments. It is a real breath for daily cash and the rest to live!
3. Avoid a situation of over-indebtedness
Households which have a lot of credits in the process of being reimbursed can quickly find themselves in a situation of over-indebtedness in the event of a large unforeseen expenditure (accident, breakdown of an expensive household appliance or of the car, studies, etc.) or mismanagement. The repurchase of credit gives a clearer vision and lightens the repayment in the short term.
This allows you to balance your accounts, thus avoiding the agios and the vicious circle of over-indebtedness that follows, and which can lead to seizure of wages in particular, as well as the recording in the file of incidents of payment of loans to individuals (FICP).