How to combine your different loans into one?
The grouping of several credits into one reduces the amount of the different monthly payments. An attractive transaction, offering more short-term purchasing power and a lower debt ratio. It is a response to over-indebtedness.
However, this repurchase represents a cost that must be properly assessed to determine if the operation is a winner.
What is a “credit pool”?
As the name suggests, credit consolidation consists of combining several loans into one. Also called “credit repurchase”, “credit restructuring” or “credit refinancing”, this “credit transaction is for the reimbursement of at least two previous debts, including a credit in progress”, as specified in article R314-19 of the Consumer Code .
It follows that credit consolidation can take the form of either a mortgage loan or a consumer loan.
Indeed, it is possible to buy consumer loans (vehicle loan, works, etc.) or home loans. However, it is also possible to combine credits of a different nature. In this case, the new regulations (the Lagarde law) provide that if the share of mortgage (s) does not exceed 60% of the new loan, the latter falls under the provisions of consumer credit. Beyond this percentage, he must apply those of home loans.
What are the purposes of a credit consolidation?
Before the Lagarde law, the advertisements around the repurchase of credits boasted a reduction in monthly payments up to 60%! Since then, it is prohibited to “imply that the loan improves the financial situation or the borrower’s budget, leads to an increase in resources, constitutes a savings substitute” without indicating that this necessarily implies financial compensation.
Not all loans are eligible for credit consolidation. This is the case for regulated loans, Zero PTZ rate loans, 1% housing or even student loans.
The main interest of buying back loans is to allow the reduction of monthly payments and in fact, the debt ratio. Indeed, the borrower’s capacities could have been exceeded by an accumulation of credits or following an accident of life generating a loss of resources and difficulties in repaying.
Then, this operation offers borrowers more monthly purchasing power, a margin of maneuver intended to cover exceptional expenses, lay the foundations for a new project or benefit from cash called “comfort”.
Be that as it may, the notion of the total cost of credit before and after the credit consolidation operation is crucial.
Who to contact for the assembly of the file?
Better to be accompanied by a professional, to determine all the ins and outs of such an operation. The use of a broker specializing in credit repurchase is essential insofar as he will quickly assess the feasibility of a file with or without guarantee.
Beyond a traditional bank, there are organizations specializing in the operation of credit repurchase. The Immofinances.net network has worked for many years with the same partner specializing in credit repurchase.
Given the in-depth financial analysis carried out on a case-by-case basis, the credit buy-back transaction can prove to be under certain very advantageous conditions: lower total cost, lower rate, more bearable monthly payments.