When do you really need to restructure your credits and debts when you are a tenant?
Up to 35% of debt, it is accepted that one is not “too much in debt” and beyond it can be considered that one presents a risk. This percentage of indebtedness is to be modulated according to the height of its income, it is understandable that for comfortable incomes the% of indebtedness will not present the same gravity as for more modest incomes. The over-indebtedness situation occurs above 50%.
The Certain Signals That Should Alert You To Take Action:
- Are your credit payments clearly too high?
- Are your personal loans, reserves and revolving credits exhausting your income?
- Are you risking a file at the Banque de France, or are you already?
- Do you have tax delays or even co-ownership charges?
The banking solution to buy back credit is undoubtedly a good solution.
How does the tenant loan buy-back work?
Tenants are people who occupy housing for which they pay rent. They generally do not have real estate. This status does not prevent them from subscribing to consumer loans (car loan, revolving credit, study loan, etc.). It is even common to find tenant borrowers who accumulate up to ten or more bank loans. They choose this financing solution because it allows them to have the desired property without having to pay cash. However, some of these borrowers do not take the time to properly assess their repayment capacity.
They thus sometimes go into excessive debt beyond their repayment capacity. The causes are many. Either they use their credit and debit card without taking their expenses into account, or they cannot build up savings or they have not respected the established budget. This situation affects their finance because it can lead to bank overdrafts, rejection of direct debits or even FCC or FICP filing.
To avoid worsening the situation, these borrowers have an interest in opting for a repurchase of tenant credit to restore the balance of their budget. The operation of this assembly is simple. You just have to ask a bank or a purchasing organization that agrees to combine its various current consumer loans into a single loan. To do this, the competing bank buys these loans from the borrower’s former creditors so that they can be grouped into one with a single interest rate.
This rate is generally fixed. The difference with a traditional loan is that the repurchase allows the subscriber to benefit from a softened monthly payment adapted to his repayment capacity. The reduction of the single monthly charge can reach 60%. Concretely, if the tenant had to pay 1,200 USD per month before the operation, he will only have to reimburse 720 USD after this installation.
Thanks to this significant drop in monthly payments, the subscriber can regain balance in his budget and can even save a little money.
To be able to implement this reduction in monthly payments, the redeeming bank must however spread the repayment duration of the redemption over approximately 3 years.
The repurchase of tenant credit also allows the candidate for repurchase to benefit from a sum of money which will be integrated into the refinancing. This optional envelope called “cash” will have the same rate and the same monthly payment reduced by the redemption. It does not require payment of application fees or borrower insurance.
Finally, note that to implement this financial solution, the subscriber can contact a bank or a financial organization directly. But if he wishes to access a tenant loan buyout in the shortest possible time, while earning substantial gains with the operation, he has an interest in calling on a buyout broker.