A personalized debt consolidation according to your budget

19 Jun

With more and more credit offers on the market, many people may be tempted to use these means. They want to realize faster projects that are important to them. Customized according to your budget a repurchase agreement.

It must be recognized, however, that taking the decision to contract several loans is not without risk: with the vagaries of life and the difficulties in managing the monthly payments, the borrower may have difficulty in paying his debts. The idea here is to direct borrowers towards the repurchase of credit and to restructure their loans taking into account the budget available to them.

The importance of grouping your appropriations taking into account your budget

The importance of grouping your appropriations taking into account your budget

When a person contracts a single personal loan, he can probably easily adjust his monthly payment every month, while having enough money to meet his daily needs. This can be different when an individual contracts more than one credit. With multiple parties and different interest rates, managing monthly payments can be complicated.

A borrower may have difficulty balancing expenses in proportion to their income. To avoid the risk of over- indebtedness, nothing beats a debt consolidation that will allow the borrower to restructure his monthly payments according to his ability to repay. Initially, an individual’s credits are redeemed by a financial institution.

Takeover offer tailored to your needs

Takeover offer tailored to your needs

Thereafter, the institution with which the borrower wishes to obtain the credit repurchase agreement will be responsible for providing him with a redemption offer adapted to his needs. To do this, a careful study is done by the credit institution and many points will be taken into account. To ensure that the repurchase offer is tailored to the needs of the borrower, the repurchase agency will not hesitate to ask for more information.

Among this information will be the details of all the income received by the borrower during the month (family allowance, pension, rent, salary…) and the expenses that the borrower has to pay every month (food, electricity, rent, fuel, study costs, monthly payments…). It is important for the credit repurchase applicant to also mention the various loans he has underway ( consumer credit, revolving credit, loan work…).

This will allow the financing institution to tailor the repayment terms to the actual needs of the client. It may be that the borrower wants both to quickly get out of debt while paying a low monthly payment. To be able to reduce monthly payments, the credit institution will be forced to extend the repayment period.

Manage your budget well after buying credit

Manage your budget well after buying credit

When requesting credit redemption, it is important for the applicant to perform several simulations with different banks. Simulating loan will give him the opportunity to spot the credit buyback offer that will provide him with the best interest rate and the most flexible terms in terms of repayment.

Once the credit buy-out contract is concluded, it is up to the borrower to take advantage of the situation to rebalance his finances. Ideally, he would take advantage of the situation to put money aside to finance his future projects.

After the repurchase of credit, the individual will have to refrain from subscribing to new credits, to avoid increasing again its rate of indebtedness. A financial advisor is always a great help to teach the borrower to better manage his finances.

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