First, it is important to understand the difference between renegotiating credit and buying back credit
To renegotiate its credits is to look for a lower interest rate than the current rate of its credits. In this case, what the borrower is looking for is to assess the overall cost of the transaction. Redeeming one’s credits means looking for a monthly payment that is lower than the sum of the current monthly payments with a lower interest rate, but longer than the initial loan. Unlike renegotiation of credit, we do not calculate in terms of overall cost, because the longer the duration, the higher the cost.
Depending on the type of credit consolidation, the duration of the loan may vary
For real estate financing, the duration can be concluded on 60 months minimum is 5 years and on 420 months maximum is 35 years. For purchase of consumer credit, the duration will be proposed over 12 months minimum is 1 year and 144 months maximum is 12 years.
Credit consolidation, credit restructuring, loan redemption are different terms referring to the same operation consisting in contracting a new loan offer with a new financing plan and a new amortization plan adapted to the needs of the borrower. and especially its repayment capabilities. The money obtained by this new loan allows the repayment of all existing credits, to obtain a single monthly payment, unique, lighter.
This solution makes it possible to quickly improve the financial situation of the borrower by the immediate removal of the various fees collected by the banks, for people tight in their budget and driven by excessive repayments of credit revolving, LOA, LLD, credit affected, personal loan, etc … with rates of up to 20%.
The redemption of credits is the quick and effective solution for people who are over-indebted or just in debt, wishing to get out of a difficult budget situation. This financial transaction allows the borrower to negotiate and obtain a new monthly payment that will allow him to find a debt ratio adapted to his means without exceeding one-third of his income (33% debt ratio).