Over-indebtedness is a difficult situation for the borrower, both financially and humanly. In this case, looking for ways to regain budget peace of mind is essential.
The redemption of credits is then advised.
Define your status: indebted or over-indebted?
Your bank will qualify you as over-indebted if your income no longer allows you to meet your debts. The transition from debt to over-indebtedness can take two forms:
- The multiplication of credits, becoming too large in number and in expenses incurred
- The accident of life (loss of job, separation, illness, etc.)
The amount of your living balance characterizes the state of your debt. The lower it is, the more your borrowing situation means more difficulties.
This is the whole point of buying credits, the objective of which is to enable you to find a correct standard of living by reducing these repayment difficulties.
The advantages of the single monthly payment
By redeeming your credits, your monthly repayments will be grouped together to form one. This has several beneficial effects, the main one of which is to lower your debt ratio to a reasonable level.
- You make only one reimbursement per month
- The amount of your monthly payment is reduced up to minus 60%
- Managing your budget is simplified
- Your purchasing power is valued for an easier everyday life
The consolidation of your credits is obtained under certain conditions
Everyone is eligible for the operation, as long as you have at least two credits in progress, regardless of their types. The following exceptions may however motivate a refusal on the part of certain banks…
- You are registered with the Personal credit payment incidents file
- Likewise for the Central Check File, unless you are the owner
- You have a file in progress with a personal over-indebtedness commission
Note that these exceptions do not apply to all financial institutions. It is therefore important not to miss your request to an Intermediary in banking and payment services, even if you correspond to one of these points.
The broker will then find the best possible offer for you among its partner banks.