You can avoid an over-indebtedness situation by choosing to carry out a debt restructuring, an operation also called credit repurchase. Debt restructuring is intended for anyone who is more or less close to over-indebtedness, whether they are property owners, tenants, employees, civil servants, retirees, etc. Everyone is affected.
When should debt restructuring be done?
The restructuring of credit is a repurchase of credit making it possible not to find oneself in a situation of over-indebtedness, but also to become prohibited banking or to be registered with the FICP (file of the incidents of reimbursement of loans to individuals).
Debt restructuring is also called debt repurchase, credit repurchase or even grouping of loans. This operation is proposed when a person reimburses too many loans at the same time and therefore finds himself in a more than uncomfortable financial situation. It is important to know that it is essential to carry out a loan restructuring before ending up in over-indebtedness. Indeed, if you have entered the over-indebtedness commission, are registered in the file of incidents of repayment of loans to individuals (FICP) or are prohibited from banking, no financial organization will accept to make a redemption of your credits.
How it works?
Debt restructuring works the same as any other type of loan repurchase: a financing organization makes a repurchase of all of your debts and groups them into a single credit with a new rate depending on market rates and a new loan term. The loan repurchase operation consists in reducing the amount of the monthly loan payments in order to lower the debt ratio. The financial institution therefore spreads the repayment of the new loan thanks to the establishment of a longer duration.
There are two types of credit repurchase: consumer credit repurchase and home loan repurchase. It is however possible that the repurchase of credits includes at the same time the repurchase of consumer loans and mortgage. It can also include a buyout of bridging credit.