Credit Redeem: 3 things to know about loan consolidation
For a household that has several credits in repayment, opt for a credit redemption can be a real breath. It allows the grouping of all or part of its credits in order to reduce the amount of repayments to be made each month. Also known as a credit pool, this option is also used by households who wish to better anticipate their repayments. But before taking the plunge, several things are to know.
1. This is the ultimate solution before over-indebtedness
Grouping all its credits into one can be tempting for households that have several and do not know where to head with the different monthly payments to repay. Who says a single credit says only one monthly payment and one contact. In addition, the attractive rates of recent times may allow households to reduce their costs while lowering the amount to be reimbursed monthly. The reduction of the monthly repayment thus enables households to anticipate and avoid falling into a situation of over-indebtedness.
2. Credit redemption lengthens the repayment term
It is important to take into account that, if the amount of the monthly payments is reduced by the repurchase of credit, the duration of the repayment increases. In the long run, this operation increases the total cost of credit. Also, before launching, it is necessary to be able to project and analyze if it is interesting to regroup all of its credits or only a part. These two solutions are indeed conceivable.
3. There are many parameters to study
All loans contracted, whatever their type, may be repurchased. But it will be more interesting, for example, to maintain a zero rate loan independently. A household wishing to buy a loan must also study the offers of the various banks in which it already has credits, but also those of other lending institutions to find the most suitable solution.