You have at least two credits in repayment at other institutions and want to consolidate them. In which cases is this operation really useful?
The benefits of pooling credits are multiple. The reasons for setting up this type of operation vary according to the situation and needs of each borrower. Who is the grouping of loans for? What are the advantages? All the explanations.
Getting a top consolidation loan has never been this easy
There are many benefits to consolidate loans.
Lower the amount of the monthly repayments
The main advantage of top consolidation loan is the possibility of reducing its monthly debt. This is indeed to give a breath of fresh air to the budget of the borrower. For example, a person who pays five monthly installments of 200 euros or 1,000 euros in total will be able, thanks to this operation, to reimburse a single term of 800 euros. Having only one loan to repay is much easier for borrowers.
Implement a new project
Lightening monthly payments and extending the repayment period can enable you to make a new project a reality by obtaining additional cash. This amount of money will be included in your new refund.
Get a more interesting loan rate
Mortgage and consumer credit rates are at historically low levels. It is in the best interests of borrowers to set up a pool of credits and to obtain a higher interest rate.
What is the grouping of credits?
Loan consolidation brings together multiple credits into one. More specifically, this arrangement aims to restructure outstanding debts into one that will be repaid each month by paying a single bill. Through this operation, borrowers can adjust their monthly repayment charge to their budget. In return, however, they go into debt over a longer period.
In the context of loan consolidation, the initial credits that will be repurchased by the institution in charge of it may be consumer loans, real estate loans, car loans, work credits or renewable loans. The grouping of credits can be set up with a mortgage or without a mortgage.
How to benefit from a loan consolidation?
The borrower who wants to consolidate its loans must apply for it before ending up in default. Its debt must be less than 33% of its income. This operation is of interest to borrowers who have to repay several credits at a time and who seek to obtain better visibility of their rest to live. Consolidation of credits can also be useful if you are faced with a refusal to negotiate by the lending institution.
To study the feasibility of your request, do not hesitate to use a loan consolidation simulator.