Lowering the debt ratio is crucial to avoid being in a critical financial situation.
At present, credit institutions offer borrowers the opportunity to pay off their debts more easily, thanks to the credit consolidation.
When the borrower has subscribed to different credits and not a single personal loan, the credit consolidation can help him reduce his debt ratio.
Reduce your debt ratio by opting for a credit redemption
By subscribing to several credits, a person is exposed to the risk of being over-indebted, especially if his income is less and less able to cover his debts.
To avoid over- indebtedness, the principle is simple: it is enough to find a solution which allows on the one hand, to fulfill better its debts and on the other hand, to reduce its rate of indebtedness.
With the repurchase of credit, reducing the debt ratio is quite feasible.
The objective of this operation is to reduce the monthly payments that the borrower will have to pay every month: to do this, the various credits in progress are collected in a single credit so that the borrower has only one monthly payment. to be paid every month.
Similarly, payment of the monthly payment is made with a single bank. By reducing his monthly payments, the borrower has more savings than he can devote to his personal needs: he can thus increase his purchasing power or reserve the money he should have spent on various monthly payments to future projects.
What are the credts that can be grouped?
Depending on the credits in progress, the grouping can bring together real estate loans to consumer loans or several loans such as the work loan, the marriage credit or the auto loan. Recourse to credit pooling is especially essential when the financial difficulties that a home encounters vis-à-vis its debts, are only temporary. In this type of case, the credit buyback operation remains the only solution to find more stable finances, before it is too late. The main advantage of this operation lies in the fact that it allows the borrower to reduce his monthly expenses, even if the repayment of the new credit will have to be done over a long period.
The necessary parts for the study of your file
As with the personal loan, a credit surrender transaction requires a file that the bank will review before providing you with a response.
In order to take out a credit redemption request, you should provide the bank with several coins
- Double-sided copy of your identity card
- Receipts showing the amount of your monthly income such as pay slips
- The rent bills and the different cash inflows that you collect monthly.
Your file should also include amortization tables for your various outstanding loans as well as all statements from your bank accounts, within the last three months.
Depending on the bank that wishes to take care of the credit consolidation transaction, other documents may also be required such as the act of purchase of your home or documents certifying that you have paid your taxes and of your payroll taxes, lately.
All these documents are necessary to judge your solvency.
Your request can easily be accepted if the bank acknowledges that you are still paying your taxes and no rejection of the levy has been observed on your accounts. However, it is advisable to simulate your loan before choosing a bank buy back credit. Thus, you will be more likely to come across a bank that offers a lower interest rate.