The repurchase of credit , also known as reorganization, consolidation or credit consolidation is a financial solution that attempts to address a situation of indebtedness excessive. The purpose of the redemption of credits is to reduce the overall amount of the monthly repayments . The repurchase of credit makes it possible to reduce the monthly payments, but by increasing the duration of repayment.
This solution consists of substituting one or more existing loans with a single credit, at a rate which is lower if possible, but which can be depreciated over a longer period in line with the borrower’s income. Individuals can thus try to find a viable solution to their over- indebtedness .
There are four types of credit redemption:
- the tenant buyback which groups together several consumer loans,
- the real estate purchase which brings together real estate loans and consumer loans,
- the purchase of professional credit.
- the repurchase of credit by purchase / sale with repurchase .
A repurchase of credit accompanied by a decrease in monthly payments pushes the load of repayments over time. Finally, the borrower swaps short-term debts for a larger long-term debt.