Credit redemption

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:

  1. the tenant buyback which groups together several consumer loans,
  2. the real estate purchase which brings together real estate loans and consumer loans,
  3. the purchase of professional credit.
  4. 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.

Leave a Reply

Your email address will not be published. Required fields are marked *