5 advantages of buying back credit you should know at all costs
When you subscribe to several types of credit (consumer credit, mortgage, revolving loan, or even personal loan), it is often necessary to avoid the accumulation of monthly repayments. However, there are many individuals who often find themselves in this situation following certain events, in particular a divorce, a dismissal or a retirement. How then to get out? The best solution is to group credit. It is the repurchase of credit. It has many advantages. Now let’s see which ones.
Lower monthly payments
Above all, it is important to clearly define what it is to buy back credit. Also called debt restructuring or grouping of loans, this is a financial method which consists in grouping all or part of the loans in progress and replacing them with a new loan from a credit organization. Thus, the first big advantage of this grouping is the reduction in monthly payments. In reality, the negotiation allows you to readjust the amount of this monthly payment to obtain only one monthly payment of credit according to your current budget. Some individuals, after obtaining an offer to buy credit online, may see the amount of their monthly payments decrease by up to 60%. Impressive, isn’t it?
Simplification of reimbursements
By opting for loan consolidation, you now have a single point of contact: a single organization or a single bank. You go from several monthly payments to a single monthly payment. Also, you only have one fixed debit date. All this represents a significant simplification in the management of its finances.
For a good management of your budget, we recommend that you plan the withdrawal at the beginning of the month. Thus, you will have a good visibility of the remaining sums of which you can dispose.
Better interest rate
The repurchase of credit makes it possible to contract a loan which will join all the precedents. By doing so, you benefit from a more advantageous single interest rate for all these previous credits. Also remember that each of your previous loans has insurance. Grouping your credits allows you to have only one insurance to guarantee your loan, instead of having a multitude of insurances which would generate several contributions which, put together, can represent a colossal sum.
Gain purchasing power
As you know, debts significantly reduce your purchasing power. You can no longer indulge in your little pleasures. Well! By consolidating all the loans into a single loan with a single monthly payment, you can breathe new life into your purchasing power. Since this solution reduces your monthly loan payments by half or more, you can now set up new projects and get more out of your income.