Restructuring of Credit: our advice

Credit restructuring

Who did not give in to the acquisition of a consumer credit? Who has not had a difficult month? If you have never known such a situation, then this article does not concern you! Today, credits are obtained for a specific operation. For example, to buy a good electrical appliance, to buy a car, and then gradually to acquire a property. This succession of purchases corresponds to everyone’s ambitions. Credit regulations have limits that aim to stop the level of over-indebtedness.

Redemption of credit: who uses it?

This phenomenon is not stigmatizing because it does not hit one layer of population more than another. Stacking credits is insidious enough to cause imbalance. Indeed, we are talking about a purchase in hundreds of euros per month, in other words we evaluate the repayment of the loan compared to the immediate need. This is by no means distressing; we suffer from commercial practices as well as often late recommendations in the field.

When should we react?

First remark, the warning or the alarm signal comes generally from the banker, actually from “his computer” that follows your account. The computer draws a profile “by trend” according to income, monthly fixed charge ratios and the rest for living that emerges almost naturally, as the graphics are readable. It would be enough to have access to understand this information.

What should be corrected?

The causes, we know them. Credits are not important considered one by one. The repayment term is often short because we are concerned (at the time of purchase) about the cost of this financing. But a second, then a third funding complicate the budget.

In good faith, we see the schedule overload, sometimes over a few months. For example a loan will end in six months, while today’s purchase is decently not possible. And yet no one cares, despite the laws.

Credit Purchase Solution

The solution is not exceptional, moreover it has been applied for ages, in what is called the campaign credits. For example: an entrepreneur, a craftsman, a farmer must implement “speculation” (for the latter) by seeding for example a wheat field. He will use a short-term credit calculated on the calendar that corresponds to the harvest. Evident is not it!

If by chance the receipts do not cover the credits in progress, then the banker will make the point and will grant a new loan “by clearing” the precedents, and that without penalties. Why, this practice could not be extended to individuals.

The broker – Real estate loan with buy back credit

The broker - Real estate loan with buy back credit

We brokers restructuring or buy back credit, will resume the model in our own way. Consumer credit is generally a small amount due over a short period of time.

These consumer loans are callable at no cost. After repayments, this “cumulated” capital will allow new financing of a sustainable duration, taking into account the ratios in force.

When there are consumer loans and one or more home loans, the problem is more technical. It is not necessary to modify the rights obtained with said. This is the role of the broker for repurchasing credit and real estate credit or called restructuring. The regulation is precise, it is necessary to know it, on the one hand, and especially it is necessary to make sure that the borrower did not cross the yellow line of the overindebtedness or the prohibition PIPC, on the other hand.

The reaction is required as soon as the alert is given by the banker. It sends a letter recalling the text of the law on the refund of credits and notifies the warning concerning future payments. A contact is necessary; except in specific rare cases, the right decision is highly effective.

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