To find accommodation, buy a car, finance training, an operation or even a trip, debt is often unavoidable, but monthly payments can accumulate and reduce the room for maneuver each month in the face of everyday expenses and unforeseen events.
The grouping of credits allows you to find lower monthly payments by smoothing the repayment over time in the event of too much debt. Is this the solution for all cases of multiple credits? Is there a maximum amount allowed?
The repurchase of credit, solution of appeasement for its budget
The repurchase of credit consists in regrouping its loans in order to have only one contract, with a single monthly payment and a single interest rate. This operation is made possible by extending the total duration of the loan, the key to reducing monthly payments and therefore providing a breath of fresh air. Especially since the grouping of credits is no exception: all types of loans can be included.
Whether it is a home loan, a consumer loan (car loan, work loan, personal loan), a revolving loan or even a bank overdraft or an unpaid invoice. The goal: reduce the debt level below 40%, so that it does not cut the budget of the home in too large proportions.
A maximum amount or duration?
As part of a loan buyback request file, each situation is examined individually and an always personalized response is provided. The agreement essentially depends on elements linked to the debtor (financial situation, possible projects) and to funding organizations. The duration of a repayment can generally go up to twelve years for a buyout of consumer credit and thirty-five years for a buyout of mortgage credit according to the Consumer Code.
The latter also limits the repurchase of credit to $ 75,000 in the case of consumer loans, while the limit when a home loan is included in the equation varies from one organization to another (up to 2 million d ‘dollars generally). In the context of a grouping of credits, it is moreover the rate of the mortgage that prevails if its amount represents more than 60% of the total amount .