The first advantage of buying or combining consumer loans is to simplify the management of your budget. In addition to benefiting from a fixed debit rate, you are no longer subject to various direct debits, which occur at different times of the month. The total amount that you owe, in respect of your credits, is withdrawn in one go, by a single organization, on a specific date.
All of your monthly payments being collected, you no longer need to keep track of the loans you have taken out. Your bank statements are more readable and you know at a glance the amount you repay each month. In addition, you do not need to change banks to benefit from the consolidation of your monthly payments.
The advantages of credit consolidation
The second big advantage of buying consumer credit or restricted loans is to reduce the monthly repayment of loans, for example by taking advantage of the overall fall in rates compared to previous years. Indeed, the organization which takes back your different loans offers you a single monthly payment, the amount of which is often lower than the totality of the monthly payments that you had to settle previously.
This drop can go up to 60%! However, this implies an extension of the duration of the global repayment and a possible increase in the cost of credits. This repayment period can be more or less long because it depends on both your capacity and your financing needs (if you wish, for example, to back up a work loan with your repurchase).
But this allows you to free up the budget and bring you more financial comfort, or allow you to invest in other purchases. In case of questions or difficulties, you are dealing with a single point of contact.
There are other advantages to buying back credits: this makes it possible to put an end to revolving or so-called “revolving” loans, which are the most toxic form of consumer credit for the consumer.
These loans offer very high and variable rates and it is difficult to get rid of them because they are renewed indefinitely until they are fully repaid. Not to mention the risks of debt or over-indebtedness that this entails.
When the organization buys credit of this type, it turns into simple credit. Its reimbursement is, therefore, easier and potentially less costly. An online simulation allows you to take the measure!
The credit buyback simulation: a fundamental first step
The main interest of a credit buy-back simulation is to obtain a first estimate in a simple and fast way, without having to fill in an extension form. This step is very important in the sense that it allows you to know all the conditions of the loan.
You will find in particular two essential information: the total amount due and the annual effective annual rate (APR). The latter will be very useful for making comparisons with other organizations specializing in the repurchase of credit, or more general. Indispensable to find an offer at a lower cost, which is more in harmony with your financial situation!
In addition, simulating a credit buy online saves you precious time: there is no need to travel. Everything is done via the platforms of the credit organizations contacted. Regarding buyout offers, they are sent directly to your mailbox.
Simple, fast, efficient!
Credit consolidation: 2 separate forms
This is not necessarily stipulated for you during a credit buy-back simulation, but there are 2 forms of loan consolidation:
- The repurchase of consumer credit, which concerns all types of consumer credit, affected or not (personal loan, car credit, work credit, revolving credit, etc.);
- The repurchase of mortgage credit, which includes one or more consumer loans + a mortgage.
In the case of buying back consumer credit, insurance is not compulsory. If you subscribe to optional insurance, the amount of the insurance contribution will be added to the new monthly payment. On the other hand, with regard to the repurchase of mortgage credit, the insurance is very often required by the lender. The monthly payments of the credit thus increase consequently.
It should also be noted that, as with any banking transaction, the grouping of loans, whatever their form, is subject to fees, including administrative fees.