To renegotiate their loans, some debtors often opt for the debt redemption technique. It is possible to do this on current credit, but also on all of your credit. Be aware, however, that it is important to know the type of loan related to this operation as well as how you should proceed.
Repurchasing Credit: What Is It?
Credit repurchase is an operation practiced in the financial sector, or more precisely within the framework of bank loans. Its purpose is to reduce a debtor’s monthly repayment rate by grouping the credits assigned to him. The purpose of this technique is to avoid excessive indebtedness by buying back to combine all credits into a single credit.
What type of credit for a redemption?
There are several categories of loans affected by redemption. There are 3 classes of credit:
Debtors pledge when they decide to buy or build assets. This type of loan is owed to the bank, which is one of the people affected by the purchase considering its importance and the number of persons opting for this type of loan.
Secondly, consumer loans relate to loans made in the context of various personal projects other than the construction or purchase of real estate. This category of credit, which you can also redeem, includes several types of loans. They can be related to travel, paying tuition, medical needs, a home improvement project, buying a car, and more.
Third, be aware that repurchasing credit also refers to revolving credit, which everyone can subscribe to via credit card. In addition, some specific loans can also be redeemed to reduce your monthly fees: bills, taxes and various traditional loans and loans (that are owed to relatives).
Loan Repurchase in 5 Steps
Before informing you about the various techniques of repurchasing credit, be aware that for the formation of certain files, including those relating to unpaid invoices, you must have a JPG file in PDF, ie an image or a There is a possibility to convert the photo. With ‘This Tool and Adobe Guide to Conversion’.
The first step is to make a request that you send directly to a financial institution or online via the Internet. The establishment in question may be a bank, but may also be a company specializing in lending.
The second stage is of instruction, i.e. verification of supporting documents by the consultant.
The third stage is the feasibility study. This action is performed by the organization you have contacted. The analyst in charge of the file will take into account your ability to repay, your level of indebtedness, and your means of settlement (health, mortgage, age, etc.) for repayment.
Finally, Step Four: Proposals are welcome, provided the request has been definitively validated. It contains all the details related to redemption: price, repayment period, method of repayment, etc.
And finally, you have the release of funds in the fifth stage.