Hello everyone, I introduce myself: my name is Etoine Cassandrau. I am 37 years old, I live in the suburbs of Grenoble and I will tell you in the lines that follow my experience with the repurchase of credit, also called consolidation of credits or consolidation of debts.
Let it be said, as its name suggests, buying back its credits has the main purpose of reducing the amount of its monthly payments and having a single interlocutor to investigate the case. No need to do the ENA to understand it huh.
First, let’s start from the beginning. Before buying a loan at the beginning of the year, I started to learn about the Internet, it is not the sites that are lacking today to offer you a free simulation online credit redemption .
So I made several simulations to be able to compare the prices and thus have a better idea, in any case to know what would be for me the offers of repurchase of the most advantageous loans.
So I went through a broker specializing in debt consolidation to conduct a detailed review of my file. I had a monthly income of 4 230 € at the time and I had 2 consumer loans plus a real estate debt which made me a total of 3 credits. Bravo, you know how to count!
Let’s get into the details of the numbers now. I had to allocate a monthly budget of 1 095 € for the credits conso (a credit car + a credit work to make renovations in the house) + 1 566 € loan immo.
So if I recapitulate, we have 1 566 € / month of mortgage credit + 1 095 € / month of consumer credit for a monthly income of 4 230 €.
The amount of the monthly repayment before the purchase of credits amounted to € 2,661 in remembrance I believe, which produces an average debt ratio before operation of 63%. It’s good, you follow me so far?
Ok, I continue. So, if I continue to extrapolate these figures, the monthly amount I have to live is € 1,569 / month, a simple mathematical calculation applied according to a rule of 3. I am not talking here about the potentially savable amount to be placed on the classic savings books like the livret A or life insurance eh, I speak only of the remaining income with which I have to pay the bills and pay the cost of living on a daily basis such as rent, water, EDF and cie .
Once my credit redemption review was reviewed by a specialist broker for personal loan and debt consolidation, the redemption rate was set at 3.60%. This is of course an adjustable APR to get the best rate.
The monthly repayment after credit redemption amounted to € 1,460, the debt ratio after operation was 34%, a reduction of almost 30% of the debt ratio so what is not nothing all of even !
The gain on the monthly payments is 1 201 €, which is 45% less monthly! Of course, the purchase of credit has a cost and this extra cost is reflected in the total cost of credit, which amounts to € 83,333 exactly.
Add to this the additional costs such as processing fees of € 1,000 + € 3,100 notary fees.
So, with a monthly repayment of € 1,430 or € 1,460 (I know exactly the amount but this is an average range) and a monthly income of € 4,230, the amount of income that I have to live up this time- here at 2 799 € / month.
You realize ? In summary, thanks to the purchase of credits, I still have 2,799 – 1,569 = more than € 1,200 additional monthly income that I have to live! A sacred economy, therefore! Or in any case, something to blow in terms of the amount of monthly payments.
I do not know if you managed to follow me in all these figures, but I tried to explain to you how my request for credit redemption went in the most simple, precise and detailed way possible.
I will not go into the financial and banking details any more, so as not to confuse your mind, but that’s roughly speaking.
All that to say what? Simply to share with you my concrete opinion on the pooling of credits based on a personal feedback to help you better understand what exactly is the consolidation of debt and debt consolidation.
Indeed, a lot of information circulate on the internet and it is difficult to navigate in this abundance of information. Why I wanted to give my testimony here to bring my stone to the edifice.
So, yes, the redemption of credit is worth it if you want to reduce the amount of your monthly payments. Yes, the redemption of credit is worth it if you want to have a single point of contact and greater flexibility and flexibility in the consolidation of your receivables.
But beware. The credit redemption, like any credit, commits you. Be careful also to compare rates and offers to buy loans because there can be a great disparity in financial offers.
Beware also some unscrupulous brokers about the banking terms and the volatility of some loans. Banking opacity is always in order.
Lastly, beware of certain credit redemption organizations that are experiencing erosion of margins in 2017, and who are therefore seeking to reimburse it on the amortization table of your monthly payments, by inappropriately breaking down credit offers to the consumption.
The last word, thank you Daniel Levy for allowing me to express myself on my personal loan buyback experience and give you my opinion.
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