February 29, 2020

What can be included in a loan buy-back?



The solution of buying back credits consists of grouping several loans into one. What natures are they? Can I take the opportunity to request additional funds?

Credits that may be included

Credits that may be included

Two kinds of loans can be included in a loan repurchase. The first are so-called amortizable loans. The second are called revolving, commonly used to finance purchases within a store, through reserve of money.

Depreciable loans

The majority of loans granted by banks are repayable. It is by definition a loan spread over a defined time. During this period, you repay both the principal and the interest. Those are the :

  • Home loan
  • Ready for consumption (for the purchase of a vehicle, for a personal project, etc.)
  • Works loan

For the most part, these loans are at fixed rates and do not exceed 10%.

Revolving loans

It is a sum of money made available to the borrower by a financial organization (large brand, finance companies, etc.) and intended to finance one-off purchases. It exists :

  • The store card (with reservation)
  • Payment in installments
  • Deferred payment

These credits can reach interest rates of 20% or more.

When all of these similar loans weigh on your budget, the end of the month becomes difficult. If, in addition, you had contracted debts, they can also be included in a credit grouping.

The debts

 The debts

People who use loan consolidation are often in a situation where they cannot repay their various loans. The interest of this operation is also to settle the accumulated debts in order to clean up its accounts. Several categories of debts can be retained in the repurchase of your credits:

  • Late payment to taxes
  • Family debt (provided that it has been the subject of a registration before the notary. You will be asked for the authentic act of recognition of debts)
  • Debt to bailiffs or litigation
  • Unpaid invoice (electricity, internet service provider, water, etc.)
  • Rent delay
  • Overdraft
  • Balance (in the event of separation, it corresponds to the excess value that must be paid by one of the two divorced to the other to keep a property acquired in common)

But the redemption of these debts may not be enough to restore a balanced budget. To do this, you can also request cash.

Cash projects

Cash projects

You have the possibility of integrating cash into your repurchase of credits which can be used to make your projects a reality:

  • Construction or development work
  • Vehicle purchase
  • Provident (funeral, car repair …)

In some cases, supporting documents may be requested and the money transfer will only be made on paid quotes or invoices.

You can also build up comfort cash. It can be used as savings, as an emergency budget for the unexpected

All these reasons make the loan buy-back an ideal solution to simplify your budget, find healthy debt and allow you to leave serenely in the realization of your new projects.

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