One must be very attentive to the expressions which designate a transaction of likely to rethink an outstanding loan. For example, one can hear from a debt consolidation broker or from financial distributors, terms whose titles are similar to each other, but whose banking products are completely different.
Even as a professional of the sector, it sometimes happens that according to the interlocutor with whom the exchange instead of not being on the same wavelength about this expression !!!
When it is a question of making a redemption of consumption credits, it is to obtain as result a reorganization of the debts and credits of the conso type, which offers a new management budget to the manager of (s) account (s).
In other words, it is rather an approach to obtain a monthly load more bearable, ie less than the sum of deadlines taken.
To do this, generally it is a spread of the depreciation period, ie a period of longer payments, and also the interest rate can be more attractive, in the case of a credit redemption renewable for example.
The principle is the same as that described in the paragraphs above mentioned about the RAC consumption.
Regarding the repurchase of real estate and consumer credit, this is a plan consisting of unsecured credit and real estate loan.
Always, what is sought is a solution to deal with a financial deficiency as to overcome a lack of liquidity by obtaining a cash envelope, or to act against a debt ratio disproportionate in relation to the household income.
Unlike credit restructuring, loan renegotiation is initiated with the intention of seeking a better interest rate in order to reduce the total cost of borrowed money (interest + principal) to the lender.
If the most of a consumer credit rally is to spread the borrowed capital over a long amortization period, well then, it’s the opposite for renegotiating home loan.
Yes, the renegade is only real estate borrowing, and some rules apply so that the content of the transaction is preserved: