Is there any question of credit redemption or renegotiation loan


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 !!!

The purchase of credits (RAC)

The purchase of credits (RAC)

Purchase of consumer credit

Purchase of consumer credit

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.

Purchase of real estate loans and consumption

Purchase of real estate loans and consumption

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.

What the law provides for the loan consolidation loan

What the law provides for the loan consolidation loan

  • The financial advisor must respect the duty of advice to his clients in order to inform them better.
  • On the borrower side (s), the prepayment indemnities (IRA) for a consolidated credit consumption are of the order of 1% and not more than 5% since May 2011 (Lagarde Law).
  • Side Hardy Boysur advertising is more framed and it should not be misleading with respect to consumers.

Real estate renegotiation

Real estate renegotiation

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:

  • The proposed new depreciation period can not be greater than the time remaining before operation.
  • The new lending rate must be lower than the renegotiated rate.
  • It must not show any outstanding payments on the loan

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