Consolidation of credits is a process that is very popular today. Also called restructuring or repurchase of debts or credits, or consolidation of debts, the regrouping of credits was popularized by the democratization of the credits of the consumption, more accessible and more frequent.
Generally, when the issue of the pooling of credits arises, it is that the financial situation of the borrower (s) is not good… The grouping of credits is then intended to restructure debts and to lighten the loads acknowledgment. Still, the consolidation of credits should not be considered lightly. It must be used with caution and always turn to specialists in the field.
What is credit pooling?
This financial transaction consists of bringing together in a single loan, some or all of your debts. The constitution of this unique rescheduled credit allows to benefit from a certain reduction of its credit, while stabilizing its financial situation.
Why restructure your debts?
The pooling of credits is ideal when new objectives and new projects are on the horizon. This is the case with the acquisition of a new property, the replacement of a car, the financing of studies, etc. It is also good to restructure one’s debts in order to anticipate various future changes such as the entry into retirement, the loss of a job,… able to upset the whole course of a life.
By doing so, it is possible to reduce its monthly payments, to gain some ability to save, while regaining some purchasing power. Indeed, the rebalancing of the budget in the long term thanks to the anticipations and the reduction of the monthly payments stabilizes the debt and brings it back even to the normal one.
Remember that a person over-indebted runs the risk of being stuck at the BelBank and be marked by the filing of an over-indebtedness file. Through a debt restructuring, it is possible to find a certain financial serenity. Consolidation of loans can therefore have a positive impact on the borrower-banking relationship.
Why call on credit restructuring experts?
The use of experts like Crediloin makes it possible to calibrate a restructuring on a case-by-case basis, a debt consolidation solution to be adapted to each. A credit union specialist must, therefore, have a great ability to listen in order to understand and identify each of its customers. These professionals must also possess enormous human qualities. These are essential for them to consider the profile of each client.
Note that to ensure the maximum efficiency and speed, it is necessary that the specialization of debt restructuring that is used can accompany you throughout the exploration and implementation of your financing system.. Thus, an expert will have to propose to you a relation of proximity and a personalized follow-up. In this case, each specialist will have to consider all the realities of the field and the present situation while anticipating future ones. Yes, each expert will have to understand that each client has his own profile and that each situation has its own characteristics. If the expert you are calling does not even dare to meet you in person, go your way.
Note that the main task of a debt consolidation expert is to play intermediaries while setting up and facilitating the marketing operation of a bank credit. It is also important to remember that credit restructuring specialists are not lenders. So they have no ability to give you any credit. This remains the preserve of banking institutions and / or credits. Restructuring specialists must therefore be linked to financial organizations offering certain financing or restructuring offers that are different from those offered by the bank of the person in question.
In the practice of their profession, debt consolidation experts are governed by a very strict regulated status. The Economic Law Code (EDC) and specifically Book VII are part of this regulatory statute.
Who is debt consolidation aimed at?
Credit restructuring is a process widely used and proposed by banking institutions. All individuals with a large number of credits are affected. It must be remembered that the accumulation of credits, whatever its nature, strikes the financial situation of a household. In such a case, it is essential to return to a form of financial stability as soon as possible. The quickest and most effective solution in such a situation is the pooling of credits.
What is the operating principle of debt restructuring?
Credit consolidation works on a very simple principle. It is enough to combine in one and only staggered credit, all the debts contracted by a person or a household. This process allows the borrower to benefit from better budget management, which is largely simplified.
In fact, credits that were once scattered are grouped into a loan with a single monthly payment, a single interest rate governed by a contract linking the borrower to a single creditor. The debt consolidation operation thus allows to offer a relative freedom by regaining a capacity of savings and even by changing at leisure of bank. In addition, the client may renegotiate the interest rate and the repayment term of his new installment credit.
These facts allow him to enjoy a significant reduction in the value of his monthly payments. By doing so, you can find all the flexibility you need to manage your budget. And so, to avoid the decay of his finances. To manage to avoid this degradation is essential to not have to do to the commission of overindebtedness. Indeed, as soon as you find yourself in the sights of this agency, you will end up with much more serious problems. All your financial projects will automatically be frozen. In addition, you will also be registered with the BelBank (litigation at the NBB). This listing prevents you from incurring any other credit.
All your credits and debts, whatever their nature or type, can be the subject of a repurchase transaction. However, if the new installment credit includes one or more home loans, or consumer loans, the single credit should be treated as a single real estate credit. However, to consolidate this assimilation, real estate and / or consumer loans will have to account for at least 50% of all credit spread. For any consolidation offer issued by a banking institution, the borrower will have a fairly broad study period. Both parties have a withdrawal period of two weeks following the signature of the proposed offer.
To benefit from lower monthly payments, the repayment period will be extended, which will have the effect of increasing the final bill of the loan installment. Therefore, you should not only consider the interest rate advanced by the bank contacted: you will also need to estimate the final bill of the proposed installment credit. Consider these points remains the best solution to find the solution of debt consolidation most suited to your profile.