When the borrowing costs of a household represent more than 50% of income , it then becomes complicated to predict the future or to consider the financing of new projects such as work or going on vacation.
In this situation, the repurchase of credit with cash turns out to be a real boon to free up resources by reducing the monthly loan payments up to 60% and this permanently.
Cash financing
The trigger for the process of consolidating credit is often an imminent need for cash . In fact, borrowers whose debt load is greater than 50% have great difficulty in saving and even more so in seeking new financing.
By repurchasing loans , the borrower again finds a correct debt ratio, that is to say adapted to his repayment capacity. The credit restructuring operation is often associated with the provision of a cash envelope, the amount of which allows the achievement of the client's objective (s).
The cash flow can correspond to the financing of a specific project , for example to work or to a wedding, or to a repurchase of balance ... Nevertheless, in the absence of a specific project, it is possible to integrate a cash flow of 'extra (or comfort), that is to say unaffected , in order to cope with possible future hazards, such as a "safety valve", in short. Unlike a traditional bank loan, the repurchase of credit is a sustainable solution because it allows to foresee possible future financing needs and to face exceptional expenses.
Credit buyback, cash flow and retirement funding
It is difficult to project into the future, and even more so when we talk about our old days. However, preparing for retirement becomes essential. Given the large pension deficit and the outlook for the coming years, if the ratio of active to inactive continues to decline, then the collapse of the pay-as-you-go pension system can be expected.
From this perspective, the establishment of dedicated retirement savings becomes necessary to ensure sufficient additional income .
The repurchase of credit, by freeing up savings capacity, allows access to this type of investment. By reducing monthly loan charges, the monthly purchasing power generated can be transformed into comfort cash by setting up programmed savings.
New savings capacity
The economic situation has been particularly gloomy over the past five years, as proof of the continuing rise in unemployment and the stagnation of wages and retirement pensions. In this context, French households are finding it increasingly difficult to save. However, precautionary savings are a good alternative to credit .
Without precautionary savings, households must inevitably ask their banker in the event of an urgent financial need such as a change of car, payment of medical expenses, payment of taxes, etc.
The purpose of repurchasing credit is of course to reduce the monthly borrowing charge that weighs on the budget of an indebted household. The borrower can therefore again set up monthly savings to constitute a precautionary envelope if necessary, or even to self-finance medium-term projects.