The repurchase of credit makes it possible to rebalance a budget by the gathering of various loans in only one. This operation may also include an amount dedicated to financing facilities for the elderly.
Principle of credit consolidation
Here is a little reminder on the credit buyback operation. It is a banking operation aiming at repaying in advance credits in progress in order to propose to the borrower a new credit contract which will include the amount of the old loans remaining to be reimbursed as well as the costs linked to the operation. The principle being for the new lender to offer a credit contract with a longer repayment term, which reduces the amount of the new monthly payment.
It is also important to know that an extension of the repayment period can lead to an increase in the total cost of the credit. This operation can be carried out directly with a credit institution or through a banking intermediary, the latter having the advantage of being able to offer several offers if he is a non-exclusive agent.
Facilities for seniors
A senior borrower with current loans and needing to finance the development of his home will encounter some financing difficulties. If the share of credits is too large or if the senior borrower wishes to reduce the monthly charge of credits to better anticipate the unexpected, he can resort to credit consolidation. The interest here is to rebalance the budget in order to better manage its finances and honor its commitments.
However, it is not advisable to believe that the repurchase of credit will subsequently make it possible to take out new credit. With the extension of the repayment period and the increase in the cost of credit, the household will not be able, unless otherwise advised, to accumulate new debt.
However, the repurchase of credit makes it possible to include an amount dedicated to particular financing. Improvements or works in housing can be the subject of a cash request which will accompany the credit consolidation. This sum will be added to the total amount of the credit, which will smooth it over the total duration to be reimbursed.
Good to know, this sum will entail an additional cost that the borrower will have to honor through his single monthly payment. The use of this cash avoids taking out a new contract and makes it possible to include the sum when funding the file.