How does a credit buy-back work? Married for two years, this couple is raising a child. Tenants of their apartment in Coulommiers, they nevertheless have a high debt ratio.
How to lower this rate and allow them to consider new projects? The repurchase of credit is the solution which they retained to simplify the control of their budget.
Significant monthly charges and a high debt ratio
Melanie and Julien have a monthly income of $ 2,500. Their charges break down as follows:
- Rent: $ 625 with charges.
- Two consumer loans: the first represents monthly payments of $ 625 for a car loan of $ 15,000 and the second represents monthly payments of $ 312 for a personal loan of $ 10,000.
- A bank overdraft of $ 800, which generates significant costs.
The whole represents a debt ratio of 62% which blocks the feasibility of any new project. Once all these fees have been paid, they have $ 938 left to live on.
The grouping of credits as a breath
Melanie and Julien wish to find a balanced budget, with no bank overdraft at the end of each month. The objective is also to reduce their monthly payments and lower their debt ratio, in order to envisage new projects such as the purchase of a house which they are eyeing on the outskirts of Meaux.
They contacted a loan repurchase broker who studied their file and offered them new credit of $ 29,582 at a rate of 4.5% over a period of 12 years. This loan includes the bank overdraft and associated costs, the two consumer credits and $ 3,800 in immediate cash.
This represents monthly payments excluding insurance of $ 308 (instead of $ 937 previously). After their agreement, the file is assembled in 3 weeks and also offers the possibility of early repayments free of charge up to $ 10,000 per year. In the event of an unexpected cash inflow, they will be able to reduce their debt more quickly.