The principle of an application to buy credits of 40,000 euros is that the borrower has at least two credits in repayment and he wants to reduce the monthly burden he devotes to his various debts. The goal is to raise several loans, even debts, in order to repay only one monthly payment that can be reduced. For this, the duration of the new credit will be longer. For a total sum of 40,000 euros, the most traditional form that will take the consolidation of loans is a buyback of consumer credit. It will therefore be governed by this legislation, although it may under certain conditions also include a portion of mortgage loan. It will not, however, fall under the category of mortgage repurchase.
Several possible solutions
According to a study conducted by industry specialists, the average total amount borrowed during a loan buyback operation is 35,000 euros. Borrowing 40000 euros as part of such an approach is therefore quite reasonable, with a level of debt that is average. In general and according to the statistics, the borrowers who wish to make a purchase of credits for a sum of 40 000 euros are tenants with four credits in progress. The monthly amount spent on the repayment of their loans averages 580 euros. To qualify for a buy back of consumer credit, at least one of the loans must be of this category, otherwise it will be a renegotiation of mortgage loan.
There are indeed several types of repurchase of credits, either the purchase of consumer credit or the repurchase of mortgage. In the first case, it can mainly include work loans, auto loans, revolving loans, personal loans, bank overdrafts, but also personal and tax debts. In the second case, it may include all the consumer credit subscribed, but mainly the home loan which will then represent a larger share, that is to say at least 60% of the total amount bought back. Concerning the repayment period of 40 000 euros, the experts recommend a period ranging between 10 and 12 years maximum.
The cases of the purchase of credits of 40,000 euros can therefore take different forms. For example, when the renegotiation of its mortgage with its bank (following the fall in interest rates in recent years) is not attractive, the purchase of mortgage is then the optimal solution. It will then be advantageous to include all conso credits in progress, to benefit from an APR (total effective rate) recalculated for all current credits, taking advantage of low real estate rates. Another case in which the redemption of credits can be very useful is when the repayment of the mortgage and other loans in progress weighs too much on the budget, while there is still some renovation work to be done. Turning to the purchase of credits to include additional cash can then rebalance the single monthly payment while incorporating the funding of this new project.
The benefits of a € 40,000 credit buy-back
The purpose of the redemption of credits is first and foremost to improve the financial position of the borrower. In this sense, it is a real financial solution that intervenes for the management of several loans in progress. A new credit will replace existing ones, with the main objective of reducing the weight of monthly payments on the borrower’s budget. This is only possible by lengthening the repayment term on one side, but also by renegotiating the interest rate so that it is more advantageous. Having a single monthly repayment has the advantage of having only one financial institution to manage, which considerably simplifies the management of the accounts. All refunds are therefore grouped into a single levy, a single amount at a fixed date every month. On the other hand, renegotiating the interest rate reduces the share of interest on the total amount to be repaid, which ultimately represents a source of savings. Another advantage is that the drop in the single monthly payment will allow to have a living to be increased, which means that the daily becomes more enjoyable. Because with loan financing adapted to its income, the borrower can find a financial serenity, but also a capacity for savings, even the possibility of thinking of new projects.
Be that as it may, and whatever the type of credit surrender chosen, it is essential to choose the interest rate and the repayment period. Savings can also be achieved on the borrower insurance, especially if it is pooled. Opting for the best solution will minimize the overall cost of the operation but also remain in a reasonable debt ratio. The operation allows for example to put an end to revolving credits that have exorbitant interest rates. The purchase of credits is then ideal to integrate them into a new loan with more attractive rates, so a much cheaper solution to the end.
A solution accessible to all
The purchase of credits of 40000 euros is a banking operation in itself, that is to say that it is identical to a conventional credit. The borrower undertakes to repay in full the amount borrowed and the lender must ensure the solvency and repayment capacity of his client. The operation is set up by a different financial institution or bank of the original lender. This new credit agency is responsible for paying off all creditors, ie all outstanding credits are terminated, while granting a new loan to be repaid. This means a new credit agreement with new terms, the most common of which is a longer term.
In general, anyone with loans in progress can subscribe to a purchase of credits of 40,000 euros. It can be tenant, owner, housed free, salaried, retired, independent worker, civil servant, craftsman, merchant or liberal profession. To obtain a loan consolidation, it is necessary to be at least 18 years old and at most 85 years old depending on the case and the criteria of the financial institution that grants the buy-out. All debts can be taken into account, and the redemption offer will be based on the personal and professional situation. The main criterion for the granting of a credit surrender is not only a maximum debt ratio of 33%, but also a satisfactory living balance for the household.
To obtain an assessment of its future monthly payment, any borrower has the opportunity to use online credit redemption simulation tools. The advantage of going through these comparators also lies in the fact of being able to find the best interest rate for a purchase of credits of 40,000 euros. Once this one is found, it will be a question of negotiating to obtain the best conditions and to file a solid file. Note that if the purchase of credits includes a home loan, the lender can request a guarantee that generally results in a mortgage on the property. This information will be specified at the time of the simulation, in order to be informed accurately and especially to be directed to the appropriate offers.