The Credit Consolidation

The credit consolidation is supposed to be at least equal to the sum of the remaining stock of old loans. However, it is necessary that the debt capacity of the client allows. These range from 35% to 50% of monthly income, according to the company funding and the level of wages.
Note that these new forms of debt consolidation are different mechanism of debt consolidation. Although the principle remains the same, that bring together the old loans into one with new conditions, consolidation is reserved for those with accumulated debts. In addition, a loan consolidation is only valid for consumer loans. While consolidation for all types of credit. It is possible, if for example you have a mortgage, a car loan and an overdraft with your bank to negotiate their amalgamation into one new loan category will be those whose debt the most dominant. The amount includes the capital outstanding, the unpaid balances owed, interest and penalties on late payments.
A debt consolidation is more difficult to obtain a combination of credit, given the existence of overdue. If all loans were taken from the same agency, this may make things easier because it supports everything from the beginning and only the risk of insolvency, and therefore will not hesitate to use this amicable solution rather than to initiate legal proceedings. But if the credits were granted by different institutions, the procedure becomes complicated. In this case, you must be at least a healthy position at one of the lenders to ask him to buy back other loans and make consolidation.

The purchase of credit is useful if the rate differential is important

You should also know that even if you have only one credit, you can lower your monthly payment on the Redemption by another financial institution. For example, if you contracted it two or three years, a mortgage loan or consumer, you should know that interest rates have significantly declined (despite a small increase occurred in 2009) and the durations of the credits can achieve now higher limits than before. Given the race to which Livent banks and finance companies to attract new clients, you can easily redeem your credits and get new more favorable terms.
But beware, a redemption is not great every time, even with a new lower interest rates. Some parameters must be well studied.
The first is the elapsed time of outstanding credit. “For a mortgage, the redemption is really interesting that during the first seven years,” says account manager of a bank instead. Indeed, the monthly payment of a credit consists of a large share of interest in early shrinking gradually as repayments. A person honoring its maturity during the first half of the term of credit has no reason to retract because the economy on the rate differential will not cover the cost of redemption, especially when it s ‘acts of a mortgage.
The second parameter is the rate differential. For that financial gain is sufficient to cover costs and achieve savings, professionals feel that the interest rate differential should be at least 1.5 points. The third element is the cost of the operation. You should know that the purchase of credit gives rise to a new loan, and therefore new costs. In the case of a mortgage, it will pay a second mortgage fees, notary fee, notary fees and fees and insurance of the new credit. We must therefore make a simulation of the redemption with all its settings before leap.

Procedure: The parts to be provided; and how to consolidate your loans

The items required to consolidate your loans are the same as those required under a consumer credit bond, one or two documents closely. In addition to a copy of National Identity Card (CIN) and proof of residence (residence certificate or receipt of telephone or electricity), must submit a voided check, the last three bank statements and the last three payslips. It will add to these documents amortization schedules of outstanding loans that the lender can determine the exact amount due and check if there are unpaid. What if the lender is a bank, it will ask you a direct debit to pay to get your employer.

After simulation and negotiation of loan terms for reunification, it must be the credit file with all the aforementioned documents. This case will be considered by the committee’s credit facility. After acceptance, two options available to you: either get certified checks for names of organizations have granted credit for the amount past due and recover the releases, or to opt for transfers which will take place automatically between the new lender and alumni. The ideal is to opt for the option checks for more speed in the procedure. If there are additional credit, it will be released after obtaining the release documents.