The repurchase of credit consists in regrouping all your credits to make only one of them. The bank subtracts a part from your monthly income and the total of the repayments occurring each month becomes lower, therefore rather tolerable.
The repayment period logically extends over a longer period.
Banks generally require the signature of a co-borrower to grant a refinancing request because they can be sure that the file is solid thanks to sufficient solvency.
This person benefits from the credit in the same way as you and he is also subject to the same obligations. The co-borrower borrows jointly with you and must therefore participate jointly in the repayment of the credit.
In case of financial difficulty and inability on your part to repay the credit, it is up to him to take over to settle the deadlines because each of you is committed to the establishment credit for the total amount loaned. As a result, the resources and expenses of the borrower and the co-borrower will be meticulously analyzed to determine the risk profile.
The downstream must then prove fixed income and a flawless financial situation. Thus, the repurchase of loan in couple often represents the ultimate solution for the people meeting big budgetary problems.
If you can no longer meet your deadlines properly, you should think about buying a loan with a co-borrower as quickly as possible to avoid any further complication in an already difficult situation in itself, regardless of the source of your financial worries. The co-borrower is usually the spouse or partner of the borrower, but can also be a relative or friend.
Advantages of buying back a loan with a co-borrower
Before getting to foreclosures and embarking on the path of over-indebtedness, buying back couple credits is the ideal solution to help you solve a complex situation. Thanks to the presence of a co-borrower, you are not alone in assuming the repayment of your credits and above all, the bank is reassured and accepts more easily to grant a new credit since borrowing at two limits the risk of default of payment.
It is necessary to choose a person of trust to be able to face together the existing debts. You know that the co-borrower will intervene to pay the loan for you in the event that you are no longer able to do so.
You thus feel more serene vis-a-vis the maturities which occur each month, especially since the regrouping of your credits in progress reduces the monthly cost of the repayments. You only have one credit to pay and it will be less burdensome to bear.
The loan repurchase also cleans up an unbalanced budget. You leave on better bases with a single monthly payment to be paid even if the repayment period is extended. This financial transaction also represents an ideal solution for those who took out a mortgage when rates were still high.
It has the effect of lowering the due date that they have to pay and therefore makes it possible to possibly request a sum higher than the balance due. This money is then available to finance works, buy a new vehicle or to constitute savings to be used later.
You want to restructure your loans to see more clearly, go ahead and request your credit buyback study on our site. Our specialized advisers will prove to be competent to help you in your efforts.