Domain widely subject to changes in regulations and law, credit redemption raises many questions from individuals. Clicking Here for some answers to the most commonly asked questions, helping you to better understand payday loan consolidation techniques.
Request consolidation loans to pay off payday loans
Yes, loan restructuring is also for people who are not over-indebted but in a situation of moderate indebtedness. They can through credit redemption reduce their debt ratio for several reasons:
- enjoy a better quality of life on a daily basis by reducing credit stress and reducing the number of their repayments
- take advantage of the very attractive rates of recent years
- save to take advantage of retirement or to pay for their children’s education
- get cash to finance a new project
Restructuring loans is not practiced only for highly indebted individuals. It is also a financial technique very common in Anglo-Saxon countries, especially in the case to reduce the repayment of consumer credit.
Is the redemption of credits possible when you are a tenant?
Yes quite. The condition determining the possibility of a renter credit surrender is the report “guarantee provided by the applicant for the repurchase of credit/risk taken by the lending organization”. This is a loan grant: the lender that will re-finance the applicant must then have sufficient guarantees with a minimum of risk. Restructuring of credits is then possible.
The lower the risk, the better the guarantees, and vice versa. The guarantee can relate to real estate, but in the case of a tenant, it can relate to high income, a stable job of a civil servant, savings, a future income, etc. In addition, the purchase of consumer credit is commonly done through a personal loan.
Is restructuring possible?
Yes, but it is a marginal practice in the pooling of credits. The very low rates in recent years have helped make this transaction attractive for borrowers who had already restructured a few years ago, at the beginning of the rate cut. This particular transaction is, therefore, possible depending on the date of the last restructuring, the debt ratio, any loan write-offs, and the mortgage ratio.
Can one benefit from a restructuring if one exercises a liberal profession?
Yes, it is possible, especially since the liberal professional often has to face a tax or social debts inherent to his activity in addition to his personal debts. Indeed, budget management of the liberal professions includes heavy investments at the start and activity, current needs, irregular income, and various debts.
Are tax debts part of a credit surrender?
Yes, absolutely, as we saw above with regard to the liberal professions. During a loan restructuring, the existing tax debts must be included in the allocation of the loan, they will be reimbursed by the notary. You must provide a tax status slip: the “P237” as well as the summary of past years. Taxes concerned are income tax, property tax, wealth tax (ISF) and housing tax.
What is a capital search warrant?
It is a standard document defining the conditions for seeking financing from an intermediary in banking operations for his client. The legal existence of this document is linked to the unblocking of the fonts concretizing the success of the intermediary’s mission. This capital search mandate is not a recognition of debts if the intermediary fails his mission. This means that in the absence of a solution to buy credits for his client, it owes nothing to his intermediary. The document constituting the mandate contains:
- the identities of the parties
- compensation arrangements
- the amount of the commission expressed in letter and in percentage
This document must be signed by both parties and must be an original.
Why do I have to choose an intermediary in banking?
Because he is an independent professional grouping credit, having an obligation of advice and information to his customers. It helps you to obtain the best credit buyback offer by choosing among its partners the one that has the most suitable proposal for your financial situation. It is not subject to the pressure of the risk study, and saves you time in the constitution of your file and presenting it to one or more banking partners. Finally, this interlocutor will not judge you and has for mission to accompany you throughout your file.
What are the differences between light restructuring and heavy restructuring?
Under similar denominations, these two practices are aimed at setting up credit redemption actions whose intensity varies according to the situation of the candidate. The light restructuring is rather a reorganization of credits in order to unlock savings or specific financing for a new project, whereas a heavy restructuring is used for the cases of borrowers in a situation of overindebtedness, having a rate of indebtedness at least 60%. It will then be necessary to grant a loan whose total amount will be close to the value of the real estate that will be secured by a mortgage.