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What is a credit surrender?

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What is a credit surrender? The repurchase of credit is a credit consolidation action where all of your outstanding loans are combined into ONE loan with ONE monthly payment and ONE debt ratio. Financial organizations offer this transaction to help you honor your bank loans to avoid over- indebtedness.

What is a credit surrender?

What is a credit surrender?

By accumulating several credits with different rates, you have trouble keeping a close watch on the payment of your monthly payments. Especially if you have taken out loans with variable rates. This kind of situation is the first factor of over-indebtedness. However, with a high debt ratio, you are registered by the banks and can no longer subscribe to another loan while a credit redemption is the solution you need. It gives you the opportunity to manage only one rate and a single monthly payment, while taking into account your old loans. This operation is also called a credit consolidation. Over-indebtedness is therefore to be avoided if one does not want to lose the possibility of obtaining new loans from one’s creditor. If by chance, your expenses exceed 33% of your income, banks can no longer grant you a loan. You must be able to properly manage your loans and reassure lenders as to your creditworthiness.

Better manage your loans

Better manage your loans

In order to better manage your loans, a credit consolidation is the ideal solution. This operation makes your life easier, with only one creditor. With a single loan, you can manage your budget, save money and carry out your projects. A consolidation of your loans helps you to better manage loans, because their average rate is 6%. If you mortgage a property, the rate of a credit surrender will be only 4%. With affordable and unique interests, you have the opportunity to ensure good management of your loans. In addition, you are free to negotiate an early repayment to reduce the total cost of the loan. The only downside in a repurchase of credit is the extension of the maturity date. The duration is lengthened compared to a conventional loan.

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