What do you want optimize your financial management? Fund a new project? Also called credit consolidation, partial credit repayment is an ideal operation for find a more balanced budget . In this article, find out the best strategy to adopt benefit from advantageous redemption conditions.
What is the principle of partial credit consolidation?
The grouping of credits is made up of “Restructure” your creditsin “merge” all or part of its debts, in a single loan, from the same institution. In case of partial repayment of the credit, only a part of the credits is grouped. To qualify as “partial”, loan pooling must exclude at least one other of your outstanding loans.
Imagine repaying several loans. The total amount of monthly payments weighs heavily on your current income. To have a single loan to repay, you may be tempted to bundle them by buying them from a lender. Therefore, your monthly installments and your repayment burden decrease.
What types of loans can enter partial credit consolidation? All loans are eligible for a repurchase operation: consumer loan, private loan, professional loan, mortgage, etc. You also have the option to add debts other than credits (alimony, unpaid bills, overdue rent, etc.)
The special case of real estate and consumer loans
Let’s take an example. You want to buy back partial credit for one or more mortgages and consumer loans. The relative share of your home loans accounts for 75% of all loans. In this case, the new loan will be considered a mortgage. In fact, the mortgage’s share in other loans is more than 60%. If it is less than or equal to this threshold, the redemption of the partial credit falls within the legal provisions applicable to consumer loans.
How long does the cooling-off or withdrawal period last depending on the type of credit? If your new credit is treated as a home loan, the loan offer is sent to you by post. You then have a 10-day cooling-off period to accept or decline the proposal. If the new loan is treated as a consumer loan, you have a 14-day withdrawal period from the conclusion of the credit agreement.
I reduce my monthly payments
How to choose between a partial or full loan consolidation?
You don’t know if it’s better request a refund of all your creditsWhere is it just some of them? It all depends on the date, nature and duration of your loans. Find out, with a concrete example, in which situation this type of credit consolidation can be relevant.
A family pays off every month:
- 1 home loan, signed for the acquisition of his main residence. The monthly payment is € 2,200. The loan expires in 15 years.
- 3 consumer loans, signed to buy a car and replace appliances. The deadlines are another 4 years. They represent € 650 per month.
This family wants to carry out renovations in their home. He wants to free up 10,000 euros in cash to be able to carry out his project.
Whether partial or total, a credit repurchase will allow rebalance your budget. It will help them finance the completion of this work. If, on the other hand, they opt for a full consolidation of the loans, the benefit can be mitigated by the significant difference between the duration of the mortgage and that of the consumer loans.
In such a situation, a partial credit repurchase with a focus on consumer credit seems more advantageous. It allows the family to carry out its project by reducing its debt / GDP ratio. In return, the couple undertakes to do so repay loans over a longer period. Once the consumer loans have been paid off, their monthly repayment fee will be limited to their home loan.
I reduce my monthly payments
How to make a partial credit refund?
The best is contact a credit intermediary, financial institution, online bank or specialized organization. Your interlocutor will think about the best strategy to consider in relation to your personal situation: debt, characteristics of current loans, composition of the family unit, etc. The analysis is mainly based on the composition of your credits.
As a general rule, it is in your best interest to keep loans whose rates are lower than those offered and other types of loans such as:
- subsidized loans: zero-interest loan (PTZ), real estate loan, etc. ;
- loans for which full repayment is imminent.
How to evaluate the proposal to repurchase partial credit from a financial institution?
As for taking out a mortgage, it is advisable to do so contact different organizations. This will allow you to do this compare offers. To find out if a proposal is interesting, follow these steps.
Determine the remaining interest to be repaid.
To calculate them, take the amortization tables or your credit agreements. Then, multiply the current monthly payment amount by the number of months remaining until the end of the loan. Finally, deduct the remaining principal due during the repayment operation. Repeat this for each of your loans, then add the costs you get. Get the total costs of your old loans.
Establish the cost of the partial credit repayment operation.
To find out the cost, simply multiply the amount of the monthly payment offered by the number of months of the new credit, then deduct the loaned capital. Don’t forget to add the registration fee. The result obtained corresponds to the new loan cost.
Compare the 2 results.
Is the cost of your new loan less than the total cost of your old loans? In this case, the partial credit repurchase operation is financially advantageous for you.
Borrowers often want above all reduce the amount of their monthly installments. The consequent extension of the duration of the loan therefore increases the cost of interest. Therefore, to evaluate the benefit of a partial repurchase of loans, the financial dimension is not the only one to be taken into consideration. It all depends on the purpose pursued through credit consolidation.
I reduce my monthly payments
Your questions about partial credit redemption
Which banks buy back credit?
A partial repayment of the credit is a important operation. Requires surround yourself with a good partner. You will find multiple credit consolidation offers on the market. Attractive interest rate, free administration fees, adjustable monthly payments, personalized follow-up … Per get the best dealthe ideal is to arbitrate between:
- They traditional banks. If you are planning to consolidate your receivables, the first thing to do is to contact your bank advisor. Most French banks offer partial loan repurchase offers: Crédit Agricole, La Banque Postale, Crédit Mutuel, Banque Populaire, Caisse d’Épargne, CIC, LCL, Société Générale, Crédit Foncier;
- They specialized banking organizations. Some focus on mortgages, others on consumer loans. Among the best known we find: Cofidis, Cetelem, Sofinco, Carrefour Banque, Fortuneo, ING Direct, Oney, Banque Casino;
- They online banks. Banks like Fortuneo or Boursorama offer to partially buy back your credits. Their offers are distinguished by ease of use and attractive prices;
- They credit redemption broker.
What are the mortgage repayment rates?
Partial credit repayment rates are determined by financial institutions. For find the best rateyou have two options:
- question the banks one by one;
- contact a credit redemption broker.
Why use a partial credit repayment broker?
It allows you to go through a broker that specializes in partial credit repayment maximize your chances of benefiting from advantageous conditions. This professional makes you benefit from his partner network, banks and other lenders. By entrusting your project to a broker, you save precious time. Finally, the intermediary puts his knowledge of the market, legal regulations and his know-how at your service.
What is the difference between consolidation and credit repurchase?
The two concepts are used indiscriminately by professionals and clients. They it is the same operationwhich may relate to one or more credits, of heterogeneous nature, duration and rates.