When household borrowing costs represent more than 50% of the income, it becomes difficult to predict the future or to consider the person of new projects as work or a departure on vacation.
In this situation, the repurchase of credit with a cash turns out to be a real boon to release resources by decreasing the loan monthly payments up to 60% and this durably.
The trigger for the credit consolidation process is often an imminent need for cash flow. Indeed, borrowers with a debt load greater than 50% have a hard time saving and even more demanding a new person.
Through a repurchase of loans, the borrower again finds a debt ratio correct, that is to say adapted to its ability to repay. The credit restructuring operation is often associated with the provision of a cash envelope, the amount of which enables the achievement of the client’s objective (s).
The cash can correspond to the person of a specific project, for example to work or to a marriage, or to a redemption of balance. Nevertheless, in case of absence of determined project, it is possible to integrate a cash flow extra (or comfort), ie not affected, in order to cope with any future hazards, such as a “safety valve”, in short. Unlike a traditional bank loan, the purchase of credit is a sustainable solution because it allows for future needs of persons to come and to cope with exceptional expenses.
Repurchase of Credit, Cash and person of Retirement
It’s hard to look into the future, and even more so when we talk about our old age. Yet the preparation for retirement becomes indispensable. Given the large deficit of pension funds and the outlook for the coming years, if the ratio of active to inactive continues to decline, then we can expect the collapse of the pay-as-you-go pension system.
With this in mind, the introduction of retirement savings becomes necessary to ensure a sufficient income supplement.
The repurchase of credit, by releasing a capacity of saving, allows the access to this type of investment. By reducing monthly loan charges, the monthly purchasing power generated can be converted into comfort cash by implementing programmed savings.
New savings capacity
The economic situation has been particularly bleak for the last five years, as evidenced by the rise in unemployment and the stagnation of wages and pensions. In this context, French households are finding it increasingly difficult to save. Yet precautionary saving is a good alternative to credit.
Without precautionary savings, households must ineluctably solicit their banker in case of urgent financial need such as a change of car, the assumption of medical expenses, the payment of taxes.