Redeeming a Credit Redemption: How I Won 27962 € 5 (100%) 10 votes
The loan rate has rarely been as low as it is now. So do like me, take the opportunity to make money! If you too have accumulated the credits at much higher rates, I want you to share my experience. Thanks to the restructuring of my debts, I saved almost 30 000 € on the totality!
So that you too can get there, you can:
- Renegotiate your loans.
- Group your loans through a loan buyback at a better rate.
- Make a 2nd credit redemption if you already have a 1st redemption in progress.
- Use a broker whose job it is that will find you the most interesting rates.
1. Renegotiate can save you thousands of euros
We can not always buy back our loans, everything will depend on the credits in question and their duration. It is sometimes more interesting to try to renegotiate than to start a buyout.
For my consumer loan for example, I chose to renegotiate the monthly payments directly with the organization in question. The IGT was really too important, close to the rate of wear and he accepted my request without any problem because he also knows: the longer the duration is longer he earns money.
What I advise you to do if it stuck with your banker
My advice: if the IGT (interest rate) seems too important, go see the competition without having scruples. After all, remember that you are a customer, and that without you, the banks would not exist!
Read also: Is it possible to make a consumption loan when you do not have a pay slip.
2. Grouping my loans made me earn 27962 €
Me too it seemed crazy to be able to earn money by making a loan, and yet it is possible! Let me explain.
Unemployed one loses 1/2 of his income
I’ll be honest: before I bought my debts my daily life was not rosy. I had just lost my job. My income has dropped by almost 50% (if you’re going through a long period of unemployment, you’re in long-term sickness or you’re touching the RSA you know what I’m talking about).
These articles may also interest you:
- Unemployed credit online
- Where to find financial help if you are at RSA
What I did to pay my monthly payments
When fate goes, there is a way to lower his monthly payments to honor them: the redemption of credit. How it works: by subscribing a new loan that comes to repay all others. More than a single interlocutor, and a better rate if you subscribe at the right time.
The sums saved every month thanks to the best rate, once added together give this sum of 27962 €. What can a lower rate do to save money?
In return, the horizon of the balance of my debts is remote and I wondered when I was going to see the end. This is a bit of the other side of the coin: credits stretch over time.
I advise you to borrow more than the amount you need to repay
If you have other projects, take the opportunity to borrow a little more in order to realize them (always within the limits of your repayment capabilities, of course).
Given today’s rates, even if you pay more for a buyout, if you borrowed 3 years ago, you should be a winner and save money.
Use the buyback not to lose your home
It is my apartment that has been central to my purchase as it is the case for many people elsewhere. Let me explain: we buy a loan very often so as not to be evicted from housing that can not be paid. And if we do not own this one.
I also advise you to learn about mortgage credit.
In conclusion, a credit redemption is not “an opportunity”, but a possibility to take advantage of the current rates, much better than those for which you have signed.
Why is this second chance rather reserved for homeowners?
It is likely to get this second chance if you do not own your home. In this situation, you are asked to have a property to put in guarantee, especially if your needs exceed 200 000 €.
Good to know: the financial organizations are more numerous to offer the buy, play the competition. If one door closes, another will open unless it is FICP. Generally, banks do not like that.
Contrary to popular belief you will not lose your tax benefits by redeeming your credit
If your credits are part of the 30% that can be grouped, you may be afraid of not being able to deduct interest from your property income. Rest assured, you will keep this privilege!
Your tax reduction will be different, but it will be a little less important, since the calculation will be based on new interest.
It’s risk taking: you can save money but also lose money
The risk is to lose everything if the personal and professional situation of the borrower (you, me) gets worse. This rule is twice as valid for BDF registration or over-indebtedness.
Especially that the bank may ask you to set up a pay assignment for a larger guarantee.
Cases where it’s impossible: you will not be able to buy back your credits
One rule: never cover your face or ostrich.
I already write a lot about these topics. Among the most consulted articles:
- Make a credit if you are over-indebted
- Become a homeowner when you do not have a permanent contract
- Do temporary workers have access to loans?
It will therefore be necessary to find another way to have money:
- The family loan,
- or build an over-indebtedness file with an association like Resucs.
I do not think I need to explain why: a bank or financial institution is not a philanthropist, and it does not take any chances.
If you want to know more, I recommend you take a few minutes to understand the issues:
- Credit and banking prohibition
- Impacts of a Banque de France bank
3. Get your credit back twice: how I saved even more money
Because it is not because we made a first purchase of credit that everything has improved at once. For my part, even if I had already 20000 € saved on all, it was not enough.
Convince the banker: how did I make him say yes
It’s your financial situation that will unlock a new file. If these conditions are met, you will be able to renegotiate your interest rate, taking advantage of current rates at the time of your application. If in doubt, go see your banker, a broker, and do a simulation. This will save you from taking steps for nothing.
You may need a second credit redemption to further lower your monthly payments or to fight a new financial problem.
What you should not tell your banker
He will not accept any reason. For him, some are not valid at all:
- Pay your debts
- Fight a serious illness
- Facing a divorce
- You do not have work anymore…
On the other hand if it is a question of doing work at home and you have the means to repay, it may interest him… It’s up to you to see if it is better to wait a little and postpone them.
Reasons the banker “likes”:
- Reduce your monthly charges by getting a better rate.
- Over-indebtedness avoided.
- Partial repayment of the 1st redemption thanks to your savings.
- Reduce your debt ratio.
- Buy a property.
- Finance a new project within the limits of the debt ratio.
The bank imposed conditions on me: what she asked me
Doing a second credit redemption is like asking a favor from your bank. But it will not do anything for your beautiful eyes (yet mine are not bad at all!).
For my second redemption, the bank verified my ability to repay (as it had done for the first buyout elsewhere). In addition, she demanded that I do not subscribe to other real estate or consumer loans.
Finally, and this condition is not the least, she took a mortgage guarantee on my apartment, making sure that my refund does not exceed 60% of what I earn.
Other issues you may encounter for a second credit surrender
- The delay is not enough (in any case, try to respect a period of 3 months).
- You have exceeded the ceiling from which the bank hesitates (different according to the financial organizations).
- You have more than 4 credits to group.
- Sampling problems.
Ask yourself the right questions so that it does not cost you even more
Renegotiate your loan, make a second redemption, yes, but why? To buy back to buy, no. You have to have a goal, a project, or a thinning in your future finances. This is not a trivial act. It will cost you money and probably headaches for many more years.
If you are already in financial trouble, the prospects of finding a job are blocked, do not ostrich: it’s not for you! Your situation could worsen even more, and in these cases, the ushers are never far from the door.
My advice for not losing money
A second redemption must be done to be a winner on the rates, or the limit, not to be seized his house. But there will have to be solid kidneys.
Otherwise, it is not the right solution. Better to find arrangements with your creditors or file an over-indebtedness file. Because remember that you must not spend more than 30% of your income to pay your debts, because in this case, no bank will want to play the game, and they will be right.
Another redemption will only benefit you under the following conditions:
- You have found a better overall annual effective rate (APR).
- You will have fewer charges to pay each month.
- You are no longer in danger of being insolvent.
- You have a little savings.
- Your debt ratio will not be impacted even with your new projects.
- You have less monthly payments to pay.
- You gain in purchasing power.
- You replenish your cash.
Can I make a loan after a second credit redemption?
If I tell you about this article, it’s because it happened to me and nobody had warned me. In fact, in my loan buyback contract, there was a clause that prevented me from taking out a new loan elsewhere, unless the bank gave me its approval.
I found that a little strong coffee, and I reminded my bank that this clause had recently been declared abusive by the courts. I opposed it. Indeed, by what right could the bank decide what I had the right and not the right to do.
Here is what this clause looked like in my contract:
“The borrower undertakes not to make new credits and not to accept new financial charges likely to make more important its debt, except agreement of the creditor company”.
Then, of course, the financial institution will always be able to retort that it is a clause that is made in your interest, so that you do not end up more. In fact, it is especially in his interest, to be certain that you can repay what you owe him.
The time between 2 credit purchases: it can be shortened
We have just seen that if conditions are met, nothing stands in the way. However, it is customary to wait 1 year between a first and a second request. Be aware, however, that the law imposes nothing. There is no legal deadline.
Each bank therefore has its own criteria, which it adapts as it sees fit. Fortunately, there are exceptions to not wait in most institutions:
- Financing a new project
- An amount no more than 20% between the 2 credits
Can we really do a third credit redemption?
If it worked twice, why could not it work 3 times? In absolute terms, there are no limits, even if the banks prefer that 2 years have elapsed before a new request.
In any case, it will be necessary to have shown paw in its refunds and not to have missed a single monthly payment.
4. Go through a broker to pay less interest
Why go through a broker? He is a pro credit, and even if his VRP suit does not please you, he knows the mechanisms of redemption and the wheels to operate to have the maximum chance that it works.
It’s a broker who took care of my credit redemption. Thanks to him, I gained € 2,600 more than if I had done the same thing myself.
The broker will quickly become your “best” friend
The broker will also save you time, since he will file several files, play his contacts. He knows the market, the rates and the negotiation skills of each other. It can also prevent you from paying penalties on early repayments.
One tip: do not multiply interlocutors, it could short-circuit your request. Choose your broker upstream, go to the forums to find out what is said about him on the net.