Abomag

In France, the rate of household debt is rising. The accumulation of credits, fees and deadlines are always higher explode the debt consolidation loan.

A debt consolidation loan is a loan restructuring to repay all your outstanding credit (or part of them if the record permits). The debt consolidation loan is a replacement credit, allowing a single repayment of monthly installments.

This debt consolidation loan is spread over time, resulting in smaller monthly payments (30% or 50%).
The purchase of credit is, in other words, a financial restructuring of your credits.

Several formulas are proposed acquisition of credit:

• Repurchase of consumer credit
• Redemption of mortgage
• Debt consolidation loan for homeowners
• Aggregate redemption of mortgage and consumer together

5 criteria to consider:

1. The elapsed time of current credit:
In general, debt consolidation is advantageous if you have purchased loans under 7 years, and if their remaining life is greater than or equal to their elapsed time.

2. The difference between the rates:
For the purchase of credit is effective, the difference between the current rate and the rate of new loan must be at least 1.2 points.

3. Your debt ratio:
Your debt ratio is now considered by organizations debt consolidation loan. It is commonly accepted that it should not exceed one third of your monthly income.

4. The fees:
Like any banking transaction, a debt consolidation loan necessarily imposes fees. Remember to account for these costs in your choice of provider consolidation loan.

5. Redemption fees:
For each old loan, you owe the organization in question of prepayment penalties. They generally correspond to 6 months' interest, not to exceed 3% of capital outstanding. You pay these penalties is mandatory, even if they had been traded on the subscription credit. Indeed, the contracts still exclude the case of a consolidation loan.

Choose your organization debt consolidation loan:

The first thing to do is to shop around. The costs can vary significantly from a debt consolidation agency to another. Ask the detailed amount of all fees: bank charges, brokerage fees the firm, notary fees, etc.. before you commit.

A level playing field, compare the total amount of credit. Simulation capabilities are available on all sites of debt consolidation loan to calculate your monthly payment.

Little advice, stupid, but very useful: do not send original documents as you do not have definitely chosen the agency that will handle your debt consolidation loan ...

To facilitate the process, you can appeal to specialized agents, which will take charge of defending your case with the various institutions of debt consolidation loan. You save valuable time by being assured of the most competitive rates in the market.

Final tips:

- Think about your situation:
If you have a budget problem, make a consolidation loan you will really improve your situation?

- Check the status of the organization:
It may well be that behind a debt consolidation agency lies a mere intermediary who receive a commission on your record ... This certainly implies that through the final organism, your debt consolidation loan you would have been cheaper !

- Beware of "customer testimonials":
This type of argument is just a gimmicks. Nothing requires a debt consolidation agency to tell real stories, it is not illegal.

Now that you know the principle of debt consolidation loan, you have all the cards to choose your organization.