By restructuring several credits in a single loan at a single rate, the pooling of credits (also called debt restructuring or loan redemption) allows households to regain some financial peace of mind or to find new investment capacity.
I choose my guide to be at the top on the subject! My financial situation The objectives of my credit redemption
A financial situation that has deteriorated
Grouping its loans is a solution to meet households in financial difficulty. These worries are not necessarily due to poor budget management, they may be the consequence of a family change for example.
The Credither Guide lists the situations households may encounter when redeeming credits:
- Monthly payments or indebtedness too high. Between loan installments and taxes, rents, bills or insurance premiums, it can happen that the monthly payments weigh heavily in a budget, to affect the rest-to-live;
- A retirement. This event leads to lower revenues, making it more difficult to pay monthly payments;
- A family situation that has changed. The arrival of a child or the separation of the spouses is necessarily reflected in the household budget;
- Tax delays. Following an accident in life (divorce, death of a spouse…), a decrease in income or an increase in expenses, it can be difficult to meet the deadlines of the tax administration.
Find a new investment capacity
The grouping of credits makes it possible to lighten your monthly payments and thus to find a certain financial serenity, but it is not its only objective.
By decreasing the level of your monthly payments, you find a new ability to save.
In the same vein, the pooling of credits can give you a new impetus to invest in a new project: real estate acquisition, completion of work, purchase of a vehicle, etc. For this purpose, the transaction often includes cash.