April 3, 2019 Clinton Whiteaker 0Comment

In recent years, households have been asking private individuals to reduce their monthly payments, highlighting the grouping of loans between individuals.

The principle of redemption of credits

People who can no longer repay their monthly payments when the amounts are too high can turn to the redemption of credits. Indeed, this banking operation allows to group all its credits (real estate and consumer) in a single loan with a reduced monthly payment. This lighter monthly payment allows the borrower to repay his credit according to his means, which reduces the excessive share of credits in his income. The contract will therefore be adapted to the borrower’s financial capacity with a rescheduled duration, a reduced monthly payment and a new interest rate.

The purchase of credits: from individual to individual

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The principle of solidarity economy is increasingly used for many services such as transportation, project creation, traditional credit and today the purchase of credits. The borrower can choose to buy back his outstanding loans by individuals, that is to say that several individuals play the role of the bank, which frees dependency on banks. The decision to validate the operation is made by a committee (platform) but the criteria of admissibility are not explicit. It is also possible to have a direct contact from individual to individual and to establish a contract directly. This method of financing favors the purchase of consumer credit and small amounts, it is not always the best repayment plans for the borrower, so it is recommended to compare offers before committing.

The redemption of credits: banking intermediary

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Bank intermediaries are an attractive alternative for loan consolidation offerings since these organizations work with several credit institutions, so they can survey and get several offers for a borrower. The banking intermediary is in direct contact with clients and financial institutions, which enables him to offer attractive offers for the purchase of real estate and consumer loans. The request can be made totally online. To subscribe to the redemption of credits, it is obviously necessary to be sure to be able to repay it and honor the terms of the contract.