When a person or a household can no longer pay their debts and pay their bills despite their hard work, they are in a situation of over-indebtedness. He needs an effective solution in the immediate future. To overcome the over-indebtedness, a whole range of means is available. Yet the redemption of loans is the most interesting. Moreover, this practice has become widely popularized in recent years. As a result, its implementation becomes simpler and faster.
Causes of over-indebtedness
There are many reasons for overindebtedness. In most cases, it is the accidents of life which are at the origin of the situation. In the face of an illness requiring expensive treatment, the home is obliged to go into debt. The infernal circle begins because to settle a debt, you have to ask for another loan .
But in some cases, the over-indebtedness is due to the fact of having subscribed to several debts by the only desire to have a life much more convenient and pleasant. Indeed, people are easily tempted by financing offers proposed by financial institutions such as consumer loan or mortgage to improve the comfort of their homes or modernize their work equipment.
In order to appeal to customers, loanors rely on various strategies. Some of them allow the accumulation of several loans and offer conditions for the release of particularly flexible funds. Borrowers are completely fooled and do not take the time to assess their repayment capacity before entering bids. They fall straight into the trap of over-indebtedness.
Remedging over-indebtedness with loan redemption
To no longer have several monthly payments each month and reduce the debt ratio , the most obvious solution is to resort to a purchase of loans . The peculiarity of this banking operation is that it allows above all the reduction of the amount of money to be paid by the borrower each month. In fact, negotiating a purchase of consumer loan or real estate loan consists of consolidating all the loans contracted with several loanors. At the end of the process, there will be only a global amount to settle in a sufficiently long period. In addition, there will be only one lender. To take this into account, the benefits are enormous because the person over-indebted can break the deadlock without having to sell a valuable asset. He can find a more serene life.
The only downside is that it is often difficult to find the loan agency to address, hence the need for the intervention of a broker . It is a financial agent whose role is to help the borrower identify the bank that can offer him the loan consolidation offer that meets his expectations. It adopts an appropriate approach that begins with the realization of a simulation of redemption of loans .
Thanks to his privileged relationships with the various financial institutions, he also helps his client negotiate to increase his chances of obtaining the new single loan with a reasonable interest rate and terms of repayment. With a solid file, the borrower even has the opportunity to integrate into the contract, the granting of a complementary fund that is used to finance a project that is close to his heart.