Do you have several loans in progress, including one dedicated to the purchase of real estate? Have you thought about having your loans redeemed by a bank or an organization specializing in the collection of loans? This solution has many advantages from a financial and practical point of view. Find out what the purchase of 100,000 USD credit consists of. We tell you all about its specificities: advantages, possible solutions, simulation, etc.
What is a credit redemption?
The principle of credit repurchase, also called grouping or gathering of loans, is to refinance several current loans using a new single credit. Instead of paying several monthly installments, the borrower only has one to pay each month.
The repurchase of credit is carried out by a traditional bank or by an organization specialized in collection of loans. And the operation generally involves changing banks in order to benefit from more advantageous borrowing conditions.
You should know that the repurchase of credit makes it possible above all to rebalance a delicate financial situation (risk of over-indebtedness, for example). Thanks to this device, the borrower benefits from more advantageous conditions, which can help him to face the events of life, and to finance new projects (purchase of a secondary residence for rental, birth of a child , changes in income, financing of children’s studies, etc.). On the other hand, it is an effective solution to better manage your daily budget. Indeed, the monitoring of accounts is simplified with a single monthly payment to monitor. In particular, this avoids bank accidents (rejection of direct debit, agios, etc.).
To know : the repurchase of credits concerns both consumer loans and loans related to the purchase of real estate. These different types of credits can be grouped together. The monthly loan payments will be reduced. However, the repayment period will be extended. Indeed, a gathering of credits is frequently accompanied by an increase in the total cost of the loan.
How to get a pool of credits?
To obtain a repurchase of credits, it is above all necessary to carefully examine its financial situation: outstanding loans to be repurchased, remaining duration, monthly payments for each credit, total monthly payment, interest rate, amount remaining due… This step is revealed essential before contacting a bank or credit redemption organization, or contacting a broker specializing in the collection of loans.
Also ask yourself about the reasons that lead you to make a request to buy back 100,000 USD credits. Do you want to find a solution to better manage your budget and your daily accounts? Would you like to have new cash? Are you afraid of one day finding yourself in a situation of over-indebtedness? It is important to know how to argue the reasons for your request to buy back loans.
You can also use online tools to better prepare your project. On the web, you will find credit redemption simulators as well as offer comparators. These online calculators are easy to use and the results are instantaneous. Without obligation, the simulations and comparisons make it possible to evaluate the feasibility of your project.
On the other hand, it is possible to approach traditional banks yourself. In this case, a financial adviser will study your request to buy back 100,000 USD credits, according to the documents provided by you.
And to avoid this essential but time-consuming step, the solution is to use a credit consolidation broker. You won’t have to meet with any buyout agencies. The broker will then serve as your intermediary and will negotiate the best rates for you.
Namely, a redemption of credits of 100,000 euros is considered as a gathering of loans of a high amount. Indeed, the average of the classic loan repurchase is of the order of 35,000 euros.
Most often, people who wish to consolidate their credits for a total amount of 100,000 euros are owners who wish to integrate their mortgage into the banking transaction. This may also concern professionals who have taken out several loans related to their activity.
Therefore, the bank will ask for guarantees and will certainly ask the borrower to mortgage real estate. In this way, the borrower has a better chance of seeing his file succeed.
Read also: Redemption of credit over 10 years or 120 months
The advantages of a 100,000 USD credit buyout
If you decide to consolidate your credits as part of a 100,000 USD buyout, you will have advantages. In addition to the single monthly payment which allows you to better manage your accounts, you will only have one interlocutor. This facilitates trade. This will make it easier for you to arrange with the organization on the reduction of the monthly payment, on the extension of the repayment time, etc.
On the other hand, a 100,000 USD loan buy-back has advantages insofar as it can reduce the cost of a loan. This is a way to make significant savings on your loan. And the monthly charges also turn out to be more bearable.
The different possible solutions
Generally, a borrower with 100,000 euros in debt has an overall monthly payment of 950 euros. Consequently, the average duration of the repurchase of credits is 10 years. But, to take advantage of the advantages of loan consolidation, it is recommended to extend the repayment period to 12 years (144 months) or 15 years (180 months).
Redemption of credits 100000 euros over 12 years
When the borrower opts for a repurchase of loans of 100,000 euros over 12 years (or 144 months), the interest rate is around 1.80%. The monthly payment then amounts to 730 euros, or 220 euros in savings.
To this must be added the brokerage costs if you call on a professional, as well as the insurance costs.
Consolidation of loans 100,000 euros over 15 years
If the borrower chooses to repay his loan of 100,000 euros over 15 years (or 180 months), the interest rate is around 2.4%. The monthly payment then amounts to 610 euros. This represents a saving of 340 euros per month.
Also include notary fees.
Simulate to find the best buyback of 100,000 USD credit
To find the best buyout of 100,000 USD credit, there are online simulators. You can also perform the number of simulations you want. Free, easy to use and without obligation, these online tools are also anonymous and distribute the results instantly. This does not force you to travel, or to communicate your personal data to third parties.
The process is very simple to use an offer simulator. All you have to do is bring information about your current loans (amount of monthly payments for each credit, amount of the overall monthly payment, duration of the loans, interest rate of the loans, capital remaining due, etc.). You must also indicate your monthly income as well as your current situation (tenant, owner, hosted free).
Read also: Redemption of credit over 12 years or 144 months