Are you currently repaying several loans at the same time, and the amount of the monthly payments represents a brake on consumption? Have you considered the repurchase of credits, also called grouping or consolidation of loans? This is a banking transaction carried out by a traditional financial institution or a credit redemption organization. Generally, people in a situation of over-indebtedness request a consolidation of loans. However, borrowers who want to better manage their budget or take advantage of more advantageous rates can also use this solution. Discover the principle of buying back credits over 10 years or 120 months. What does it consist on ? For what type of loans is it recommended? Also follow our advice to make your loan consolidation over 10 years a success and have your file accepted.
Repurchase of credit over 10 years: how it works ?
In general, borrowers who wish to buy back credits over 10 years (or 120 months) have only taken out consumer loans. Indeed, the duration is quite short for a purchase of credits including a mortgage. It is better to opt for a period of 10 years for small amounts of credits to be redeemed. Beyond that, it is preferable to request a collection of loans over a minimum of 15 years. In addition, it is the most frequent duration in this type of operation.
Tenants, owners and people staying free are equally affected by the consolidation of loans over 10 years. Often, banks and credit redemption organizations offer advantageous rates over this period. The reason is simple: the shorter the repayment period, the more banks are able to grant attractive rates. In conclusion, repaying a loan over 120 months (or 10 years) allows you to benefit from the best rates on the market. However, the monthly payments will be higher. Households able to repay high monthly payments will then take advantage of this advantage to settle their debts quickly.
To note : the duration of the repayment of the repurchase of credits varies according to the organization of loan consolidation, but also of your financial situation, and in particular of your borrowing capacity. In very specific cases, a collection of credits over a longer period will be recommended. In any case, using a loan buy-back to repay your debts is one of the most effective strategies for managing your budget in the short and medium term. Nevertheless, it is necessary to take into account the costs involved in the repurchase of loans (application fees, notary fees, etc.).
Example of repurchase of credit over 10 years
Sylvie and Antoine have two children. The family has a net monthly income of 2400 euros. Previously, the couple took out three consumer loans:
- a car loan for the acquisition of a new car;
- personal credit;
- a work loan to renovate their house.
The overall amount remaining to be reimbursed is then 36,780 euros. The total monthly payment is 465 euros.
By collecting loans with an APR of 3.10% and a repayment period of 10 months (120 months), the family will only have 331 euros per month to repay. She will thus have greater purchasing power by saving 134 euros per month.
Read also: Redemption of credit 100000 euros
Successfully repurchase credit over 10 years
To successfully buy back credits over 120 months (or 10 years), it is better to prepare your file. First examine the outstanding loans to be redeemed and determine the remaining duration for each of the loans in progress.
On the other hand, before starting the process with banks and buyout organizations, or contacting a specialized broker, gather the essential data. You will be asked for the following information: monthly payment for each current loan, overall monthly payment, amount remaining to be repaid, interest rate, etc.
You will also need to be able to justify your request for the redemption of credits. Is this a solution to avoid over-indebtedness? Do you want to have extra cash? Would you like help to better manage your daily budget? In the case of a collection of loans over 10 years, it is above all a question of repaying a loan quickly while benefiting from an advantageous interest rate.
To know: to prepare your file as well as possible, it is recommended to use online credit redemption simulators as well as offer comparators. These tools, available free of charge on the Internet, are non-binding. Easy and simple to use, they allow you to get an initial idea of the feasibility of the project. And you will thus have a first approach to the offers available on the credit consolidation market.
Find the best credit redemption over 10 years: our practical advice
To have the most interesting offer in terms of buying back credits over 10 years, it is advisable to contact a traditional bank. A financial adviser will study your file after you have sent him the necessary documents. The professional will contact you later by offering you a buyback offer. You can negotiate the terms of the merger with him. This process takes time, but is necessary to find the best collection of loans over 120 months.
If these formalities seem too restrictive, you can absolutely call on a broker specializing in the purchase of credits. This intermediary will canvass the banks and organizations on your behalf, and will negotiate the best offer.
To note : before carrying out any of these steps, first use an online offer comparator. This is a simple and quick solution to get an initial estimate of your loan consolidation over 10 years. Prepare the following information to fill in the fields of the form: total amount to be repurchased, rate of credits in progress, duration of repayments. You will also need to fill in your current situation and the amount of your monthly income. This data will remain completely confidential. Indeed, these online tools are non-binding and anonymous.
Read also >> Repurchase of credit over 12 years or 144 months