Do you plan to have your credits redeemed by an organization so that you no longer have to pay several monthly payments? The repurchase of loans, or credit consolidations, represents the best solution to avoid a case of over-indebtedness. So how does a 12-year bond rally work? What does this commit you to in terms of monthly payments? Discover the principle of buying back credits over 144 months: advantages, conditions, concrete example. And follow our advice to have every chance of successfully completing your loan consolidation request.
Repurchase of credit over 12 years: the principle
Know first that the duration of 12 years (or 144 months) is considered as the medium term in the field of the repurchase of credits. The most common duration is then 15 years or 180 months for a group of loans (mortgage or consumer credit). Moreover, when you call on a broker specializing in the purchase of credits, he first gives you an estimate over 15 years. However, it is quite possible to request a collection of loans over 12 years.
It should be noted that the duration of the repayment varies according to the offer of the organization of repurchase of credits. It largely depends on your financial situation and your borrowing capacity. In some cases, a collection of loans over a longer period will be recommended. In any case, beyond 12 years (or 144 months), it is an effective strategy for better managing your budget in the short and medium term.
One of the main advantages of spreading your monthly payments over time is to increase your purchasing power. Indeed, the monthly payments are therefore less important, which allows savings to be made on a daily basis. Borrowers at risk of over-indebtedness can regain control of their budget. And apart from very delicate financial situations, buying back credits over 12 years makes it possible to plan other new projects such as the acquisition of a new vehicle or the financing of children’s studies.
To know : a repurchase of loans also involves administrative fees, notary fees, etc. And we also have to count on an increase in the interest rate. Therefore, the total sum turns out to be higher. A reimbursement over the medium term is therefore more advantageous than a repurchase of credits over the long term.
It is quite possible to request a buy-back of credits for non-real estate loans. Moreover, the mortgage must not represent more than 60% of the capital to be redeemed in the case of a redemption over 12 years.
The process is more about buying back consumer credit. And on the other hand, the operation also concerns revolving loans, bank overdrafts, personal loans, rentals with option to purchase (LAO), debts, rent or tax delays. Note that the maximum duration of the purchase of consumer loans over 12 years or 144 months is regulatory.
Also be aware that there are certain age conditions for setting up a loan buyback financing file. In special cases, you must be over 18 and under 75 at the end of the amortization period of the loan consolidation.
Read also: Redemption of credit over 10 years or 120 months
Example of repurchase of credit over 12 years
Jean and Sabrina are married and have one child. The family has a total income of 2050 euros. She took out several loans:
- a car loan (monthly payment €420; remaining due €14,200);
- a personal loan (monthly payment €320; remaining due €21,000);
- a loan to carry out work in the house (monthly payment €240; remaining due €5,400).
Jean and Sabrina must therefore repay a total of 980 euros monthly. Its debt ratio is approximately 48% (recommended threshold: 33%).
By opting for a consolidation of consumer loans over 12 years (144 months) with cash in addition to 2000 euros, the family would only have to repay the monthly payment of 315 euros. In addition, it would save him 665 euros per month. And its debt ratio would only be 15%, which would considerably increase its purchasing power.
Successfully repurchase credit over 12 years: the keys
To successfully redeem your loans over 12 years (or 144 months), you must first of all examine the outstanding loans to be redeemed as well as the remaining duration. Before taking steps with banks and credit redemption organizations, or requesting a specialized broker, all the essential data should be available: overall monthly payment, monthly payment for each loan, interest rate, amount remaining due, etc.
On the other hand, what drives you to ask for a loan buyback over 12 years? You must be able to justify your choice. Are you calling for this operation in the medium term to better manage your daily budget? Do you need more cash? Are you in over-indebtedness? It’s up to you to explain your approach by detailing the motives and reasons.
Finally, be aware that it is recommended to use the online tools made available to you free of charge to prepare your project as well as possible. On the Internet, there are credit redemption simulators and offer comparators. Free, easy to use and without obligation, they represent the first step to study the feasibility of the operation and see the market.
Find the best credit redemption over 12 years: our advices
To find the best loan buyback over 12 years or 144 months, you have three options:
- contact a traditional bank. A financial advisor will assess your request for redemptions after you have provided them with the supporting documents. He will then contact you to make you an offer. This is when the counterparties will be discussed. Note that this approach, although time-consuming, is very effective if you decide not to use a loan consolidation broker;
- solicit a credit redemption broker so as not to have to meet the various lending organizations. The professional will compare the offers, choosing the most advantageous for you. A true intermediary, the broker negotiates on your behalf to best defend your interests;
- use an online price comparator. This simple and quick solution is particularly effective for obtaining an initial estimate of the purchase over 12 years or 144 months. To succeed in this process, you simply need to enter information: total amount to be redeemed, rate and duration of current credits, current situation, your monthly income, etc. These online tools are non-binding and you can remain anonymous. It is only with your consent that your personal data is transmitted to partner organizations who will contact you later.
Read also: Redemption of credit 100000 euros