It is a question that is recurrent, should we opt for a new credit or a credit repurchase? Here are the answers.
The loan for Senior
In general, a senior takes out a consumer loan to finance a post-retirement project. We often talk about travel, accommodation or consumer goods. The consumer loan solution is perfectly suited to meet these needs, but the debt ratio is the major factor in determining whether to repay the loan.
The accumulation of credit is the primary risk of household over-indebtedness, which can cause serious financial difficulties that are difficult to manage. The use of credit consolidation allows rescheduling a repayment period and adding an optional amount dedicated to new financing.
The loan repurchase for Senior
The grouping of credits consists in settling the loans in progress of a senior household then in carrying over the sum of the remaining capital due on a new loan contract. This new contract also contains a single rate and therefore a lower monthly payment.
The advantage of this solution is to be able to better manage its finances and reduce the monthly portion dedicated to loan repayments. An amount can also be added to finance a project. Important, the lengthening of the duration and the amount of new financing can lead to an increase in the total cost of the credit, the senior borrower must then be aware of his commitment.
Senior: time to choose
The senior borrower will have to choose his financing according to his personal situation. If the latter has a low debt ratio, he can use conventional credit. On the other hand, if the rate is close to 33%, it will be necessary to use credit consolidation to spread the debt and start again on better bases.
The best solution is to compare the two offers, the Senior borrower can thus visualize his situation before and after financing. To obtain an estimate for the redemption of credits, we invite you to complete our form.