While holding a mortgage, we have seen how to optimize a period of lower interest rates by renegotiating your loan with your bank or by buying it from a new bank.
There remains a third option: the consolidation of loans or the restructuring of debts .
This option is intended for two scenarios:
– a borrower holding a real estate loan + a car loan + a small consumer loan, whose addition of debts brings his debt between 33% and maximum 45 to 50%. Account management remains sound, that is to say with the possibility of bank overdraft, but absence of intervention fees on account, rejection of direct debit, etc.
– a borrower holding a real estate loan + a car loan + several consumer loans or a large consumer loan combining old small loans + money reserves… The total of his outstanding loans exceed 50% of debt and “Necessarily” account management presents overdrafts, fees and / or rejections.
In both cases, a prospect of lower rates may be an opportunity to consolidate its outstanding loans under a new global mortgage, thus considerably reducing the monthly burden of the borrower.
For the first case, conventional network banks, which everyone knows, will be able to make you proposals. But in my opinion, the intervention of the credit broker is made logical and preferable by the fact that each bank has its acceptance criteria, and by the care to be taken in the presentation of its file. The broker will be able to sort it out for you and send your file to the bank most suitable for your profile.
In the second case, these are banks specializing in debt restructuring or consolidation operations, much less known to the general public. Again, it is better to consult a broker to better prepare your file, in order to avoid the discouraging accumulation of loan refusals.
In any case, here are some tips to remember for these credit restructuring operations:
– Play transparency with your interlocutor. Often you are very close to a bank’s ratios and any discovery of a new loan comes to question your new financial arrangement. Not to mention the risk of having a first refusal decision which it will be very difficult to reconsider. Because it is also a question of trust.
– Prepare your operation well, by classifying your papers and in particular all the amortization tables for your different loans. This will greatly facilitate the work of finding the remaining capital due to be raised.
– Prepare your accounts as well as possible, 3 months of increased vigilance to minimize overdrafts, costs … always facilitate the presentation of your project. It is a pledge of seriousness and investment in your credit consolidation operation.
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