Over the course of life, credits tend to accumulate so that it sometimes becomes difficult to find your way around and pay them back. One solution is to consolidate all of these loans into one. This is called the credit buy-back. An operation accessible to everyone, even seniors.
Credit repurchase: principle and operation
To give a little oxygen to your finances, opting for a loan repurchase can be interesting. The objective of this banking operation is to reduce the monthly payments paid by a household to reimburse all of its consumer or real estate loans or both. The idea is to consolidate all the loans into one credit which can even include other debts such as taxes, family debts, bank overdrafts and other unpaid debts. When the financial organization agrees to redeem all the loans and debts in progress, the subscriber will benefit in return for a credit, rate, schedule and single repayment.
He will no longer have to pay different monthly payments to the various establishments to which he has subscribed, but will only be liable to a single bank. The advantage of buying back credit is that it reduces monthly payments by up to 60%. How? ‘Or’ What? Simply by extending the repayment period which lowers the monthly cost to pay. This gives a breath of fresh air to purchasing power, which is very often affected by this accumulation of receivables. The subscriber also manages to manage their finances more easily by having only one contact at whom to pay their debts. But beware, access to this solution is not easy. Some banks may ask for guarantees from a surety or a third party before granting the buyout. Likewise, they can also demand a mortgage.
Up to what age can you group your credits?
One of the elements examined by the banks before agreeing to buy back credits relates to the age of the subscribers. One of the fears of financial organizations in fact is the non-reimbursement of monthly payments. Granting a loan to an elderly person can present risks at this level. Anyway, all is not lost. Taking advantage of a credit repurchase when you are senior remains entirely feasible. For more information see this site.
In any case, there is no law which prohibits the provision of this type of banking offer to the elderly. The rules are just different from one bank to another. For example, some may agree to buy consumer loans from 85-year-old customers. If mortgage loans are involved, the limit can be up to 95 years. The problem is that to offset the risk of non-payment, financial organizations require very expensive insurance contracts to protect themselves. This is especially true for people with health problems. A parameter which significantly increases the monthly payments to be reimbursed. Before subscribing, it is therefore crucial to scrutinize all these different details to avoid unpleasant surprises and to take full advantage of the advantages that the repurchase of credit is supposed to bring.