The rising cost of living, the economic crisis have resulted in many households in an almost endless cycle of debt. How to get out of this inextricable situation?
Unable to save, individuals or households do not hesitate to subscribe several credits to buy a car, a house, make trips, ensure the higher education of a child, etc. Over time, they fail to repay the loans they have contracted and, at the same time settle the bills of the expenses of the everyday life.
They find themselves in a situation of over-indebtedness since their financial burdens far exceed their incomes. Over-indebtedness can be caused by a decrease in income, an unforeseen event such as unemployment or illness. But it can also come from the fact that the people concerned, by contracting several credits have not properly studied their ability to repay or have not sufficiently informed on important details in the face of the risk of over-indebtedness.
What are the consequences ?
People over-indebted, in addition to the repayment of their loans with interest, will still be inflicted other evils: payment of the penalties of delay or other additional expenses like those raised by the commissions of intervention banking and discharges of levies, or still of ATD or bailiff.
To get out of this situation, they can send a request to the Bank de France for the constitution of an over-indebtedness file. If an amicable agreement can not be found between the parties, debtors and creditors will be imposed a repayment plan. People who have filed an over-indebtedness file will be listed on the Personal Credit Reimbursement Incident File or FICP, will not be able to take out new loans during the procedure of their financial situation and thus be vigilant about their expenses.
The buyout of credit to break the deadlock
In this process, all loans contracted, real estate, consumption and others, will be combined into one, with a lower interest rate. The repayment period will be adapted to the income of the borrower. The amount of monthly payments can be reduced by up to 50% compared to the monthly payments that he had to pay before.
He will not have to pay the monthly payments of several creditors but only one will be his interlocutor. The repurchase of credit, also called credit restructuring, avoids the hard procedures of the over-indebtedness file and allows the persons concerned to have a clear situation of their financial situation. Finally, it is advisable not to wait to be bogged down in debts to have recourse to them. And the best solution is to use a credit broker who has all the tricks of the trade and find the appropriate solution in each case.