What is loan consolidation?
When the cumulative monthly payments of different loans weigh too heavily on the household budget, the grouping of monthly payments into a single reduced monthly payment * can be a solution to get off to a good start!
Imported from Anglo-Saxon countries in France in the early 2000s, loan consolidation is a financing solution offered to individuals by specialized organizations such as Intermediaries in Banking Operations and Payment Services.
Wish to reduce loan
It is for people wishing to consolidate all or part of their loans to reduce the overall monthly payment *.
More and more French people are confident in the consolidation of loans, as evidenced by the sharp increase in this market: + 10% between 2014 and 2015.
When the monthly payments of current loans plus fixed charges (rent, alimony …) exceed the threshold of 33% of fixed income, the budget of a household can be considered as unbalanced. The response of intermediaries in banking operations: a single loan with a repayment period often longer.
Objective: to reduce the debt ratio below the 33% threshold. Beware, this reduction in monthly payments * does not mean that the debt is erased! The latter is only globalized and staggered over time. On the other hand, the borrower is no longer dealing with several creditors but only one.
Consolidation of credits: instructions for use
To request a loan consolidation, please contact the Financial Solutions Specialists: Bank Operations and Payment Services Intermediaries. Your FCI will review your financial situation, without any commitment on your part, to determine the pooling formula that will make it easier to manage your budget.
In order for his credit pool file to be accepted, the borrower must be honest and not attempt to conceal other possible loans.
In addition, it must be solvent, that is to say in capacity to repay the loan, while assuming the daily expenses.