If you have taken out several consumer loans, a change in financial situation, positive or negative, can be an opportunity to restructure your debts through a payday loan buyback operation .
Payday credit or payday loan
payday credit is part of consumer credit and allows you to obtain a sum of money without justifying its use. It therefore differs from the credit allocated to a particular purchase such as a mortgage.
And, unlike revolving credit, it is not a “reserve of money” from which one draws when necessary and reimbursed little by little, like a bank overdraft.
The payday loan is the subject of a loan contract at a rate fixed in advance and repayable according to a precise schedule .
The amount borrowed is limited to $ 75,000 over 60 months, depending on your debt level. The monthly payments are fixed, but you can repay your payday loan at any time without any penalty.
The interest rate applied will depend on the amount borrowed and the repayment term: it can vary from 7% to 20%, depending on the credit company and your payday situation.
Payday loan redemption
Following an evolution of your financial situation, it may be interesting to examine the various payday loans in progress, to see if there are solutions allowing you to better meet your financial commitments.
In the event of cash flow difficulties or unforeseen change in your family situation, it is possible to carry out an operation called “payday loan repurchase” which will allow you to restructure your various loans to, for example, increase the duration of repayment and thus reduce the monthly pressure on your budget.
Concretely, it involves consolidating your various loans into a single loan, subject to a new contract, for which you will be able to renegotiate a new and unique interest rate, generally downward. The repayment period and the amount of the monthly payments will also be discussed with the financial institution on this occasion.
The only conditions for this payday loan repurchase: reside in France and continue to have stable income.
But this renegotiation of your debts can also help you reduce your debt ratio, because by increasing the amount of the monthly payments, you automatically decrease the duration of the loan, therefore its overall cost.
In all cases, it is important to carry out a simulation, especially if you are close to a situation of over-indebtedness. Because the Consumer Code provides protection in the event of over-indebtedness, up to $ 75,000 in credit.
When buying a payday loan, you also have to make sure that the monthly payments do not exceed the limit of 33%, which corresponds to the debt ratio generally accepted by banks.
There are online credit simulators that let you know with a few clicks the cost of your credit and the amount of your monthly payments, depending on the repayment duration. Not only will they allow you to know your situation in relation to your debt capacity, but also to better study the different offers from credit organizations concerning the restructuring of your debt.