It is possible, thanks to the grouping of credit, to buy back its loan. In practice, the redemption of credits works in the same way as all other consumer loans. You are applying for a loan consolidation with a bank or financial institution. If you submit your application online, you will be contacted again by the latter.
If your request is accepted, the bank will ask you to provide various supporting documents. An offer of credit will be made to you and you must return it signed. The bank is responsible for contacting the institutions with which you have outstanding credits and repaying your loans. You will, therefore, have only one deadline and one monthly payment to repay. It is, therefore, a very practical way to buy back your loan.
Example of having loan and how to consolidate it
Take the example of Marc, 30, who has several consumer loans in progress:
- A car loan for the purchase of his new Mercedes for which he has to pay € 443 per month for 23 months. The remaining amount to be repaid is € 10,189;
- An installment sale for the purchase of a new salon for which he has to pay € 230 each month for 25 months. For this loan, Marc must still repay 5.750 €;
- A credit opening with his Visa card from ING for which he repays every month € 189 and the remaining amount to pay € 2,500.
The total amount of the three outstanding credits remaining to be paid by Marc is therefore 18,439 €. Marc wants to lighten his monthly payments because, since his divorce, he has some difficulties in repaying all his loans in time. He can, therefore, request repurchase of credits for an amount equivalent to the total of his current credits, ie 18,400 €.
Marc is now advised to compare free credit consolidation offers with the various banks in Belgium. Comparing loans will allow him to get the best deal and save money by finding the cheapest credit.