The repurchase of credit suffers from the banking and financial crisis.

The repurchase of credit could become more difficult due to the recent bad economic context, which saw at the same time increasing the distrust towards the banking establishments and the exposure of the most questionable financial practices.

Less favorable loan buy-back conditions

Less favorable loan buy-back conditions

The least we can say is that the news has not been tender with the banks in recent months: revelation of shocking speculative practices, dismantling of the Cream bank, endangering major French banks like Across Lender due to questionable investments (subprimes, or more recently products directly impacted by Greek debt).

Everything therefore seems to encourage lending organizations to adopt a strategic retreat position in a highly fragile economic context which no longer spares them. Unfortunately for borrowers, and more particularly for those considering a credit buyout, this also means a tightening of the conditions for accepting refinancing.

Increased response times for credit redemptions

Increased response times for credit redemptions

First of all, it is likely that the time periods for accepting applications will lengthen, officially for reasons of analysis of the optimal conditions for the repurchase of credits, but more likely to respond to internal instructions aimed at limiting the maximum risk of default, even if it means discouraging less persistent applicants.

In this case, only the use of a broker well established with specialized banks will allow you to pass the course without too many disappointments and have your loan buyback dossier processed within a reasonable time.

New acceptance criteria

New acceptance criteria

In parallel with the extension of the processing times for credit buy-back files, these will also be examined more carefully on the basis of a set of much more restrictive criteria, again with the aim of rejecting as many requests as possible. For example, the buyback of unsecured loans (that is to say from individuals who do not own property in particular) will be much more difficult to obtain.

But being an owner will not be a guarantee of admissibility either, because it will still be necessary for the property to be easily “liquidable” and thus to be quickly sold by the lending bank in the event of default by the borrower. Owners of real estate located in areas where prices are higher than the national average could therefore be penalized: a property more expensive than the average is indeed more difficult to sell in the short term.

A likely rise in interest rates

A likely rise in interest rates

In such a tense and uncertain climate, where insecurity now affects the financial organizations themselves (or even the States, etc.), some establishments could be tempted to compensate for the increased risk taking by significantly increasing the interest rates granted to the files. the most delicate, among which we obviously find the repurchases of credits.

Indeed, the main reasons leading borrowers to request a loan repurchase are related to the difficulties they experience in meeting their maturities. In this case, the lender may doubt the ability of the borrower to repay his debts, and therefore will tend to apply higher interest rates.

French people and payment cards: too many credits in progress?

Payment cards and associated credits have been successful in France. On average, the French have almost 7 cards in their wallet. 97% of our fellow citizens have at least one payment card. All these payment facilities and associated credits contribute to household debt and even if they represent a convenience that should not be overlooked, they are also to be watched.

A payment facility that multiplies credits

A payment facility that multiplies credits

Store payment cards are popular with users with a score of 8.2 / 10 against 7.5 / 10 for loyalty cards only. Used or not, payment facilities are an asset for store card holders.

They are considered a free credit, with the possibility of paying in several installments without interest rate. Generally of 3 months, the duration of these credits can also be longer, resulting in the assimilation of the payment facility to a conventional credit with all the associated rules: pre-contractual information sheet, loan contract offer and 14 day withdrawal.

A level of debt to watch

A level of debt to watch

Some French households end up making excessive use of all these payment facilities which nevertheless represent sums to be reimbursed. These charges can add up to the point of increasing the budget of a household. Indeed, even if the credit is free, these are amounts to be reimbursed each month and good management requires keeping a close eye on all these commitments.

Remember to regularly calculate your debt ratio to find out the share of your budget that goes into loans, to calculate the capital remaining due and to view your amortization table. Nearly 3 out of 4 French people declare that they are forced to arbitrate in the management of their consumption, the food station or the holiday post can be reduced in favor of incompressible expenses.

If your debt level rises to the point where it threatens your financial health, don’t forget to study the possibility of buying back credit or debt restructuring that could allow you to start off from the good foot with lightened monthly loads.