Credit group makes it possible to consolidate all loans
The transition from working life to retirement raises many questions, especially in relation to the daily budget. According to the latest figures from the Department of Research, Studies, Evaluation and Statistics (Drees), the number of direct pensioners from at least one French scheme residing in France or abroad reached 16.9 million at the end of 2020. The 2022 edition of its annual panorama on retirees and pensions, DREEs assess their income. “The average gross direct pension amount for all schemes (including the increase for three or more children) is 1,509 euros per month in December 2020 for pensioners residing in France.”
For those who still have loans to pay, retirement can represent a decline in the standard of living. In question, the balance between deadlines and new income. In order to ease their monthly premiums, some seniors are seeking a set of credits. Also called credit repurchase, it makes it possible to combine all loans into one credit.
Conditions for obtaining a set of credits
file and financial organizations
First of all, to get a set of credits adapted to your resources and profile, it is advisable to compare several offers. For this, the applicant can turn to physical or online banks, specialized players in credit solutions and intermediaries such as partner finances. Most of them offer online simulators on their website to give an initial idea of a revalued monthly payment.
The Borrower shall create a file containing documents relating in particular to his resources, credits and address(es) of the property(s). This allows the enterprise to assess its solvency according to various criteria.
Consolidation of credits is available to active and retired people. It is especially targeted at people who have many consumer loans in progress, but not only. It can also be requested by a borrower who has only one mortgage to pay off. In this case, it is not about an assembly in the strict sense of the word since there is only one group. But the process aims to renegotiate the initial credit at a better rate. Home ownership can be an asset in the case.
Debtors are eligible to buy back credits. But within certain limits. If the debt ratio is too high, it may be rejected. Likewise, it would be difficult to grant buy-back credits to a borrower who is registered in the FICP Incident File.
Finally, age can be a brake for some financial institutions even though retirement occurs later and later. Still according to the DREES framework, “At the end of 2020, the average economic retirement age was 62 years and 4 months for direct pensioners residing in France. It has been 1 year and 9 months since 2010.” But some do not mean everything. Many lending institutions are also reviewing their requirements in terms of the maximum age requirement.
Advantages and disadvantages of credit consolidation
In the event that the file is validated by the financial institution, it purchases on behalf of the borrower its loans due from each institution.
In particular, this process allows:
- Consolidation of miscellaneous loans
- Facilitate administrative organization
- Reduce the amount of monthly payments
The selected organization becomes the sole interlocutor and the only institution to which the borrower will repay. Since everything is bundled together, he only has one monthly payment to pay. However, credit consolidation also has its share of drawbacks.
The main inconveniences of buying back credits are related to the term and total amount of the individual loan. If the monthly installments can be reduced, they are obliged in return to:
- Extending the term of the loan
- Increase the total cost of credit
- Obtaining insurance for the borrower (depending on the nature of the loan and at the request of the financial institution)
To summarize, pooling credits restructures debt. Simplifies the day-to-day management of loans by combining them into one loan. If it allows you to reduce your monthly payments, it does not allow you to save money. It is above all a way for many retirees to find their daily cash flow by spreading out their expenses more.