If consolidating your loans is already a thing of the past for some borrowers, for others some reluctance slows down the act, here are the main reluctance to buy back loans.
A little-known operation
Finance is a complex universe and only professionals really know the underside of a banking transaction, the grouping of credits is no exception to the rule. At first glance, this funding remains complicated to understand, but not impossible for ordinary people.
It is a logical reluctance on the part of borrowers who are still novices, but websites like this one allow a better understanding of the repurchase of credits.
A bad image
Although the operation has been democratized for several years, it suffered from a very bad image at its beginnings in the 2000s. . Today, a borrower who has gone through this stage has become aware of a lopsided situation and has to remedy it. It is always better to say that you have pooled your credits rather than being in debt.
The cost of buying back credits
If you read on a web page that buying credits will save you money, that’s totally wrong! The lender takes over your debts and spreads them over a longer period of time, therefore the cost will be increased, perhaps in a moderate way but in all cases you will repay an amount greater than the sums before redemption.
It is the only solution to reduce your monthly payments and rebalance your budget, again you have to see the financial situation over time and realize that it is necessary.
Lack of reliable information
This reluctance is closely linked to the first, by having bad information or partial information, one cannot get a precise idea of the grouping of loans. Whose fault is it ? Professionals who cannot always communicate freely or with very rigorous and strict legislation in this area?
Difficult to make the share of the things but the report is there, many sites are present but do not answer frankly the fundamental questions on the grouping of loans.
The fear of being refused
Many borrowers are refused, but the choice of organization is the primary cause of refusal. Indeed, it is never comforting to be refused your request but by multiplying your requests with different structures of establishments (Bank, intermediary, credit institution), you optimize your chances of obtaining an agreement.
You should not limit yourself to your bank but go to a banking intermediary (broker, agent) who can have up to 8 mandates with establishments specializing in credit consolidation. A refusal is not a sign of abandonment, the slightest change in criteria or development of the situation can lead to an agreement.
Conclusions: reluctance to buy back loans
It is normal and human to be reluctant before embarking on the unknown but the grouping of credits is a banking operation which meets a real need: that of reducing your monthly payments. The simulation allows you to get started without getting involved and free of charge.