To lower your monthly loan payments, there are several solutions depending on your personal situation and the type of debt. Besides, lowering your monthly payments is not limited only to credit or mortgage. It is quite possible to include in tax restructuring tax receivables, rent arrears, etc.
Through this article, we will explain in detail how to lower your monthly payments, what these solutions can cost, how to find a credit repurchase and the documents to provide to complete your debt consolidation file.
Lowering your monthly loan payments: debt consolidation
When you have too many credits or debts of all kinds, you don’t really realize the situation in relation to the total amount that you have to repay but in relation to the end of the month which becomes impossible to make. Because the most complicated is to face a sum of monthly payments every month which makes it impossible to be able to continue to live decently whatever the situation.
In this case, we are not talking about over-indebtedness but about bad debt. This means that the amounts to be reimbursed each month are too large and that you have to succeed in lowering your monthly payments, without however losing the situation.
It is to deal with these situations that credit buying was invented, also called grouping of credits. This solution consists in grouping all the debts into a single new loan whose duration will be extended to be able to lower its monthly payments. Indeed, it is a very simple principle which is applied: the more the reimbursement is spread over a long period, the less the monthly payment is important.
Example of buyout
Example of principle composed of several credit debts :
– $ 5,000 monthly: $ 250 duration: 20 months
– $ 50,000 monthly: $ 625 duration: 80 months
– 10 000 $ monthly: 200 $ duration: 50 months
Total monthly cost: 1075 $
Accumulating 1075 USD of monthly repayment can be far too much if you do not earn a lot of money or if you are faced with an unforeseen situation and you can no longer cope with it. In the vast majority of cases, you need to lower your monthly loan payments following a life accident such as a layoff, an accident or even a divorce. In this case, here is how to lower your monthly loan payments:
New credit = debt 1 + 2 + 3 = $ 5,000 + $ 50,000 + $ 10,000 = $ 65,000
New credit term = 108 months
New monthly payment = $ 602
Or a monthly decrease of more than 40%. So of course, this operation cost but the latter will also be spread over a longer period. It will therefore be bearable without this being a reason for ending up with a crazy rate!
Who to choose to lower your monthly loan payments?
This is the reason why, we raise the rates of all the largest credit repurchase organizations to find the lowest suitable for each situation. For this, we have set up a questionnaire which allows us to find the best rate according to the situation of each. No need to go around all the financial companies, we take care of it, it’s automatic, free and without obligation :
To be even more complete, we have detailed another example of calculation to lower your monthly loan payments through a repurchase of credits 40,000 USD.
When to lower your monthly loan payments?
To be able to lower your monthly loan payments through debt restructuring, the possibilities are quite wide. It is possible to use this type of product if:
- All debts are consumer credits ( redemption consumer credit )
- Debts are both consumer credit and a home loan
- Debts are credits and receivables (unpaid tax, rent, etc.)
If you want to lower your monthly mortgage only, it is also possible but in this case, it is a renegotiation of mortgage. This procedure is generally launched to obtain a better rate of mortgage than that obtained at the start. If you are in this situation, we can offer you a tailor-made assessment of the best mortgage rate you can get:
Last extremely important point to succeed in lowering your monthly credit payments: it is essential that one of the people in the household is on a permanent contract, otherwise it is almost impossible to obtain an agreement from a credit organization. If this is unfortunately not the case, it is probably preferable to contact the Banque de France to establish a detailed diagnosis of the situation.
Lower your monthly loan payments at the best rate
Lowering your monthly credit payments is a concept based on the possibility of extending credit. Extending a loan will cost a little more than the initial situation. The longer a loan lasts, the more it costs. At the same time, it is quite logical since we benefit longer from the money that has been made available by the credit organization. It is like a rental that lasts longer but it is not for an apartment or a car but for a need for money.
But beware, this is not a reason to accept exorbitant rates! A certain number of organizations take advantage of the difficult situation to charge far too high rates! This is not because it is necessary to lower your monthly credit payments that you have to accept everything.
Let us take a specific example of a grouping of credits in the amount of 60,000 USD over 108 months:
Offer n ° 1 fixed APR rate: 7.90% monthly payment: 769.59 USD cost of credit: 23,115.72 USD
Offer n ° 2 fixed APR rate: 9.90% monthly payment: 827.83 USD cost of credit: 29 405.64 USD
This example, which is not necessarily representative of the best rates that can be obtained, simply shows that for the same loan, for a difference of 2%, we may end up paying more than 6000 USD more for exactly the same thing !
This is the reason why it seems essential to us to compare the credits. Lowering your monthly loan payments through a loan buy-back comparator saves not only time but above all thousands of USD!
Prepare a loan buyback file
Whichever organization will offer the best rate for lowering your monthly credit payments, the file to build and the steps to take are almost always the same.
The steps to lower your monthly loan payments:
- Complete a credit questionnaire online
- Obtain a first agreement in principle
- Build a complete file
- Obtain final agreement
Once a first agreement in principle has been obtained, a large number of documents must be provided; debt restructuring is far from being credit without supporting documents.
All of these documents are intended to clearly define the financial situation to ensure that after lowering your monthly payments, the situation is improved over the long term and that everyone will find their way around.
To anticipate the preparation of the debt restructuring file, know that you must provide copies of:
- proof of address
- latest bank statements, usually 3
- tax notice
- proof of income (payslip, balance sheet for professionals, etc.)
- statement of your current credits
All the elements are now gathered to lower your monthly loan payments in order to find a balanced budget without it costing you too much.