Over-indebtedness situations are on the rise in the country: in the third quarter of 2014, the number of files submitted increased by 3.2% compared to the same period in 2009, for a total of 977,325 files of over -indebtedness presented in 5 years.
What is over-indebtedness?
Over-indebtedness is a situation in which a borrower finds himself who is no longer able to repay the monthly payments of his loans. He can then file a file with the debt commission to set up a legal procedure allowing him to restore a financial balance. But this procedure is cumbersome and has important consequences. In particular, the person will no longer be able to contract new credits; it will be entered in the Individual Credit Repayment Incident File for the entire duration of the procedure, which is 5 or 8 years depending on the situation. In addition, his expenses will be closely monitored.
Buying back loans is a solution before over-indebtedness!
This situation can have various origins, for example a lasting decline in the borrower’s resources or an excessive number of credits, the accumulation of which creates lasting financial difficulty. Buying back credits is a solution to avoid finding yourself in this perilous situation. Indeed, it makes it possible to bring together all of the loans taken out (consumer loans, revolving loans, car loans, mortgage) and to spread them over time in order to reduce the monthly payments and thus increase their living income. This helps restore budget balance and bail out debts before it’s too late.
Be guided in its procedures
If the repurchase of credit is a solution not to sink into over-indebtedness, finding the right organization is sometimes a source of difficulty. To guide you in your efforts, the broker is in contact with numerous financial partners in order to offer you a wide choice of credit consolidation solutions. You can compare the different offers and choose the one that best meets your expectations without wasting time. To find out more about the laws and testimonies concerning over-indebtedness, you can consult our specialist in order to take stock of your situation.