The loss of one’s job is one of those bad surprises you never want to live. Unfortunately, when this happens and you have credits in hand, the decline in purchasing power can reduce your ability to repay and put you in trouble repayment.
In some cases, the grouping of unemployed credit also known as buy-back of unemployed credit can be a good solution to avoid over-indebtedness.
Obviously, you will have to convince your financial institution to grant you a loan buyback for the unemployed and we will give you in this article some tips to get there.
Credit consolidation, what is it?
The credit buyback is a financial transaction that allows as its name suggests to consolidate all its current credits into one which allows to renegotiate the rate of his / her credit and therefore reduce its monthly payments.
This solution allows in certain cases to increase the duration of your credits, always with this aim of reducing your monthly payments. Obviously, a longer credit means a higher total cost of your credit, but a decrease in monthly payments helps to clean up your finances when you are unemployed.
Note that a group of credit is not the grail for a person without a job, since this formula has advantages and disadvantages (including new fees, early repayment etc). It is therefore a solution to be studied on a case by case basis.
In concrete terms, as part of a grouping of loans for the unemployed, the lender from whom you are going to solicit your redemption will pay off all your current credits with the various institutions where you are a client to become your only creditor. It is to him that you will have to repay the capital of your credits plus any expenses.
When signing your credit agreement for unemployed, your monthly payments will be defined so that it does not exceed one third of your income (sometimes a little more).
It should be noted that in some cases, a credit redemption may allow you to reduce your monthly payments by more than 60% and thus contribute significantly to rebalancing the household budget.
Buyback of unemployed credit: specificities.
As often the words “credit” and “unemployment” do not mix well and it is often difficult to get a pool of credit when one is unemployed. Your profile is a risk profile and you will have to meet certain conditions to have a chance to group your credits.
This is especially true when you buy back your loan, the financial institution will discharge your other creditors the risk of unpaid by taking over. Some organizations are more willing to accept credit redemption than others.
The main obstacle to buying out the loan for the unemployed is that in France, your unemployment benefit is not considered as an income by the banks who only take it into account to calculate your living income. An unemployment benefit is not a “due” and can be withdrawn after a certain period of time.
So, if overnight, after for example several years of unemployment, you would lose your allowance, you would not be able to repay your loan which represents a sacred risk for the bank.
To convince a credit institution, you must therefore offer a sufficient counterparty to cover this risk.
There is no specific trick to succeed a request for buyback credit for unemployed, it is something that is analyzed on a case by case basis and depending on your profile you will have more luck than another. You will need to offer good guarantees to maximize your chances.
What guarantees to propose to convince?
Before talking about a guarantee, it is important that you can show the bank that you are not going to be unemployed for years, that you are looking for an active job, that your qualifications make you a good candidate to find a job. job quickly.
With regard to collateral, it is obvious that if you can offer your mortgage home or put a sum of money in a blocked account, you increase your chances of being granted a credit union for the unemployed subservice.
You can also present sureties that is to say a person (often family or friend) who is committed to repay your credit for you if you are no longer able, which obviously reduces the risk for the bank and increases your chances of acceptance.
What credit redemption solutions for unemployed people without a bank?
The best-known solution is undoubtedly the credit between individuals, that is to say individuals who, to grow their savings lend money often through platforms like Younited Credit (to avoid scams). Obviously individuals also need collateral and will not risk losing money, but the human factor is still more important than in the conventional banking system.
You will have to convince, present a bank history without fault, you will have little chance to have a positive answer if you are for example prohibited banking.
What alternatives to avoid over-indebtedness?
Your purchase of credit for unemployment has been refused, here are the different solutions available to you:
- Enter the over-indebtedness commission: if you are unable to meet all your debts and the loan consolidation has been refused, contact the debt commission which will help you purify your finances.
- Ask your family or friends for help in paying your monthly installments for a new job.
- Talk about your problems with your credit agency: some credit agencies sometimes agree to suspend the credit for a limited time.
To guard against such a situation, some credit organizations also offer “job loss insurance” which according to your contract will fully or partially pay your monthly payments over a pre-defined contract period.
Our other file on credit for banned banking
- Credit for the unemployed
- Buyback of unemployed credit
- Unemployed auto credit
Our other file on the repurchase of credit:
- Easy credit purchase
- Bank forbearance redemption
- Interim Credit Cluster