How to rewrite the monthly payments of its credits over 10 years?On September 24, 2019 by Erin Greenfield
The too heavy monthly payments are often a logical effect of an estimated repayment duration too short, solutions exist to allow to re-spread in the duration of monthly loan payments, especially over a period of 10 years.
Monthly payments too heavy, can we re-spread them?
Many borrowers end up each year with too heavy monthly payments and an inability to solicit new funding. This effect is notably due to several events such as a decrease in income or an increase in expenses, related to more or less positive events such as a birth, an accident or a separation. The staggering of the repayment period is therefore obvious to allow borrowers to repay reduced credit charges.
The staggered repayment period is made possible with the loan consolidation, it is a banking operation that offers a borrower to redeem its credits, whether consumer loans or credits real estate. The interest of this purchase is to be able to spread the debt on a new repayment period, longer and ensuring a single monthly payment, more lightened.
Re-set monthly payments over 10 years, how are things going?
The maximum duration of a consumer loan is 12 years, so it is also possible to reallocate a credit or a mortgage for a period of 10 years. It should be known that the borrower can as well make redeem a single loan than several, the interest to make buy back several loans is to be able to benefit from a larger fall of its monthly payments. It is therefore necessary to start by filing a request for the repurchase of loans, taking care to specify all its credits in progress, including those not intended to be repurchased.
Following this simulation, several credit institutions will offer grouping offers with different durations, including the 10-year term initially desired. The interest is to be able to observe the amount of monthly payments on the different durations proposed and to choose the best formula. For the implementation, it is sufficient to provide the supporting documents (credit schedules, identity card, statements of accounts, pay slips …) to validate the file and initiate the repurchase of outstanding loans.
Spread duration, features to know
When borrowers wish to extend the term of their loan, some tend to want to add an amount to finance a new project and this is a possibility with the loan consolidation. The borrower can ask to add an additional amount to finance a personal project, it smooths the amount in the amount of the credit and in particular the new reduced monthly rate.
Some credits are not redeemed, especially when they provide an undeniable advantage, this is for example the case of the zero interest rate loan whose interest is borne by the State. Finally, the staggered duration leads to the establishment of a new contract and therefore a period of reflection of 14 days, this period is strongly recommended to support its decision.