Subscribe to a loan consolidation request
Consumer credits and other types of loans have their advantages, but can quickly add up. In order to facilitate the repayment of all your debts, it is very advisable to request a grouping of credits. In this article, discover all the important information to know about this banking practice.
How credit consolidation works
Merger of home loans and consumer loans
As the name suggests, this is an operation which consists of grouping all your credits into one. This means that you will only have one loan rate, contract, creditor and monthly payment. You will have the opportunity to save money without having to change banks. Indeed, when the reimbursements are separated, the cumulation of their separate costs is much higher.
Credit consolidation, a repayment facility
To be able to benefit from the advantages of this financial facility, you must first negotiate the cost of your new loan with your bank, that is, the interest rate for the cumulative amount owed on each of your loans. Generally, your banker will present it to you according to the effective total rate or TEG of this new loan. The costs that are mandatory are immediately integrated by the latter (interest, application fees, death insurance, etc.). The grouping of credits or smoothing of loans is advised in the event that the borrower encounters payment difficulties, but also to facilitate the release of a mortgage.
The advantages of credit consolidation compared to real estate
Real estate opportunities and grouping of loans
Rising property prices disadvantage plans to acquire new homes or apartments. Thanks to the grouping of credits, you will be able among other things to facilitate the release of a new loan, and to benefit from a tax exemption in law of Robien in the case of a new construction. However, the provisions of this law are only valid if you rent your property for 9 years. Thanks to a rental investment project, you will be able to benefit from a reduction in your taxes.
Consolidate your credits to avoid bank disputes
Nowadays, it is noted that the co-ownership syndicate brings too many charges for the owners of a residential apartment. This results in over-indebtedness and therefore, whoever is in debt may be in the grip of a mortgage. This is where credit consolidation comes in. Indeed, thanks to this solution, you will be able to reduce your monthly payments.
Tax exemption for better savings
However, if you want to invest in LMNP housing, it is also advisable to choose a building in the old park in order to benefit from the censi bouvard law. As for an investment in new, you can also benefit from the tax reductions proposed by the Pinel law and the Alur law.