The month of December is conducive to exceptional expenses. Christmas is coming fast, which means that a budget gift is essential. In addition, household expenses increase because it is necessary to provide for holiday meals. For households that already have heavy debt, this can be problematic. If it is possible to apply for a new cash envelope from a financial institution, this is probably not the optimal solution. In fact, a new personal credit would only increase the household’s expenses in the long term. Better still, the procedure for buying back credits makes it possible to compensate for a lack of immediate cash flow by improving the household’s overall indebtedness.
December, a month that is expensive for French
According to a Reuters study of November 22, 2016, the French plan to spend 329 euros on average for Christmas. This budget is lower than in 2015 since last year French households spent about 341 euros for the preparation of gifts to children and relatives. Added to this budget gifts, expenses related to family meals and parties with friends.
The end of the year is a time of culinary pleasure that can be expensive. If for many households, these exceptional expenses are planned in advance, this is not possible for everyone. Families who have accumulated consumer credit, see a large part of their income absorb by the maturity of loans. In this case, it is difficult to save to build an envelope dedicated to end-of-year expenses.
The redemption of credits: the answer to debt problems
When the financial burden of the household is difficult to meet, the redemption of credits is an efficient means of remedying them. The purpose of this procedure is to reduce the monthly amount of repayments of consumer loans. Especially since by including all the debts in a single loan, borrowers see it much more clearly.
The purchase of consumer credit is a new deal for the borrower. By starting again on a balanced budget, the debtor home ensures a new breath on the long term and a new capacity of savings or indebtedness.
The role of treasury in the purchase of consumer credit
The first motivation for embarking on a credit buyback procedure remains the need for cash. If the main objective of the restructuring of loans is fiscal consolidation, the establishment of a treasury is strongly advised. This envelope is a spare wheel in case of imminent need of cash.
This option saves borrowers from applying for another consumer loan. The amount required for this cash flow should be quantified with the broker. This depends on the borrower’s plans and the expected date of completion.