A single person with only one salary in a household does not mean that it is difficult to meet their daily expenses and expenses. Where it can get complicated is when too many credits have been subscribed. Contrary to popular belief, the purchase of credit is an operation that is also suitable for people living alone with a single source of income. It is equally suitable for singles, widowers or divorced couples, allowing to reduce the monthly expense of repayment of credit maturities. Under certain conditions and according to very specific criteria, the transaction can be set up without particular pitfalls.
Find a consolidated debt relief
The redemption of credits makes it possible to regroup all the current loans in order to have only one monthly payment to repay every month. This financial solution has a cost, but it allows you to enjoy several advantages, starting with a lower interest rate than those purchased, but also a lower monthly payment. This is mainly made possible by an extended repayment period, hence the increase in the total cost of the new credit subscribed. Before embarking on such an operation when only a salary constitutes the monthly income of the household, it is necessary to check the rate of indebtedness. Indeed, this one will make it possible to consider if it is possible or not to subscribe to new credit.
Being alone can be the result of several reasons. The first is simply celibacy when the soul mate is late to be found, we must live well and there is no reason to deprive ourselves and not subscribe to one or more loans. Then, the vagaries of life like a divorce or a death make that again, a person can be alone. The financial situation often tends to deteriorate. All of a sudden, the home is deprived of a source of income, especially when one spouse earns a better living than the other. Over-indebtedness is sometimes the result of a sudden problem situation in life and loan consolidation can then be an optimal solution. Debt consolidation makes it possible to centralize all the credits in one, in order to better manage its finances and to bring more financial comfort.
In divorce proceedings, many expenses are to be expected between notary, lawyer and court fees. The common property is divided and sometimes one of the two spouses has to pay a balance to the other, which represents a sum of money more or less important. The borrower who wishes to make a redemption of credits to collect on the one hand his consumer credits (allocated credits, personal loans, revolving credits) can also include the balance that he must pay by conciliation order to his ex-spouse. Spouses are, however, required to repay all credits taken during the marriage. Once divorced, each spouse will be responsible for all current expenses for housing, rent, electricity, water, telephone, insurance, etc. But alone. To this can be added the monthly payments of credits not yet reimbursed and often even child support. Since income is often halved after a divorce, a loan buyback can be a very suitable financing plan. It can integrate all the debits, credits and also delays of taxes or bills, and even bank overdrafts.
When, unfortunately, one of the spouses dies, the one who remains must pay the debts. In general, this does not concern the mortgage which is automatically covered by the borrower insurance. She will manage the repayment of monthly payments. There is still consumer credit which is not always covered by insurance, which is only strongly recommended for this category of credit and non-compulsory. Even if the names of both spouses appear on the loan agreement, the widowed borrower will have to continue to repay alone. Hence the interest of making a purchase of credits, especially in order to cope with the reorganization of the budget lacking a second source of income. A single monthly payment will allow seeing clearly in the finances, especially when it is adapted to the ability to repay.
The principle of redemption of credits for one person
Financial problems related to accidents in life, or simply because you are single can be settled by the purchase of credits. This is a great opportunity to rebalance finances jostled by changes. It will allow being able to honor its single credit deadline without rushing into the red. It is not necessary to have a co-borrower to make a redemption of credits and only one salary is enough. The borrower alone will enjoy a single rate and a monthly adjusted to its ability to repay. The new loan agreement will, like all other conventional credit agreements, be repaid in due form according to the repayment terms. It is therefore important before committing to determine its capabilities and establish the best conditions for borrowing.
It goes without saying that the personal and professional situation will be analyzed by an expert. The number of credits in progress, income, expenses, professional situation, but also bank accounts will be peeled. Of course, this first stage of credit redemption is entirely confidential. The second step is to investigate the borrower’s file, providing all the supporting administrative documents. When it is verified and complete, it is sent to financial institutions to obtain the final financing agreement.
The conditions for obtaining such financing with a single salary are mainly based on a stable financial and professional situation. The alternative of the purchase of credits can concern consumer credits as much as real estate loans, the most important will be that the borrower has a job on a permanent contract or that he is a civil servant. In addition, its debt ratio and the rest of its life should not exceed a certain limit. The financial organizations that grant the financing are particularly attentive to the professional situation that must be sustainable because the single income of the home must make it possible to refund the future monthly payment which will be put in place. According to these criteria, to which are added parameters such as financial behavior, the lending institution may decide what type of redemption credits granted, knowing that there are two categories, real estate or consumer. Also according to all these elements, the bank will decide what are the necessary guarantees for the granting of new credit. In the case of mortgage-backed mortgages, the mortgage ratio, as well as the debt ratio, are the most important criteria on which banks will base themselves.
Be that as it may, the plaintiff alone can begin his process with an online simulation. Free and without commitment, it allows defining very quickly if the project is feasible. It will be a question of filling out a form by filling in the requested information (credits in progress, income, and expenses) to obtain the first result on the borrowing capacity and the amount of the future monthly payment.