The monthly payment of a credit can be adjusted in two ways, either a clause allows an adjustment for a few months (decrease or increase), or it is necessary to carry out a credit consolidation.
Monthly credit: can it be adjusted during repayment?
Sometimes financial contingencies surface over the course of a lifetime, a sudden expense not necessarily welcome but one that must be managed. A car accident, a separation, a washing machine that breaks or even a late payment can put the household’s financial equilibrium in question. To avoid being in an awkward situation, some households will seek to readjust the amount of their monthly loan payments. Some loans indeed provide adjustment clauses of plus or minus 10% on average for a few months. This makes it possible to reduce the amount of withdrawals and to cope with the big expense.
Simply, not all loans have this option activated and you should especially consult your credit contract to check its presence. As part of a home loan, it may be possible to renegotiate a credit with its current lender, the latter may when setting up an addendum adjust the repayment conditions with in particular an updated rate and a equivalent, larger or reduced monthly payment.
Readjust your monthly payments with a credit consolidation
A bank transaction allows you to readjust your monthly payments of different credits, this is called loan consolidation. Rather than continuing to repay several monthly payments taken on different dates, this financing proposals to buy back each loan outstanding by a bank which will set up in return a new loan contract. This new contract will especially facilitate the definition of the new reimbursement conditions:
- Longer duration
- A fixed and unique rate
- A greatly reduced monthly payment
The idea is simple: extend the duration to reduce the amount of the different monthly payments and redefine the amount of the withdrawal that will be made. The advantage is to be able to take into account the current situation of the home and its needs to offer a reimbursement much better suited and above all preserving the balance even in the event of large expenditure.
It is also possible to combine consumer credits and home loans in one transaction. The borrower may also, at his request, add an amount dedicated to a new project. The bank or the broker will be responsible for studying the feasibility to propose several offers quickly.
Simulate the readjustment of the monthly payments
It is strongly advised to turn to a broker to carry out this type of transaction, simply because this intermediary will be able to probe credit institutions that can respond favorably to a request for credit consolidation. The borrower will thus have several loan buyback offers on hand and will be able to compare the proposals to choose the best solution. Note that he can also express his will on the amount of the new monthly payment to be reimbursed.