Developing a request for repurchase of credit in job seeker is not obvious, but nevertheless constitutes a saving solution to rebalance its budget. Update on the possibilities of buying back credit and unemployment.

The interest of a credit buy-back

The interest of a credit buy-back

Why ask for a credit buyout when you are unemployed? When the applicant obtained his mortgage and his car loan, for example, he benefited from regular income. The loss of employment no longer ensures the reimbursement of credits contracted during the previous situation. Also, a repurchase of credit makes it possible to regroup all of these credits with one goal: to reduce the monthly payments.

This objective can only be achieved by extending the overall repayment duration of the loan (s). Of course, in the long term, this solution is not necessarily advantageous, because the interest rate could be less competitive.

However, if the loans have been contracted for several years, the fall in interest rates could offset this effect. In the end, the advantage lies mainly in the fact that you can limit your monthly payments. This is why buying back credit for the unemployed is very interesting.

The bank’s point of view

The bank

If the repurchase of credit and unemployment seems to be an excellent solution for the borrowers, the bank does not always see it in the same eye. In theory, it approves of the idea of ‚Äč‚Äčlimiting monthly payments, but will not, in practice, always be ready to follow borrowers whose income has dropped significantly. You should know that unemployment benefits are not taken into account in income when calculating the debt ratio.

The bank will therefore be able to grant a loan repurchase to a job seeker only if the co-borrower of the unemployed person benefits from stable employment with sufficient income not to exceed the debt ratio of 33%.

Alternative solutions

Alternative solutions

In case of job loss, there is an alternative to buying back credit and unemployment: the extension of deadlines. If this option is included in the loan contract, the borrower can request this postponement in order to interrupt the repayment of the monthly payments for several months, the time to find a job.

The repurchase of credit in job seeker is also possible in the case where the borrower is a property owner and agrees to mortgage his housing. The bank then has a guarantee if the borrower does not respect its commitments.

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