How to reduce the monthly payments of a loan?

There are several methods to reduce your monthly loan repayments. We will detail here the main ways to reduce the amount of your credit maturities.

First, if you have several credits (car loan, mortgage loan, consumer credit), ask for a simulation for a loan buyback. Please note that an in-depth study of each situation is necessary because even if the monthly payments decrease at first glance, the total “cost” ie the amounts to be reimbursed can increase considerably.

Another method to reduce the monthly payments of your loan is to renegotiate your credit so as to increase the number of monthly payments. But be careful once again this is not free, by increasing the repayment period of a loan, we also increase the APR of the credit and application fees are to be considered (to be negotiated).

The repurchase of credit

The repurchase of credit , also called restructuring, consolidation or consolidation of credits, is a financial solution which tries to answer a situation of excessive debt. The objective of repurchasing credits is to reduce the overall amount of monthly repayments. The repurchase of credit can make it possible to reduce the monthly payments, but by increasing the duration of repayment.

This solution consists in replacing one or more already existing loans with a single loan, at a lower rate if possible, but amortizable over a longer period in line with the borrower’s income. Individuals can thus try to find a viable solution to their over-indebtedness.

There are three types of credit redemption:

tenant buy-back which groups together several consumer loans,
real estate repurchase which includes real estate loans and consumer loans,
the repurchase of professional credit.
A repurchase of credit accompanied by a drop in monthly payments pushes back the burden of repayments over time. Ultimately, the borrower swaps short-term debt for larger long-term debt.