When you calculate the monthly income for your household by compiling all the forms of resources you have (salary (s), pension (s), help (s)) and you look at all your expenses, which ones cost you the most? more money and where a lot of your purchasing power goes, the repayment of your various loans is important. The percentage that this represents, even if it should in theory not exceed the 33% of indebtedness of which you have probably already heard, still remains substantial, especially when you have a real estate credit in progress which represents most often the largest item of expenditure in a household’s budget.
One only has to see with what impatience all the people who have a current mortgage loan aspire so that it does not end to be able to return from there a nice sum in purchasing power and / or d ‘saving.
If credit is so important, then so is the rate
As a result of all this, you can not decently tell you that your monthly budget is encumbered at this point without it helping to repay a very large portion of the capital that was lent to you at the time of the negotiation of your credit and duty. repaying too much interest on borrowed capital. So you have to have a rate that is as low as possible. And in practice, in recent years, it is quite possible to have a rate of 2/3% for a personal loan (even less for the mortgage). There is no doubt that you will find attractive interest rate offers in this market. It remains to be able to negotiate a little more and to watch the other expenses as we see further on this page.
How to regain budgetary flexibility?
To reduce the importance of your loan or all of your bank loans and be each month holding a sum to spend and / or save more, there are not dozens of solutions. Either it is necessary to block the expenses and to gain more, often easy to say and not always obvious to put in place concretely, it is necessary to limit the expenses. And for that, as credit will often be your first expense item, it is the one that would benefit the most from being decreased. To do this, you can consider several different strategies, which sometimes will also make your life easier with respect to your obligations to your creditors. Among others:
- the redemption or consolidation of credits, if you have several different credits in progress at the same time,
- credit renegotiation (most often mortgage loans),
- the renegotiation of your borrower insurance,
- the purchase of a mortgage loan.
The interest rate is not the only prism of the loan
Each and every one of us naturally focuses on borrowing rates. But the reality is that you have to look first and foremost at the amount of the monthly payments and the total cost of credit. The interest rate is indeed a determining element as mentioned above but some offers of loans (to say all) add file fees , insurance borrower or co-borrowers , a financial guarantee also. each of these elements inflates the price and can potentially make an initial borrowing capacity insufficient for your project.
Choose your bank and broker partners
We have seen how important the part devoted to credit is, so it seems to us essential to entrust your personal projects in this area to people with whom the contact passes well and with whom you feel confident and who will know as well treat your file on the technical level by demonstrating a great expertise that to show a great discretion knowing that if you expose to them your personal financial situation, you did not necessarily want that this last does not found on the public square. Credit brokers, lending organizations such as banks, you must take the time to choose the financial partner (s) who will take care of you with the utmost care. They are the ones who hold the keys to a successful financial operation, so contact must be excellent.