More and more households are opting for loan consolidation, including the consolidation of consumer credit. Find out what types of consumer loans exist and the benefit of pooling credits to save money or reduce the number of repayment payments.
Definition of consumer loan
A consumer loan is intended to finance the purchase of goods (car, equipment …) as well as services (construction work, travel, marriage …). It can be used for a specific purchase (assigned credit) or free use (unrestricted credit). Compared to the revolving loan, consisting of capital made available to the borrower and reconstituting over the repayments, the credit conso is granted to finance a purchase. It is most often less than the cost of a revolving loan.
With falling interest rates, consumer loans are even more simple to contract. It is important not to exceed a debt ratio of 33%, which corresponds to the maximum repayment capacity, because you risk falling into a situation of over-indebtedness.
Why make consolidation of consumer loans?
In the case of accumulation of many loans, especially revolving loans whose rates are particularly high, it is very interesting to consolidate personal loans . All of your debts are grouped into one loan, even if your loans have different rates and durations.
The amount of the new monthly payment is reduced to match your current repayment capacity. You thus find a purchasing power and can rebalance your finances or concretize a new project. In order to get a clear idea of how much you can save with a consolidation of consumer loans , you are advised to use an online credit redemption simulator. It is free and without obligation.