Credit repayment: how to save money on your loan?

What is credit repayment?

A credit consolidation, also called debt repurchase, simply means that you can regroup several financial commitments together:

• Personal loans: a credit repurchase then stands for a replacement of your ongoing credit with another credit that has better conditions and is offered by another society.
• Credit card consolidation: it is possible to reimburse your credit cards debts by borrowing some money. This solution might seem useless (borrowing in order to reimburse a loan), but you should know that personal loans usually have lower interest rates than what you pay for your credit cards debts.
• Leasings: credit repurchase can also apply to leasing solutions.

How much can you save?

People are mostly interested to know how much they can save when regrouping their financial commitments. This will depend on:

• The commitments you wish to regroup and the actual conditions of these commitments (interest rate,…).
• The repurchase conditions: duration and interest rate offered.

In general, we consider that you can save up to 40% on your monthly payments! In other words, a particular who pays each month 500 Chf to reimburse a credit, plus a 100 Chf to repay a credit card (monthly amount is 600 Chf), could save up to 250 Chf/month with a credit repayment.

Other advantages?

You should also consider the other benefits of a credit repurchase.

• Simplify your billing, by replacing many monthly payments by one only.
• Re-organise your budget by defining the reimbursement duration for example. You can then budget clearly and safely your loan reimbursement.

How to benefit from a loan repayment?

There are many people and societies to contact if you wish to make a credit repurchase. We recommend you to get in touch with a qualified advisor who will be able to inform you at best. Multicredit for example, can offer you a free analyse of your situation as well as a free debt consolidation offer directly on their page! Other societies are also interesting. In any case, just beware of offers that are too good to be true and to be able to get a free and non-binding quote!