Credit consolidation consists of grouping several loans into one. So you only have to repay one monthly amount. When consolidating loans, monthly payments are generally reduced because the term of the new loan is longer. This will allow you to rebalance your budget and avoid a potential situation of over-indebtedness. Credit consolidation and repayment: what’s the difference? The term “credit repayment” is often used as a synonym for credit consolidation. However, these two terms refer to different loans: Credit consolidation allows you to consolidate multiple loans into one. The monthly payments are generally reduced, but the term is extended. The credit buyout only concerns one loan that is still mortgaged. This loan is repurchased to renegotiate the interest rate, duration or amount. To avoid confusion, it is often referred to as “mortgage loan purchasing.”

During a loan consolidation, your lender buys back your current loans and opens a new loan. Your old loans have been closed and you only have to repay the new loan. Before signing your credit buyback, you have the opportunity to renegotiate certain terms, such as: The interest rate, The repayment period, The amount of monthly payments. If your financial situation allows it, you can also ask to include an additional amount in your credit consolidation to finance a new project.

In order to apply for a loan consolidation, the borrower must: Be at least 18 years old, Live in Europe, Have sufficient income to repay the loan, Make sure you are not on the blacklist of your country

The steps you need to follow to perform a credit redemption are as follows: Choose the loans you want to consolidate Simulate the repayment of your loan to choose your repayment term Submit your request to a lender Provide your supporting documents Sign your contract Start repaying