The grouping of senior loans makes it possible to reduce its monthly payments to take full advantage of its retirement. It allows to keep a good purchasing power and to realize new projects planned for a long time.
Retirement is often synonymous with significant income decline. It may be that the amount of his retirement is no longer sufficient to meet his various monthly repayments of credits. Indeed, retirement usually results in a loss of 30% of income which implies a significant reduction in purchasing power. In addition, the increase in the generalized social contribution (CSG) introduced by the Macron government’s finance law has put a spotlight on the financial difficulties of retirees, the first affected by the increase in this contribution.
Request a senior credit redemption be recalled
According to the Ministry of Solidarity and Health, the average amount of a pension in 2015 was $ 1238 net. It is important to note that more than a quarter of the retirees’ income used to prepare this study represents less than $ 800 a month. However, the study excludes survivor pensions and other sources of income such as rent or social assistance. INSEE, which for its part took into account all sources of income, estimates an average of $ 2049 per pension per annum. The problem is that just as with assets, there are huge disparities between retirees. With old age and incomes that are no longer likely to increase, pensioners face more and more difficulties to cope with daily expenses or to implement new projects.
However, senior homeowners are privileged profiles for banking institutions because to make new loans or to consolidate loans, they can put their property as collateral (mortgage guarantee) in case of non-repayment of their loans.
The purchase of credit to prepare for retirement
The income reduction faced by retired households can sometimes be controlled through a lifestyle adjustment, but households already living on a tight budget will certainly not be able to do better on savings. Thus, the purchase of senior credit is a more than advisable option to live a more sustainable retirement. The repurchase of credit will reduce the monthly payments by regrouping them and spreading them over a longer period in order to rebalance the budget.
Timing will also be important. Anticipating retirement by taking advice from a loan consolidation organization may be interesting since the banks will negotiate differently for an asset and a retiree’s file. The repayment term of the credit union will also be more flexible and will allow to go until the age of 95 years. The duration can be at least 12 months (1 year) and at most 420 months (35 years). However, precautions should be taken, especially if you have heirs.
Credit redemption: opt for senior insurance
Getting credit after 60 years is no longer as easy as it used to be because banks require insurance to cover themselves. The problem is that these insurances can come back very expensive and a small travel project that one would easily realize with a consumer credit can quickly lead to a high debt combined with other monthly expenses.
By opting for a loan buyback, it will extend the duration of the latter thus taking the risk of leaving debts to his possible heirs. To preserve them, the services of loan groups offer insurance dedicated to seniors. This insurance will obviously have a cost, but will preserve its heritage and not make the heirs accountable for its debts.