As retirement approaches, loan payments can quickly become a problem because, for 80% of the people concerned, the transition to retirement is accompanied by a fall in income, a situation that can be complicated if loans do not go down.
Reduce monthly payments before retirement
The transition to retirement is the fulfillment of a full and deserved active life, it is also a particular passage both psychologically and financially because for most retirees, a decline in income will be noted. If credit charges remain unchanged, there may soon be a financial imbalance leading to payment difficulties or the impossibility of dealing with various expenses and financial contingencies. The idea is to reschedule the monthly payments of credits, that is to say to reduce them and to opt for a longer repayment period.
Loan consolidation makes it possible to combine several loans into one, which is particularly recommended when the monthly payments become heavier, during a separation or as part of a transition to retirement. The various credits subscribed generally have different monthly payments, durations and dates of deduction. The idea is to centralize everything in a single credit agreement by grouping together, a credit institution proposes to buy the outstanding amounts.
Anticipating Retirement: Consolidation of Credits
Loan consolidation is a bank operation to combine several loans into one, this operation is proposed by banks and credit institutions. The idea is simply to redeem credits to extend the duration and reduce the amount of monthly payments, it is very effective and especially more adapted to the new situation. It is possible to consolidate real estate loans, consumer loans and even add an amount dedicated to new financing, which avoids taking out a new loan in the months that follow.
This funding can be requested before and after retirement, just it is important to check its borrowing capacity but also its rest to live because if the situation becomes too difficult, it is possible that the funding is not accepted because the situation does not exist. do not allow it. It is therefore important to turn to loan consolidation before retirement, in order to benefit from this reduction in monthly payments and get back on track.
Simulate the operation before retirement
If retirement is fast approaching, it is possible to simulate a credit consolidation operation free of charge and without commitment, this allows to obtain a first estimate of the decrease in monthly payment and to compare the offers of repurchase of credits proposed by the various banking institutions. This makes it easier to project and get a better idea of the terms of repayment and debt rescheduling. Good to know: the end-of-loan age for this type of financing is generally very high, around 90 years old.