The purchase of credit in overseas territories
The way of life in these communities is different from the lifestyle of a resident in Metropolitan France. The difference lies essentially in the mode of consumption . For example, the locals consume more local products to avoid exploding the family budget. The same goes for leisure; we prefer outdoor activities in the cinema. This expensive life has a negative impact on the family budget. How to optimize your cash flow?
The purchase of credits in Overseas increases the purchasing power?
After conducting an in-depth study on the consumption habits of residents in the overseas territories, the government announced that the reasons for the indebtedness were very different from the metropolitans . Thus, it appears from this report that the causes are essentially related to the purchase of a villa or the use of consumer credit to finance the renovation of a property. If we take a closer look at this investigation report, it is possible to say that indebted households are generally homes with an annual income of more than USD 30,000. This assertion is explained by the fact that households with good incomes are more likely to use different credits. To understand this report further, it should not be forgotten that the French islands are affected by unemployment. In 2014, it was announced an unemployment rate of 21.3% in Guyana and 23.8% in Guadeloupe . While it is true that certain sectors of activity ( tourism, education … ) are in full expansion, finding a stable job is a real headache.
It is therefore legitimate to wonder if the redemption of credits is a plausible option to increase its purchasing power when living on one of the French islands. It must be realistic, there are not thousands of solutions to rebalance the balance. It is necessary either to increase the resources, or to decrease the loads . As the economic situation of the overseas departments remains difficult ( high unemployment rate, the inhabitants have few graduates, high food prices, etc. ), it seems that the search for solutions to reduce the amount of its financial debts and expenses remains the most suitable option.
The objective of the restructuring of credits in Overseas
To support the inhabitants of Overseas, credit organizations grant loans in order to close the various credits of a household. Reuniting all of its loans in a single loan allows:
- To renegotiate the amount of the monthly payment . The value of the monthly repayment will be even lower if the borrower opts for a maximum repayment term.
- To go through only one organism .
If the purpose of such a device is to increase purchasing power , it must still be known that the longer the chosen repayment period, the higher the total cost of credit. For the borrower to be well aware, the Lagarde law has set strict rules. Thus, the institution offering the loan offer must inform the borrower and play with transparency. In addition, it should also be noted that organizations charge a fee for opening a buyback. In fact, you have to think about including the amount in the value of the new loan.
There are three types of products:
- The merger of consumer credit .
- The merger of real estate loans .
- The merger of consumer credit with real estate loans.
The last two solutions are valid only for the owners since it is essential to put a property in mortgage to open the rights. The mortgage requires an appeal to the notary for the drafting of an authentic deed that will be billed.