Retirement and loss of income
According to a recent study by INSEE, the evolution of the standard of living of the French at the time of retirement is particularly contrasted.
The difference in income, between 3 years before and 3 years after retirement, represents a decrease of 7.9% on average.
While the standard of living of people with the lowest incomes just before retirement can increase significantly, that of the wealthiest 10%, on the other hand, suffers a drop of 27%.
However, the charges will not decrease overnight and retirement does not always mean the end of credits, much less the end of projects or necessary expenses.
The desire to take advantage of the time available to travel or go to live abroad, for the better-off, or even the need for others to adapt their housing to motor difficulties, leads to the use of loans: real estate loans, personal loans, credits allocated for work.
These can be difficult to manage once the drop in income really takes hold.
The repurchase of credits can then represent a solution which it is interesting to consider.
The repurchase of credits for retirees and seniors
The repurchase of credits: what does it consist of?
The grouping of credits, commonly called “repurchase of credits”, consists of a substitution loan which brings together all the outstanding receivables into one.
This loan is generally taken out at a fixed rate and can be adapted to a wide variety of borrower profiles.
The special feature of the repurchase of credits is that it allows a household's debt ratio to be reduced.
Repurchased receivables may have their repayment period extended.
This extension has the drawback of increasing the total cost of the loan.
On the other hand, it makes it possible to reduce the amount of the single monthly payment and with it the household debt ratio.
When you are faced with a drop in income, especially at the time of retirement, reducing the monthly repayment of your loans and with it your debt ratio represents several advantages.
The possibility of finding a larger remainder to live on.
The possibility for households that can afford it to take out a new loan, for example for real estate abroad or an investment for rental purposes with a leverage effect.
The possibility of requesting the granting of additional cash to finance a particular project (motorhome, travel, accommodation adaptation work, etc.).
The additional cash granted in the context of a loan consolidation must correspond to a proportionally reasonable percentage of the total amount of the repurchased receivables.
Its repayment is integrated into the single monthly payment and the funds are released when the loan contract is signed, making it a strategic substitute for taking out additional consumer credit.
Credit buyback: what particularities for retirees and seniors
The profile of the retired borrower is, against all odds, nothing crippling for funding organizations.
Why ?
The retirement pension is a stable income of the known amount.
Retirees (most often) no longer have children in charge.
They were eventually able to build up assets (savings, life insurance, real estate, etc.).
There is no age limit for requesting a loan repurchase, because its granting depends on the borrowing and repayment capacity of the applicant.
If there is no age limit, however, guarantees are required.
For a consolidation of loans for retirees, borrower insurance does not represent an obligation, even if it remains possible.
Insurance formulas can be offered depending on the age and state of health of the borrower.
If the applicant does not wish to take out insurance (for example because the amount is too high) and he is the owner, it is possible to put his property as security for the loan (mortgage guarantee) or, in the other cases, to opt for the pledge of a savings contract, for example in the form of life insurance.
Of course, each profile is different and each file is carefully studied in order to offer the solution best suited to the borrower's particular situation.
To do this, it is advisable to perform an online simulation.
This is free and without obligation.
In accordance with the law, no application fees can be requested until the loan contract is signed and the funds released (article L519-6 of the Monetary and Financial Code).
Partners Finances in the IOBSP market
This brokerage organization, historically specializing in loan consolidation, started its activity in Lorraine in 1996. Partners Finances is therefore the pioneer of the intermediation market in loan consolidation in France.
With more than 4.5 million cases processed over the years and 21% of the market share in 2019, Partners Finances is also the leader.
Combining this long-standing expertise with innovation, with an increasing digitization of procedures, they also provide Internet users who are increasingly quick to find out for themselves a number of online tools.
Interested people, retired or not, can thus calculate their debt ratio, the amortization table of their loans, the interest that would represent in their situation a repurchase of credits.
They can also do a first online simulation which will be followed by a call from an advisor with an initial response in principle.
Human contact has not been completely replaced, however, since Partners Finances advisers can also be contacted by telephone (0820 300 800, service 0.12 € / min + call price) and in 16 agencies spread over the metropolitan area. French.