Household indebtedness in the Burgundy region
Before talking about the solution that is the purchase of credits, it is essential to define the three types of debt to understand the reasons for the increase in the household debt ratio. So :
- Debt for investments . The price of real estate has soared in recent years. In Dijon, for example, the price per square meter is approximately 1931 USD. In Auxerre, it takes an average of 1613 USD per m². In fact, to become homeowners, households are obliged to borrow more over a longer period.
- Debt for consumption. The lifestyle of households has changed. One invests in movable goods ( vehicles for example), but also in the latest technologies ( Internet, Smartphone, computer … ). Households use credits to finance their project.
- Private debt. This category concerns unpredictable life events such as divorce and dismissal. In Burgundy, the unemployment rate is around 9.2%. Nacom and Nevers are among the most affected towns in Burgundy. The change of life has an impact on the household budget.
Being indebted means that the household is obliged to live beyond its means (or almost). Resources are low compared to expenses (over-indebtedness: expenses correspond to 33% of revenues). To regain purchasing power, the household must increase its income or reduce its expenses . It is, in this perspective, that comes into play the redemption of credits.
The redemption of credits, what is it?a
This solution, which is proposed by the majority of credit institutions such as banking organizations, operates on a simple principle: to collect outstanding loans in a single loan . The new loan is subject to a single interest rate . The two factors that make it possible to propose a lower monthly payment are the duration and the rate. The redemption of credits has another advantage: there is only one interlocutor . In fact, in case of imponderable, just contact his advisor for a postponement of milking .
The equation is therefore simple to solve. The decrease in monthly payments of credits to be refunded added to the increase of the remainder to live gives an increase of the purchasing power . The household budget is stabilized. Conclusion: the purchase of credits can be a good alternative . However, you should consume this option in moderation. A loan is committed and must be repaid.