If it is possible to take out several types of loans in order to benefit from their advantages, it is advisable never to exceed your debt capacity. In the event of difficulty, the borrower can turn to the repurchase of credit to spread out its debt.
Choose the financing offers adapted to your project
Home loan to finance the purchase of his house, car loan to manage his trips, personal loan to organize his wedding or family vacation: each borrower is free to take out as many loans as he wishes with different lending organizations.
It is also often advisable to vary the types of financing to take advantage of the best rates and benefit from adequate insurance. A construction loan offers neither the same advantages nor the same constraints as a personal loan.
Calculate your debt capacity
However, banks and other lenders must assess the risk of default.
In this context, the third rule applies: the total sum of the monthly repayments must not exceed 33% of the borrower’s income. It is therefore necessary to add the net income of the borrower and the co-borrower and to deduct the recurring charges which include the monthly payments of the various credits.
A borrower who has an income of 6,000 USD per month and who has to pay 2,000 USD in charges reaches a debt ratio of 33%. It is considered solvent. Its assets allow it to honor its maturities.
Buying back loans: a solution to regain financial oxygen
When a borrower accumulates loans, he may find himself in a risky situation which can cause him to fall into over-indebtedness in the event of a hardship. It is therefore preferable to study the possibility of buying back credit . Its implementation makes it possible to find a viable solution for the borrower.
The lender pays the loans and offers reduced monthly payments, because they are spread over a longer repayment period. The borrower thus avoids being filed for payment incidents. He finds a certain financial autonomy which allows him to gradually break the deadlock. Credit consolidation applies to all types of financing .