If you have already used the loan consolidation solution to restructure your debts, do you have the right to use it a second time? Good news, the answer is yes. There is no limitation. Be careful, however, about your situation and the reasons that force you to re-consolidate your loans. Explanations.
Make a second request, it’s possible
The purpose of a loan buy-back is to help the applicant (or applicants) to find easier budgetary management, by improving the debt ratio (weight of expenses in relation to income).
Thanks to this financial arrangement, it is possible to significantly reduce the weight of the monthly payments that weigh on your budget, while spreading your debt over a new longer period. A good restructuring therefore aims to help you regain balance in a sustainable way, and to get out of too much debt. But it sometimes happens that a second operation is necessary.
This is more common than you would imagine. These different scenarios justify a second, third or fourth grouping:
- The first restructuring (or the previous one if we are talking about a third or fourth operation), did not include enough additional cash to help the household stabilize its situation;
- Several credits were not grouped, voluntarily, in order to take advantage of good conditions … But it is difficult to honor them, and a grouping now appears necessary;
- A personal event upsets your already strained finances: replacement of a car, illness, emergency work in your accommodation or even replacement of equipment;
- A professional event affects you: job loss, contract reduction, transfer. A request can then help to go up the slope.
We see it with this list which presents only a few situations, there are many reasons to request a new buyout. It is not shameful to use this solution repeatedly. Do not remain isolated with your financial difficulties, talk to specialists (Capital Lender) in order to find a positive outcome.
The conditions for carrying out a new loan buy-back
As we have just seen, it is not uncommon to use this financial arrangement two, three or four times. Be careful, however, not to take this solution lightly. Banks will not agree to finance a loan consolidation again if you use this solution too easily.
- First of all, you should not make a new request immediately after a first one. A minimum period between two operations is necessary. This will generally be at least three months;
- If you’ve taken out four or five new consumer loans since your last buyout, in a short period of time, it means you haven’t learned from your mistakes. You have compulsive buying behavior that does not reassure financial institutions. Limit your use of credit in order to have a more convincing record;
- What is your debt ratio at the time of the new request? If your debt ratio had returned to good looks at 20%, but has returned to 80%, the banks may be quite difficult to convince;
- Finally, as for a first transaction, payment incidents and other bank rejections observed on your account will be monitored.
Requesting a new merger is entirely possible, but largely depends on the reasons that brought you once again into a situation of financial fragility. If it is inappropriate purchasing behavior, and multiple expenses that push you to resort to this solution again, your file will be difficult to defend.
If, on the other hand, personal or professional events have shaken you, then you will be able to claim a new restructuring … In all cases, talk to an advisor and ask for help.