Laurence and Lionel, aged 43 and 47. They are tenants of their accommodation for which they pay rent of 606 USD every month. Their two children, minors, are still dependent on them.
All 2 employees on permanent contracts in the private sector, they receive a total of 3,872.88 USD in salary.
Several objectives are pursued here by the couple, namely:
- Collect all the credits in a single monthly payment;
- Reduce monthly charges ;
- Include comfort cash of $ 2,000.
Needs study and analysis by Capital Lender
During the examination of their file, the Capital Lender advisor lists the credits that the couple is currently reimbursing.
They are relatively numerous since the couple has accumulated:
- 10 renewable credits;
- 1 monthly payment of a 1st grouping of credits;
- 2 bank overdrafts.
The sum of the monthly payments of the revolving loans and the previous repurchase of credits indicates to him the remainder of living of the hearth as soon as it subtracts them from their incomes.
Overdrafts are not recorded here as such. They correspond in fact to debts due in full and not divisible into monthly payments.
Thus, out of the 3,872.88 USD in salary, 1,687.40 USD leave each month to pay the credits .
Their living-to-live is 2,185.48 USD. They are indebted at 43.57%.
In theory, exceeding 33% of debt can be dangerous for calm management of the family budget.
In practice, everything depends on the other charges you have to pay e, plus credits each month (constrained or other expenses). Inquire, contact us.
In this case, the debt is really strong insofar as other charges are added and add to the receivables. This is particularly the case:
- bank overdrafts , as we said earlier;
- their rent of 606 USD;
- an employer loan at 90 USD per month drawn from Laurence’s account;
- monthly debits 192 $ are also observed on the joint account. This is the payment for their son’s private school .
Include rent and other charges in monthly loan payments
If we test here to include the rent in their monthly loan payments, the amount of what Laurence and Lionel pay at the beginning of the month increases to $ 2,293.40 (and no longer $ 1,687.40). Their debt then rocked from 43% to 59%!
What can we say then if we pushed the vice a little further and if we added the employer loan and the school regulations?
Well, we then realize that:
- they actually pay 2,545.40 USD each month;
- their living allowance is 1,327.48 USD;
- their debt is around 66%.
So even if these charges are not taken into account in the calculation of debt as we study it, we take these elements into account to best assess the reduction in monthly payments that they would need to benefit to consider the future more serenely.
It is always in this perspective of improving life and budgetary comfort that we approach the files that we defend with our partner banks.
Details of the situation before and after the repurchase of loans
Sensitive to the financial situation of Laurence and Lionel, our partner therefore grouped together and bought back the couple’s 10 renewable credits + the first loan buyout + the 2 bank overdrafts. The opportunity for them to benefit from a brand new single credit, a monthly payment of 507.44 USD; or 1,179.96 USD less than before ! This therefore leaves more possibilities for the payment of rent, school, …
A breath of fresh air for Laurence and her partner who see their debt decrease to a maximum and fall to 13% !
Capital Lender has therefore succeeded in reducing monthly payments by 70%!
Their left-to-live is today 3,365.44 USD.
Also, Laurence and Lionel had asked to include cash of 2,000 USD in the total redemption of their credits. It’s done: exactly 2,015.43 USD have been included.