Do you want to take charge of your financial future and save money for this new year? Why not buy back your private credit? It's a task that can seem daunting! But with the right information and the help of Lica, you will quickly be financially relieved at the end of each month. In this new article, we will cover all the topics you need to know about buying back your private credits and especially how to proceed. With the right strategy, you can therefore improve your credit score, reduce your expenses and ultimately take control of your financial future.
What are the financings that you can buy back?
Redeem your private credit
Depending on the financial establishments, your personal situation and the way in which your file will have been presented, the conditions of your private credit can vary greatly. When it comes to buying back your private credit, only one objective matters: Obtain the best possible conditions!
Indeed, depending on the rate, the conditions and the duration of your private credit contract, your monthly payment could easily be halved.
Redeem your credit cards
Needless to say, the interest on your credit cards is exorbitant. Indeed, these are around 12%. In addition, the temptations of subscribing to a credit card are numerous. Whether it's making a purchase on credit or a tempting offer when you open a new bank account, you will be regularly asked to sign up for a new credit card.
The trap is fierce since you immediately and easily have an additional sum of money to make your purchases. However, when you add up your credit card charges and the repayments to be made at the end of the month, the bill quickly becomes salty.
This is the reason why, redemption of all your credit cards can allow you to find a balance in your budget. No more fees and only one small monthly payment to repay each month.
Buying back your lease
Leasing is a financing solution that generally offers an advantageous interest rate. So not really a problem there. However, the pitfalls with a leasing will rather lie in the following elements:
Applicant's ability to borrow is often miscalculated
So you take the risk of finally being the victim oftoo high a debt ratio. As a result, you may no longer be able to meet your financial commitments.
At the end of your lease, you will have to return the vehicle in good condition with the agreed mileage or pay the residual value
And yes, a leasing is more like a rental than a financing as such. A lease therefore implies that a third party (the seller of the car) remains the owner of the vehicle. And this for the entire duration of the lease. When you return the vehicle at the end of your leasing contract, unpleasant surprises may very quickly accumulate. Exceeded mileage and/or repair of the vehicle will actually be billed to you at a gold price! The second scenario which would be to buy the vehicle at the end of the contract could get you out of this bad situation! But is it still necessary that you have budgeted sufficient savings to make the payment of the residual value.
To sum up, leasing is an excellent solution if you are certain of being able to buy back the vehicle at the end of your contract. Similarly, if you are guaranteed not to exceed the agreed mileage and to be careful with your vehicle, leasing may ultimately prove to be a good alternative.
If you have doubts about your leasing and the points mentioned, it may be time to think about buying it back. Indeed, with a repurchase of your leasing, no more problems with residual value, no more worries with mileage and even less with the condition of your car. You are the owner of your vehicle and you do what you want with it! In addition, depending on the duration chosen, your new monthly payment can prove to be very advantageous.
When you buy back your private credit, you improve your budget each month
To fully understand what your potential savings could be each month, we have drawn up a comparative table of a situation before and after buying back your existing financing. The result is amazing! With Lica services, you could redeem your credit and save several thousand francs each year.
|Type of financing||Duration (months)||Rising||Rate||monthly payment|
|Private loan||60||CHF 45'000.00||9.95%||955.00|
|Credit card 1||12||CHF 3'200.00||12%||284.30|
|Credit card 2||12||CHF 4'500.00||12%||399.85|
|New funding||84||CHF 87'700.00||5.90%||1'276.95|
With a redemption of your financing, you will notice that your new monthly payment increases to CHF 1'276.95 instead of the CHF 2'235.10 that you had to pay so far. Therefore you could save CHF 958.15 every month. That is to say more than 10,000.- each year!
Buying back your private credit and your existing financing therefore offers you the possibility of earning several thousand francs each year.
What you should consider when buying your private credit
Although Lica will take care of all the steps for you, here are the elements to take into consideration when buying back your private credit.
- Type of loan
- Interest rate
- Refund conditions
- The refund amount
- And the term of the loan
The type of loan is important because it determines the interest rate and repayment terms. For example, personal loan interest rates are higher or lower depending on the conditions obtained and the lending institutions. Repayment terms also vary, as does the time it takes to repay each type of loan. The longer the term of the loan, the less you will have to pay in repayments each month. However, you will pay more interest in the long run.
The 5 steps to buy back your private credit
Before you can redeem your private credit, you must determine what are the financing you wish to buy back. Once you have this information, it will be easier to develop a strategy to redeem your existing credit and financing.
At Lica, we operate according to a precise process with which you will be able to make significant savings each year. Here is our working methodology:
1. Establish the list of private loans and financing to be bought back
We list each of your debts precisely, taking into account the different lending institutions and the conditions of each of your loans.
2. Determine your new budget and prepare your file
Once the strategy has been developed, we determine precisely what will be your new monthly budget. So you will know how much you will save with our intervention. Then, our financing experts will take care of preparing your financing application file according to the rules of the art. That is to say in maximizing your chances of obtaining new private credit under the best possible conditions.
3. Negotiate the purchase of your private loans, your credit cards and your leasings
Now that your file is ready, it's time to start negotiations with the various market players. Discussion, argumentation and compromise are the key words to obtain advantageous conditions with your new private loan. Your contact from Lica will defend your interests I He will be at your side to guide you on the best financing solution.
4. Choosing the right service provider and signing the contract
It is not easy to make the right choices when we are not accustomed to the legal jargon of a private credit agreement. Lica will simplify all your tasks until the signing of your contract. Our specialists are there to dissect your new contract and simply explain its conditions to you.
5. Transfer of funds and payment of your private credit
Once your private credit agreement has been signed, we will take care of monitoring each of the repayments of your existing loans. No particular procedure will be required of you. You can therefore completely rely on the services of your private credit specialist ! Of course, if in addition to buying back your private credit and your financing, you want to obtain more cash for personal expenses, Lica also ensures that the funds from your new private credit arrive at the right destination in your account.
As you will be able to see for yourself, we support you in all the steps related to the redemption of your existing financing. No worries, no stress and no bad surprises, you've come to the right place!
If you buy back your private credit, don't forget to keep a budget!
The main objective of buying back your private credit and your existing financing is to find a balance in your budget. At the end of the month, you therefore have more cash for your personal expenses! Once you have requested Lica services and that you will benefit from a low monthly payment at the end of each month, do not fall back into the trap of taking out new credit cards, for example. Keep your budget every month by respecting the following points:
- Establish a monthly budget
- Track your expenses regularly
- Stay up to date with your bills
- And avoid overspending on non-essentials
It will of course be easier to establish a budget and stick to it once you have redeemed your credit and financing. You can also read our article on optimizing your budget. This way you will easily save several thousand francs each year.
Our conclusion on the purchase of your private credits
Buying back your private credit and your financing can be a challenge but will be beneficial in the long term! By understanding the different types of credit and the best approach to redeem your financing, you can take control of your financial future.
By requesting the services of Lica, you are guaranteed significant savings. This while avoiding the administrative procedures that can be scary. Your credit specialist is there to guide you and help you make the right decisions.
The sooner you start your process of redeeming your credits, the faster you will save money each month. By relying on the services of a neutral and independent intermediary like Lica, you will be sure to be perfectly advised and to benefit from the best credit solution in Switzerland.
Do you have questions before submitting your redemption request? Our advisors are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!