A credit buyout is a way to alleviate an excessive debt situation. It is a method used to allow a person to consolidate their old credits to reduce the amount of monthly repayments while extending the repayment period. In Belgium, a credit buyout is an effective solution to avoid being blacklisted by banks.
Simulate your credit consolidation
How to Do a Credit Buyout?
There are currently 4 types of credit buyouts:
- Credit buyout for tenants
- Real estate loan buyout
- Professional credit buyout
- Credit buyout or debt restructuring through sale and leaseback
There are 5 mandatory steps to complete a credit buyout?
Simulate the cost and proceed with a credit buyout simulation
The simulation allows you to get a preliminary overview of the credit amount to request from the bank. This is to find out the new monthly payment by consolidating previous credits. It verifies if the borrower has the means for repayment. It’s also a first step towards answering the question: how to do a credit buyout?
Choose Crédafin as a broker
The broker is an agent who handles banking operations. They advise and find the best possible offer for their client. They will restructure the debts and consolidate them into a single monthly payment. Then, they will begin the process of requesting a credit buyout from financial institutions. For this, the borrower will need to provide: identification proof, proof of residence, the last 3 salary slips or income proof, their bank account details, the last 3 bank statements, loan documentation, and proof of ownership.
Wait for offers from financial institutions
After reviewing the borrower’s file, the financial institution will decide whether or not to accept the credit buyout request. If approved, they will then propose different buyout offers.
Proceed to sign the best offer
After reviewing the proposed offers, the broker and the borrower can decide which is best suited to the borrower’s financial situation. The borrower can then proceed to sign for the new monthly payment.
Disbursement of funds by the financial institution
The institution disburses the funds to allow the borrower to repay their debts according to the terms of the new loan. Once all these steps are completed, the borrower will only need to repay their debts.
