Do you want to carry out a loan consolidation operation, and wonder if it is possible to integrate additional cash flow to finance a particular project? The answer is yes ! As part of a debt restructuring, you have the full possibility of requesting extra cash or even a new loan. Here are all the details you need to know to make this request.
Additional cash when buying back credit
Consolidating your credits into a single loan is an operation that allows you to have a clearer view of your debts. The primary objective of such a device is not to grant you additional cash. Indeed, the main goal is to help you find a suitable debt ratio, but also a weight of your monthly payments “acceptable” in your budget. If, in order to have security savings, or to finance a project, you need additional funds, the establishment which buys back your loans can grant you cash.
The establishment will be particularly sensitive to your request if it is made in order to stabilize your situation. If you think of taking advantage of this financial arrangement to be able to spend even more, it is missed. Thus, the organization will limit the amount of this available cash. A ceiling of between 10 and 15% maximum of the total amount of the transaction is generally applied.
The extra cash you can benefit from is called “unrestricted” cash. Like an unrestricted loan, you do not have to justify the use of the amounts released. As of the signing of the offer and the effective implementation, you will be able to benefit from the agreed sums. Be careful to make good use of this free use: your financial health may still be precarious. The priority is prudence and wisdom.
A new credit with my loan group
In addition to a need for cash, it is a real credit that can be released at the time of the operation. If you have in particular a mortgage, then the repurchase of credits can be used as a tool for valuing your heritage, and a works credit can be integrated. Convenient to modernize your interior, change a kitchen or redo a tiling. You can take the opportunity to take out a new loan that will finance any type of project in the short or medium term: change your car, make a trip, help a loved one.
This new credit which will be granted to you will be an integral part of the transaction. The amounts released will therefore be integrated into your grouping. However, it should be noted that a loan granted in this context will require supporting documents for the release of funds, unlike simple cash (as we mentioned above). It is therefore an assigned loan, paid quotes or invoices will be used to make the sums available to you.
Let’s conclude on the importance of knowing the consequences if you ask for additional cash or a new loan. A decrease in the amount of the monthly payment of your new loan will be necessary compared to a simple credit consolidation in order to obtain the same debt ratio and to integrate the repayment of cash or additional credit. So, if you add $ 10,000 or $ 15,000 to a loan consolidation, expect an increase in the total duration of the repayment, but also an increase in the total cost of the consolidation.
Depending on the amount you need, the difference in the monthly amount with or without cash may be residual. Ask for several loan buyback simulations and don’t hesitate to talk to an advisor for precise answers.