If you are considering using Loan consolidation to rebalance your finances, you may be wondering what the consequences are to be expected from this transaction. Besides the fact that it will simplify budget management, and spread the reimbursement over a new period, should we expect a consequence on your relationship with your creditors, with your bank, or with the administration? More specifically, does a Loan buy-out even on the bank card?
The redemption of Loans is not a reason for registration in the FILP file
The FILP file, managed by the Good Finance, groups together borrowers who have had Loan repayment incidents. To be very precise, Good Finance actually has several files. The FILP file is the Loan Repayment Incident File, but others are also known as the Central Check File (FCC) for grouping incidents related to means of payment. Depending on the default and its nature, a filing period will be determined (ranging from two years to eight years).
Several cases can lead to filing:
- If you have not honored several deadlines consecutively, or if you keep an unpaid deadline with a long delay (more than 60 days);
- If you do not regularize an overdraft situation greater than $ 500, after a period of more than two months of formal notice;
- Finally, if you do not react after a formal demand for full repayment of the remaining capital of a loan (whether it is a mortgage or a consumer loan).
Is carrying out a loan buy-back a reason for recording in large bank incident files? No.
A regrouping operation is, on the contrary, a solution to better balance your finances and find an answer before switching to over-indebtedness. It is an act that shows your will to get out of a difficult financial situation, or the desire to restore more balance to your finances. No filing to wait in return.
Buying back Loan is an answer for fragile budgets
Combining Loan repurchase and filing with Good Finance is awkward. In fact, carrying out a restructuring is not a punishable action or one which requires special monitoring by the tax administration. It’s quite the opposite.
- Households who are experiencing lasting financial difficulties and who want to avoid repetitive payment incidents that would lead to their filing with the Good Finance can use redemption as an answer. They anticipate and react. Communication is the keyword, don’t be alone with your problems;
- People who are looking for a solution to simplify their budget, and who want better readability of their lines of Loan can combine loans if they wish, without being “filed”. They are free ;
- Finally, in order to face an unforeseen event, or to better anticipate the future, the grouping allows a new spreading of the repayment of loans (consumer and real estate), and this in complete freedom and independence. Everyone can adjust the repayment of their loans as they see fit, given their situation.
The repurchase of Loans is a solution subscribed with financial organizations or via an Intermediary in Banking Operation and Payment Services, without direct link with the tax administration. It does not have to know your project, which is carried out in a completely confidential manner, with the listening of an adviser.
On the contrary, if you are registered with the FILP, and you ask to benefit from a Loan buy-back, your financial situation will have no secrets for the financial organizations. Your debt is known, thus limiting your borrowing capacity, and therefore the possibilities of benefiting from this consolidation. It is essential to use the redemption before falling into the spiral of over-indebtedness, which can lead to registration in the Good Finance files. Because once this filing is done, your room for maneuver will be much reduced.