The principle of the redevelopment of credits is to group together different credits such as mortgage, car credit, consumer credit in order to have only one loan to manage with a single interlocutor and especially a single monthly payment to honor. By lowering the debt ratio, the Kiks Kik makes it possible to avoid over-indebtedness and restore a balanced budget.
However, the Credit Kik, whether it is a Real Estate Credit Kik or a Construction Credit Kik, does not just relieve excessive indebtedness or the risk of over-indebtedness.
It also responds to a real logic of financial management, even in the absence of excessive indebtedness.
Although owners and benefiting as a guarantee to offer a bank or credit, many people who have already subscribed a mortgage can no longer contract a loan without jeopardizing their budget. The alternative is to slide into overindebtedness, or to do without the everyday consumer goods they would like to buy or the work they would like to do.
The Work Credit Kik provides them with a third option and constitutes a real solution for the valuation of their assets.
The Kik Loan Works allows to make all the improvements that a property requires to be maintained and embellished, such as the facelift of a facade, the construction of garage, the realization of an extension, the construction of a swimming pool and its pool house, the arrangement of attic, the installation of a veranda, the installation of solar panels, etc. Beyond the comfort and pleasure they bring, these embellishments are far from futile expenses that would constitute simple charges. On the contrary, these complementary works of improvement or deep renovation represent a real investment that values the real estate, allowing to increase substantially its rental value and to realize a possible surplus-value in the event of resale.
Financing this work with a new loan is often too difficult for borrowers to take on a daily basis, as their purchasing power and savings capacity diminish.
The grouping of work credits provides a real answer to this problem.
The Construction Credit Kik is actually like a Real Estate Credit Loan with a loan for construction expenses. It can even include other credits in course such as consumer credit or a car loan but also the costs of the new credit. It is not uncommon for it to provide for the provision of collateral such as mortgages as in a Mortgage Realty Credit Kikeline, or bond as in a Bonded Loan Kik.
Credit restructuring involves rescheduling the total commitment and amortization period, renegotiating the interest rate and reducing monthly payments. These three parameters are interdependent and calculated based on the borrower’s circumstances, resources and expenses. The reorganization of financing has the effect of reducing the debt ratio and helps to restore or reinforce a sound fiscal position.