Loan consolidation in Luxembourg: Analysis and solutions!

Get out of debt?

Get out of debt?

Luxembourg is a European country, close to France. Although its situation is more idealistic than that of the French country, Luxembourg households still face financial concerns. In 2014, a report estimated the average outstanding loans for a Luxembourg household at $ 149,500 while in France, this average outstanding of less than $ 50,000. What do credit organizations or Luxembourg banks offer to help them get out of debt ? Is the pooling of credits possible?

If we take the time to compare the household debt of European countries with the reports of the European Savings Observatory, we can see that Luxembourgers are more and more in debt, just like English households or households. French.

Your debt situation

Your debt situation

When we talk about the word ” indebtedness “, we must understand that the household is still able to honor its debts, but that its financial situation is unstable. Unlike over-indebtedness, where the household no longer has enough resources, which leads to more serious consequences such as the seizure of property.

Being in a debt situation is not irreversible. In addition, it should be known that in Luxembourg more than 60% of the owners are in debt. This debt is caused mainly by the inflation of real estate prices. There are, of course, other cases such as:

  • the dismissal,
  • divorce,
  • overconsumption of credits.

The report of the European Savings Observatory states that an indebted household pays at least one loan.

Which strategy to choose to find a comfortable financial situation ? This is certainly the question you have in mind when you read this article. Know that there are multiple such as:

  • the budget restriction,
  • the pledge on loan,
  • the loan in fine,
  • borrowing from a loved one

However, these measures are not always sufficient, if not impossible. Renegotiating mortgages can be a lifesaver!
The renegotiation of its real estate loans will cause:

  • a depreciation of the overall interest rate,
  • an extension of the duration of the loan
  • a significant reduction in the monthly payments to be repaid.

The sum of these three factors increases the purchasing power. Banks (or credit institutions) also offer to raise your consumer credit in one loan. The operation is identical to the renegotiation of real estate loans.

Although these financial tips are partners for Luxembourg households in debt, it is important to anticipate. Indeed, the implementation of such a process, whether the consolidation of real estate loans or the meeting of consumer credit, has a cost. The cost is higher or lower depending on the situation:

  • early repayment benefits,
  • management fees,
  • guarantees.

Before you start, it is therefore necessary to calculate its needs and the real benefits that will provide such an operation on your family budget.

The financial experts are, of course, at your disposal to help you in this process. They know the different laws and will not agree to intervene if the situation is too critical. For the study of your needs, it is essential to give all the necessary information for the constitution of your file. Guarantees will support your request.

To conclude quickly, the grouping of credits of any kind is a windfall to handle with care. This transaction is a loan that you must repay. Estimate your real needs before comparing different market proposals is essential.

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