Would you like to take control of your financial future and make savings for the New Year? Why not buy back your private credit? It can seem a daunting task! But with the right information and help from Lica, You'll soon find yourself financially relieved at the end of each month. In this new article, we'll cover everything you need to know about buying back your private credit and, above all, how to go about it. With the right strategy, you'll be able to improve your credit score, reduce your expenses and finally take control of your financial future.
What kind of financing can you buy?
Buying back your private credit
Depending on the financial institution, your personal situation and the way in which your application has been presented, the terms and conditions of your loan may vary. personal loan can vary widely. When it comes to buying back your private credit, there's only one thing to consider: Get the best possible conditions!
In fact, depending on the rate, conditions and term of your private credit contract, your monthly payment could easily be halved.
Buy back your credit cards
I don't need to remind you that the interest on your credit cards is exorbitant. In fact, it's around 12%. What's more, the temptations to take out a credit card are numerous. Whether it's to make a purchase on credit, or a tempting offer when you open a new bank account, you'll regularly be asked to sign up for a new credit card.
The trap is a ferocious one, since you have immediate and easy access to extra cash for your purchases. However, when you add up your credit card charges and the repayments you have to make at the end of the month, the bill quickly becomes a hefty one.
That's why, buy back all your credit cards can help you restore balance to your budget. No more fees and just one small monthly payment to repay.
Buying back your lease
Leasing is a financing solution that generally offers an attractive interest rate. So there's no real problem here. However, the pitfalls with leasing are more likely to lie in the following elements:
Applicants' borrowing capacity is often miscalculated
You therefore run the risk of becoming a victim of’too much debt. As a result, you may no longer be able to meet your financial commitments.
At the end of your lease, you must return the vehicle in good condition with the agreed mileage or pay the residual value.
And yes, leasing is more like renting than financing as such. A lease implies that a third party (the seller of the car) remains the owner of the vehicle. And this for the duration of the lease. When the time comes to return the vehicle at the end of your leasing contract, unpleasant surprises can quickly pile up. Exceeded mileage and/or vehicle reconditioning will be billed at a premium! The second scenario, buying back the vehicle at the end of the contract, could get you out of this predicament! But you still need to budget for sufficient savings to pay the residual value.
In a nutshell, leasing is an excellent solution if you are certain of being able to buy the vehicle back at the end of your contract. Similarly, if you're guaranteed not to exceed the agreed mileage and to take good care of your vehicle, leasing may turn out to be a good alternative.
If you have any doubts about your leasing and the points mentioned, it may be time to consider a buy-back. With buy back your leasing, No more residual value problems, no more worries about mileage, and even less about the condition of your car. You're the owner of your car, and you can do what you like with it! What's more, depending on the term you choose, your new monthly payment can be very attractive.
When you buy back your private credit, you improve your budget every month
To understand just how much you could save each month, we've drawn up a table comparing the situation before and after you buy back your existing financing. The result is astounding! With Lica services, you could buy back your credit and save several thousand francs a year.
| Type of financing | Duration (months) | Amount | Rates | Monthly payment |
| Personal loan | 60 | CHF 45’000.00 | 9.95% | 955.00 |
| Credit card 1 | 12 | CHF 3’200.00 | 12% | 284.30 |
| Credit card 2 | 12 | CHF 4’500.00 | 12% | 399.85 |
| Leasing | 48 | CHF 35’000.00 | 4.50% | 595.95 |
| Total | CHF 87’700.00 | 2’235.10 | ||
| New financing | 84 | CHF 87’700.00 | 5.90% | 1’276.95 |
With a finance buyback, you'll notice that your new monthly payment drops to CHF 1’276.95 instead of the CHF 2’235.10 you had to pay until now. This means that you could save CHF 958.15 every month. That's more than $10,000 every year!
Buying back your private credit and existing financing offers you the chance to save several thousand francs every year.
What you need to consider when buying a private loan
Although Lica will take care of all the arrangements for you, here are some things to consider when buying back your private credit.
- Type of loan
- Interest rates
- Repayment conditions
- Refund amount
- And the loan term
The type of loan is important because it determines the interest rate and repayment terms. For example, interest rates on personal loans vary according to the terms obtained and the lending institution. Repayment terms also vary, as does the time required to repay each type of loan. The longer the loan term, the lower the monthly repayments. However, you will pay more interest over the long term.
The 5 steps to buying back your private credit
Before you can buy back your private credit, you need to determine what the financing you wish to buy. Once you have this information, it will be easier to work out a strategy for buying back your existing credit and financing.
At Lica, we operate according to a precise process with which you can make significant savings every year. Here's how we work:
1. Draw up a list of private loans and financing to be purchased
We list each of your debts in detail, taking into account the various lending institutions and the terms and conditions of each of your loans.
2. Determine your new budget and prepare your file
Once the strategy has been drawn up, we determine exactly what will be your new monthly budget. That way, you'll know how much you'll save with our help. Our financing experts will then prepare your financing application in accordance with the rules of the trade. In other words maximizing your chances of obtaining new private credit under the best possible conditions.
3. Negotiate the purchase of your private loans, credit cards and leases
Now that your file is ready, it's time to start negotiating with the various market players. Discussion, argumentation and compromise are the key to obtaining advantageous conditions for your new private credit. Your contact at Lica will defend your interests I He'll be at your side to help you find the best financing solution.
4. Choosing the right service provider and signing the contract
It's not easy to make the right choices when you're not used to the legal jargon of a private credit contract. Lica will simplify everything for you right up to the signing of your contract. Our specialists are on hand to break down your new contract and explain its terms and conditions in simple terms.
5. Transfer of funds and payment of your private credit
Once you've signed your private credit agreement, we'll keep track of all your existing loan repayments. No special steps are required. You can therefore rely completely on the services of your private credit specialist ! Of course, if in addition to buying back your private credit and financing, you would like to obtain more cash for personal expenses, Lica also makes sure that the funds from your new private credit arrive at the right destination in your account.
As you can see for yourself, we're here to support you at every step of the way. buy back your existing financing. No worries, no stress and no unpleasant surprises - you've come to the right place!
If you're buying back your private credit, don't forget to keep a budget!
The main aim of buying back your private credit and existing financing is to restore balance to your budget. At the end of the month, you'll have more cash for your personal expenses! Once you've applied for Lica services and you'll enjoy a low monthly payment at the end of each month, don't fall into the trap of taking out new credit cards, for example. Stick to your budget every month, respecting the following points:
- Set yourself a monthly budget
- Keep track of your expenses
- Keep up to date with your bills
- And avoid spending too much on non-essentials
It will of course be easier to draw up a budget and stick to it once you've bought back your credit and financing. You can also read our article on optimizing your budget. You'll easily save several thousand francs every year.
Our conclusion on buying back your private loans
Buying back your private credit and financing can be a challenge, but will pay off in the long run! By understanding the different types of credit and the best approach to buy back your financing, you can take control of your financial future.
When you call on Lica's services, you're guaranteed significant savings. At the same time, you'll avoid the daunting administrative procedures. Your credit specialist is there to guide you and help you make the right decisions.
The sooner you start buying back your loans, the sooner you'll save money every month. By relying on a neutral, independent intermediary like Lica, you can be sure of receiving the best advice and the best credit solution in Switzerland.