Today, the credit card has become one of the most widely used payment instruments in the world. Not only does this card make it possible to avoid carrying around a large sum of money, but above all it allows you to have a reserve of money available at all times. Although very useful, credit cards are unfortunately horribly expensive. Especially when they're overdrawn. In this new article, we explain the advantages of buying back your credit cards and keeping control of your budget.
Want to find out more about buying back credit cards? Then you've come to the right place! We'll explain it all in this new article.
What does it mean to buy back credit cards?
To begin with, let's review what a credit card is. It's a card that enables its holder to make purchases without the use of cash. Unlike a traditional debit card, a credit card operates on an overdraft basis. In other words, you can use a certain amount of money on your card, but then you have to pay it back in monthly instalments or in a single instalment.
By definition, a credit card buyback is a financial operation that consists of buy back existing loans by a single financial institution. Its main advantage is to reduce monthly repayments by offering a lower interest rate and a longer repayment period.
When you buy back your credit cards, you benefit from a lower monthly repayment instalment and therefore a more manageable budget. What's more, your various credit cards will be up to date again, so you'll have a balance to fall back on in an emergency.
What are the advantages of buying back your credit cards?
The advantages are numerous! Buying back your credit cards saves you money and helps you get back on track. a balanced budget. Here are all the advantages you can enjoy by buying back your credit cards:
Lower interest rates
Today, interest rates on credit cards are very high. They generally vary from between 9% and 12% according to Swiss law. Compared with private financing, you could save up to 8% in interest on your financing. With a lower rate, you save money every month!
Balance your budget
When you have several credit cards that are overdrawn, you also have to make several repayments at the end of each month. With high interest rates and short repayment periods, this means high monthly payments. With consolidate your loans, In this way, you pay just one monthly installment to suit your budget.
Liquidity in the event of a problem
Although not very advantageous, a credit card nevertheless provides a cash reserve in the event of a problem. If your credit cards are bought out with private financing, they'll be available again in an emergency. It's always reassuring to have a cash reserve in case of the unexpected.
A single monthly payment
What could be worse than juggling bills at the end of the month? When you're overdrawn on several credit cards, that's exactly what happens. Depending on the monthly payments required and the state of your budget, it can even be impossible to pay the amounts requested. By buying back your credit cards, you only have to pay one monthly instalment. You'll be able to balance your budget again.
How do you calculate the savings to be made by buying back your credit cards?
Before you decide to buy back your credit cards, it's important to know how much you stand to gain. Here's everything you need to know to easily calculate how much you'll gain by buying back your credit cards.
☝ Fastest first solution
You can carry out a simulation using our credit repurchase calculator. All you need to do is find out the amount of your current debts, enter them and the system will show you your new monthly payment.
If you're interested in the new monthly rate and want to save money, you can fill in your details in less than 2 minutes. An operator will then contact you to complete the transaction. It couldn't be simpler!
✌ Second solution
A little longer but just as accurate, you can do the calculation by hand. To do this, proceed as follows:
- Gather all your credit card bills.
- Add up your monthly payments and the amounts of the corresponding debts.
- Then compare your total monthly payments with the new monthly payment for your future financing.
To make this explanation more meaningful, here's an example in table form.
| Map list | Open amounts | Monthly payments |
| Bank A | CHF 4’500.00 | CHF 259.00 |
| Bank B | CHF 3’000.00 | CHF 319.00 |
| Bank C | CHF 1’750.00 | CHF 120.00 |
| Bank D | CHF 6’200.00 | CHF 485.00 |
| Totals | CHF 15’450.00 | CHF 1’183.00 |
Once you know your total monthly payments, all you have to do is compare them with the new monthly payment for your future financing. In this example, for a private loan of CHF 15’450.-, the new monthly payment would be CHF 225.35. So you could save up to CHF 957.65 every month !
Our conclusion on buying back credit cards
Regardless of the state of your finances, buying back your credit cards is always a good solution, since it lowers your interest rate. Paying less and getting your budget back in balance is always a great feeling.
It may sound complicated, but it's not! In less than 2 minutes, you'll be rid of your bills and back on track with your budget. What's more, our specialists take over once your request has been processed. So you don't have to do a thing except thank us for the job.
Now that you know how to take advantage of a credit card buyback, take the time to contact our specialists. They will guide you through the process in a neutral and confidential manner.