Credit buy-back: the example of a large family budget.

Pat and Mariz have been married for 10 years and have 4 children. They live in the Montpellier region and rent their apartment. The couple’s income is $ 4,050 per month. What is their monthly budget? What are their revenues and expenses? How can they find a larger remainder of living and what would be the effect of buying back credit? Immersion.

Income based on wages and some support

Income based on wages and some support

At 39, Mariz is a management assistant in an IT company and earns $ 1,700 per month. Pat, 40, has a master’s degree in a public transport company and has monthly income of $ 1,900 per month. They receive the housing allowance for an amount of 250 euros monthly and an additional allowance of 200 $ for large families. Recently, they benefited from exceptional income thanks to the activity bonus in the amount of $ 170 for Estelle and $ 225 for Romain.

Constrained monthly expenses

Constrained monthly expenses

The essential expenses are the rent of the apartment for an amount of $ 1,050, the monthly repayment of the car loan up to $ 350 monthly and the expiration of a work credit contracted to furnish the apartment for an amount of 143 $ each month.

With 4 children, their food budget is significant and represents around $ 1,400 per month. Added to this is the reimbursement of a loan made last year to change the washing machine, i.e. $ 50 per month. The children each have a sporting or cultural activity which represents each month the sum of 400 $ in total. The couple also saves $ 400 per month to finance annual vacations. Their living expenses are therefore less than 260 $.

The repurchase of credit to release from the remainder to live

The repurchase of credit to release from the remainder to live

To find a larger living surplus month by month, Pat and Mariz opt for a repurchase of their credits. This operation would allow them to combine the consumer credits (car, work and allocated to the washing machine) into a single loan, the duration of which will be extended in order to benefit from a reduced monthly payment. Today they reimburse the total amount of $ 543 (car credit + work + washing machine) while with a credit buyout, the monthly payment could be reduced and reduced to $ 400.

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