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French budget management and use of revolving credit

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With inflation, managing the budget has become a common concern for all French. In the event of a hard hit or desperate need for money, there is less room for maneuver. Revolving credit can be a game changer.

Where is the French budget?

To adhere as closely as possible to the concerns of the French, Sofinco has developed a telescope. Thanks to a collaboration with the Opinion Way research institute, this metric displays the spending intentions and consumption trends of the French on various items. Transportation, food, housing, vacations or health: all consumer habits are dissected. With food price inflation of 15.9%[1] In one year and the overall price increase by 5.9% over the same period, households are short of cash. the fiduciary It is an option that facilitates the management of its budget.

What is revolving credit?

Revolving Credit is an easy-to-set-up solution for getting cash. Concluded for a period of one year, and provides access to a reserve of money to finance various projects. Here, the credit limit is pre-approved: you choose your loan amount. Once all your payments have been made, the initial amount is again available to you, which is why this loan is called revolving credit. The maximum repayment period for a loan of less than €3,000 is 36 months. After that, it increases to 60 months. You have the option of reducing your credit reserve at any time.

Advantages of revolving credit in budgetary management

In times of inflation, revolving credit has many advantages to make it easier for the French to manage the budget.

Flexible credit

With more goods and services, the French’s budget is ever tighter. Revolving credit is a device that makes it possible to restore flexibility in budget management. With this cash reserve, families can meet unexpected expenses or plan their vacations without having to dip into their savings.

custom loan

Once you’ve determined your revolving credit amount and granted your loan, you can manage your expenses as they arise. So it is possible to use the entire loan at once or to divide your expenses.

Flexible terms

Signing up for a revolving credit is much simpler than signing up for a traditional credit. You have the ability to adjust the number and amount of your payments so that they are included in your budget. Several rates are offered depending on the length of repayment but also on the amount borrowed. Borrower insurance is optional.

Planning is the secret to successful revolving credit

Revolving credit can be offered by a bank, a retail or mail order brand, or an organization that specializes in consumer credit such as Sofinco. The latter offers a simple simulation tool that gives the borrower a comprehensive view of their options in terms of revolving credit. After entering the required amount (between €150 and €10,000) and the nature of the project to be financed (family, leisure, business or car), the borrower indicates the required monthly payments. The revolving credit repayment period is adjusted according to the importance of the selected monthly payments.

This tool displays in a few seconds your personal simulator but also a 10+ and/or last 24-month view. Each option shows details of different credit holders including APR (Annual Effective Annual Rate). It can be fixed or reconsidered in stages. This means that different rates will be applied depending on the outstanding capital. This summary also shows the amount of your monthly payments and the total cost of the loan. In general, the higher the number of monthly payments, the higher the cost of revolving credit. Even in times of inflation, it becomes easy to visualize yourself and choose the best conditions for obtaining revolving credit that adjusts to your repayment capabilities.

In times of inflation, the French are vigilant about all items of expenditure. Revolving credit, accessible to all, is one solution that gives households access to cash. This flexible loan allows everyone to find the optimal repayment rate.

[1] In April 2023 Consumer Prices Increased By 5.9% YoY – FAST FACTS – 112 | Forget

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