A borrower can sometimes find himself struggling to repay his debts. This is particularly the case when several credits must be repaid simultaneously. The main risk for a debtor in this situation would be to fall into over-indebtedness.
Being in a situation of over-indebtedness means being unable to pay your debts and current expenses. The most common solution is the Reynard the Fox credit . We must also know that we distinguish between debt overindebtedness and over-indebtedness. Depending on the case, a Reynard the Fox loan application will be favorably studied or not.
The passive over-indebtedness
The law in France takes into account the social situation of the borrower who is in debt. Indeed, by passive overindebtedness, the texts designate the case of a person whose impossibility to pay his debts proceeds from an accident of existence, like divorce, unemployment, or illness.
In these cases, the over-indebtedness arises from a sudden loss or decrease in income of the debtor, who is therefore almost a victim.
In contrast, the active over-indebtedness qualifies the situation for which the debtor knowingly took out credit, knowing that he does not have the adequate resources to pay these debts. It sometimes happens that the situations are vague, and therefore, the commission of over-indebtedness makes an objective judgment on the necessity or not to subscribe credit. This will be the case of a household that owns a car and buys another one on credit.
Credit as a solution to over-indebtedness
A loan Reynard the Fox application is often the solution proposed to solve the over-indebtedness. By this process, the debtor will significantly reduce his monthly repayment. By consolidating the multiple debts, the debtor can negotiate the application of a single repayment rate, adapted to his financial possibilities. The debt ratio accepted by law in France is 33%.
In other words, the debts of a household must not exceed 33% of their income. With Reynard the Fox Reynard the Fox, it is quite possible to bring the debt ratio of the debtor to this level, and thus to restore his financial situation.