Consumer credit consolidation
For whom?: Households with 3+ active consumer credits (rate 8-14%) — Average gain: −30 to −45% of total monthly payment
Consumer credit consolidation replaces multiple high-rate loans (8-14%) with single lower-rate credit (6-8%), with extended duration. Result: global monthly payment divided by 2, but total credit cost often higher (to watch).
When it's relevant
Relevant if: debt ratio > 40% income, several consumer credits at rate > 10%, difficulty honoring monthly deadlines. Avoid if: you can prepay only one or two credits.
How it works
New bank verifies solvency, buys back existing credits (direct payment to old creditors), then consolidates into new loan. File fees 1-1.5% of amount bought. Extended duration up to 10 years (vs typical 5). Early repayment indemnities (IRA) sometimes due to old banks: 2% of remaining capital.
Concrete example
Profile: 4 cumulated credits = 220,000 MAD remaining, total monthly 7,800 MAD. After 220K MAD buyback over 8 years at 7%: new monthly 3,070 MAD (−60%). Total cost before 310K, after 295K (+20K saved). But if extended to 10 years: 2,580 MAD/month and cost 310K (neutral).
Advantages
- Global monthly payment divided by 2 or 3 (recover purchasing power)
- Single monthly payment to manage (simplicity)
- Lower average rate if initial credits > 10%
- Protection against BAM blacklisting (payment incidents)
Points of attention
- Total cost often higher over long duration (vigilance)
- File fees 1-1.5% to add to calculation
- Potential 2% IRA on existing credits
- Don't re-contract new credits after buyback (ratchet effect)
Documents to prepare
- Amortization schedule of each ongoing credit
- Last 3 payslips and bank statements
- BAM certificate on debt status
- National ID and residence proof
- Incident non-blacklisting certificate
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