Debt consolidation involves having multiple ongoing loans purchased by a single institution, which replaces them with a unique loan accompanied by a recalculated monthly payment. This operation modifies three parameters simultaneously: the applied rate, the repayment duration, and the amount deducted each month. Understanding the mechanics of these three variables allows for an assessment of whether the operation presents real benefits or if it risks increasing the total cost.
Promotional rates on revolving credit: a recent trigger
In recent years, revolving credits with temporary promotional rates (sometimes referred to as “teaser rates”) have multiplied. The principle is simple: an attractive rate during the initial months, followed by a return to the contractual rate, which is often much higher.
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According to the 2025 report from the Banking Inclusion Observatory (Banque de France), the share of consolidations motivated by the end of these promotional rates is on the rise. The profile of applicants is evolving accordingly: it is no longer just households in difficulty, but also borrowers who anticipate the increase in their monthly payments after the promotional period.
This change in profile has a practical consequence. A file submitted before the end of the promotional period is treated differently by banks: the disposable income is still comfortable, the debt ratio remains controlled, and the conditions obtained during the debt consolidation are generally more favorable than for a file submitted after a deterioration of the budgetary situation.
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Total cost of debt consolidation: the variable that the monthly payment masks
The reduction in monthly payment is the primary argument put forward. A lower monthly payment frees up immediate disposable income. However, this decrease is mainly achieved by extending the repayment duration.
An extension of duration mechanically increases the total cost of credit. Interest accrues for a longer period, and the remaining capital decreases more slowly during the first years. Before validating the operation, two figures deserve a rigorous comparison:
- The total remaining cost of current loans (sum of all remaining monthly payments, including interest and insurance)
- The total cost of the new unique loan (monthly payment multiplied by the new duration, including processing fees and early repayment penalties)
- Additional fees: early repayment penalties on the mortgage loan, mortgage release fees if applicable, guarantees required by the new institution
If the total cost of the new loan significantly exceeds that of the ongoing loans, the operation relieves monthly cash flow but increases the overall financial burden. This is not necessarily a dealbreaker, but it must be known before signing.
ACPR and DGCCRF controls: what has changed for borrowers
The ACPR and DGCCRF have strengthened their controls over the advertising of debt buybacks since 2023. Several intermediaries have been sanctioned for minimizing the total cost of credit or presenting consolidation as a guaranteed solution against over-indebtedness.
In practice, the most aggressive advertising messages have significantly decreased in 2024-2025. Offers mentioning only the reduction in monthly payment without indicating the extension of duration or the total cost are now targeted by controls.
For the borrower, this regulatory evolution translates into a more comprehensive right to information. Any intermediary or institution offering a consolidation must provide a simulation detailing the total cost, duration, and overall effective rate. Requesting this document before making any decision is not an excessive precaution; it is a legal obligation that the professional must respect.
Over-indebtedness commissions and prior consolidation
Another recent development: over-indebtedness commissions now systematically check whether a previous debt consolidation has worsened the applicant’s budgetary situation before accepting a repayment plan. The 2024 annual report from the Banque de France on household over-indebtedness confirms this.
A poorly calibrated consolidation can therefore complicate access to a subsequent over-indebtedness procedure. This data reinforces the necessity to quantify the operation rigorously, and not just compare monthly payments.
Preparing a consolidation file: the criteria that weigh in
The debt ratio after the operation remains the central criterion. Lending institutions apply the same criteria as for a conventional loan: the ratio of credit charges to net income must not exceed a threshold defined by the bank’s internal policy, aligned with the recommendations of the High Council for Financial Stability.
The nature of the consolidated loans also influences the conditions obtained. A file combining a mortgage and consumer loans will be treated as a mortgage consolidation if the real estate portion exceeds a certain threshold. The required guarantees, fees, and rates differ according to this classification.
Three elements strengthen a file:
- A sufficient disposable income after paying the new monthly payment (and not just a debt ratio below the threshold)
- A documented professional stability (permanent contract, seniority, regular income for self-employed individuals)
- The absence of recent payment incidents on ongoing loans
Engaging a broker to structure the operation
A credit broker compares offers from several banking institutions and negotiates the conditions on behalf of the borrower. This intermediation makes perfect sense in a consolidation, where the parameters to optimize are numerous: rate, duration, guarantee, borrower insurance, processing fees.
Cafpi, creator of the brokerage profession in France and present for over 50 years, supports borrowers in debt consolidation, loan buyback, and borrower insurance. The broker relies on a network of over 100 banking partners and more than 200 agencies across the territory, with the possibility of video consultations, to identify the most suitable arrangement for each situation and ensure accessible support regardless of the place of residence.
Debt consolidation permanently alters a household’s debt structure. Before reducing the monthly payment, it is essential to measure what the extension of duration truly costs. Simulation tools, reinforced information obligations, and support from a brokerage professional now allow for making this decision based on quantified data, not on a promise of immediate comfort.