After an individual subscribed to this credit, credit agency or bank loan provider makes available this free money incurred.
Revolving debt is a permanent loan that automatically reconstructs as repayments of credit.
Repaying debts especially, the revolving debt is an easy loan to subscribe, and buy consumer goods and recreational services of their choice.
For the same revolving debt purchased, it is not possible to exceed the amount loaned.
This type of loan is formulated in two ways:
- Line of credit, it is a kind of revolving bank overdraft received by check or transfer to bank account.
- A letter of credit is granted by the bank.
This cash is increasingly used by credit card or private use anywhere specific and general.
For this kind of loan, it is a period of one year, renewable by tacit agreement.
The Court of Cassation has established that it is necessary to submit a credit institution provides funding renewal three months before renewal.
Obviously, the individual may send a letter to refuse the renewal of the revolving debt facility.
Revolving loans are causing an increasing number of cases of indebtedness if the revolving credit is used as abusive.