Consumption loan’s place in people’s everyday economy

 

We people are probably not the only ones in the world who are happy to borrow money, but just in recent years consumer loans have gained a very special place in people ‘everyday economy. We believe this because the amount (and total debt) of consumer loans is increasing every single year, and changes in this market are constantly being seen to respond to demand. Many banks and investors have been rich in consumer loans, but how do we actually manage today with these loans?

How much do people owe in consumer debt?

How much do people owe in consumer debt?

Firstly, the total consumption debt of the people is increasing. In 2016, it had increased to almost 90 billion dollars, with the average consumer loan amounting to around 140,000 dollars. This is a growth compared to the past, but overall consumer debt accounts for only 3 per cent of the total household debt to people . This is mainly due to the fact that home loans – and the size of these – have also increased significantly in recent years, so that consumer debt does not make the big impact purely in percentage terms.

Nevertheless, the Financial Supervisory Authority is concerned, as consumer debt is growing both rapidly and rapidly. The regulations on consumer loans and advertising for this have not changed much in recent years, and consequently many experts believe that things must be done here to reduce people ‘consumer debt.

Want stricter regulation of consumer loans

Want stricter regulation of consumer loans

Among other things, they require changes in how consumer loans are regulated. As of today, there is no debt register, which in practice means that no banks have an overview of how much you have recently taken up in consumer loans. This comes only when next year’s tax return is completed. In other words, you can easily take out several consumer loans in different banks over a certain period of time, without any idea that you have done so. For ordinary income it will be quite problematic to raise loans of between one and two million in just a few hours, by applying for consumer loans in several banks.

It is this practice the credit manager – and probably several other financiers – wants to get rid of. This means, among other things, the tightening of who should receive consumer loans, and that one must make it more difficult to apply for such loans. Proposals have also been made for advertising bans on consumer loans, and that banks must play with more open cards to customers about what the risk of taking out such loans actually is. Since the turn of the millennium, people ‘debt has quadrupled, so there is definitely no shortage of “evidence” that it may now be time for some change. Although it is primarily people’s own responsibility not to incur too much debt, the experts also believe that the banks have some preventive responsibility here against their customers.

More and more people are struggling with money problems

More and more people are struggling with money problems

As one reads that the total debt increases, so does the proportion struggling with money problems due to consumer debt. Surveys from the end of 2016 show that about seven per cent of households have problems processing their debt. The statistics do not only include consumer loans, but this is probably an important part of precisely these payment problems due to the high interest rates these loans often have. The economy in the country has been weak in recent years, which has made it much easier to get consumer loans thanks to a low interest rate level.

The interest rate on consumer loans rarely increases very much during a loan period, so that one can have a fairly predictable repayment on these loans. However, it is different for mortgages, where interest rates can change quite a few percentage points over a few years. And with the size of many mortgages, this will quickly cost a little extra a month if you experience a rise in interest rates. Perhaps this will again mean that you do not get enough money to pay the consumer loan – since the mortgage must be given priority if you still want to get your head around. Therefore, it is extremely important that you do not incur too much debt in either form, so that you actually have some extra room for interest rates or other factors that can affect your finances. Never borrow more than you need!

Categories
Uncategorized

Loans for Home Renovation: Guide to Offers

Loans for first home renovation: what it is

Loans for first home renovation: what it is

Do you want to proceed with the renovation of your home but do not have the necessary liquidity? The solution is there and is called first home renovation loans. Find out how they work, who they are aimed at and what are the best proposals on the 2016 market. http://www.cashing-now.net/consolidate-payday-loans-bad-credit/ for an assessment

Ordinary and extraordinary restructuring

Ordinary and extraordinary restructuring

Thanks to the mutual restructuring, it is possible to operate both inside and outside the house. In detail, the documents relating to the planned works must be provided to the provider.

In general, the restructuring can be ordinary or extraordinary. In the first case, small building works are carried out which concern the repair, the preservation of the efficiency of the systems, the replacement of some finishing elements.

With extraordinary maintenance, on the other hand, it is essential to provide the bank with the project to be carried out and a start-up report. Not to mention the demand for access to credit. Taking advantage of the extraordinary renovation, it is possible to carry out interventions on structural elements of the building and consolidation works.

Having clarified the question of what the first home renovation loans are, we want to review the most convenient proposals of the 2016 market.

The best home renovation financing

The best home renovation financing

For the identification of the best product we have chosen to perform a calculation simulation, imagining an applicant who needs 50 thousand USD to complete the renovation of his home. The repayment period is 10 years.

By choosing the fixed rate, the most competitive financing is provided by Fine Bank, which offers Carige Best Fixed Home Mortgage. We have an installment of 446 USD, the rate is 1.40% (Taeg 1.86%). However, charges must be considered: preliminary investigation 425 USD and expert report 270 USD.

The installment of Capital Lender is a few USD more expensive. In this case, the reference point is the Across Lender. The rate is 1.48% (Taeg 1.94%). The installment is 448 USD (500 USD of preliminary investigation and 300 USD of appraisal).

Also valid is the proposal by Across Lender, Carefree Mortgage : rate 1.60%, Taeg 2%, installment 451 USD. The costs related to preliminary investigation and appraisal, respectively 500 and 200 USD, must be taken into account.

Best variable rate mortgages

Best variable rate mortgages

If you prefer the variable rate, the best proposal is presented by Webank. This is the Variable Mortgage product which has a rate of 1.19%, while the Taeg reaches 1.24%. The monthly payment is 442 USD.

The Promo Variable Rate of Best Bank is also valid: rate 1.09%, Taeg 1.44%, installment 440 euro (preliminary investigation 475 euro, the costs of the appraisal are absent).

Debt for the self-employed

If you have been self-employed for a long time, you may have taken out a loan or two with bad terms. If you now want to redeem these loans quickly, debt restructuring for the self-employed can help.

What happens when a debt is rescheduled?

What happens when a debt is rescheduled?

For this purpose, a new loan with better conditions and lower interest rates is applied for and taken out from a bank in exactly the loan amounts to be repaid. With this new loan amount, you completely replace the other loans and only pay the monthly installments for this new debt rescheduling loan. An overdraft facility that is constantly being used can also be repaid with debt restructuring for the self-employed. Because especially with the constant overdraft of the business account one has to pay more fees and interest than with an installment loan.

So if the business account is overdrawn for more than three months, you should consider rescheduling and taking out a loan as a self-employed person. Despite everything, banks and credit institutions also need security when granting a loan to the self-employed. Therefore, it makes sense to have insurance, a well-running company with valuables, your own savings reserves or a high monthly income.

Too many creditors and bills burden the work

Too many creditors and bills burden the work

Even if you are currently not able to pay as a self-employed person and many creditors are waiting for your money, you should consider rescheduling for the self-employed. Many banks and credit institutions have extra loans to offer in the area of ​​self-employment. With such a debt rescheduling, all outstanding bills add up and take out a loan for this amount.

So all creditors can be satisfied and you only pay the monthly installments to the bank or credit institution. This makes it easy to avert being caught in the debt trap as a self-employed person if the creditors are no longer willing to wait for their money and may thus initiate the judicial procedure and thereby get bad Credit Bureau information.

Always separate private and business expenses

Always separate private and business expenses

Before taking out a debt rescheduling loan, you should definitely be clear whether it is a loan for private expenses or debt restructuring for the self-employed and thus for business expenses. Many direct banks offer cheap loans especially for the self-employed, you can find out more about them on the Internet and at the same time compare the different banks and their conditions. So you can get a much cheaper loan for business expenses than for private expenses.

Take out a 9000 USD loan

A 9000 USD loan is no longer a small loan. This sum is counted among the normal installment loans. But it is easy to find like a small loan. Many providers have specialized in this loan. With the sum, a larger purchase can be made. A used car, a kitchen or a vacation can be paid for quickly.

Where should the loan be taken out?

Where should the loan be taken out?

Customers who sign up for a 9000 USD loan do not have to give a reason why they need the loan. It can be made freely available to him. However, should a credit reason be given, the bank can often go down with the interest. If the customer wants to use it to balance his account, for example, the loan interest can be lower. The house bank is always helpful when a personal conversation is desirable.

If you want to do without personal advice, you can also find a provider on the Internet. These providers are either direct banks or private individuals. The interest rate is often lower for direct banks because they have less staff costs. Private individuals do not have the right to examine the applicant’s Credit Bureau.

So you do not know whether a loan has been taken out from another bank or a garnishment has been granted. This poses a risk for repayment. Many can pay for this risk with high interest rates. If you don’t want to pay too much, you should always compare the providers. In the end, this costs less than a loan that was signed overpriced.

Creditworthiness is very important

Creditworthiness is very important

No matter which provider the borrower chooses, the 9000 USD loan is only given to those who can also demonstrate a good credit rating. What distinguishes this credit rating? On the one hand, the credit rating is very good if you have few or no entries in the Credit Bureau. Credit Bureau works with a points system.

The creditworthiness is rated from 0 to 100 points. Any negative entry, such as a garnishment or unpaid bills, rent arrears and loans affect the creditworthiness. The worse this is, the more difficult it will be to get a loan.

It should therefore be ensured that the Credit Bureau is very good. But salary also plays a role. Anyone who can prove a salary that is just above the garnishment allowance does not have as good a credit rating as a person who may earn 2000 USD or more every month.

It sounds paradoxical. People who need a loan often don’t get it because they don’t have enough money. The people who actually make enough money get a loan. The paradox becomes logical if you take a closer look at the situation. People who already have little money have to pay a loan installment with the little one. So they have even less money a month. The financial situation is basically not much better with a loan.

Anyone who chooses a 9000 USD loan has to think carefully about how much money they can save each month to pay off the installments. It should not be calculated shortly, because in addition to the fixed costs, unexpected things can happen. For example, this can be an additional payment for the electricity, which then has to be paid extra. These factors should be considered before agreeing a repayment rate with the credit institution.

Via the Internet for a 1500 USD loan

 

Although a 1500 dollars loan is a small loan that any consumer could normally apply for at their house bank and there would certainly be no difficulties with the payment if the applicant’s creditworthiness is given, loans are very often taken out on the Internet.

Why do consumers choose an online loan?

Why do consumers choose an online loan?

The answer to this question is obvious. The Internet offers consumers a lot more options than any good house bank can offer. Because there are comparison portals on the Internet that everyone can use free of charge to find the best provider for their loan.

What is important for a 1500 dollars loan?

What is important for a 1500 dollars loan?

It is important for the consumer to find a loan that means the least burden and has very favorable conditions. He can already benefit from the Internet by being able to determine the number of installments himself with his 1500 dollars loan. Because the number of installments is decisive for the monthly installment.

The longer the term of the installment loan, the lower the rate for the 1500 dollars loan. However, this has the disadvantage that this creates more costs. For this reason, you should try to calculate the number of installments in such a way that you can pay them effortlessly, but still attach importance to keeping the number of installments and thus the term as short as possible.

Who can apply for an installment loan online?

Who can apply for an installment loan online?

In most cases, reputable companies only pay out to consumers who have a fixed income and can prove this by means of a current income statement or the last three current salary strips.

This ensures that the borrower can meet the commitments they make when taking out a loan. Offers that are tempting with statements that say, for example, “We guarantee everyone gets a loan” are mostly dubious.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.

Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation and repayment options.

Overdraft facility credit: How to balance your expensive overdraft facility!

This is how you balance your expensive disposition Spend more money than is actually in the account: When major purchases are due, many consumers are tempted to use their overdraft facility. But the overdraft goes hand in hand with high interest rates. In many cases, debt rescheduling and redemption through a special loan for the overdraft facility are worthwhile. Who actually writes and advises here? About us On this page Where can I get credit for overdraft facility? Why does debt restructuring make sense? Requirements for overdraft facility What should you look for in the case of a loan for overdraft facility? Compare loans directly Use the free credit comparison below on this page and find the best conditions!

Where can I get a credit for the overdraft facility?

Where can I get a credit for the overdraft facility?

You should not apply for a credit for the overdraft facility at the bank where you have the overdrawn checking account. Even if your house bank classifies you as creditworthy, they usually have little interest in replacing the overdraft facility because they would then have to forego high interest income.

You can get installment loans on favorable terms from other branch banks or from direct banks. Since usually comparatively small sums have to be paid off, a so-called instant loan is suitable for overdraft facility. You can apply for this online and receive it immediately after checking your creditworthiness. The loan amounts for instant loans are up to 10,000 USD depending on the provider. Alternatively, private loans are also available, which are arranged via various online portals.

Before you decide on a credit for the overdraft facility, you should carefully compare the offers. The conditions for consumer loans differ significantly from bank to bank.

What is an overdraft facility?

What is an overdraft facility?

At the end of the month there is suddenly a major repair of the car, the dishwasher breaks or you might want to treat yourself to a vacation that exceeds your budget (see also credit for car repair and credit for vacation). In such and similar cases, many consumers find it tempting to use the overdraft facility.

Overdraft facilities or overdraft facilities stand for the overdraft facility. The term is derived from the Latin “disponere”, which means “to dispose”. With a overdraft facility, your bank provides you with a limited overdraft facility for your checking account. So within a pre-determined framework, you can spend more money than is actually in the account.

Almost all solvent consumers can avail themselves of an overdraft facility, and banks do not require special guarantees. The amount of the overdraft granted depends on the personal creditworthiness as well as on the amount and regularity of the incoming payments in the checking account. Banks may not charge any further processing fees for the overdraft facility. However, you can cancel the overdraft facility at any time if the financial situation of the account holder changes.

Why rescheduling the MRP makes sense

Why rescheduling the MRP makes sense

Overdraft facility is practical for bridging short-term payment bottlenecks. If the account is in the red for a long time, this can quickly become expensive. The flexibility of the overdraft facility allows banks to pay high interest rates. Banks calculate the target interest variably based on the current market interest. Depending on the financial institution, the borrowing rates for the overdraft facility range between seven and 15 percent. If the overdraft exceeds the overdraft limit, further overdraft interest accrues.

Due to the high interest rates, the monthly financial burdens from the overdraft facility increase rapidly. If you have exceeded your overdraft limit and cannot settle the arrears promptly, you should consider rescheduling. To trigger the overdraft facility, take out an installment loan. Because you get installment loans on much cheaper terms, you pay less interest and there is more money left each month.

You should take out the credit for the overdraft facility as early as possible. If your bank is already pushing to make up for the arrears, it can quickly lead to a negative Credit Bureau entry. Then it is difficult to get another installment loan.

… More about credit What are the requirements for overdraft facility compensation?

If you would like to offset your overdraft facility with another loan, you can basically use any installment loan. Consumer loans are not earmarked, so you can use them for what you want – even to balance your account. In order for the loan application to be approved, borrowers must meet the following requirements:

  • You are at least 18 years old.
  • Their main residence is in Germany.
  • You have had regular income for at least three months.

You must provide proof of your income, for example through the bank statements of the past months, pay slips or other proof of income. Lenders also obtain Credit Bureau information to find out about your solvency. If your account has been in the red for a long time, this has a negative impact on your credit rating. You will therefore probably not receive any credit for the overdraft facility from your house bank. If your credit rating has deteriorated significantly due to the overdraft facility, the bank may even cancel the overdraft facility and request immediate repayment.

What should you look for in a loan for the overdraft facility?

What should you look for in a loan for the overdraft facility?

You can recognize the actual cost of the loan by the APR. In contrast to the borrowing rate, the effective interest rate also includes other credit costs and fees. For many loan offers, the amount of the APR depends on the borrower’s credit rating.

You should choose the loan amount so that a small cushion remains after the overdraft facility has been paid off. In addition, create a household bill and determine the rate you can afford per month. You set the term of the loan accordingly. If you choose a shorter repayment period, you can save interest and the loan is generally cheaper. However, this increases the amount of monthly payments. With a longer loan term, you pay lower installments, but interest also accrues over a longer period.

It makes sense if the loan allows free special repayments for the overdraft facility. Once you have more money available, you can repay a larger sum in one fell swoop. This shortens the loan term and reduces the total interest accrued.

Loan without income: options and alternatives

 

 

 

 

Applicants face various hurdles when it comes to a loan with no income. If the bank declines, there are also two alternatives that are more suitable for most borrowers. In some cases, the employment office also helps. 

It is a loan with no income

It is a loan with no income

If you want to take out a loan from a bank, you have to provide numerous details and provide various types of evidence. Almost all information basically serves to answer only one question:

Will the applicant repay the loan in full and on time?

And here the income plays the biggest role.

Clearly, those who have a lot of money at their disposal each month have fewer problems repaying a loan than a person with little income – or none at all. Therefore, the lower the income, the lower the chances of getting funding. If you cannot prove an income, you basically have no chance of bank financing. The credit houses do not accept collateral such as a car or an apartment with a simple personal loan.

There are these options

There are these options

First, consider: If the bank refuses a loan request, there is a good reason for it. And you shouldn’t just ignore this reason! Act carefully! Money houses are completely emotionless in their decisions and rely solely on facts and figures. And if these speak against the approval of funding, the applicant should check whether it is not better to defer the loan until further notice – in your own interest! Those who are burdened with financing that can hardly be repaid with their own financial resources are at risk of falling into debt. If you choose a loan with no income, you can:

  • a loan “from private”
  • the addition of a second applicant

Credit “from private”

A “private” loan is a financing granted by another private person. The borrower does not borrow the money from a bank (which relies solely on facts and figures – see above), but from another person. If no income can be proven, it does not necessarily have to be an obstacle – although it will of course also be difficult to find a financier here.

You shouldn’t borrow money from friends and acquaintances. If there are problems with the repayment, the friendship is at risk. So there are foreign donors that can be found on the Internet through various portals. Both parties – financiers and borrowers – do not necessarily have to know or get to know each other. The portal handles the processing, in some cases also the credit check.

If there is a credit check on the part of the online portal, there is a high probability that credit will also come into play here. In this case, the approval of a loan is again very unlikely: the lender can decide whether to lend his money or not, but many lenders follow the recommendations of the credit bureaus. Also note: In such a case, loan interest is usually extremely high. After all, the lender wants to be “rewarded” for his risk.

Second applicant

With a second applicant, the chances of approval increase enormously – but only if the second applicant can prove income and only if the loan amount is not too high.

The background: In the case of two applicants, the income of both people is taken into account for funding. If the second person’s income is now sufficient to pay the monthly installments, it does not matter that the first person has no income.

Note: With two borrowers, both people have the same rights and obligations. This applies not only to the receipt of the money, but also to the repayment.

How to improve your credit score credit is the “bottleneck” for a bank loan. In order to improve the credit score (ie the value that credit determines for each borrower), there are a few things to consider.

  • Return unused credit cards
  • Avoid the overdraft facility
  • If possible, pay off current loans
  • Pay open bills at z. B. furniture stores, mail order companies etc.
  • Avoid further debt through loans or installment purchases

All these measures show credit that you are willing and able to make do with your financial means.

Loan without income from the employment office

Loan without income from the employment office

Anyone who receives benefits from the employment office can hope for a loan in emergency situations. This is the case when the basic needs of the service recipient are threatened, for example the living area.

For example, if the roof urgently needs to be repaired because rainwater is dripping into the living space, they may approve a loan. The same applies if the local energy supplier threatens to switch off the heating because open heating bills have not been paid. Those looking for a way out of unemployment into self-employment may also be able to hope for a loan.

Cash loan from Switzerland

The cash credit from Switzerland is becoming more and more popular because it offers advantages that are not available from German banks. It also enables people with a bad Credit Bureau to get a loan

In order to apply for a cash loan from Switzerland, the applicant does not have to personally go to the bank. Those interested in credit can visit various portals on the Internet and filter out a provider. There are numerous providers, but there are already some differences. The conditions of the individual providers vary widely. Interest rates in particular are very differently staggered.

 

Credit comparison should always be made first

credit loans

This is the only way to filter out a favorable offer. Once a provider has been found, a form can be filled out. As a rule, the future borrower must send his proof of salary. A copy of the ID card is also required. With this, the bank can check at a glance that the borrower is registered in Germany and, above all, is of legal age. As soon as the documents have been checked, the provider sends various offers of credit.

The borrower now only has the choice of deciding on an offer. Once the choice is made, a loan agreement is signed. As a rule, the loan amount is credited to the account within a few days.

 

What should borrowers look out for?

borrow money

Borrowers who choose a cash loan from Switzerland should first and foremost make sure that the provider is reputable. At first glance, this is not always apparent. However, there are numerous testimonials on the Internet that should be read. This way, black sheep can be filtered out and there will be no problems with the Swiss cash advance.

Interest rates are also an important issue. With larger sums in particular, care should be taken to ensure that interest rates are not too high. Although they are not comparable to those of German banks, money can still be saved here. Installment payments should not be overestimated. A longer runtime should be used instead.

If, for whatever reason, the installments are not repaid, a wage seizure will result. Then the borrower would find himself in a financial emergency that is avoidable. If you cannot pay your installment for a month, you should contact the bank as soon as possible. In the event of an emergency, these may grant a postponement

 

Negative Credit Bureau entries – no problem

loan comparison

Those who fear that they will not receive the cash credit from Switzerland through negative Credit Bureau entries do not have to worry. Switzerland does not work with Credit Bureau. The bank cannot take a look at Credit Bureau and does not know that, for example, loan agreements already exist.

This is exactly what makes the loan so attractive. Especially those who have a lot of entries in the Credit Bureau and have already been rejected by German banks often take out the cash credit from Switzerland. The loan taken out in Switzerland is also not entered in the Credit Bureau, so that later loans can be taken out from German banks without any problems. Only German banks work with Credit Bureau.

Foreign loan for Germans

When it comes to lending, many people think of German banks. Many forget that there is also a foreign loan for Germans. This can apply at any time and offers the loan applicant many advantages.

 

Advantages of a foreign loan for Germans

Advantages of a foreign loan for Germans

The foreign loan for Germans has many advantages. It also offers customers with poor creditworthiness the opportunity to obtain a loan. The loan taken out abroad is not recorded in the Credit Bureau. This is because foreign banks do not know Credit Bureau. As a result, they cannot work with them. Especially those who have too many entries in the Credit Bureau and therefore do not receive a loan in Germany can be successful here.

Another advantage is the exchange rate. The loan is taken out in dollars , but the customer receives the dollar. The exchange rate, if this is taken into account when applying, can ensure that the loan is cheap. Back will be paid later in dollars, so there will be no problems.

 

How does borrowing work?

Borrowing is not as complicated as many may think. Even if the loan comes from abroad, it does not have to be applied for abroad. Banks have come up with something for this. So that the foreign credit for Germans can be taken up, the German has to look for a credit broker on the Internet. These work together with several banks, so the range is wide.

As soon as a credit broker has been found, the necessary documents must be submitted. These include pay slips, a copy of your ID and a copy of your registration confirmation. The proof of salary is used to check that a regular income is available. This is important, because those who are in marginal employment or those who are only temporary will not receive the loan.

The ID is important because the applicant must be at least 18 years old abroad. The confirmation of registration serves to prove that you are resident in Germany.

After the documents have been checked, the customer must fill out a form in which his or her credit request is entered and the duration of the loan. As soon as this information has been sent to the credit broker, the broker will take care of the offers. The offers are easily sent by email. The customer only has to choose one of the offers.

If an offer has been signed and sent back, the credit will be transferred to the applicant’s account. With a foreign loan for Germans, it can take a week until the amount has been transferred. The repayment was already agreed in the contract. As with German banks, a monthly rate is agreed. This rate is booked from the account so that the loan is repaid in a few months.

 

What borrowers should look out for

First of all, it must be said that the loan amounts will not be as high as at German credit institutions. The amount is often a maximum of 3,000 to 3,500 dollars. Furthermore, care should be taken to contact a reputable credit broker.

The dubious can be found quickly. On the one hand, they often charge a fee that should be paid before the contract. Insurance also offers a further indication of black sheep. These insurance policies do not come from banks. If insurance is taken out in advance, it can be assumed that no credit will follow. The customer is only offered an expensive insurance that can hardly be canceled.