Month: January 2020

“Optimize contracts” series: How to dispose of expensive loans

Very few pay attention to an optimal interest rate, especially with smaller loans. Maybe you know that. And with larger loans, for example for a new car, sellers often want to show off at low rates – but the big end comes at the end. Because a last high installment is often due for car loans; in total, such loans are usually too expensive. No wonder that one in four has “rescheduled”. Debt rescheduling means that you pay back your old, expensive loan early and take out a new, cheaper loan. How to quickly save hundreds of dollars in interest:

 

1. Obtain and correct credit record data

1. Obtain and correct credit record data

Before you look for a new loan, get free credit record information – this can now be done online (hidden at the bottom left under “Data copy”). credit record documents your creditworthiness. If the company has stored incorrect entries about you, you should definitely have them corrected. This may improve the interest rate that the banks offer you.

 

2. Find cheap credit

cheap credit

It is best to compare the loan offers on at least two credit portals: we recommend Fine Bank and Agree Bank

If you have found a cheap loan, be sure to fill out the online application very carefully. For example, if you forget to provide an existing loan, the bank could reject your application.

In any case, indicate that you want to reschedule. Otherwise, the bank assumes that you simply want to take out a new loan. If you grant the bank a power of attorney, they will take care of the processing of your old loan directly.

The bank with which you previously had the loan can request a small amount of compensation for early repayment: If the remaining term is more than 12 months, the bank may invoice 1 percent of the remaining debt (including 0.5 percent). For example, 100 dollars with a loan of 10,000 dollars.

 

3. Omit residual debt insurance

debt insurance

Important: Do not re-conclude “credit protection”! This is the residual debt insurance, which is unnecessary and expensive. If you get rid of such insurance along with your old loan, so much the better.

Insurance becomes void once you redeem your old loan. You get your money back for the unused time. Write a short letter to the insurance company asking them to transfer the outstanding premiums to your account. As a precaution, you should mention that you are terminating the contract.

If the insurance company refuses, you can contact the insurance ombudsman. It fights for free with the company for you.

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Loan between individuals: credit without a bank.

Borrowing money is much older than the world. Even before the banks were created, the ancient peoples could take out a loan from the village loan shark. For many reasons, credit between individuals is again in great demand. Whether it is to avoid paying bank charges or to get your loan quickly, this solution allows you to benefit from a number of advantages.

Loans between individuals

Loans between individuals

As you may have guessed, it’s about borrowing money from someone. Either way, it’s not that simple. You will not like the lender to take advantage of your need for funding to claim exorbitant interest from you. In addition, no one wants to lend money to a stranger.

Well, for both parties to benefit from a minimum financial guarantee, a formal contract must be signed. For the borrower and the lender to have a minimum of security, it will be necessary to resolve to declare this loan.

In this area, there are also a lot of scams. By doing some research on the internet, you will be able to find many offers of the loan type between private individual without documentary evidence, special loan zero rate or even urgent private loan.

Some of these formulas (see all) hide scams. Indeed, in the best of cases, the interest rate applied is around 30% but most of the time, the so-called “private lender” who will be called “the big asshole”, will ask you to pay him file fees before getting the money, money you will not see a scam.

Note that by law, even if the individual lender can freely set the rate of credit, he should not abuse the weakness of the borrower, which is why it often happens that loans without banks sometimes end in courts which may require that the rate be reduced to 2.75%.

This is why few people want to lend their money. The risks as a lender but also as a borrower are high.

Why bankless credit?

Why bankless credit?

Usually, one opts for a loan between particular when one does not meet the conditions to contract a loan within a bank. An unemployed person, a person subject to a banking ban or someone who is on file with the National Bank has no other choice than to take out a loan between private individuals.

As we have mentioned many times before, banks assess the financial health of applicants before granting them a loan. When you have no fixed income, when you have already had some repayment problems or when you are over-indebted, financial institutions will refuse all requests.

In this context, what to do when it is absolutely necessary to borrow money. Be careful, rare are the cases where you are in shit and where you also really need a loan.

Well, you have to try to borrow money from an individual. Generally, funds are released very quickly. The lender if it is a relative will not question you “too much” about your finances. He will not ask you to show pay slips or anything. You only need to provide identification. On the other hand, make sure that you can reimburse him, if you don’t want to lose a friend and / or end up in court.

This kind of transaction is based on trust. But, of course, everything will have to be written down to avoid unpleasant surprises. The borrower will have to sign an acknowledgment of debt. This document will allow the creditor to sue you if you do not honor your commitments. In all cases, the funds will be released quickly. This will generally be done at the time of signing the contract.

Seniors also often use a loan between individuals. Seniors may have difficulty obtaining credit from banks. Due to their advanced age (yes, they risk dying at any time according to the banks), the repayment of the loan is not guaranteed.

To take out a loan, they must either find someone to vouch for them or take out credit insurance. In order to avoid all these inconveniences, it is preferable to opt for a credit without a bank, especially when you are over 81 years old (life expectancy in Belgium).

Types of credit between individuals

Types of credit between individuals

Usually, when we talk about loans between individuals, we are referring to over-the-counter credit. This is especially the case when you borrow money from a loved one or a family member. In any case, both parties must come to an agreement under no compulsion, otherwise it would be extortion.

Either way, this kind of contract allows the borrower to enjoy more freedom. There are no specific reimbursement procedures. As mentioned above, it depends on the trust that reigns between the two contracting partners. Thus, it is possible to opt for a quarterly or even annual reimbursement.

How to find a professional private lender then?

How to find a professional private lender then?

For a few years, platforms which offer a loan simulation between individuals abound on the internet. The over-the-counter market has developed a lot. So, one can take out this kind of loan with ease. However, there are also many scams. If after filling out a form, the site asks you to pay “application fees”, drop it.

Reliable platforms, do they exist?

Lately, peer to peer lending platforms have been the most reliable. Although this should be a decentralized system, administrators intervene to link private investors and people who need financing. Either way, you can opt for this solution to get a loan from individual to individual.

In this sector, Mozzenno enjoys a very good reputation. To borrow money, you go to the site, you click on “borrow” or “Realize your project” then you will have to do a credit simulation (as usual). Afterwards, you have to fill out a form to request your equity loan, then you will have to finalize the agreement in the coming days. The applied rate is around 5.4%, but you get a small discount if you pay your monthly payments correctly.

Younited also seems to be a reliable platform. However, it is an old bank. Therefore, the people registered are not able to register. In any case, the internet offers you countless possibilities, but you will just have to remain vigilant so as not to be the victim of a scam.

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Cash loans in 2020

After a rather difficult year for borrowers, in 2020 the banks decided to loosen their lending policy and accept more applications. The result of this was the increase in the number of loan applications.

According to a study by the Credit Information Bureau, in 2020 banks and SOK granted over 6.5 million cash loans for the amount of over USD 70 billion. This gives an average loan value of USD 10,800, but most of us come to the bank for smaller amounts, as much as 60% of Poles borrowed below USD 5,000.

Why did the banks ease their policy?

Why did the banks ease their policy?

Banks’ greater willingness to grant cash loans is justified by the increasingly better repayment of these liabilities. In 2012, as many as 12% of loans were recognized by banks as lost claims, i.e. those whose recovery chance is negligible, which obliged banks to enter these amounts as a bank loss.

In 2020, this was the case for less than 5% of loans. Such a significant increase in the number of good loans results from the improvement of the economic situation in Poland and in the world. Lower unemployment and higher earnings result in larger funds that we can spend on paying off our obligations.

Banks advertise loans

Banks advertise loans

Such significant increases are also caused by the ubiquitous advertising of banks, praising their loans. Some of them bet on the lowest installment offer, just like Honest Bank, the lowest interest rate, like the General Bank, or the lack of interest rate from a Polish bank. Other banks have chosen Polish and world-class stars.

WBK was the leader in employing foreign stars.

Forecasts for 2014

business loan

The year 2014 will be more difficult for banks, because, after the very fertile two previous years, the market is quite saturated, in addition, non-bank loan companies are pushing up quite strongly. This forces banks to continue their competitive offer, which of course makes us very happy.

We present the offer honestly and help in choosing the best solutions. We encourage you to visit the cash loans tab, where you can find a current updated ranking of cash loans. Creating it, we suggest not bank promotions and tricks, but a real installment, which we will have to pay after receiving the loan.

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Small Loans for Self-Employed

Self-employed like to work in a team

Self-employed like to work in a team

Lending to the self-employed is becoming increasingly difficult, and this is also due to their income: the self-employed like to work in a team; ideally you should have some initial practical experience on the capital market or in similar areas. For the total expenditure (from 2014) of reunification including social benefits, the estimates range from 1.3 to 2.0 billion USD, which increase annually by around 100 billion USD.

This includes pension payments, unemployment benefits and expenses for government officials and workers in the new years.

According to the IWH, the net transfer costs from 1990 to 2003 amounted to around 950 billion in Germany. 6] Since 2003, USD 75 billion can be expected per year. However, it should be borne in mind that such transfers are also widespread for structurally weak regions in the old federal states.

When the Saltenrts was founded in 1990, it was assumed that the proceeds from the sale of the companies would exceed their acquisition costs. The opening balance on June 1, 1990 of 1992 predicts a loss of USD 210 billion. 19 With a volume of USD 25.5 billion at the end of 1990. 13] In 1992 the monetary equalization fund was incorporated so that the debt rose to USD 91.7 billion.

The unification fund, founded in 1990, is intended to promote investment projects in the infrastructure of eastern Germany. Originally, USD 115 billion were planned, by 1994 the total volume had been increased to USD 162 billion. It was financed by the state (USD 50 billion), the federal states (USD 16 billion) and by outside capital (USD 95 billion).

The federal states contributed a portion of the sales tax (“USD 2.5 billion per year”). 13] Yesterday, the fund was liquidated and the remaining debt of USD 38.3 billion (USD 75 billion) was transferred to the total federal debt in the state budget.

The expenses for the association are financed below: In addition to the association, the financial contributions for the Gulf War were also cited as reasons for the decision. A large part of the expenditures for the unification of Germany was financed through increased primary debt. The budget deficits rose from USD 28 billion in 1989 to USD 120 billion in 1990 and USD 154 billion in 1993. The funds were raised mainly in the secondary budgets.

Reunification made zone border funding

Reunification made zone border funding

The total debt increased in 1990 from 1.2 to 1.8 billion marks in 1993 and 2 billion marks in 1995. [25] [13] A part of the external funds from the special fund (especially the external funds of the trust) was transferred to the remission relief fund in 1995. You participated directly in the Solidarity Pact. Between 1991 and 1993, the EU provided USD 2 billion each for the new federal states. In addition, the new federal states have also qualified for the usual EU funding programs. Reunification made zone border funding, Berlin funding (including the Berlin bonus) and welcome money (1988: USD 280 million, 1989: USD 2-4 billion) unnecessary in the new federal states.

These included the free purchase of political prisoners (USD 3 billion until 1989), a transitional flat rate (USD 524 million for 1989) and interest-free loans for German-German businesses.

This reduced investments in the troops in the western part of NATO, which were spent on national security, border guards and the NVA. The expenditure amounts to around USD 0.95 to 2.00 billion. 30] The estimates for the individual years are shown in the following overview: In fact, the investment and construction costs amount to around 300 billion E. The investment and construction costs amount to around 300 billion E. Instructions for the German-speaking Union, 1949-1989 -1999. Campus Verlag, 1999 (online). Gerhart A. Ritter: The cost factor of USDpean investment. CH Beck, Bremerhaven, Germany, German science services of the Bundestag: promoting the promotion of German unity. the German Research Foundation.

 

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