Monthly Archive: March 2020

Who can redeem their credits?

It is a financial transaction offered to all those who have at least one credit and who have new projects for the future or to all those who wish to get out of the infernal spiral of credits.

Anyone can theoretically redeem their credits. Whether you are a couple with or without children, single, divorced or widowed, or even retired, you can have your loan loans consolidated.

Who can redeem their credits?

In terms of your accommodation, you are a tenant or a lodger, in an official or owner’s accommodation, your broker is there to find you the ideal operation to buy back your credits. You work in the public sector, in the private or independent sector in the liberal profession, you are between 21 years and 95 years young or senior, there is a solution of repurchase of credit adapted to your situation.
You can be the sole borrower or have a co-borrower to do a credit consolidation transaction.

  • Return to summary of definitions
  • What is the buy-back of credits?
  • How does a loan buyback work?
  • Why make a loan consolidation?
  • What credits can be redeemed?
  • What are the stages of a loan buy-back?

The loan redemption is offered in the following personal situations

The loan redemption is offered in the following personal situations

For the single person: family or marital status is not an obstacle to credit consolidation. Your personal single situation gives you access to a financial transaction in a single loan that will be better suited to your daily management. Your monthly payments and your repayment period will be adapted to your income.

For a couple without children: the loan repurchase allows you to group your loans and debts, made before or after your common life or your union by a marriage or a PACS. Managing your finances will be made easier by having only one loan to repay and above all having a reduced monthly payment.

For a couple with children: the arrival of a child is the most beautiful event, but also often a lot more expense and the race for credits if we have not financially anticipated the arrival of the baby. Nothing is too good for a child, so we will redo all the decorations of his room which was a storage room, we will buy him furniture, we will change the car because two doors are not practical to put a baby in a car seat.

Not to mention the cost of childcare as soon as the mother returns to work. We are going to finance all this with a lot of small consumer credits or with revolving credits and also personal loans and in a relatively short time and the spiral of credits begins.

The debt ratio has increased sharply the remainder of living has decreased significantly and you can no longer repay all your credits at the end of the month. Redeeming and consolidating your credits will be the relief operation before resorting to other loans that will be used to pay the credits.

For the retired or the senior: it is not because you are going to retire or that you are retired that you are not entitled to the repurchase of credits. On the contrary, your income will drop as soon as you retire, so you have to anticipate, you shouldn’t wait any longer. In calculating your future debt, we will start from the estimate of your future retirement, in order to adapt your new monthly payment to your future income.

As a loan consolidation broker, we will find the right solution for the senior based on your age. We can buy consumer credit without a mortgage guarantee until you are 85 years old. If we do a loan consolidation with a mortgage guarantee we can intervene until your 95th birthday. The duration of your reimbursement will be calculated according to your lifestyle. Loan insurance remains optional.

For the divorced, or widowed: daily financial management is even harder for the widowed borrower or the divorced person who finds himself brutally alone because he is not used to living on a single income. You very often have to go from two incomes to one income and therefore to halve your lifestyle at least in a very short time. But rest assured it is not because you are alone that we cannot do a credit consolidation.

We take into account your former family situation to explain your file. However, to calculate your debt ratio we will take your current income. The debt ratio before or the debt ratio after and the remainder of living is calculated in the same way as for making a mortgage or a personal loan.

The loan repurchase adapted, according to your type of housing

The loan repurchase adapted, according to your type of housing:

For the owner: a home loan repurchase is considered when the total amount of your repossessed home loans represents more than 60% of the total amount of the credit grouping. It is quite possible to include consumer loans, revolving loans or personal loans without however exceeding 40% of the total amount of loans taken over. The new loan will be secured by a mortgage or a surety which will be taken from the borrower’s property.

If the total amount of the real estate loans taken back is lower than 60% of the total amount of all the credits, we will finance a repurchase of a consumer loan, either with a mortgage guarantee or a surety or without a mortgage guarantee. The financial conditions are different in terms of the rate and the duration if it is a repurchase of mortgage or repurchase of consumer loans.

The rate is more interesting if it is a grouping of mortgage and the duration can go up to 35 years or 420 months. For a grouping of consumer credits without a mortgage guarantee, the duration of the loan will be limited to 15 years or 180 months. All new projects relating to the works, the car or a cash requirement are included in the total amount of funding.

For the tenant and the lodged: the consolidation of consumer loan allows the tenant to group his credits in a single loan and to reduce the monthly repayment. The borrower can include a new project such as financing a car.

For a person accommodated, we will retain in the calculation of debt after a fictitious rent up to 300 $ to 500 $ within the limit of 20% of income. The repurchase of consumer loans is limited to 12 years or 144 months. Insurance for this new buyout is highly recommended.

Lowering the mortgage installment – Housing loans

 

The mortgage is associated with a considerable burden on the household budget. The installments are determined based on, among others creditworthiness and financial capacity of the consumer. However, variable interest rates are also important. However, are there ways to reduce the mortgage installment to a level that satisfies the consumer? Let’s get to know them.

Mortgages are a popular monetary liability given by banks to buy real estate or housing. Their prices remain too high for many interested parties to finance the purchase from their current funds and even accumulated savings. Despite this, the situation on the real estate market in recent years looks great.

Mortgage costs – what affects them?

Mortgage costs - what affects them?

When applying for a mortgage, consumers should be well prepared for, for example, the verification process before willing to make such a commitment. The bank will thoroughly review many aspects related to the potential borrower. This will allow this institution to assess the extent to which the customer is financially reliable and to what parameters of the loan the bank will be willing to grant the liability.

During the verification process, the bank checks, among others entries in the Credit Information Bureau, assessing eg the history of past repayments of liabilities, information on possible debts or arrears. In addition, the bank will also ask the consumer to provide information on employment.

You will need to provide income, information on seniority, the employment contract agreement and how long it lasts (eg for an indefinite period, 3 months, etc.). What else? The bank will also ask you to provide your monthly expenses, information on marital status, dependents and current liabilities. For housing loans, information about the amount of own contribution that the consumer would be able to make would also be significant.

Mortgage costs – how are they shaped?

Mortgage costs - how are they shaped?

This installment is an important part of the mortgage. The consumer eventually obtains a one-off commitment, that is, as money to cover the purchase of an apartment. In turn, repayment takes place in parts, ie installments, regularly paid monthly, until the end of the loan (ie most often, years after it was obtained). The installments are determined based on the client’s financial condition as well as other factors. We are talking here about interest, commissions and other fees charged by the bank as part of the cost of the service, as well as compulsory mortgage insurance and finally – interest rate.

In the case of interest, it may fall into various forms of realization of this claim. The consumer may bear the cost of fixed interest, thereby paying the same monthly installments throughout the life of the loan. It can also fall on variable interest rates, ie 3m vibration or 6m vibration. What is it about?

The variable interest rate, in short, depends primarily on the interest rates set by the Monetary Policy Council. As mentioned above, they have now been at the same level for almost 4 years. However, it may turn out that due to the current economic situation (eg inflation, collapse of the loan market), the MPC will change interest rates. It will also negatively affect the cost of loans through higher interest rates. On the other hand, if the situation is favorable – as it is now – the cost of loans is relatively low. As a result, they allow the consumer to save on interest costs.

The bank’s margin is another factor that affects the interest rate on the loan. This sets the percentage from which the profit is derived (eg 2.4%).

Mortgage loan reduction – is it possible?

Mortgage loan reduction - is it possible?

A mortgage is a heavy burden on the consumer’s home budget. It should not come as a surprise that many borrowers are looking for different ways to keep the cost of this commitment and the associated burden as low as possible. However, are there any possible actions that will help reduce the mortgage installment?

In practice, there are methods that can allow this. However, you will need to look at them from an individual angle. Some methods can work only on specific mortgage terms, without finding application in other cases. However, let’s get to know the most popular ways to pay less for an installment loan and thus – relieve your monthly home budget.

What is an online payday loan?

A so-called online payday loan is nothing more than a commercial loan that was applied for via the Internet. The advantage here is the time saved, because in contrast to a branch loan, the consumer deliberately foregoes a comprehensive consultation in the branch of his house bank or a credit institution.

It is often wrongly assumed that an online payday loan does not require a credit check and the general credit rating check process. However, this is in no way the case and the examination process by a clerk takes place as usual.

How does an online payday loan work?

In principle it is very simple: You get a corresponding offer, fill out the forms directly online and send the required documents directly to the lending institution via the post-identification procedure. The post-identification procedure is required by law and must be used, but this usually does not incur any costs for the borrower.

Depending on the result of the check, the loan is then approved or not. An advantage of an online payday loan is that it often checks the creditworthiness much faster and checks the credit decision faster. However, when submitting the application, the consumer has to do without comprehensive advice from a professional and obtain most of the information himself.

What are the legal guarantees for an online payday loan?

What are the legal guarantees for an online loan?

An online payday loan in Germany is subject to the law on distance contracts. This means that the borrower has a legally guaranteed right of withdrawal and a number of information must be made available to him. Legislators in particular do not understand fun with online payday loans and if the lending institutions make mistakes here, a loan contract can quickly become invalid. Nevertheless, the consumer remains responsible and must inform himself accordingly about the content of the contract.

If he does not do this and the material is made available to him in good time, there is no chance of withdrawing from the contract due to incorrect information on the part of the provider. There is also no obligation on the part of the lender to conclude a loan agreement. On the contrary, you are obliged to examine each application individually and to approve or reject it according to the evidence provided about collateral and income.

It’s worth comparing online payday loans

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If you are looking for a suitable loan for debt restructuring or for an acquisition, you should definitely compare the existing offers based on certain criteria. Because there are often particularly cheap and worthwhile offers that do not come into view even with a more precise search. In addition, the comparison with the best conditions can really be selected and concluded.

This not only saves time and nerves, but also cash directly after the completion of the repayment. In addition, a comparison can be used to check whether the provider is really trustworthy and does exactly what it promised in advertising. So comparing is always worthwhile and should always be done in detail for each loan.

What is loan restructuring? Mortgage Refinancing

Our financial obligations – loans, payday loans, payday loans, credit cards and account limits – can at some point become difficult to pay off regularly. Then we can come across the procedure called loan restructuring. It sounds mysterious? Well, if you’re wondering what credit restructuring is, you definitely need to read our article. We invite you to read!

Credit restructuring. What is this process and what can I gain from it?

Credit restructuring. What is this process and what can I gain from it?

Life brings us unforeseen situations, and dealing with them can have a serious impact on our home budget and harm our liquidity. Let’s remember that every unpaid installment means that more money is left in the household budget, but unfortunately it is only apparent peace. In the next month, we already have two installments to pay, plus interest for the delay. Costs rise instead of falling, and repayment is getting harder. However, to avoid such problems and still be able to fulfill our obligations, we can reach for different solutions. One of them is loan restructuring. To adjust the repayment terms of the loans we take, we can choose from several solutions. What is loan restructuring and what forms does it take?

Credit holidays – in practice, the most commonly used procedure, which de facto means restructuring the loan. A bank or financial institution allows us for a short period – usually one to three months – in which we do not have to pay back installments, but interest on our debt is still accrued. Both the possibility and the final time of such credit holidays depend on many factors, among which the most important are the assessment of our financial standing, creditworthiness and a report in credit checker. What is the difference between credit holidays that we arrange ourselves without paying installments from those the bank agrees to? First of all, no debt collection process. If the bank knows about our intentions, it has agreed to it and relevant documents have been prepared for this – no penalty interest will be charged to us and we will not receive calls from the debt collection department. That is why it is worth agreeing with the bank and not acting on your own. All the more so because usually after three unpaid installments the loan agreement is terminated and the whole amount borrowed must be returned immediately – this is by far the worst solution possible.

Extending the repayment period 

also a frequently used option, consisting in extending the time to pay off our liability. The longer the period, the lower the installment, and therefore easier to bear. Restructuring of a mortgage in this form is often not accepted by customers, because in this case there is higher interest for a longer time of financing. However, you should ask yourself: do we prefer to pay lower monthly installments and take a breather, even if the cost of the loan is higher in the end, or do you desperately look for funds to repay the next installment every month?

Consolidation of loans – if we have more than one liability, and repayment is more difficult for us, it is worth considering consolidation. The bank or loan company in which we apply for it repays our loans and divides the resulting sum into as many months as possible. The loan is restructured mainly due to the extension of the repayment period – the longer, the lower the single installment, which of course allows for easier payment.

Conversion of the loan – a risky option, but it can bring the desired results: by changing the currency of the loan to the one in which the interest rate is currently low, we gain paying less interest. Unfortunately, exchange rates are subject to large fluctuations, hence the whole operation may fail. The option exists, but it has been rarely used on the financial market for a long time. The situation with franc mortgage loans echoed so much that banks and other financial institutions do not undertake to grant foreign currency loans. Therefore, credit restructuring in this form has been suspended for some time.

Mortgage restructuring

Mortgage restructuring

Restructuring your mortgage, also known as refinancing your mortgage, is a separate issue. Usually, when we take out a loan to buy an apartment or build a house, we negotiate the best offer with the bank. The terms of our commitment – interest, margin, commission, amount of own contribution and other fees – depend on our creditworthiness and credit risk assessment.

Mortgage restructuring is a long process, but remember that it brings benefits for many years to come.

Mortgage restructuring is a long process, but remember that it brings benefits for many years to come.

Therefore, it is also worth paying attention to the details that we can negotiate under the new contract, e.g. no commission for any earlier repayment, or free annexes to the contract, which may even involve changing the installment payment date. We repay the mortgage for so long that we should protect ourselves as much as possible against changes that may take place in our lives. Restructuring your mortgage is a good opportunity.