Archive March 23, 2019

The Best Consolidation Loan

Due to the multitude of loans and consolidation loans, it is often difficult for us to choose the best option. Banks that advertise their products give their benefits and get lost in everything as if in the fog. Some offer attractive nominal interest rates, while others offer a low commission. Is the best consolidation loan a cheap loan? Or maybe there are other factors that distinguish good consolidation.

A way to get the best consolidation option

A way to get the best consolidation option

Of course, it can not be unambiguously stated that a given commitment is the best consolidation loan. If that were the case, then most probably customers would conclude contracts with one institution from the banking sector that offers such a product. However, as I know well, every bank wants to earn money on the consumer, which is why he uses various tricks in his marketing that are interested in offering his credit or loan offer. What distinguishes a good consolidation loan:

    • reasonable rate of the Annual Real Interest Rate (APRC), because it is primarily the decision on the cost of the loan itself. The higher it is, the more expensive it will be to pay for its credit obligations. The cheapest consolidation loan has a relatively low real interest rate, that is RRSO. Unfortunately, to find out how much we really are, we are forced to focus our attention on what is printed in a small print on a given bank’s website. Banks promote low nominal interest rates, which are usually listed at the beginning in bold rather than APR. The table below compares the ratios of APRC with cash consolidation loans in the largest commercial banks in Poland
    • length of the loan period – usually the best consolidation loan has a sufficiently long repayment period, so that it would be competitive from the existing ones, which are the time to repay the consolidated liabilities. Because if it is extended accordingly, our monthly loan installment will be correspondingly lower. It is also worth noting that the longer the repayment period of the consolidation commitment, the lower the APRUS ratio.
    • maximum loan amount – although this is important information for us, this feature is not as important as the previous one, with the exception of mortgage consolidation loans. Some banks offer such solutions up to the amount of 90% of real estate, which means that they do not require a large own contribution, unlike those that offer a loan of 60-70% of collateral.
    • the possibility of applying for an online consolidation loan, which significantly shortens the whole procedure of applying for given financial liabilities. Thus, it helps us find the most convenient loan option

These characteristics only together will guarantee success when choosing a consolidation loan. Although the best consolidation loan rule is the cheapest loan, it is the most faithful reality.

Credit despite 2 loans

For some consumers, one loan is not enough and they take out a second loan. However, the danger here is that the borrowers will get bogged down because two installments have to be paid monthly. If a loan is requested now despite 2 credits, this usually does not lead to success. Loans are registered in the private credit and they are visible to each bank. Another loan commitment is not possible under these conditions, at least not in Germany.

Choose loans wisely

The fact that two loans are needed suggests a lack of financial planning. Moreover, everything indicates that the person concerned can not handle money. The banks will also see that when it comes to the question of another loan despite 2 loans. If the installments were always paid on time, there should be no negative entries in the private credit. Then there may be the possibility of a debt rescheduling loan. But that would mean that all loans are combined into one. Now only a bank has to be found that participates.

Anyone who wants to take out a loan despite debt repayment should use the comparison calculator on the Internet to find the best deals. The term debt rescheduling has plenty of offers from banks that offer such loans. The loan seeker must be clear from the outset that not equal to the first best bank will give a loan commitment. It could well be the case that a loan application must be made with several banks.

Credit from abroad

Right from the beginning it should be mentioned at this point that a loan from abroad is only possible up to an amount of around 5,000 euros. Foreign banks do not have access to private credit, and anyone applying for a loan here does not have to worry about being reported to the private credit. If the amount of 5.000, – Euro is sufficient, then the loan seeker must prove an appropriate salary, because normally these banks only lend up to 3.000, – Euro. With this sum, they only take a small risk. In addition, they secure themselves by a declaration of assignment. If the installments are not paid, then the bank gets the attachable part of the income.

The house bank

The house bank

If it is about a higher loan amount and is still a good credit, then it may be worthwhile to seek the interview with the adviser of the house bank. In most cases, the first loan was taken here. With a branch bank is also a rescheduling possible, because something else would be a loan despite 2 loans not. Under certain circumstances, an increase in an already existing loan would be considered. It then has to be expected with higher rates and higher interest rates, but this would eliminate the rate for the second loan.

Basically, you should not let it come so far, because this way can end in over-indebtedness. The inevitable result is that the installments can no longer be paid, which in turn can lead to a legal dunning procedure. Before you even think about a second loan, you should better turn to a debt counseling service.

Loan to foreclosures | Debt consolidation

The foreclosed loan is the ideal solution in case of negative reports. The loan to foreclosures meets the personal needs of employees and retirees who need liquidity, is a loan with direct deduction in paycheck or pension.

  • For state, public, private and retired employees.
  • Fixed installment for the entire duration of the sale.
  • Fixed rate for the whole duration.
  • Refund times from 24 to 120 months.
  • Without cost purpose.
  • Directly to your home.
  • Also in the presence of other loans or mortgages.
  • No feasibility problems for bad payers.
  • Even in the presence of protests and foreclosures.

It is possible to access the loan with foreclosures through the products: transfer of the fifth and payment delegation. The ideal loan to meet the personal needs of employees and pensioners who have foreclosures. No need to own a checking account. What you need is your paycheck or pension.It is also possible, with this type of financing, to extinguish the existing attachment, requesting a settlement balance, if desired or necessary to do so. With the sale the installment is deducted directly from the paycheck.


The secured loan, also known as a loan by assignment of the fifth, is a personal financing not finalized. It is disbursed with a fixed interest rate, repayment in constant installments up to 120 months.

The installment includes all ancillary costs, insurance costs for life and job risk, principal and interest. As a non-finalized loan, the amount received can be used for any reason without any expense justification or purpose requested by the provider.

In practice, the assignment of the fifth salary, is a form of loan suitable for obtaining liquidity for each type of purchase: car, restructuring, marriage, travel, welfare, health and other needs.

It is up to the employer to repay the installment amount monthly, retaining it from the employee’s paycheck, who used this form of loan to finance his purchases or for personal liquidity.

The employer himself assumes the responsibility of punctually and regularly making payroll deductions in favor of the lender. If the employer is a private company, he / she will undertake to limit the employee’s termination indemnity to the Beneficent Company until the end of the loan.

The amount of the installment of a loan by assignment of the fifth is calculated based on the net salary of the employee and can not exceed 1/5 (one fifth) of the same.

The loan by assignment of the fifth salary is aimed at all categories of workers, both state, public and private, as provided by the original regulations of 1950 (the 180/1950) and, following the latest laws on the matter, is become a right also for Government Agency, Social Institute, Healthpost and Entails pensioners.

The loan by assignment of the fifth can be voluntarily terminated in advance, with the payment of a penalty on the residual debt (the penalty is usually 1%). The residual debt is the portion of the loan (by way of capital, which does not include interest) that the debtor still has to pay to the creditor.

The sale is covered by law by specific insurance policies: life risk and employment risk.

The first protects the customer and therefore his heirs in case of premorence, the second in the eventuality of the loss of work for reasons not dependent on his will.

What Are the Benefits and Disadvantages of Family Loans?

Family Loans for family needs

Family Loans for family needs

Family loans can provide access to cash for family members who need help, but there may be some potential legal and emotional pitfalls. They are considering loaning family members should have clear loan agreements to set expectations for all parties involved and may want to do some research before transferring money. As a commercial lender, a family member wants to be sure a loan can be repaid and should limit the amount of money offered if a large loan would be a disadvantage. It can help to work with the accountant or lawyer to develop a contract.

The benefit of family loans is that they can provide people with financial assistance they would otherwise not be able to access. This could include money for an emergency or fund that would not be provided by a conventional lender. Alternatively, people could access Tertius Lydgate in other ways, but may prefer lower interest rates with a family member loan. Some may use borrowed funds to pay debts, make a payment to a house, buy a car, or participate in other activities.

A potential problem with family loans is emotional. Borrowing money can create a different power dynamically, especially if it involves an older family member borrowing from a younger one. The process of repaying the loan could be emotionally charged, especially if there is a problem requiring default or if a family member does not repay the money at all. Fragile family relationships don’t always survive a loan gone bad.

There are also legal and tax issues with family loans to be treated carefully. Tax authorities can consider a loan a gift in which case the recipient must pay tax. If it is explicitly a loan, there is a chance that the lender may be charged with “imputed interest.” Tax agencies assume all loans come with interest rates that are at least market rate. Even if a loan is interest-free, the government can decide that interest is paid, in which case the lender owes taxes on it because interest is a form of income.

People considering family loans should sit down with the borrower to discuss amounts and how it will be spent. They may also develop the terms of repayment, including interest, if the lender wishes to charge interest. This information can be used to establish a clear contract that documents the fact that the money is a loan, not a gift, the repayment is expected and both parties have obligations. One option to consider is to request an interest in asset protection that shares the title of a car until the loan is paid out.