Since we are talking about debt restructuring

Today’s news, largely dominated by Greece, gives us the opportunity to re-examine debt restructuring. For Prime Minister Alexis Tsiparas, this operation consists in finding a buyer who would be kind enough to accept his conditions. This weekend he almost almost slammed the door on the IMF, to which he must repay 1.6 billion USD in a week. The approach may be questionable, and is certainly not recommended for an individual wishing to lower their monthly payments. Because whether one is a State or a household of consumers, to renegotiate its reimbursements it is advisable to show white cred.

The mortgage guarantee

The mortgage guarantee

Debt restructuring is of interest to specialized credit companies, when it includes the acquisition of at least 1 mortgage, and several consumer loans. Because the contribution of the mortgage of a real estate serves as a guarantee to which the lender can turn, in case of default of repayment of the borrower.

However it is important to remember that this outcome is absolutely not the objective of a credit company, hence the importance of the professional stability of applicants. In the case of Greece, the IMF demanded a reduction in retirement pensions and the salaries of civil servants, a guarantee that the government flatly refuses.

Previous plans had included the sale of utility companies in order to bring fresh money into the coffers of the Greek state.

In practice, individuals will be asked to make only one loan, grouping their current consumer and property debts. If he prefers not to renegotiate his home loan but rediscuss only his consumer loans, it will be more difficult for him to find a buyer.

Professional stability

Professional stability

We don’t only lend to the wealthy, we lend to those who are in a position to repay. This is precisely what is lacking in Greece today, as well as in all individuals who do not have a permanent employment contract.

There are banks which accept to grant mortgages and repurchases of credit to households of which one works in CDD, or in interim. However in the best of cases it is necessary to show 18 months of uninterrupted professional activity, even 24 months. It is also essential that one of the 2 co-borrowers has a “stable” job, that is to say with a permanent contract or as a permanent official.

China and Japan confidently lend money to the United States because the country has huge natural reserves. Institutional investors buy French treasury bonds, because the homeland of Molière has the ability to levy taxes quickly, and in droves. Clearly, the USA and France are good borrowers, because they have the production tools necessary to repay. Not only does Greece not have one, it is a bad payer.

Bank accounts always in the green

Bank accounts always in the green

A household working under CDI for long years in the same company, could find it difficult to restructure its debts, even with a solid mortgage guarantee if their bank accounts are often in the red. The banks appreciate these households which save part of their wages wisely at the end of each month. Credit companies are less attractive, but more expensive.

Once a country is used to restructuring plans, it is forced to borrow more on the markets, because no one wants to lend it.

If within a week Greece cannot borrow from the European Union to reimburse the IMF, or if the Hellenic government does not arrive with a proposal sufficient to convince European finance ministers to convince Christine Lagarde, the Greek State will be in default of payment. It will therefore no longer be able to benefit from the aid of the international monetary fund, and its funding resources will further shrink.

Mortgage margin versus debt study

Mortgage margin versus debt study

The job of the loan repurchase broker is to determine the mortgage margin, that is, the difference between the market value of the home, and the mortgage on the mortgage.

For example, a house estimated at $ 250,000, on which there is still $ 100,000 to be reimbursed, has a value of $ 150,000 in the eyes of a financier. Thereupon, in the best of cases, he will agree to restructure debts up to 80% of this amount, or $ 120,000.

Calculate the costs of the operation

Calculate the costs of the operation

There are fees associated with a credit buy-back. First of all, prepayment penalties are almost inevitable, because we will often get the best rate from the competition. In this configuration, a bank or a credit company buys all debts subscribed with a competitor, the latter then applies compensation, as it is entitled to.

These penalties are limited to 3% of the remaining capital, or the sum of the next 6 months of interest, whichever is less. We must also count on administrative fees, both on the broker’s side and on the lender’s side. However, when a file is well done, these costs are added to the debt, borrowers can thus reduce their monthly payments, without having to use personal capital.

Determine the duration of reimbursements

Determine the duration of reimbursements

When circumstances allow, a household may lower its monthly payments, while retaining the same repayment tenure. It will thus pay less interest over time, and gain purchasing power.

However, some households do not have the opportunity to do so, for having accumulated consumer credits, which ultimately weighs heavily on their budget. In this case, the length of the repayments is extended, until sufficiently low monthly payments are obtained. This household will pay more interest over time, but will gain purchasing power.

According to the initial nominal rates, for both home loans and consumer loans, it is possible to lower your monthly payments by more than $ 1,000. The Greek taxpayer has no choice, he is forced to accept long repayment periods, in order to give air to his country’s budget. The problem is, however, much more delicate: for the simple truth is that the Greek State cannot pay its installments.

What options you have with a loan during parental leave

When a child is born, everyone involved is usually extremely happy. Because giving life to a little creature is still the greatest miracle there is. Many parents therefore want to offer the new earthly citizen a successful start in life and prepare everything very carefully. Everywhere is bought and purchased so that the child is not missing anything.

But all these purchases don’t just cost a lot of time and nerves. They are not possible without the appropriate financial feedback. Many young families therefore have to take out a loan in order to be able to make all purchases. However, this is not that easy if it is a parental leave loan. Because, as everyone knows, this is accompanied by a parental allowance that relates to the parent who is on parental leave. And since parental allowance is a social benefit and not an income in the strict sense, it is only of limited use as collateral for a loan.

We would therefore like to show you once what options you have with a loan during parental leave, where and how you can implement it and which requirements you should absolutely fulfill.

What are the options for a parental leave loan?

What are the options for a parental leave loan?

Parental leave is a nice time. You have enough time for your offspring without having to worry too much about financial matters, since the parental allowance paid is to ensure that no serious financial cuts have to be planned. Despite all of this, the parental allowance is lower than the income earned in advance. It is also a social benefit, which limits the amount of credit you can take out.

If you want to take the loan on parental leave alone, then only the consumer loan or your overdraft facility would be suitable. While the overdraft facility is connected to your checking account and is practically always available as a demand credit, you have to apply for the consumer credit in a regular manner. It is offered by many retailers and enables you to finance your purchases. For example, if you want to buy a stroller or a car seat for your baby, you can do so with the help of a consumer loan. Even if you are on parental leave and receiving parental allowance.

With consumer credit, it is not the income that counts, but only the income that you generate each month. It is therefore not a bad thing that parental allowance is a social benefit, since it is considered a security for consumer credit. You only have to make sure that you have a positive Credit Bureau and can take out a consumer loan in a relaxed manner under the conditions mentioned.

On the other hand, if you are looking for a traditional installment loan, because you want to have the money at your disposal, it becomes a little more complicated. In such a case, you cannot simply take out a loan on parental leave alone. Here it is the income that counts and not the income. And you are unlikely to earn any income while on parental leave.

Therefore, look for a loan partner who either takes the loan for you on parental leave or with whom you can realize the loan together. Maybe your life partner or spouse can take out the loan. Or ask your parents for support. As long as they are not yet retired and have a good income, they are ideal as a credit partner.

Despite the support, however, always make sure that you do not overestimate the loan amount. You can never predict exactly when and to what extent you can go back to work. Too many factors intervene in this decision, so that there is hardly a reliable forecast for the future. However, be modest in your loan requests, as the repayment of the loan is possible even if you will not go back to work straight away.

Make sure you have a good credit rating

Make sure you have a good credit rating

If you take out the loan during parental leave, you should always make sure that you have a positive Credit Bureau. Also make sure that your credit partner has a good income. You will only find worthwhile loan offers if the creditworthiness is good. Otherwise, the loan will become unnecessarily expensive and may not be worth it.

Do not get involved with dubious credit intermediaries or offers that promise you a loan even in “difficult cases”. If a traditional bank cannot grant you a loan, you can assume that you will not find it elsewhere. In such a case, it is better to ensure that your conditions improve than that you accept offers that are not serious and that only pull the money out of your pocket.

Credit despite overdraft | Take out a loan

 

Overdrawing your own account – for most consumers, this has long been part of everyday life. If the overdraft facility grants this, it enables you to live above your own circumstances without having to take out a loan. If the overdraft can also be quickly compensated for, the topic is quickly forgotten and only the increased interest that had to be paid for the overdraft is a reminder.

However, it looks a little different if the account is overdrawn over a long period of time. If you can no longer manage to get out of the red numbers on your own to keep the current account in credit. Then it can make sense to think about a loan despite an overdraft. Because this not only takes the load off the checking account. He also ensures that the expensive, interest, which must be paid when using the dispos, does not put an additional burden on the household budget.

The creditworthiness decides

The creditworthiness decides

Whether a loan is possible despite an overdraft depends on the creditworthiness of the borrower. Overdrafting the account does not automatically mean that the credit rating is not good. In the first step, she always says that the account holder is currently handling their finances somewhat lightly and is indulging in more than the budget actually allows. Whether the overdraft will eventually lead to debts that can no longer be controlled and therefore have a negative impact on the Credit Bureau is a completely different issue.

However, if you only have the account in the red by then, can prove a good job with a decent income and meet all payment obligations, you will also have a positive reputation and have no concerns that the bank could refuse a loan despite overdrafting. We recommend using a simple installment loan that is not tied to a purpose and whose loan amount can be customized to balance the account. The interest on an installment loan is significantly lower than the interest that banks and savings banks charge for using the overdraft facility. With rescheduling and using a loan despite overdrafting, a lot of money can be saved. In addition, this loan brings some financial relief, since the account is more usable through the settlement and can be much better reacted to unforeseen expenses.

If the debt is already causing problems

If the debt is already causing problems

However, if the overdraft has already had a negative impact on the Credit Bureau, this negative entry will make it somewhat more difficult to take out a loan despite overdrafting. Even if this is not impossible despite all of this.

In such a case, only a little preparation needs to go into borrowing to make the right decisions and take advantage of the best possible loan offer.

In principle, with a negative Credit Bureau two ways lead to the desired loan despite overdraft. On the one hand, this can be applied for with the help of a guarantor or a second co-applicant. Again, the traditional and inexpensive installment loan would be recommended, which with its low interest rates and perfect adaptability guarantees all the conditions for easy repayment. However, if a second person is not at hand, a private loan or a loan from abroad must be considered. Both options are possible and do not require Credit Bureau to query them. However, the interest rates for both variants are not quite as low as for a classic installment loan. It is also important that a wide variety of offers are compared with one another in order to keep costs and fees as low as possible.

By the way: We recommend that you do not take out the loan with the bank that maintains the account that you want to balance, despite having an overdraft. It could be that the bank overdrafts your credit rating less than it may be. As a result, borrowing is difficult and you have to pay more interest than if you had a positive credit rating.

Alternative to the overdraft facility or installment credit: The call credit

For unpredictable expenses, which usually still happen at the end of the month when the account is already cleared, many consumers use the expensive overdraft facility (often with double-digit interest rates). An installment loan is also possible for larger sums and investments.

A good alternative for this, which most customers are not aware of, is the so-called on-demand loan or credit line. It is a niche product that is not often offered – partly because the banks earn less from it.

With the call loan, the customer gets the best of two worlds: the flexibility of the overdraft facility and the low interest rate on an installment loan.

The procedure looks like this:

First, a credit account must be opened at a bank. Money can then be called up from this account up to a maximum amount (usually between 10,000 and 50,000 USD). Some banks offer the call credit from as little as one USD. Partial sums or the entire amount can be used at once.

The credit line is of course based on the creditworthiness and monthly income. Some credit institutions also offer on-demand loans to freelancers, traders and the self-employed.

The repayment is then made in small monthly installments or through irregular repayments. The entire amount can also be repaid in one go without having to accept prepayment penalties as with the installment loan.

Another advantage of the call credit is the comparatively low interest rate, which in the best case is around 6 percent at the installment loan level. The interest rate is variable and can change monthly.

Comparison of call credits

Comparison of call credits

As with all other loans, a detailed comparison of the offers should be made before taking up. In addition to the maximum loan amount and, of course, the amount of interest, the call credits can also differ in terms of repayment. You should also make sure that interest only accrues on the amount actually used and not on the maximum amount. Some banks also accept that repayment can be paused or started later.

This form of credit is offered by a number of branch banks, but also by direct banks. The savings banks, for example, require a current account in their own house – this is not the case with most direct and private banks.

The annual percentage rate should be used as a comparison value between the offers and any installment loans.

When comparing, you should also note any processing fees or disposal fees. These can eat up the interest advantages again. Therefore, calculate the costs of the providers against each other for your concrete expected situation before you decide on the best call credit for yourself.

Attention

Attention

The call credit is – as tempting as it sounds – of course not free money, but must be repaid sooner or later. The corresponding consumer discipline is also required here. Since the call credit is in a separate account, it is not – or only to a small extent – automatically repaid. For interest-rate repayments, the borrower must actively approach the bank and make special repayments. Even if interest rates are raised, it is up to the consumer to adjust the monthly repayment if necessary. However, this should be as high as possible so that you can repay the borrowed money quickly, keep interest rates low and the loan does not accustom you to a higher standard of living.

Loan despite credit bureau through guarantor

If there are negative characteristics in the Credit Bureau, such as references to open invoices or loans or insurance that were not or are not served on time, this fact is popularly referred to as negative Credit Bureau. The financial expert, on the other hand, describes this as poor creditworthiness or poor score value. As a result, it can be assumed that a borrower with a negative Credit Bureau has little chance of getting a loan. Because no German bank grants a loan under such conditions because the default risk is far too high.

In such a case, you can usually only find offers that do not sound serious and promise a loan in all situations. Anyone who is in need of money is in need of such offers and is surprised if there is either no credit at all or only a credit that offers very bad conditions.

It is relatively easy to take out a serious and cheap loan even with a negative Credit Bureau. Namely whenever a loan is sought through guarantors despite Credit Bureau.

This is how the guarantor affects borrowing

This is how the guarantor affects borrowing

If you have problems with Credit Bureau and therefore are looking for a loan despite Credit Bureau through guarantors, you will find out relatively quickly that a good solvent guarantor can do a lot for you. If the guarantor brings an impeccable Credit Bureau with him and on top of that he has a fixed and relatively high income, he flows into the borrowing just like you. The bank also calculates the guarantor’s creditworthiness and adds it to your creditworthiness. If this results in a value that speaks in favor of a loan, you can take out a loan with Credit Bureau through guarantors without major restrictions. And this even on excellent terms.

What does a guarantee look like?

What does a guarantee look like?

If you find someone to guarantee you a loan, you can count yourself lucky. Because the guarantor has a great responsibility, which can be particularly “painful” if you, as a borrower, no longer meet the installment payments. Then the bank turns to the guarantor and asks him the outstanding loan amount. Either as a total amount, since the loan contract has already been canceled due to the lack of payment, or as a monthly payment in installments, which the guarantor really has to stick to. If he is unable to service the bank, he becomes a debtor like the borrower and can expect to be enforced. Since the guarantor is liable with all of his private wealth and income, this execution can lead to his own existence being threatened.

Therefore, think very carefully in advance whether you can afford a loan from a guarantor despite Credit Bureau and who you can trust with the difficult task of guaranteeing. Always keep in mind that in the event of payment defaults, you not only get your guarantor in trouble.

What are the advantages of the guarantee?

What are the advantages of the guarantee?

If you can afford a loan from a guarantor despite Credit Bureau and have found a good guarantor, the bank will definitely grant you a small loan. You will probably not be able to take out large amounts of credit or special loans such as a real estate loan with a guarantor. Because your own negative Credit Bureau is still in the room, which causes the bank to only offer loans with small loan amounts and short terms.

Always adapt your wishes and ideas to your overall situation and you will find good loan offers. Always base your monthly payments on your income and make sure that there is enough capital available for repayment.

By the way: If the guarantor is not sufficient for borrowing, you can try to turn the guarantor into a second borrower. The tasks and responsibilities that the second borrower has adapt to the tasks and responsibilities of the guarantor. However, two borrowers are then in the contract, which makes the banks even mild.

Credit consolidation – what to look for?

Loan consolidation is a popular way to get out of the financial hole. The purpose of loan consolidation is to reduce your monthly financial liabilities and spread them over time.

Unfortunately, by acting hastily and deciding without a thorough cost analysis, combining loans, borrowings, and installments into one debt can harm us. What to look for when consolidating a loan?

Credit consolidation – details matter

Credit consolidation - details matter

Credit consolidation is a kind of lifebuoy for people who are unable to meet their monthly commitments to financial institutions. When signing a consolidation agreement with the bank, calculate not only the monthly cost of the loan but above all its total cost.

It is often found that the commission and interest rate are the source of very high fees. Importantly, it is worth considering insurance options, early repayment options or the option of extending the loan. Additional options can often affect the borrower’s fees.

Choose wisely

money

Before you decide to consolidate loans, it is worth getting acquainted with the offer of various banks in detail. Whether a given offer will be beneficial for us in the long term depends on many factors.

To make sure that your consolidated loan will not be a source of unnecessary costs, it is worth directing your steps to a credit brokerage company. Experienced advisers will help you choose the best option.

Find a variant suited to your possibilities

money

Loan consolidation can take place under different conditions. The interest rate and other important aspects depend on the individual offer of each bank.

To be sure that combining your debts into one loan will be beneficial in the long term, it is worth getting acquainted with the banks’ offer in detail. People who do not have sufficient financial knowledge should consult with advisers who will dispel any doubts and present the best solution.

Many consumers believes in a credit without Credit Bureau information

Many consumers have the problem that due to payment difficulties or omissions in paying bills, a negative entry in Credit Bureau makes life extremely difficult. It is often thought that this entry is no longer a problem but only becomes problematic if a loan is to be taken out. But it also proves to be a hindrance if a new telephone contract is agreed, the credit card is applied for or a purchase is made on account. This and much more is not possible with a negative Credit Bureau.

However, while there are alternatives for purchase on account or for the new telephone contract, it looks less favorable when taking out a loan. Because every bank in Germany, no matter how aggressively it vies for customers, will ask Credit Bureau before granting a loan. And if this query shows negative entries, the loan can be deleted directly from the wish list. Because it is simply not possible.

Nevertheless, there are many consumers who believe in a credit without Credit Bureau information. Those who have already seen advertising or heard from friends that there are such loans. And it is true that there is a credit without Credit Bureau information. However, the way there is a bit difficult and the conditions around the loan can not always be described as optimal.

Here is the credit without Credit Bureau information

Here is the credit without Credit Bureau information

To be able to take out a loan without Credit Bureau information, you have to venture abroad. Even if it is quite simple over the Internet. Only foreign banks grant a loan without asking Credit Bureau, because they have no access to Credit Bureau data, which is only available to German companies. For the borrower, this means that he does not have to prove his creditworthiness with Credit Bureau, but must provide other security for the borrowing. Among other things, a very good income, which justifies borrowing.

Foreign banks that grant credit to German citizens without a Credit Bureau can mainly be found in the Principality of Liechtenstein. An advantage is the fact that German is spoken in Liechtenstein and the communication should therefore not prove to be problematic. On the other hand, it is disadvantageous that the banks can generally only be contacted via the Internet and the borrowing process can therefore be somewhat slow. An instant loan with an immediate payment is therefore not possible.

Loan interest

Loan interest

To this end, prospective creditors can count on sufficient information about the loan on the providers’ websites. There you will not only learn that loans are offered for $ 3,500 and $ 5,000. All costs including interest on the loan are also named. And this before you apply. This has the advantage that as an interested party you can immediately see which offer is being made and whether this offer can run in accordance with your own plans.

One quickly realizes that there is a loan without asking Credit Bureau, but that this “service” also has to be paid with high interest rates. Because a foreign loan, as such loans are often called, comes with an interest rate of at least 11 percent. The installments are paid over 40 months. Repayment often begins in the month after next after borrowing.

The borrowing process is carried out by post and is therefore discreet. The money will only be transferred to a reference account. There is no Credit Bureau entry. In order to be eligible for a loan, a fixed income must be proven. The self-employed and self-employed as well as pensioners cannot benefit from such loans. A declaration must also be signed. With this declaration, the bank is allowed to seize the income if it is not properly repaid.

Loan despite credit bureau entry

Most consumers have a rather divided relationship with Credit Bureau, and on the one hand they understand, of course, that there must be an institution that must store consumer law data related to financial behavior. On the other hand, they find it less exciting if precisely this stored data is the reason that, for example, they cannot take out a loan despite a Credit Bureau entry. It is not uncommon for the entries in the Credit Bureau to result in the bank rejecting a loan application or only approving it if very specific additional requirements can be met.

It is not even the case that only the negative Credit Bureau entries lead to a rejection. Entries that refer to further loans or to various inquiries for a loan can also lead to a rejection. The same number of telephone contracts, credit cards and accounts. As a consumer, you should therefore always ensure that finances are in order. In all respects.

But what must be done if a loan is to be taken out despite the Credit Bureau entry? How can you convince the bank that a loan makes sense even under such conditions?

Create security

Create security

In principle, loans can be taken out even under unfavorable conditions. It is only important that you as a borrower provide sufficient collateral and also offer this to the bank. If the Credit Bureau and the income for a loan are not sufficient despite the Credit Bureau entry, a second borrower, a guarantor or material collateral must be able to be offered. Otherwise, a good loan offer will not come about even with a high income.

In addition, as a borrower, you should ensure that your own loan requests are adapted to your personal requirements. Anyone who has negative entries in the Credit Bureau indicating open debts cannot ask any bank to offer a loan with a large loan amount at top conditions. However, if you are only looking for a small loan and take it up with the help of a second borrower, for example, you can assume that the banks are less averse to such a loan. It is therefore always important that the requirements match the requirements in order to be able to use a good loan in the end.

Where can a loan be taken out despite a Credit Bureau entry?

Where can a loan be taken out despite a Credit Bureau entry?

Borrowing is easiest if a comparison is made beforehand. As a borrower, you don’t just find out where the best loan offers are. You can also test immediately which loans are actually possible under the given conditions. There is also the possibility to experiment a little with the loan amount and the installments.

If you use a comparison calculator on the Internet, you do not have to worry that the search for a suitable loan will have a negative impact on Credit Bureau despite Credit Bureau entry. Because the comparison computers work without entering personal data, so that no notification can be made to Credit Bureau. Only when a loan offer has been found and the loan application is made to the associated bank must personal data be provided and disclosed. And even then the entry or the query of the Credit Bureau takes place.