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Payday Loans

Payday loans for the elderly – how to choose wisely?

The budget of the elderly leaves much to be desired in most cases. Polish pensions are low, and unfortunately, all prices are the same. However, payday loans without formalities are available for pensioners. http://riolindaelvertaparks.org/how-to-get-bad-credit-car-lease-loans-bad-credit-car-leasing/ has more details

Financial problems of the elderly

Financial problems of the elderly

Unfortunately, the amount of Polish pensions is not optimistic. All stores have the same prices, and pensioners have definitely less money than working people. Older people, however, have quite high expenses, because, in addition to treatment and rehabilitation, they also have to spend on everyday life.

Therefore, it can be said that retirees, despite greater needs, must have much smaller amounts at their disposal. In many cases, life turmoil causes the pensioner to decide to borrow money.

Unfortunately, banks are very cautious about older people, seeing their old age as an obstacle to debt repayment and in many cases, they refuse loans to older people. Therefore, only payday loans remain without formalities.

Payday loans without formalities for the elderly

Payday loans for seniors are granted on the same basis as loans for any other age group. Such loans allow you to settle your current liabilities, but also to buy medicines, go to rehabilitation and do all the necessary purchases.

In order to receive payday pay, you do not need to present an income certificate or retirement or disability pension slip. You can take momentum in a way that is convenient for us, e.g. by phone.

During the first cooperation with a given company, the verification procedure is the longest, but each time you can get instant payday faster. To bypass problematic transfer issues, it is worth choosing, for example, payday loans without transferring a penny and picking up the borrowed amount at the post office.

What should you absolutely remember?

What should you absolutely remember?

Elderly people should be very careful about all offers of payday loans. Despite the fact that non-bank institutions usually have good intentions, one has to reckon with the fact that not every payday loan is equally profitable.

First of all, the senior should compare offers of payday loans, and if he cannot do it alone, seek the help of someone trusted. It is very important to check what are the costs of a specific payday loan without formalities and what is the final amount to be repaid.

The amount of payday pay must be adjusted to your financial capabilities, and as you know, these possibilities are different in each case. The amount of the loan should be determined by the amount of the pension.

The more money you have every month, the more you can borrow, because paying off the debt will be quite easy for you. On the other hand, if your income from retirement or disability pensions is not very high, it is better to be careful, because then repayment will be much more difficult.

It is worth paying attention to the interest rate and APRC of a particular loan, as well as the maximum age of the borrower. Usually, loan companies grant loans to customers up to the age of 70, but 85-year-olds may also get payday loans in some companies.

What amount of payday pay and for what?

What amount of payday pay and for what?

For most retirees, the maximum amount of payday that allows for a relatively safe repayment is several thousand dollars. With this amount, you don’t usually have to worry about repayment problems. Certainly in the elderly, you should borrow only for the expenses you really need.

Rather, avoid borrowing for trivialities or expenses that we do not need. Let’s not stretch into buying a health anti-allergic quilt or pots that are expected to last for several dozen years. Most of these offers are not worth the price. It is better to avoid payday loans for “put in and put up” gifts.

This money should be spent on urgent expenses – for something that is urgent. If you find it difficult to assess the situation realistically, ask for the opinion of someone close to you. Don’t be afraid to ask for help – in the elderly we are often very naive and good-natured, thinking that everyone has the same good intentions as we do.

Nothing could be more wrong, so definitely don’t take a loan for some fashionable “gadget” advertised on TV or for something that is supposed to miraculously cure you of the biggest ailments. These things just don’t work and you don’t waste money on them.

Debt restructuring possible at any time

First of all, it is good to know that you can repay an overdraft granted in the current account at any time. You do not have to observe any notice periods for this revolving credit granted until revocation. In contrast to an early repayment of a cash loan, banks do not charge prepayment penalties. Announcement of repatriation is also not necessary. To get rid of the expensive overdraft facility, all you need to do is make a transfer in favor of your checking account. It is entirely up to you whether the funds for this transfer come from a new cash advance or other sources of money.

The right course of action

The right course of action

If your bank is one of the institutions that does not actively respond to its customers for cheaper credit than the overdraft facility, you should contact your bank advisor. Almost every institute also has a cash credit in its product range. With a few exceptions, this is almost always significantly cheaper than the overdraft facility offered. But be careful: The conditions for cash loans, which are tied to a constant and therefore constant borrowing rate throughout the credit period, can vary significantly depending on the provider. The applicant’s credit rating also plays a role here.

Before you sign the loan agreement, you should always consult one of the many loan comparisons offered online. Once you have made your decision and received the loan approval, the procedure is very simple: all you have to do is sign the contract in which you previously specified your overdrafting current account as the payment account and make it available to the provider again. A few days later, the credit amount will be credited to your checking account.

Possible interest rate advantages

Possible interest rate advantages

When talking about rescheduling a overdraft facility, the focus is usually on the interest benefits that can be achieved. And that can actually be significant. Currently (November 2014), the average interest rate payable on a overdraft facility is around 10 percent. An average interest rate of around 15 percent is charged for an unauthorized, tolerated overdraft. For an installment loan, on the other hand, depending on the desired term, an average of only 5.5 to just under 6 percent is required.

Depending on the provider, the interest rate for an overdraft facility can also be between 7.5 percent and just under 13 percent. The interest rate for a cash loan, on the other hand, currently varies between 2.75 percent in the optimal case and 12.99 percent in the maximum case, depending on the provider and / or the applicant’s creditworthiness. Based on the average values, there is an interest advantage of up to 135 USD per year with a long-term overdraft facility of only 3,000 USD if this is replaced by a cash credit:

Overdraft facility: 10% on $ 3,000 = $ 300 pa
Cash loan term 36 months: 5.5% to $ 3,000 = $ 165 pa interest advantage $ 135 pa
Cash loan term 84 months: 6% to $ 3,000 = $ 180 pa interest advantage $ 120 pa

Liquidity disadvantages due to debt restructuring

Liquidity disadvantages due to debt restructuring

As interesting as a debt rescheduling measure can be with regard to the possible savings in interest rates, it also has disadvantages. It is generally to be welcomed that the cash loan, unlike the overdraft facility, is being repaid in regular monthly installments. However, if liquidity is very scarce, the necessary repayment of the loan can also be a disadvantage. Therefore, check very carefully whether you can cope with the monthly charge arising from the cash borrowing on a permanent basis.

In our example, a cash loan limited to 36 months with an interest rate of 5.5 percent would mean a monthly charge of 90.59 USD. If you choose a loan term of 84 months, a monthly installment of 43.83 USD would still have to be paid based on the then applicable average interest rate. Debt restructuring can only be considered a sensible measure if the monthly liquidity outflow is also acceptable in the longer term. If this is not the case, you should not look for a cheap cash loan, but consider a counseling session with a debt counseling center.

Beware of debt rescheduling

Beware of debt rescheduling

There is always a risk of increasing debt as a result of a debt rescheduling measure if you do not have the overdraft line deleted from your checking account after the overdraft facility has been paid off. So there is a great temptation to overdraw the current account again at short notice. A short-term overdraft facility can then easily become a short-term overdraft. If you allow that, you have taken the first step into the debt spiral. Therefore, after the discard return, have the overdraft line withdrawn to a reasonable, small amount that is sufficient to cover short-term overlaps.

Almost always involved: Credit Bureau

Almost always involved: Credit Bureau

You cannot get a loan or even an account from a German banks without the institution where you came in contact with Credit Bureau. Therefore, do not hide the amount of the overdraft facility granted or any other credit obligations that may exist in the course of borrowing. The provider of your choice will find out everything anyway and will hardly provide you with a loan if the information is incorrect.

The Credit Bureau Score, a key figure determined by Credit Bureau based on various data and your credit history, is often not only decisive for whether you get the loan at all. If you have applied for a loan with credit-dependent conditions, he decides together with your income about the interest rate to be paid for it. If you only have an average or weaker credit rating, you are usually better advised with a loan on terms that are independent of credit rating.

In particular, because of the data stored at Credit Bureau, it is necessary that you specify the repayment repayment as the purpose of the loan application. If you neglect this, the existing credit facility and the new loan applied for will be added together when checking your loan request, which could lead to a loan rejection.

How to change banks with an existing mortgage loan?

Do you have a current mortgage , taken out with your bank, and wish to open a new account at another banking establishment? You have the right. Here’s what you can do concretely.

Is it possible to open a new bank account, with a loan outstanding in its original bank?

Is it possible to open a new bank account, with a loan outstanding in its original bank?

The answer to this question is yes. Having a current mortgage in your current bank should not prevent you from changing your banking establishment , if that is your choice, or simply from opening a new account at this establishment.

Indeed, since the beginning of February 2017, the Congilaw allows everyone to be able to change banks easily.

You can thus have a new account in another bank , and make a request for redemption of your current mortgage , with the new banking establishment. You can also decide to leave your loan in the original bank, and open a new bank account elsewhere.

The procedure is relatively simple for the person interested in a change of bank. Indeed, it will suffice to provide a mandate and to its future bank.

At his level, that’s all he will have to do, then the new bank will take care of all the necessary formalities.

Why is this procedure possible?

Why is this procedure possible?

The original bank, although you are a client, is in no way committed to you, since there is no written agreement between the two parties (nor an oral agreement).

You are therefore within your rights, and free to leave your bank, even if you have taken out a mortgage with it . The bank is not entitled to compel you to remain its client.

Possible obstacles…

Possible obstacles…

So that the procedure can succeed, it will be necessary, however that you have regular income, and that you are not subject to a bank ban either.

Indeed, if the loan is not bought back by the new bank, you still have the obligation to repay it in your original bank, this does not change. You will therefore have to continue to receive regular income in order to repay the loan .

Obviously, if you were prohibited from banking, the new chosen bank will not be able to accept you as a new customer, you could not change banks.

Keep your loan in your bank, and open a bank account elsewhere

Keep your loan in your bank, and open a bank account elsewhere

Keep your loan, but open an account in another bank, you are entirely entitled to do so. On the change side, the domiciliation of accounts will be done in the new bank.

Then the repayment of the mortgage, taken out in the original bank, will be made by means of a permanent transfer each month.

This automatic procedure of course requires regular income to be paid into the new bank account, that goes without saying.

This solution allows you to have accounts in two different banks. As for the current mortgage, to be repaid, this “simplifies” things. On the other hand, as a customer, you must be fully aware of the bank charges that each of the two banks will charge on your accounts! This can generate significant costs.

Have your home loan bought back by the new banking establishment

Have your home loan bought back by the new banking establishment

Do you want to close all of your accounts in your original bank, for your own reasons? Have you taken out a mortgage in this bank?

If you want to close your accounts in your home bank, and have your current loan transferred to your new bank , you will have to request a redemption from your new bank .

The new bank will carefully review your file. But beware, because this one, after study, is not under the obligation to accept you as a new client, nor to buy back your mortgage. It is a risk to take for you. You will therefore have to be careful, and not close your other accounts too quickly.

On the other hand, if your file interests this bank, it will do everything necessary so that you quickly become part of its clientele. For this, she may consent to a commercial, even financial, gesture towards you. This could be a discount, reduced bank charges, advantages … Each banking establishment has its methods to attract a potential customer.

Indeed, if a profile has a “good” financial profile, attractive, inspiring confidence; it will always be interesting for a bank. She will therefore do everything necessary so that he does not go to another establishment than his own.

Negotiating a mortgage loan: what are the advantages for you?

Negotiating a mortgage loan: what are the advantages for you?

The negotiation of the repurchase of your mortgage is important for you because you it is the opportunity to put into play the conditions relating to your loan .

In this crucial step, you will talk with the bank that interests you about the duration of the loan, the interest rate, and also the repayment deadlines . Every important point for you should be addressed there.

By negotiating skillfully with a bank, you can obtain very attractive rates. You will also be able to benefit from lower insurance costs than from the competition.

Also be aware that you can get reduced monthly payments.

By having yourself seconded by a real estate broker, you will be sure to have a strong ally with you.

You will have someone by your side who fully understands your expectations. Indeed, you will have previously discussed with him all the points to be negotiated. This real estate broker will be able to support you effectively in your negotiation, so that you obtain maximum success.

As you can see, a successful negotiation will bring you significant advantages.

In conclusion…

Changing banks when you have a mortgage in progress is entirely possible . Here you have the choice between keeping your current mortgage in your original bank, or requesting the repurchase of this loan by your new bank.

Before you decide, carefully consider the pros and cons of each solution.

If you hesitate between these two choices, it will be best for you to take advice from a real estate broker, who will provide you with all the information you need.

Benefit from the best rate for a mortgage loan.

Any borrower is looking for the best rate. And this is quite normal since the interest attached to the mortgage represents more than 60% of its total cost!

To find the best rate, you have two options. You can try to go around all the banks for yourself to have an overview of the market, or go through a mortgage expert who will negotiate with you the best existing mortgage, and therefore the best rate? 

This second option is the best because a mortgage broker will surely obtain preferential conditions compared to an individual who would go around the banks by himself. The reason is simple: it is its volume of business, which an individual does not have, which allows him to negotiate the best conditions!

You will never get such a good result by yourself.

The best rate guaranteed by your mortgage broker

The best rate guaranteed by your mortgage broker

Today, you should know that the credit conditions are negotiated by the headquarters of each of the banks and no longer by the bank branches directly. Bank advisers have no power over mortgage rates and do not necessarily make an effort to get you good conditions because they are no longer paid on the establishment of a mortgage!

Your mortgage broker is in close contact with the headquarters of each French bank, which grants them preferential conditions in terms of their business volume. He will therefore certainly get you rate discounts that no individual could obtain by himself !

It should be noted that all mortgage brokers have the same rate grids. The aim is to avoid unfair competition between them. A nationally renowned brand cannot offer you a better rate than an independent, local broker.

It is mainly on how they will use these rate grids that we must focus. Some brokers perfectly master specific techniques and arrangements that will allow you to obtain the best rate for a given mortgage… and others do not!

The best broker to get the best rate

The best broker to get the best rate

You will understand, it is the man to choose rather than the sign . But how do you recognize THE broker who will negotiate the best conditions for you? Very good question ?

You have to trust your instincts … but not only! Here are some techniques to use to find your broker:

  • Contact one or more brokers by phone to get a first estimate of the feasibility of your project. You will easily see if your contact is professional or not when he presents his way of working.
  • A broker who directly announces the rate he could get you without explaining the method he uses to find it is not necessarily a good broker! Questioning the banks’ tour cannot unfortunately be done without a telephone conversation. It is necessary to study your file in detail before knowing which banks will be best able to position themselves on your file and grant you the best conditions.

Warning ! This technique is simply to make you dream to earn your trust!

  • Meeting a real estate loan broker physically is almost essential. You will be able to see the universe in which he works. If this is reassuring, it’s a good sign ? If he takes the time to meet with you, that his presentation is good and that he determines with you the financing plan that suits you best before explaining his method of operation is even better! The fluidity of his speech will also be an indication of his professionalism.

To know! An online broker often just sends your coins to a bank advisor. This one having almost no power on the rates, the conditions which you will obtain will often not be the best… It is not for nothing that they are often free!

  • Pay particular attention to the broker’s fees . All brokers are paid in two different ways:
    • By customers via fees
    • By banks as a business provider.

Take special care not to pay fees that exceed the administrative costs that a bank could charge you if you go through it directly (between 800 and 1200 $).

One last tip to find the best rate! Do not put several brokers in competition. The reason is extremely simple: a bank will consider that the file belongs to the broker who will send your file first. And if the second broker could negotiate better conditions for you in this same bank thanks to his expertise, he will be opposed to taking charge of your file.

Debt trap: subscriptions

 

Subscriptions for media

Subscriptions for media

What subscriptions do you get? Mostly it is mainly the daily newspaper, but also a TV magazine. Fashion journals, motorcycle and car magazines, handicrafts and DIY, as well as political and scientific media are also included. These products end up in our mailbox, we often hardly get to read them.

Subscriptions on the Internet

Subscriptions on the Internet

Another item concerns the Internet. We not only receive free newsletters and advertisements, but may also have a subscription for the regular delivery of books, CDs or DVDs that we can borrow or buy; sometimes the return is forgotten, and there is already a new product in the house that we actually did not have and did not want to pay for. Above all, we don’t need it.

The daily newspaper can also be read online, but most articles are only available for a fee. Anyone who makes a long-term booking here and with other media has similar costs to the products in the mailbox. The money leaves the account almost unnoticed, but before the end of the month there is no cent left or the account is in the red.

Subscriptions via cell phones

Subscriptions via cell phones

Subscriptions are also concluded via the cell phone, for example to ringtones. These are also debited using prepaid cards. Money is already running through our fingers at this point.

The only way: check and cancel subscriptions

Anyone who uncontrollably raises costs in this way can only get back into the green zone in one way: It is important to check every single item on the bank statement very carefully, also to check annual contributions and, in case of doubt, to cancel many subscriptions quickly this is feasible.

Consider alternatives

Consider alternatives

It helps to consider which subscription has priority and which is dispensable: How many newspapers and magazines do you really read through thoroughly so that the purchase is worthwhile? In addition to the daily newspaper of the hometown, must there be national media? Can’t you get the cultural and travel tips in other ways? Do you need so many new ringtones? Are you watching all the DVDs you get? And do you read all the books? A library card is often much cheaper, the selection of media here meets almost all needs, including the latest newspapers.

Habits versus benefits

 

Understandably, we do not like to give up many subscriptions, have been acquiring the data or products for years and do not want to do without the habit. On the other hand, such considerations must not lead to our account constantly showing a minus – after all, essential things are much more important than most information. Even many subscriptions for professional reasons are dispensable, because we often fail to read them. With some good money we could instead afford a nice long weekend to relax one day, when the cash register is right again.

Subscription debts are one of the unnecessary consumer debts that cost a lot of interest and should therefore be avoided!

Choosing the right loan insurance.

Loan insurance compensates the borrower following various events that may lead to an inability to repay.  However, whatever the risk, it is strongly recommended to get the best information from your insurance.

Loan insurance an element to take absolutely into account in your budget. Following these brief explanations, we then ask the question of the criteria for loan insurance that are taken into account as well as the different forms of insurance that may exist on the market.

Loan insurance criteria to take into account

Loan insurance criteria to take into account

With identical guarantees, the cost of loan insurance can be higher or lower. Loan insurance takes into account many criteria such as the age of the borrower, the mortgage applied for, its duration, the number of people to be insured, etc.

Let us not forget that this loan insurance allows the bank to protect itself in the event of non repayment of the borrower. Consequently, the more fragile the criteria, the higher the cost of insurance.

Today, there are two types of insurance: group insurance and individual insurance. The bank which grants you its credit will offer you its group insurance contract (group insurance). You should know that this insurance is offered to all customers of the bank, under the same conditions and at almost similar rates.

The objective of this loan insurance is to spread the risk among all the borrowers. Therefore, you are quickly harmed if you are young and healthy, as the cost of your loan insurance will be very high.

This is why since 2010, it is now possible to compare different loan insurance offers, called individual insurance, and choose the one that suits you best. The so-called individual loan insurance is adapted to the profile of the borrower, thus allowing certain borrowers to make real savings.

So do not hesitate to inquire and compare the loan insurance offered by your bank versus individual insurance.

Take into account the cost of loan insurance

Take into account the cost of loan insurance

Do not forget to take into account the cost of your loan insurance in your overall budget because this, depending on your profile, can represent up to 30% of the total cost of your credit.

So be sure to choose the loan insurance that works best for you and costs you the least.

TO REMEMBER !

  1. Loan insurance can be a cost if you don’t pay attention
  2. You can choose between group or individual insurance according to your profile
  3. Compare insurance to get an attractive insurance rate

 

Why can credit cards lead to a debt trap?

 

Credit cards lower the barrier to spending money

Credit cards lower the barrier to spending money

Credit cards lower the inhibition threshold for spending with many credit card holders. Credit cards help many consumers to spend more than their personal financial circumstances allow.

Credit cards worsen the overview of the financial situation

Credit cards worsen the overview of the financial situation

  • The overview of compliance with the personal financial budget can easily be lost when using a credit card: Compared to paying with cash, consumers are often less aware when using a credit card whether and to what extent the household budget has already been exhausted.
  • Consumers who are already indebted find it increasingly difficult to plan the scope of invoices and reminders with increasing indebtedness, and in particular with a large number of creditors. If a credit card is also used, the risk of completely losing the financial overview increases.
  • Once accustomed to credit card payments, consumers find it difficult to return to other forms of payment.

Credit Card: Interest and Fees Increase Debt

Credit Card: Interest and Fees Increase Debt

The original invoice amounts are often still easy to pay. However, due to accruing interest and fees, the level of debt gradually increases – surprising for some debtors.

Credit card holder fees

Additional fees may e.g. B. incurred in payment transactions outside the dollars area or when returning direct debits.

Beware of “revolving credit cards”

Revolving credit cards combine a payment function with an on-demand loan, which is mostly repaid in monthly installments (between 5 percent and 50 percent of the loan amount, depending on the agreement).

When the revolving card lures…

  • With an individual credit limit, Revolving card holders are given more time to pay for goods and services. The debt is repaid in the form of an installment loan.
  • In addition to the selected monthly installment, borrowers can make special repayments at any time to repay the installment loan more quickly.
  • The credit card holder can make further withdrawals by purchasing goods or withdrawing cash within the specified personal credit limit – even if the previous credit drawdown has not yet been fully repaid.
    Revolving card risks
    A credit card installment loan often incurs significantly higher interest rates than a current account overdraft facility or a bank installment loan.
  • According to an investigation by the Astro Finance (June 2011), the Revolving credit card issuers demanded effective annual interest rates of up to 17 percent and sometimes even more. (The “leader” among credit card issuers even charged up to 25.9 percent interest.)
  • Already in March 2009, Ilse Aigner, the Federal Minister responsible for consumer protection at the time, explicitly warned of the dangers of revolving credit cards.