Author: Edward Debose

How to Calculate How Much a Capital Loan is Needed

by Edward Debose

How to Calculate How Much Capital Loans You Need - Every type of business will certainly need a lot of funds and capital to be able to grow and develop. There are many ways to get a lot of capital, from filing loans to banks to capital loans from P2P Lending. But how much funds are actually needed? Calculating how much capital loans are needed is indeed not easy.

You might think of asking for more funds than you actually need, assuming that it will help you in the long run by having extra capital. However, more funds means having to work longer hours and more difficult in returning the money to investors. Of course, borrowing funds according to business needs will be more profitable.

However, if you are confused about calculating funding requirements, then here are some tips that can be practiced in order to find out what funding is really needed.

 

How to Calculate How Much a Capital Loan You Need

1. Determine the Purpose

When making a financial plan, make sure the business goals are set. Is it just to build a brick shop or to create new products. Set goals as detailed as possible when presenting your goals.

This will help you focus on what you really need to be purchased to achieve your goals. Think of financial plans which are then converted as a form of budget; This will provide clear guidance on what to do.

 

2. Determine the Planned Timeline

capital loan

The financial plan must be accompanied by a planned timeline. Do your best to estimate the grace period for sub-goals that you need to achieve on your way to your main goal. Think of this as a tactic that needs to be developed to achieve a long-term strategy. Planning a grace period will also make it possible to better calculate capital requirements. This will encourage you to see periods that might force you to spend extra funds.

Consider the time period when more capital will be needed to fund a new project or create a new product, then suggest accordingly.

 

3. Calculate your financial needs

financial loan

After creating goals and set deadlines, be prepared to calculate your financial needs. Include everything needed to achieve your business vision. There are three different capital categories, namely; fixed capital, working capital, and human capital.

Fixed capital consists of durable goods, usually used during the operational period. Plants, tractors and factories are examples of fixed capital. Usually, fixed capital is expensive and not liquid, but it will be very necessary to support your business operations.

Working capital consists of disposable producer goods, such as raw materials, work in progress, and fuel. Whatever is used in an act of production is considered working capital. Because of its characteristics, working capital can be more difficult to manage. So prepare well when calculating how much capital you need. 

Human capital can be easily defined as people who work for your company and their respective skills, educational background, health, and others.

Like fixed capital and working capital, spending on human capital needs to be as detailed as possible. Payroll costs, budget for more human resources, etc. - record everything and make a range of costs.

Planning how much money is needed may sound very time-consuming, but believe that this will help you have a more thorough preparation over time.

Once you get the needed capital loan, you can also re-evaluate the existing calculations so that they remain on the right track. So make as much detail as possible!

 

After you finish calculating the funds needed, then the next time to look for the loan. Koinfidence provides opportunities for your business to continue to grow with a venture capital loan from ComeBusiness.

Online business people who have a strong vision in increasing sales from time to time are entitled to get loans of up to Rp 2 billion with low interest ranging from 0.75% to 1.67% per month. Very interesting, right? Let's submit a loan to Koinfidence.

Loan Consolidation – What it is when it does not pay to compare

by Edward Debose

Loan consolidation, loan consolidation, debt consolidation, loan refinancing… names are many, but in all cases the same. Several loans are merged into one - this can reduce the monthly payment, simplify repayment and in some cases also reduce the interest rate.

 

When it pays to consider consolidating loans

Are you repaying a loan to your bank , running out of an overdraft , credit card and using a loan from a non-banking company ? During consolidation, you take one new loan to pay off all the repayments so far. In most cases, this leads to a reduction in interest rates (you pay less on interest) and a reduction in the monthly payment.

It is important to beware of any early repayment fees for any of the existing loans.

If you manage to repay all loans on time and properly, and your incentive is to "just" save, you have a relative advantage. You have time to consolidate (so you can quite calmly choose) and especially you are an interesting customer for some banks. We recommend monitoring the actions of new banks.

 

When does consolidation not pay off?

When does consolidation not pay off?

  1. In some cases, consolidation may result in a high interest rate loan. This risk is highest when you want to refinance credit card loans or non-bank lenders - high interest rate loans. In these cases, it is preferable to try to get a classic bank loan .
  2. If you are listed in  the BRKI debtors' banking registers , approval of refinancing may be a problem.
  3. In the case of high debts, it is more advantageous to use an American (non-purpose) mortgage. This is a loan secured by real estate, the advantage being a lower interest rate compared to conventional refinancing.

 

At what bank is loan consolidation the most advantageous?

At what bank is loan consolidation the most advantageous?

This cannot be simply said, the interest rate, the amount of repayments and other conditions depend on a number of factors. The most important are:

  • Loan Amount  - During consolidation, you can either ask for an amount to fully cover your debts or get extra funds.
  • Debt structure  - do you owe your credit card, overdraft or non-bank loan overdraft? The higher the RSPN for consolidated loans, the worse the conditions.
  • Record in the register of defaulters  - people with a record in the register of defaulters pose a higher risk to the bank and therefore there is a risk of either refusal of refinancing or higher interest rates.

Most Czech banks offer refinancing. The grumpy first advises to ask for a refinancing bank that you owe the most or have the longest relationship with it.

 

How to apply for loan consolidation?

How to apply for loan consolidation?

You can combine loans and loans in several ways:

1. Ask the bank directly for consolidation

Directly ask your bank to consolidate loans. You tell her who and how much you owe, and depending on how much you need to borrow. The bank will ensure payment and you repay directly. Physically, you will not get the money.

The disadvantage of this method is the laboriousness of paperwork and possible unwillingness to cooperate with creditors or a new bank.

 

2. Take a new loan and pay off the debts yourself

You ask the consolidating bank for a new loan and repay all existing debts from the money raised.

This option is much simpler and quicker, however, the bank accesses it only for very creditworthy clients. In fact, in one moment you will actually double.

 

3. Take advantage of a pre-approved loan

Some banks offer pre-approved loans in internet banking or through classical letters. These are tenders created automatically for each client, often with a better interest rate and almost always with less administrative burden.

You can help yourself to get a similar offer - banks evaluate potential borrowers according to their behavior. Just increase your bank account limits and generate high sales by forwarding money from one account to another. This creates the impression of a rich client with a low risk profile.

 

Consolidation approved, what debts need to be repaid first?

Consolidation approved, what debts need to be repaid first?

After getting the money, pay off the debts with the highest APR (annual percentage rate of charge) first. The percentages of interest and other charges vary widely, but in general, you should repay the debts in the following order:

Loans from non-banking companies you found on the Internet, at bus stops, in newspapers, and so on.

  1. Credit Cards
  2. Overdraft
  3. Non-purpose loans
  4. Special-purpose loans

This order is indeed only indicative, it is always necessary to find out the specific APR of your debts. Where possible (credit cards, overdraft), we recommend canceling the products after repayment. First, in some cases you avoid paying a regular fee, but mainly do not succumb to the urge to re-debt.

Building loan comparison & calculator for current interest rates

by Edward Debose

The building loan is a loan that can be used to finance construction projects or to buy a property or condominium. In principle, it is earmarked so that it can only be used for the purposes specified in the loan application. For this reason, customers have to submit cost estimates for the anticipated renovation costs or the list of the total costs made by the architect to the bank.

For the later payment of the loan amount, the invoices of the craftsmen or property developers or the architect's completion report are then necessary.

The bank can then be sure that the building loan has actually been invested in maintaining the value or increasing the value of the property and has not been spent otherwise. This is the only way that the land charge entered in the land register of the property is also valuable and actually serves to secure financing.

On the basis of the applicant's documents, the banks draw up a financing plan that shows the necessary financing expenditure minus the equity capital or own contributions. This necessary credit requirement is then the basis for the creation of a loan offer, which is created individually for the customer by using different loan types.

An overview of the requirements

bank

In order to be able to use a building loan, various requirements must be met. The most important requirement is that the potential borrowers can pay the monthly installment from their income. To do this, the income must be sustainable. Parental allowance, unemployment benefit and child benefit for older children are often not recognized by the banks due to the time limit.

The bank then draws up a household account based on the monthly income, which can be proven by means of proof of salary, pension notification or the balance sheet for the self-employed. The income is now compared to the monthly recurring expenses, whereby the cost of living is generally estimated by the institutes as a flat rate. The loan can only be granted if the budget is positive.

A further requirement for the building loan is a correct Schufa information, which must not contain any negative characteristics. For self-employed people, the banks often get additional external information, which must also be positive.

Ultimately, however, the bank must also receive sufficient security for the loan it has granted. Since the registration of land charges is usually chosen for the financing of a property, the property must have at least the value of the loan amount, ideally, the amount of the loan is even far below the value of the property, because then the security of the bank is greater, which is positive will affect the interest rate.

For this reason, borrowers should always be able to demonstrate equity in new construction projects or purchase requests in order to reduce the loan amount and the subsequent borrowing costs.

Building loan comparison and calculator - top offers online

Building loan comparison and calculator - top offers online

Here you will find our comparison and calculator for construction loans. Find the current top interest rates and conditions from the best providers on the market. Simply select your desired dates above and click on "Compare mortgage lending".

Interest calculation for a building loan

Determination of the interest for a building loan The interest for the building loan is probably the most important feature to watch out for. After all, the interest charge is decisive for the amount of the monthly installment and the calculation of the total cost of construction finance.

The building rates charged by the banks are of course primarily based on the general market level. The central bank's key interest rates reflect the refinancing costs of the banks, which form the basis for calculating the credit margins.

In addition, since the introduction of the Basel II equity guidelines, the borrower's personal credit rating has also played an important role in determining interest rates. The better the customer's credit rating is determined by the bank as part of the scoring, the lower the interest charged on the loan.

The reason for this is that banks only have to set up low, cost-intensive provisions for customers with first-class credit ratings than for customers with low credit ratings. The basis for the credit rating calculation is information on income, length of employment, age and marital status. The Schufa score and the intrinsic value of the collateral also play an important role.

Annuity financing

Annuity financing

One of the types of loans for home finance that is used most frequently in Germany is the annuity loan. It is particularly characterized by its long-term nature because this type of loan can have a term of up to 35 years. The individual term is calculated based on the desired repayment amount, which is given as a percentage of the loan amount. Repayment rates of 1-5% of the initial loan amount are often available to the customer, although today even loans with a repayment option are available.

If the chosen repayment amount turns out to be wrong after the contract has been concluded, it can be changed once a year free of charge. The interest can be fixed for the annuity loan between 5-20 years. During this fixed interest period, the rates for the construction loan also remain constant, so that customers receive planning security. Especially in low-interest phases, attention should be paid to the longest possible fixed interest period in order to reduce the risk of interest rate changes after the fixed interest period has expired.

Applicants for the annuity loan should also make sure that the longest possible availability is agreed so that the loan only has to be used in full after one year without the commitment interest being charged. Furthermore, the financing should be equipped with a special repayment option so that the loan can also be repaid early.

The cost and fees for the loan

The cost and fees for the loan

There are various costs for taking out a building loan. On the one hand, these are the interest costs, which depend on the market level and personal creditworthiness. The banks also charge processing fees and valuation fees, each of which can amount to up to 1% of the loan amount. Some direct banks have now started to waive both these processing fees and the valuation fees.

A comparison of the offers is very recommendable in the case of construction financing - due to the complexity of the offers and the different life situations. The effective annual interest rate, which should be calculated for the entire term, offers an important comparison option because it contains not only the nominal interest rate but also the processing fees. However, valuation fees or account management fees and insurance costs are not included in the effective interest.

What are Online Credits and why do you need it?

by Edward Debose

Currently there are many people who access online or online credits to solve emergencies and specific situations. The financial banking institutions make available to their clients online platforms where to apply. In this way the process is expedited and responses are usually given in shorter terms.

These companies are part of companies dedicated to the area of ​​finance with a technological focus. Since their emergence, they are looking to create efficient alternatives to traditional financial institutions such as banks and other service providers in the sector.

One of the differentiating values ​​of online credits is that companies seek to help people who normally do not have access to these types of products. Housewives, pensioners, students and freelancers can take out loans online without the need to carry out cumbersome procedures or visits to the bank.

Benefits of Online Credits

Benefits of Online Credits

  • Immediate approval
  • Flexible lapses
  • Minimum requirements
  • Funds available in less than a day
  • Interest rates 23-29%

As the demand for online loans has increased, the number of private equity companies in the sector also increases. For that reason, in lender company we show you a comparison of all the options available so that you can choose the one that suits you at this time.

How to choose Credits online?

As we mentioned in the previous section, the online credit offer has increased significantly in recent years. For that reason, choosing the one that suits us can be a complicated task. Each company has its own way of doing things and the requirements are not completely standardized.

One of the main concerns of users has to do with the security of these types of transactions. lender company only works with companies that have an exemplary reputation. We also care about offering you the most reliable online credits in the market.

Other aspects to consider when hiring a credit online are the conditions of the company. Since not all work in the same way, it is necessary to know how they operate before making the request. For example, some offer different means of payment or terms to cancel the debt depending on the amount.

Tailored online credits

Tailored online credits

The important thing is to find one that suits our needs. If we are doing a home remodeling, we will probably need an extension of the credit for additional expenses, while for other clients the possibility of paying with different means of payment is a more attractive option.

It is necessary then that before hiring the credit we know exactly what is the destination that we are going to give the money. This will help us better define payment terms and other considerations that you see fit.

Finally, with lender company's comparator you can see which company offers you the best conditions with regard to commissions and interest rates.

Are you looking for a credit online?

One option to get a credit online is to search on Google, however, this method can take hours or go to pages of doubtful reputation. Instead, with lender company you can compare different credits and companies so that you choose the one that suits you at all times.

lender company works using your data and your search parameters to get all the companies that offer online credits in the country. Then you can compare all the offers and reviews of other users to make the process easier.

In addition, we only work with reliable and reputable companies. This way you can be sure when hiring a credit online. This allows us to focus solely on studying the conditions of the credits.

Ease to get credits online

Ease to get credits online

On the other hand, lender company is a growing company with an international presence in some continents. The company's goal is to help connect customers with the best online credits in the country and the rest of the world.

We also want our customers to request products regardless of the economic sector where they work: students, pensioners and freelancers.

lender company is available 24 hours a day, 7 days a week with a team dedicated to resolving any type of concerns you may have. We use cutting-edge technology to cross your data with credit platforms to increase the chances of approval.

What are online credits for?

What are online credits for?

Online credits are defined as those that can be applied entirely online without the need to go to the bank or financial institution. Normally, this type of credit is easier to obtain since the requirements are more flexible, however, they are also usually for amounts less than a personal credit.

Online credits in the country are relatively new. The objective of these financial products is to provide customers with quick money to help them solve any setbacks or undertake projects. However, it is advisable not to use these types of credits for superfluous expenses.

With online credits you will have the opportunity to access a good amount of money that allows you to overcome emergencies. Some of the most common have to do with home or car repairs, health problems and accidents. In this way you can continue with your life normally at the time of an unforeseen event.

Currently, applying for a loan online is simple and saves us a great deal of time in paperwork. With Cruze you can choose between several entities depending on what you are looking for, whether shorter settlement times, payment facilities or longer periods to cancel the debt.

How to choose a reliable company?

How to choose a reliable company?

As is often the case with high demand products, companies that offer online credits have multiplied in recent years. In that context, choosing a company to trust can be overwhelming because of the different conditions they offer to hire their services.

One of the advantages of using lender company is that we only work with responsible companies. To appear on the platform, financial institutions must have a good reputation to avoid any type of fraud or customer scam. This allows the customer to only look at the terms of the credit when requesting it.

Although we do our best to filter out unreliable companies, it is important that you know the characteristics you should look at before applying for the loan. For example, that your platform is secure and has data encryption to prevent theft of sensitive information.

It is also important that before hiring a credit online we read the terms and conditions of each company. Some of the questions you should ask yourself are: What happens if I fail to pay on time? Are there fines for non-payment? Can I ask for extensions?

Other companies may have some hidden clauses to charge more. In the end, the most reliable companies are those where you can easily request your credit online and are transparent in the requirements they demand, as well as in the loan conditions. This will help you choose the most convenient and easy to pay credit.

What are fast loans online? Immediate online loans

What are fast loans online? Immediate online loans

Fast online loans are another alternative to get money in case of an emergency. Depending on the amount we are needing and what we are going to do with the money, it may be a better alternative than an online loan.

However, like online loans, loans are made through private companies or lenders and the process is fully automated. In this way we can access them in a short time and with only meeting some basic requirements on each occasion.

Although they are similar products, credits and loans have some differences. First, when we talk about a loan, it is a single amount borrowed by a private entity. That is, the client receives all the money in a single issue.

Interest and commissions are calculated based on the total amount paid by the company and in case of needing an extension or renewing the loan it could be done by signing a new contract.

In turn, credits are calculated as a maximum limit that you can access once approved. You will be able to access the money as you need it and it is not mandatory to use it completely. In this case, interest and commissions will be charged based on what is used and not on the total amount approved.

In addition, the credit can be renewed periodically whenever there is an agreement for it between the two interested parties, that is, the client and the entity.

What do you need to apply for a credit online?

What do you need to apply for a credit online?

Among the advantages of online credits is the ease to apply for them. Unlike traditional credits, these types of products are designed for all types of people. That is why the requirements that are required are usually more flexible.

Although each company is different, there are some requirements that are common to all. Next, we will know what are the most common conditions among financial institutions to deliver a credit online:

  • Be of age
  • Reside in the country
  • Have a bank account in the country
  • Personal cell phone (corporate numbers are not accepted)
  • Email (company email addresses are not accepted)
  • Citizenship Card

As you will see, these requirements are easy to meet in most cases. It should be noted that there are few entities that require a letter of work or formal employment. And there are even some that allow you to make the request with a low credit history score or being reported to the credit bureaus.

Don't overpay - Pay attention to payment dates

Don

When applying for a loan online we have the option of deciding how many installments to pay. This will depend among other things on our ability to pay and the lapses offered by the entity.

If we want to avoid inconvenience and keep a good credit history it is important to be punctual with the payments. In addition, missing a payment may result in additional interest payments or fines.

Another factor to consider when applying for a loan online is that the longer the period to pay, the higher the interest. It is important that before hiring the product we calculate well how long we can cancel the credit.

Just as there are financial institutions that charge fines for non-payment, there are others that reward payment on time or in advance. Those are some of the conditions that we must consider while evaluating our credit options.

What should we consider before taking a loan online?

What should we consider before taking a loan online?

Perhaps the first thing we should analyze before applying for an immediate loan is if we really need it. It is not advisable to borrow if we do not have something concrete in which to spend the money either for an emergency or for a personal project.

Likewise, when comparing the different options in lender company it is important to read the terms and conditions of each credit. This will help us choose the one that best suits our needs and payment capabilities.

Another important point is the interest rates that can vary between one company and another. In addition, as the offer is so wide it is possible to find promotions where the entities give greater payment facilities or incentives to take the credit. On other occasions you can decide the number of fees and the frequency of payments. In this case it is important to adjust them to our ability to pay.

What are the advantages of online loans?

What are the advantages of online loans?

Fast online loans are an easy-to-access credit method with easier procedures. The advantages offered by this type of products are varied. Here is a list of the main benefits of these financial products:

  • Interest rates are usually fixed
  • Quotas with fixed amounts
  • Easy to cover requirements
  • Short response times
  • High approval rates

These are some of the most important advantages of online loans. However, there are others such that when paying on time, companies offer you larger amounts and that financial institutions usually settle money quickly.

Financial requirements for a loan approval

by Edward Debose

An overview of the prerequisites for granting a loan at Good Finance: The online processing of personal loans is strictly organized at Good Finance, only a few steps are necessary to complete all the formalities.

In order to make optimal use of these processes, it is advisable to prepare the documents to be submitted. This gives you the opportunity to dispose of the requested money within a very short period of time.

The basic personal requirements

The basic personal requirements

In general, Good Finance is only open to private individuals, i.e. both accounts and loans are only set up for private purposes. You should have the following prerequisites to receive a loan approval:

  • You are at least 18 years old, have a good credit rating and want to apply for a private loan.
  • You receive a regular income as an employee, worker, pensioner or pensioner.
  • Even as a freelancer, you have the opportunity to get a personal loan from Good Finance, but not as a trader, as a business start-up, or in agriculture or forestry.
  • You have your place of residence and place of work as well as your account, which is used for your salary or remuneration, in Germany.
  • If you are married, please apply for the loan at Good Finance together with your spouse or spouse. Prerequisite: you have a common home address.

If you apply for a private loan as a freelancer, this must not be used commercially, which is very important to Good Finance.

Financial requirements for loan approval

Financial requirements for loan approval

As a basic prerequisite for a loan from Good Finance, your personal economic circumstances must allow the credit installment due to be paid reliably from the outset. In order to give Good Finance the opportunity to carry out the check, please provide all income for regular expenses, such as living expenses, utilities, electricity and telephone costs, insurance contributions and other charges. If you service further loans or leasing contracts, the monthly installments and the outstanding residual values ​​are required.

In any case, please indicate whether you would like to apply for additional financing or plan to reschedule existing liabilities. Since in the latter case there is no existing monthly charge, the liquidity check is carried out under different conditions.

Credit Bureau information is essential

bank

Obtaining a credit report is an indispensable element of the credit check; Good Finance also requires your declaration of consent. The Credit Bureau is used by a wide variety of banks, service providers and trading companies to provide a wide range of information on the one hand and to call up the score value if necessary. Both personal information and data on payment behavior, such as the number of accounts, credit cards and financing, as well as possible payment disruptions, are included there.

For security reasons, it is advisable to request a free self-assessment from Credit Bureau once a year. You will then receive a list of the information stored there and can compare it with reality. If there are deviations or errors, you have the option of correcting them, for example if negative entries were not deleted as agreed three years after the process was completed.

Important documents for your loan application

Important documents for your loan application

All of the information you have already provided online must now be filled in. Prepare the following documents:

  • Your bank account in Germany, to which your income will also be transferred
  • Proof of income: for income from employment, the last three pay slips or proof of remuneration, for freelancers, copies of the last two tax assessments
  • List of monthly expenses
  • Information on existing loan liabilities with residual value, rate and term

Credit Check Process

When you enter your personal data in the online form, a first check is carried out, but you need a printed application. If you are not yet a Good Finance customer, you will also receive a form for the post-identification process. Please go to a post office and present your valid identity card or passport so that identification can be carried out in accordance with the Money Laundering Act.

At the same time, you hand over the complete documents and the completed loan application, the documents will be sent to the bank immediately. As soon as the examination has been completed, you will receive a notification from Good Finance and the money will either be paid out or used as agreed to settle existing liabilities.

Advice on loans and financing.

by Edward Debose

A loan can always be a sensible measure, not in the purchase of luxury goods, but rather in some situations. Because in many cases simply necessary things have to be paid, such as open bills, a renovation at home to guarantee value retention or just a simple car repair. With a loan, people then create a certain financial scope. However, a loan does not always have the desired advantages, because in its literal interpretation the term "loan" stands for trust. For trust, in the willingness to settle existing as well as future liabilities. Such a willingness is unfortunately not always available these days.

Loan is only a temporary use of money or goods

Loan is only a temporary use of money or goods

It is often overlooked that a loan is only a temporary use of money or goods. It is also overlooked that interest is accrued on the loaned amount for this transfer of use, which also wants to be paid back. And the longer the term of a loan, the higher the interest. Because the length of the term also increases the risk of a lender that a customer can suddenly no longer repay his installments. In addition, fewer and fewer luxury and consumer goods are paid in cash these days. People buy almost everything on credit - from urgent purchases to cars to home furnishings and vacation.

In many cases, the risk of funding is no longer recognized, people live in "prosperity on installments". And in order not to be able to pay the installments in the first place, you quickly take out residual credit or credit default insurance without considering that these contributions are also significant. You should therefore see that you can get rid of such obligations quickly, but without giving yourself an unrealistic time period for repayment. Anyone who takes over with the installments is quickly listed with a negative entry at private credit checker. Today there is also the possibility for private credit checker free loans, but such balancing acts need to be carefully considered. The special conditions to which the borrower is bound are too negative. Because here not only the interest, but also the fees are much higher than with a bank loan.

Millions of Germans are fighting over-indebtedness

Millions of Germans are fighting over-indebtedness

Around four million households in Germany no longer meet their financial obligations. Due to constant financing, most people have a mountain of debt that at some point is no longer manageable. Due to unemployment or changes in living conditions such as separation, divorce or death row, financial difficulties are increasing. There are also many problems with single mothers with more than one child. About 60 percent of all debts are due on arrears, 20 percent of them on installment loans alone. Most fail to recognize that responsible lending must also be matched by responsible borrowing.

It is also often difficult for households to meet the necessary expenses with their income and to build up additional reserves. But reserves are not only recommended, financial reserves and targeted savings plans are also indispensable for private retirement provision if you want to maintain your usual standard of living in retirement. Before each borrowing, you should therefore start with a cash descent, in which all recurring fixed payments are determined. This should be followed by forward-looking financial planning in which you include individual expenditure items in your planning in advance. At the same time, if there are various financial problems, the variable expenses can also be reduced, because these depend almost exclusively on the daily purchase decisions.

If the monthly income is still not sufficient to pay the cost of living as well as the due installments and bills over a longer period despite a reduction in personal living standards, then there is a risk of over-indebtedness. Often, however, (spouse) and close relatives who have signed loan agreements or guarantees, without being able to pay, also become jointly liable. Partners who had to vouch for the other person can request the payments made back. Unfortunately, there is only one problem here: In most cases, the claim cannot be realized due to the main debtor's lack of capacity. Those affected, who have been proven to have been exploited due to the close relationship to the principal, should in any case seek advice from the local court.

This problem can be seen. In order not to get into a spiral of debt and ultimately into over-indebtedness due to unforeseen life events, not only a high degree of discipline is required to comply with commitments made, but also a far more important and always important aspect: who takes out a loan and thus enters into commitments , should always find out in advance about the costs and the risks. This is the only way to ensure that those affected also create sufficient scope for unforeseen expenses.