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Debt restructuring of real estate loans.

by admin

There are always times when you had to accept very high interest rates when financing your property. If there is a relatively low interest rate again, you should think about a possible debt rescheduling as a real estate financer. So that a low interest rate phase is not missed and the follow-up interest rate phase suddenly ends in a high interest rate phase, we have already proposed hedging with a forward loan. This option for follow-up financing can be secured when the contract is signed. In all other situations, a corresponding calculation must be made to determine whether rescheduling makes sense in the prevailing situation.

Basically, however, it can be said: Within a fixed interest rate, it makes little sense for a real estate financier to reschedule. This only makes sense if it has been designed for a period of more than 10 years. Because here, according to German legislation, every borrower has the right to repay the previous loan in whole or in part with a period of six months. A debt restructuring can therefore make sense here. If the loan is below this deadline, the real estate financier is not only dependent on the accommodating of his lender, but can also be replaced by a hefty payment of a prepayment penalty.

Fixed interest rate for the construction loan

Fixed interest rate for the construction loan

If, on the other hand, there is an end to the fixed interest rate for the construction loan, then it is easy to reschedule or even switch. Interested parties should not let their bank urge them to stay just because they are told that the change would result in extremely high fees. In most cases, the opposite is the case, because what is ultimately saved through a change is often less than what would have to be paid in fees. Interested parties should therefore not put too much pressure on themselves, but rather analyze the market in good time. Many banks, on the other hand, still rely on the inactivity of their customers and ultimately remain winners only because they offer them completely overpriced offers for follow-up financing. Therefore, use - if necessary - the rescheduling to another lender.

Debt rescheduling or follow-up financing can be carried out for land, condominiums, semi-detached houses and terraced houses, for apartment buildings as well as for one and two-family houses and of course for residential and commercial buildings. In the case of debt rescheduling and follow-up financing, in addition to the commitment fees, there are also partial payment fees in the event that the committed loan is called up later or in partial amounts. There may also be corresponding valuation fees in the event that the lender appraises the property.

If you are on the way to cheap follow-up financing, you should always pay attention to the seriousness of the respective provider. After all, what use is the most tempting offer to the future follow-up financier if all of the financing ultimately leads to the debt trap? So before the final decision to sign the contract is made, prospective buyers should examine an in-depth comparison of the various offers on offer, including a small print, of course. Appropriate follow-up financing can be found very easily on the Internet thanks to global networking.

The pros and cons of debt restructuring

The pros and cons of debt restructuring

As already mentioned, debt restructuring within real estate financing can be rescheduled in two different ways: one is rescheduling when the previous agreement expires, the second is early rescheduling before the previous fixed interest period has expired. A debt rescheduling in the area of ​​mortgage lending is therefore always pending when the fixed interest rate has expired. Borrowers who have agreed on a variable interest rate, that they can use this loan all the way up to full repayment of the loan amount without rescheduling the advantage. In the case of a fixed interest rate agreement, on the other hand, the borrower has the option of deciding whether to extend the loan at the existing conditions or to transfer it to another bank. If the lender is switched to a new loan offer, there is real debt restructuring.

Who wants to make a premature debt restructuring, has, however, that the bank does not have to agree with this commutation the problem. Such approval is almost always granted, but only at a high prepayment penalty. If you do not take this cost factor into account, you may not be able to drive your new interest rate more cheaply, even if it should be cheap. However, this can be avoided by not canceling the loan, but instead applying for a forward loan to replace your old loan. Here the borrower has the decisive advantage that he does not have to cancel his loan, rather he already sets the debt rescheduling for the future. At this point, however, it must also be mentioned that a forward loan can also prove disadvantageous.

This is the case if the interest rates remain at the same level or even fall until the forward loan is drawn. Because a forward loan is only suitable in the event that interest rates will rise significantly in the future. Therefore, before an interested party decides on certain loans as part of a mortgage, a comparison of interest rates should be advised. Because even even the smallest differences between the providers themselves leading in most cases to an enormous savings potential with regard to the applied rates. Interested parties have the opportunity to do this using an interest calculator on various internet platforms. However, if you want to compare interest rates, you should still make sure that the provider also delivers well-founded comparison results.

The interest rate should serve as an interest comparison, ie the comparison should make use of the effective interest rate, since the nominal interest rate does not include costs, fees or repayments. Likewise, there are two types of mortgage interest rates to consider. These differ in the duration of their fixed interest rates. On the one hand there is the interest rate for a variable loan, on the other hand there are different interest rates for fixed loans. Reason: With the duration of the fixed interest rate, the interest rate that the lending bank then demands for the fixed-interest loan also increases accordingly.

I settled my debts. How not to get in debt again?

by admin

If you are reading this text it is because you may have already tangled up with the bills and know how hard it is to get into debt. The collection calls at any time of day, the difficulty of getting credit in the square and finally such an unpleasant feeling that makes you swear to your feet together that you'll never fall for it again! But, behold, you settle your debts, and after a few months the finances are no longer there. Sounds familiar? Learn how not to get in debt again.

For those who answered yes, do not feel guilty. Instead, think that if you got into debt before, it's because something went wrong with your financial planning. So the time is to roll up your sleeves, plan yourself, and figure out what you can do to close your accounts this time. Here are 5 tips that will help you stay out of debt again.

1. Know how much you earn and how much you spend not getting in debt


It's not a matter of being good or not in math. For most people, one of the biggest challenges in finance is understanding how small coffee spending turns into meaningful spending at the end of the month, or how the salary you were supposed to give for the whole month was cut short by the 15th.

To come up with an answer, there's no way: you have to record your income and expenses. If you have never done this before, our tip is to start with a monthly expense tracking spreadsheet in Excel (see our post on getting started). Another alternative is to bet on spending control apps like Organizze and Mobills. Be that as it may, the rule is clear: your revenues must always be greater than your expenses.

2. Have an emergency reserve not to get in debt


Spending less than you earn is critical, but not enough to keep your bills up to date. In addition, it is also very important to have an emergency contingency reserve and not get in debt again. After all, what if someone in your house loses their job, for example?

According to experts, the amount of emergency reserve should be equivalent to your basic expenses for a period of 6 months. To add this amount, use the spend sheet, which will help you see how much is left in your account each month, as well as to identify where you can “wipe” expenses. Ideally, stipulate how much you can save each month and set aside that amount as soon as your salary falls into account.

3. Research Investment Options

Where to save the emergency reserve money? Savings, of course, are always an option. But if you want to make your money pay more, you might want to look for other forms of investment. In the case of emergency reserve, a good alternative is to invest in Selic Treasury. With income greater than savings, it can also be withdrawn at any time, is tax exempt and allows you to make monthly deposits so you don't get indebted.

When choosing an investment, consider three main factors: yield (how much you get for the investment), risk (the likelihood that the return will be less than the amount invested) and liquidity (the ease with which you can withdraw your money). Research alternatives and make separate investments for different situations!

4. Make plans for using money


Have you ever stopped to think that money is not a purpose but a means? In other words, we usually don't want to make money just for the sake of it. Our goal is to put dreams into practice, live new experiences, among other good things that money brings. This is why it is so important to have definite savings plans so as not to get in debt.

After all, if I don't know what I want to do with money in the future, what is the point of not buying a new outfit or having a beer with friends at the present? So put your dreams on paper and calculate the value needed to make each one come true. Then determine how much of your salary you will allocate to them, thinking about the time it will take to reach the full amount.

Remember that goals don't have to be dramatic or long term. They can be as simple as saving for a weekend on the beach or buying a new appliance.

5. Think about how you can increase your earnings so you don't get in debt.

When talking about how not to get into debt, it is normal that the first recommendation is to save, because this way, you only work with what you already have. But what about when you've already wiped out all your expenses, sacrificed leisure time, and still can't make an emergency reservation?

In this case, the only way out is to look for ways to increase income. You can look for a placement in another company, try a promotion, participate in free courses that can add value to your resume, start selling a product, etc. Here on Pay First Credit's blog, you will find several tips on how to earn extra money.

Lastly, if you have your own business, getting a good loan can be very useful for investing in modernizing your business and thus increasing your revenue in the long run. In addition to finding an advantageous credit option, the key to success is to know very well what you want to do with the loan money and how much it can bring back. Enjoy that you are on our platform and order now a loan here not to get in debt again.

I’m in debt! And now, what do I do to solve my problem?

by admin

For those who think "I'm in debt" and soon feel a cold sweat, our first tip is to stay calm. Debts are synonymous with despair, but we explain that you can renegotiate them and get out of the red.

No one is immune from making some debts. However organized you may be, there may be a slip here, an overspending there and that's it: you're already in debt. If you can repay these debts very quickly, do not hesitate to do so. But otherwise it is possible that they only increase, increase, increase ... So, what to do?

No need to be desperate! A beautiful and widely used alternative is debt renegotiation. With a few tips, you can take a breath and better organize yourself to get out of debt.

Are you in debt? Get organized!


Before making any decision, you need to know: How much do you owe? Separate your paper, pen, or Excel spreadsheet and start recording absolutely all your debts, however small. That way you can get an overview of what the situation is and move on to resolution.

Still in this flow of spreadsheets, take a look at your monthly budget. We teach how to make one here, take a look. So you also have a sense of how much of your income can be used - or not - in the discharge process.

Prioritize payments


Setting priorities is very important not to get lost in which debts to pay off first. If you have a choice, choose those that are tied to the house or car - so you don't risk losing those staples to the bank.

Choose your strategy and clear all your doubts. When it comes to negotiating, it is worth asking everything: if cash is discounted, how much interest will be added if the amount is paid in installments, how long the situation will be settled, if you receive a letter of discharge. It is important to make everything very explicit so that there is no communication noise later.

Set aside a portion of your income for these payments, but not much. In desperation to get out of debt, we may end up making new ones and getting into a snowball. Ideally, this should amount to a maximum of 30% of net income - more than that can hurt your budget.

Avoid seeking easy credit and falling for scams

In desperation, we may end up resorting to so-called miracle alternatives, such as easy credit or products that promise to help you. Be very careful! These options may have implicit rates that will hinder you more than solve your problems. You better get organized and try to stop being in debt with larger installments than resort to immediate solutions. Be aware that some lenders renegotiate up to 80% of your debt, so no hasty decisions.

That said, also pay attention to discounts. Always pursuing the lower values ​​is excellent, but it is better to pay a higher value if the discharge time is shorter. The idea is to get rid of it as quickly as possible and without spending too much on debt.

After all the alternatives you are still unable to pay off your debts, consider getting a loan.

It is an alternative that also involves expenses, but with lower interest and more affordable rates. It's preferable to swap that bunch of interest, fees, and huge fines for smaller loan amounts.

Are you in debt? Astro Finance helps you!


If you don't know what type of loan to apply for, come talk to us! Astro Finance specializes in finding the loan that best fits your needs, and the best is that it's free. A good thing to be reading, isn't it? Negotiate your debts and get out of the red: This is the first step to investing in healthy financial stability.

Personal Loan FAQ for Financing

by admin

When the economic crisis hits our pockets, we get aimless, don't we? However we see a light at the end of the tunnel when the opportunity to make a personal loan to negative. That is, having a personal line of credit even with the dirty name. But first you need to evaluate your entire financial problem before making any decisions.

Most importantly, in your financial planning, it is clear

money loan

Which bills will be paid if your personal loan is approved. Financial institutions often tend to be more careful in releasing credit to a customer who has a compromised name. However, this does not mean that your request will already be automatically denied.

But if your request is approved, please be aware that the interest rate tends to be higher compared to other rates applied to loans for people without limitations in the square. Still, many people are looking for a personal loan for negative loans, as this option becomes a great resource for those in a difficult financial situation, and is seeking urgent credit to repay their debts.

Another good reason to apply for a personal credit is to be able to get the name off PCS / SAROSA, since with the clear name the loan rates drop sharply. This is because the bank or finance company begins to see you as a good payer. Thus, your profile acquires a lower risk of default.

Many customers wonder why being negated ends up generating above average interest? Well, this is because the bank recognizes this customer with the highest degree of default risk. And to compensate for this factor he ends up asking for a higher rate to offset the risk.

The following are the most frequently asked questions about personal loan for negative to answer some questions.

What is the best way to pay me off my debts?

The best way is always to organize your spending and try as hard as possible not to default again, but if this has happened for some reason the best thing to do is to look for the institution / company where the debt was generated and try to make a negotiation to get it. pay off the debt. When the client tries to negotiate his debt with the lending company both sides come to an agreement. The name and document (in the case of individuals, CPF) are taken from credit restriction sites within 3 business days.

However, it is important that this negotiation be honored with the due payment. That is, work on your home planning and make an affordable financial negotiation. One option for this type of deal would be to opt for longer installments with smaller installments. But that you can pay over time. Having done that is much simpler and cheaper to take out a personal loan service for negatives, rates fall, making interest rates cheaper.

How Does Online Query Work?

Hit the doubt and would you like to know if your name is dirty or not? Count on Boa Vista PCS, where you can view for free through the site if you have any financial backlog. With a quick and convenient access through the online portal you can register and have a login and password, then with only your social security number you can see your profile in the market.

Knowing the status of your name is very important since applying for a loan our partners with the credit protection agencies analyzing the existence of pending issues and their payment behavior in the market. So if you have a dirty name do not try to hide this information in your registration, as all our partners can verify later.

Can I Make a Loan Even Being Negative?

money loan

Yes! But your chances of getting an approved loan will be lower and with higher rates. However, it is possible to place an order even if it is negative and direct this money to clear the name. This way, when you apply for a new personal loan, the rates are lower and most banks and financiers can accept your profile.

There are currently 2 credit categories for negative interest rate negatives:

Secured Loan: When the customer can place their home as collateral loan.

Car Loan Guaranteed Loan: This is possible if the person has a car or truck paying off, and can place one of the two as collateral.

How to Calculate How Much a Capital Loan is Needed

by admin

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 admin

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.

Advice on loans and financing.

by admin

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.