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What are credit holidays and when can you take them?

Credit holidays mainly apply to mortgage loans, although people with cash loans can also apply. Only those who have paid their debts on time will benefit from credit holidays.

 

Credit holidays – what are they?

Credit holidays - what are they?

Credit holidays are an arrangement agreed with the bank (based on a separate document) to skip one (less often several) loan installments. However, this is only a temporary suspension of debt repayment, so it should not be confused with its cancellation.

Detailed conditions for credit holidays are set by the bank where we received the loan. When you apply for a credit vacation also depends on the particular financial institution. Sometimes it is enough to do it a few days before the anticipated problems with repayment, or at least a week in advance.

To be able to take advantage of credit holidays you must submit an appropriate application to the bank. The prepared document should contain information such as: 

  • our personal data, 
  • bank details in which we apply for credit holidays, 
  • description of the commitment that we want to suspend, 
  • our signature (it must match the one on the credit agreement).

Sometimes the bank may require us to justify the application and additional approvals (e.g. to collect a commission for suspending loan repayment).

 

On vacation only with the consent of the bank

On vacation only with the consent of the bank

Even if a bank has a credit holiday in its offer, this does not mean that we can “go” on it arbitrarily (the bank will treat it as a delay in repayment and will draw certain consequences for us, e.g. accruing interest for late payment). Therefore, if we recognize that in our situation credit vacation is a good solution, we must ensure that the formalities related to it.

First of all, we should find out if our credit agreement contains a provision about the possibility of using credit holidays. Secondly, as we have already mentioned, it will be necessary to submit the appropriate application to the bank. Thirdly, after providing all the documents, we will have to wait for the bank’s decision. Only when the financial institution has granted our request will we be released from the need to pay one monthly installment.

Credit holidays in each bank will look slightly different. In one we will have to submit a request for a special print, in another it is enough to “just” present such a request in writing.

The issue of suspending installments also looks different. Here, depending on the specific institution, we will either be able to “rest” from the entire installment, or only from its capital part (it will be added to the next installment, or spread over the remaining installments).

It is also worth paying attention to the time after which we can apply for credit holidays. This is usually possible after paying 6 or 12 (again depending on the bank) installments.

 

Credit holidays and grace period

Credit holidays and grace period

Each installment repaid under the loan consists of the principal and interest parts. The grace period will reduce the monthly installment by only the capital part. The interest part will still have to be paid within the time limit provided for in the contract.

Regardless of whether we are talking about a grace period or credit holidays, a liability that we will not settle now will pay us later. Detailed terms of repayment of our debt can be found in the loan (or loan) agreement or the regulations of the institution.

When analyzing the rules on which we can apply for credit holidays, it is worth paying attention to whether they relate to bypassing the entire installment or only part of it. It is also important how we will have to settle the suspended payment at a later date. You should also understand the fees associated with taking credit holidays. In some banks it will be burdened with only a small cost option, in others we will have to pay dearly for this “pleasure”.

 

Credit holidays are not for everyone

Credit holidays are not for everyone

Unfortunately, not everyone can “go” on credit holidays. Banks give this possibility only to those who have paid their installments on time. It is worth keeping this in mind from the first days of the contract, because you never know if you won’t have to use this option. Thus, credit holidays for some may be an additional motivation to pay their debts on time.

It is also worth knowing that we will not receive credit holidays at every bank. Whether a given financial institution offers them depends on its internal policy. Therefore, before we decide to take a loan, we should check whether we can take advantage of credit holidays where we plan to take it.

 

Are credit holidays worth it? Summary

credit loan

Credit holidays consist in postponing a month of repayment (in whole or in part) of your liability. Some banks allow you to suspend repayment installments even once every six months, but most limit this option to one or two times during the entire loan period. Therefore, it is good to think about it when we take advantage of credit holidays and choose a moment of “rest from credit” in which it is really necessary for us (and our budget).

Although credit holidays can be helpful when you are struggling with financial problems, be aware that this is not a free lifebuoy. Information about the costs of credit holidays can be found either in the loan agreement or in the table of fees and commissions of a particular bank.

As a rule, the cost of credit holidays depends primarily on the current interest rate on the loan and on (though to a lesser extent) how many installments we still have to pay. Subsequent repayment of the temporarily suspended installment takes place either by increasing the amount of subsequent installments or by extending the loan period. An overdue installment can also be added to the last installment at the end of the loan period.

Let us remember that credit holidays will not help us solve long-term financial problems.

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Installment loans

Installment loans online -Easy installment loans online for you

Picking an installment loan can be a great way to get the money you need to cover emerging expenses, necessary for day to day maintenance or to invest in your long-term potential. The problem with loans is that you have to manage how much you are lending, what your margin for new loans is and still have to keep the payments of the installments within safe parameters so as not to jeopardize your income.

However, using personal credit or borrowing an installment loan can significantly increase your purchasing power and financial well-being if used well. This translates directly into your ability to keep you and your family in top financial shape, even having to pay some cash value per month at interest.

The installment loan can be an incredible tool in your personal finance arsenal when used effectively. The term may sound unfamiliar, but you’ve probably used a loan installment before, and almost certainly know someone who makes use of the modality. Student loan, real estate mortgages, payroll deductible loan, an auto loan – these are all common types of installment loans.

Easy installment loans online for you

Whether you hire it at a private bank, or through an online lender, so many do, installment loans help you because you can pay for it over time.

Many events push people’s finances to the cliff of debts and defaults. These are usually emergency or unexpected incidents such as car malfunctions, medical expenses or even ecological disasters such as windstorms and summer storms. You can use your credit cards by default to cover these costs, but this can be very detrimental to your financial health, as we discussed in other publications credit card is the last alternative to use credit in an emergency.

1. Finishing higher education or vocational course

If you have educational funding or student loan, you already have more experience with installment loans than you would probably like. They are different from conventional loans because of the weights and the fully flexible repayment format.

2. Buying a home or property

Real estate mortgages are only home equity loans.

Unless you are Luciano Hulk, you are unlikely to have the money to buy a house in the sight of millions of dollars. If you do not have $ 600,000 or more in hand, mortgages turn out to be the long-term personal loan solution (usually 30 years maybe more) for you to get installments live comfortably.

3. Buying a new car

The loan for a car purchase is another common example of an installment loan or loan installment. If you do not have enough money to cover the initial costs of buying a car, installment loans help stretch your account income and money at the bank for up to 72 months.

4. Deal with an unforeseen event

Installment loans can certainly help you in covering unexpected costs and expenses. A parent may need help paying for surgery not covered by health insurance. Your car may suddenly stop working in the middle of the road or a trip, so many things can happen unexpectedly!

We can not always predict medical bills or car maintenance, but these problems can happen in the blink of an eye and wreak havoc.

Paying these expenses and costs in installments, allows you to keep earning money working. If you need to access credit quickly, it is worth checking out on online lending platforms. There are a lot of new lenders and alternative financing with online credit applications and quick and easy loans that will allow you to have access to cash within minutes.

5. Invest in your career or yourself

At the beginning of a career, you often have to invest in yourself. This may mean having to study at night or moving to a new city to get a job done.

Many of these expenses will require a small or large initial investment that normal people can not afford immediately. If you consider that these are good investments then you can use a personal loan (a type of installment loan) to get the start-up capital and pay it slowly over time.

Term loans may be better than other types of credit (such as credit cards and overdraft) because your interest rates tend to be much lower. While it may be tempting to put everything on your credit card, it is often a wiser financial decision to compare your credit options and ensure that you are not paying too much interest and additional fees.

Things to know about other types of loans

So, these are common examples of when an installment loan can be helpful to you. But how can you know that unsecured loans really are the best option?

1. Credit Cards: Easy and Expensive

With credit cards, it is really difficult to know how much you are lending and how much you are paying especially if you lose payments or pay the minimum. This can easily destroy your ability to repay the entire outstanding balance.

Many surveys show that people spend a lot more when using credit cards, as opposed to using cash or direct debit to the account. In addition, compound interest can trigger costs if invoices are not paid in full.

There are numerous credit options depending on your financial needs. It is up to you to consider and weigh carefully and ensure that your financial decision is the healthiest. No product will fit into all scenarios or preferences, but depending on the choice, some products can have significant consequences if they are not managed with care.

2. A loan with loan sharks: predatory fees

Loans with loan sharks can crush your financial life once and for all. Loans with private lenders are different from most installment loans.

In addition to the loan made with loan sharks, we also have the loan without consultation to the SPC and Serasa who does not make a famous name query. In the financial market, you also have access to the loan for negatives who practice interest unorthodox. It is also easy to find companies that offer loan with a dirty name.

All apply exorbitantly high-interest rates on loans, usually costs up to 19% per month of interest! The creditors of credit for people with restriction are incredibly strict with the repayment of the installments and with rates, often this type of loan further disrupts your debt cycle than it helps. You prefer payroll deductible credit.

Pick up a loan installment

Here at the Gregoire we are always relating and informing about all types of loans, from low-interest rates to higher interest rates, secured and unsecured loans and even risk financing for investors between individuals and companies.

Our tips are always aimed at borrowers adjusting interest rates according to individual factors and risk profiles. Always look for approval for an installment loan that you can afford, never get into debt that further increases your debt, this is not rational.

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Uncategorized

Reasons for refusal of your loan

Although each company has its own restrictions and can put more or less requirements when lending money, many of these policies are usually common. Thus, we are going to talk about the most common reasons that lead financial institutions to deny the request for a loan.

 

Borrower’s Age

Borrower

Some entities consider that there are ages that may have more difficulties when repaying a loan. They are usually too young or too old. If you are less than 23 years old or over 65 years old, in some cases it costs you more to convince the entity of your solvency

 

Bank account in your name

Although it may seem strange, there are people who pretend to get loans without even having a bank account in their name. However, if there is something that leads directly to a denied credit, it is lacking a bank account. No credit institution, be it traditional banks or modern companies that operate completely online, will approve a personal loan to an applicant who does not have an account in his or her name. Not only in traditional banks is one of the first things they are going to ask.

 

Insufficient, irregular or unprovable income

Insufficient, irregular or unprovable income

Financial institutions need to make sure that you can meet the repayment of the loan you are requesting. So, if they consider that with your current income you will not be able to meet your payment obligations, it is very likely that they will not approve your request. Not having a payroll does not make things easier, although it is possible to apply for some mini loans and fast credits online. As long as you can justify some kind of income – sufficient, periodic and demonstrable. A pension, unemployment benefit or proof of income tax, in the case of the self-employed, may be as valid as a payroll when assessing the applicant’s solvency level to know if he will be able to return the requested amount.

 

Default history

If you have previously had problems in dealing with a payment with a lender, it is very likely that your loan will be denied.

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Debt Consolidation

External consumer credit insurance

Yoabank

Yoabank

Founded in 1953 and a subsidiary of the PNM Saritase Group, Yoabank is a French credit organization specializing in consumer loans, a market in which it is the leader in Continental Europe. Yoabank now offers its customers all types of loans (real estate loans, car loans, consumer loans, etc.).

Provide consumer credit

Provide consumer credit

The realization of a request for bank credit to finance a property, the credit organization Yoabank offers you to subscribe to a credit insurance bank to insure your loved ones as well as your real estate assets: “Yoabank group insurance offer” You certainly know it but today, with the lagard law device you can freely choose your loan insurance offer and thus lower the cost of your Yoabank banking real estate loan.

Compare Pricing Consumer Insurance

Compare Pricing Consumer Insurance

Choose between a Yoabank guarantee and external credit insurance offers with the comparative credit insurance tool.

Consumer credit insurance delegation

Find out all the solutions to guarantee a loan based on your borrower profile with a loan guarantee untied

Yoabank: Redemption Insurance, Redemption Loan

Yoabank: Redemption Insurance, Redemption Loan

In order to protect you during the repayment period of your Yoabank loan repurchase, you will need to purchase borrower insurance. Thanks to the Cogilaw company, implemented on 1 September 2010, you are free to subscribe to your loan insurance with the insurer of your choice and can thus compete to opt for the best offer. By taking the time to compare offers, you’ll find insurance that will save you the total cost of your credit. Yoabank is a subsidiary of PNM Saritase. The trademark was created in 1953. Yoabank specializes in consumer credit. It is a reference for retail chains, banking organizations and insurance companies.

A broker for your loan buyback

By entrusting your needs to buy a loan to a broker and informing them of your financial situation, it will search for you the most advantageous offers that best meet your expectations. His strong network of financial partners and his strong experience allow him to negotiate the best contracts for his clients. By using a broker you will realize substantial savings on the cost of your loan buyback.

Compulsory insurance for a consumer credit?

You can negotiate loan insurance with your credit institution to save on your home loan insurance? The brokerage firm can calculate the rate of your credit insurance conso using its online loan insurance pricing tool to compare the contracts of major insurance companies.

Deal with unexpected expenses

Deal with unexpected expenses

Today, about a third of French households use a consumer loan to cover unexpected expenses, to finance the purchase of goods such as furniture, basic household appliances or finance studies…

Consumer credit gives some flexibility to the budget of individuals allowing them to make large and medium expenses to acquire goods, which they could not buy cash.

 

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Lender

Make a cheaper real estate loan redemption online.

 

 

Alleviate debts with the repurchase of mortgage

Alleviate debts with the repurchase of mortgage

Regarding any application for real estate credit, the financial institution makes a point of honor to check first the level of indebtedness of the borrower. This level of indebtedness is defined by an average rate of 75%. And when you reach a threshold of excessive debt, it is wise to use a mortgage loan redemption to reduce its monthly payments.

Repurchase loans to reduce monthly payments

In case of accumulation of debts choking your budget and limit your spending to the daily, a real estate loan redemption will be very useful to rebalance your budget balance. The real estate loan buyback allows all individuals to pay their debts by grouping them into one and the same loan benefiting from lighter monthly payments, a lower interest rate and a longer repayment period.

Repayment facilitated with the repurchase of loan

Repayment facilitated with the repurchase of loan

The loan buyback, which can include any type of credit, therefore allows the borrower to improve its terms of repayment in order to regain a certain balance in its financial capabilities on a daily basis.

Loan purchase

The repurchase of real estate loan makes it possible to reunite the credits of a borrower, established at a single fixed rate on a new period of refunding. A loan agency buys your loans and especially your mortgages.

Get your mortgage at the lowest rate

To get the best buy back of real estate credit, you have to compare the offers. Whether you are buying a home equity loan or a real estate loan buyback with various credits, compare the rate, amount, duration and fees. Make the total of the monthly payments, the capital remaining due, the amount of your debts, the amount of free cash. You will thus have all the keys to check if a redemption credits is interesting, and if so, which one.

Purpose of repurchase of mortgage

Its assets are numerous:

  • A lower monthly payment
  • One and only organization
  • Easy management of your accounts

Best Offer Redeeming Real Estate Loan

Best Offer Redeeming Real Estate Loan

When you want to apply for a buy back of loans, do not hesitate to play the competition between several financial organizations in order to benefit from the best offer of redemption possible. Also, it is interesting to use a broker who will be able, thanks to his experience, to negotiate for you the most advantageous offer.

  • real estate buyout
  • mortgage repurchase
  • zero rate loan redemption
  • borrowing redemption simulation

 

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What type of savings account can I start saving on?

Learn how saving is not difficult . Sometimes you just need to open a savings account to get closer to the dream of having that fund that allows you to study, travel, get together to buy your first apartment, etc.

For those who do not have financial experience, opening a savings account can raise different questions. In this note we teach you more about the subject and we give you the tips you need to know to choose among the best savings accounts .

What is a savings account?

What is a savings account?

These types of accounts are the best alternative to save money and are usually more flexible than a checking account where there is usually a collection of taxes for some transactions.

One of the benefits of savings accounts is that they help you get profitable. Unlike fixed-term savings accounts , simple savings accounts allow you to have your money available at any time.

What benefits does a savings account offer me?

What benefits does a savings account offer me?

Savings accounts allow you to earn interest for the money you have deposited in them and most of these types of accounts do not charge commissions. Many savings accounts can be opened from scratch soles .

How do I choose the best savings account for me?

How do I choose the best savings account for me?

In order to choose the best savings account it is important that you consider different factors. If you will not use it only to save and you will have the cash in them, the ideal is that you choose a savings account in a bank that has agencies, ATMs, etc. near you.

The best savings account for you may be the one that is most practical. Check that it allows you to make transactions online (if you are one of those who carry out this type of operations).

Also ask how many free-of-charge transactions you have with the type of savings account you have chosen . So you can decide on the one that best suits your needs.

How to open a savings account?

To open a savings account you must approach the bank of your interest with the original and the copy of your identity document. Sometimes a copy of the service receipt is also usually requested. The latter is requested when your address is not the same as that of your ID.

We recommend that before opening your savings account you review the information that the SBS provides. Thus a bank with fewer claims from customers is usually a better alternative.

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Installment loans

Real estate credit insurance

Save on your mortgage insurance

Save on your mortgage insurance

The Furcem law, the Cogilaw Company system and the insurance code protect the rights of consumers in the area of ​​mortgage lending, you can today choose an individual loan insurance external to the lending institution to provide a bank credit: Simulate an offer comparative realistic Swiss credit insurance loan and join the insurance contract cheaper insurance broker of loan not expensive!

Insurance ready

Insurance ready

Founded in 1857, Swiss credit is the largest life insurance group in Switzerland. He is also a major player in life insurance in France, Germany and Luxembourg. Specialized in personal insurance, Swiss credit is the second largest private health insurer in France and the fourth largest in the retirement and provident insurance market. The group offers on its French site a complete range of solutions:

  • mutual health, life insurance,
  • savings, retirement, borrower
  • home insurance, auto, motorcycle.

Protect yourself with Swiss credit Loan Insurance

Benefit from the best guarantees with Swiss credit

Benefit from the best guarantees with Swiss credit

Since the implementation of the Cogilaw Company law in September 2010, borrowers have the choice of their loan insurance! It is indeed possible for you to choose your insurance contract from any insurer and thus opt for the offer that will present the best performing guarantees at the lowest rate.

Compare Loan Insurance: Swiss credit

The use of an online credit insurance comparator allows you to view many insurance offers to direct you to the formula that best meets your needs and expectations. By opting for the cheapest insurance offer, you will be able to save several thousand euros on the cost of your home loan compared to the bank’s offer.

Entrust the negotiation of your loan insurance to a broker! The broker insurance of loan not expensive can negotiate for you very advantageous conditions and save you a lot of money on your immo loan.

Equivalent company guarantees recognized by financial institutions

  • Dedicated management of your loan insurance
  • Current rate: compare other companies
  • Insurance for all borrowers

Act Cogilaw Company law to take advantage of the opening of the market

Free choice of your borrower insurance, bankers must now respect the right of borrowers:

  • Accept the delegation if the offer offers equivalent guarantees
  • Clearly state the reasons for the denial of external assurance
  • Do not change loan conditions increase rates or fees.

The Cogilaw Company law is for borrowers an important advantage for the negotiation of the loan insurance rate, the loan insurance market is experiencing a profound change and sees the arrival of new players and competition between all insurers.

Furcem Law: Break the insurance of the bank loan

Furcem Law: Break the insurance of the bank loan

  • Article Furcem Law Article “L312 1 2” prohibits “credit/insurance credit group sales” the mere mention of the law to a banker will encourage him to accept the proposed Swiss credit loan insurance delegation.

The bank can no longer impose a credit increase if you choose to insure your credit with an outside insurance company; it can even be penalized. “Borrower guarantee” solutions with Swiss credit Insurance. Conduct a study using the insurance calculator loan and subscribe to the contract that will ensure the coverage of the loan throughout its duration!

Swiss credit Loan Insurance Delegation

  1. Realize a realistic comparative simulation
  2. Receive an insurance offer
  3. Make a contractual offer with a consultant
  4. Join your contract during the day (under condition)
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A lifetime loan in Hans Clint

A lifelong loan, despite the fact that this has been well known in the Anglo-Saxon countries for almost half a century, this has only been known in Hans Clint since 2006.

The system was legalized in the fall of 2007 when Parliament gave its approval with the amendment of Law 41/2007 to the Mortgage Law of 1981.

A lifelong loan is interesting for people who own a property with a large financial value but who have a shortage of financial resources.

 

What is a lifelong loan?

A lifelong loan is in fact a reverse mortgage, a “Hipoteca Inversa” in Spanish and it is a special loan for older people (+65 years). It allows owners to convert part of their property into money and the loan does not have to be paid back during their lifetime.

The borrower retains full ownership of the property and one can therefore continue to live there until one passes away. Once the two owners or the owner have died, the loan plus the interest must be repaid by either the sale of the property or the repayment. by the heirs. The loan can be taken out in its entirety or the loan can be paid in parts. The older one is, the greater the amount that can be paid out in full.

At no time does the borrower owe more money than the pledge is worth, even if the remaining debt is higher. This means that it is sufficient to leave the building at the time of death.

 

Who is eligible for a lifelong loan?

money loan

In Hans Clint, according to Law 41/2007, only persons older than 65 or persons in possession of a medical certificate are eligible for such a loan.

 

Benefits

money loan

Financial turmoil on a global scale as we have recently experienced can ultimately lead to savings in pension spending by governments.

Only relying on a government pension is therefore a risky business because one cannot foresee the amount of his pension yet the age at which one can retire.

For example, the Spanish government has raised the retirement age to 67 and reduced the retirement amount. Moreover, the government has already announced that in the near future the retirement age will be increased again by three years and will therefore reach 70 years. It is in those situations that a lifelong loan can offer a solution.

  • One should not repay this loan during his life. Unlike a regular mortgage, there are no monthly repayments. If a couple chooses this form of loan, the loan must be paid back after both have died. It is therefore the heirs who are responsible for the repayment.
  • You can choose to receive the total amount in one go or you can opt for monthly payments or even for a combination of the two.
  • There are no restrictions on the withdrawal of the money. You can also use the money to make a big trip.
  • You yourself still your heirs can be held liable for a higher amount than contractually agreed. According to the law, the maximum loan can never be higher than the value of the property.
  • A lifelong loan provides financial security and the loan can supplement a state pension. Not everyone can afford to subscribe to a private pension plan.
  • A lifelong loan allows you to remain the owner of your home and you can continue to live there. According to the law, one cannot lose the property.
  • A lifelong loan does not depend on your status, there is no income requirement.
  • The older you are, the more you can borrow.
  • A lifelong loan is ideal for people without heirs or for people who have problems with their heirs.
  • You can even sell the property but you have to pay back the loan yourself.

 

Cons

money loan

The biggest problem is usually the heirs. Those who have to inherit from you are the most reluctant to have a lifelong loan. The reason is simple: a large part of the inheritance is provided for the repayment of the loan upon your death. In extreme cases, none of the legacy remains for them.

  • The biggest disadvantage is the interest charged. If it is very high, the heirs will inherit little or nothing.
  • With a lifelong loan you will always receive less money than with a normal mortgage, but you have to add another monthly charge there.
  • There must not be any other charges on the property. For example, if there is still a mortgage, the transaction will not be able to continue. Another problem may be that the mortgage has been paid off but that it has not been canceled on registration.
  • A person must be 65 years old to take out a lifelong loan and there is a good chance that this age will still be raised.
  • The younger one is (close to 65 years) the less one can borrow.
  • You have to pay from your own pocket for the valuation of your property, otherwise nobody will make the money available to you.
  • The maximum amount of the loan depends on the value of the property and your age. This amount is normally only a fraction of the total value of the home,
  • A lifelong loan is taken out at your permanent residence. One must therefore stay in this house the entire year. The logic behind this is that the borrower wants to keep the property in good condition. A home that is not inhabited does not remain in good condition.
  • Following the previous reason is that one can no longer rent.
  • If you have to leave the house for a long time, the loan may become due.
  • If you take out a lifetime loan, it is best to provide in the contract how to proceed with major maintenance costs and taxes.

 

Conclusion

money loan

Retiring nowadays is like playing a game in which a party regularly adjusts the rules. Governments now say that this is how it should be today, but tomorrow may be something else.

A lifelong loan can be a good option for you and your partner to have an extra income that allows you to live more comfortably once you have retired.

In any case, seek advice from a specialist.

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Uncategorized

Debt collection: Is it possible for the relationship to remain?

Debts are annoying, frustrating, and hurling. No matter which side we stand on. On the basis of my observations, we can say with great certainty that the entrepreneur of today’s age faces at least one time in the course of his operation that one of his customers, clients and partners does not settle the invoice within the given deadline.

The question is, what can we do to recover our receivables, but the relationship is not irreversible.

Effective recovery starts already when there is no debt

money loan

Did you know that the effective recovery of your debts often starts before the actual debts? Does it seem incredible? But this is true. No matter what kind of ammunition we have, we can work. The fewer the well-thought-out and legitimate tools in our hands, the greater the likelihood that the expected result will be missed, the relationship will be irreparably damaged. It certainly wasn’t the purpose of doing business with his client. Think about how much you have worked to build a relationship to get your customer. It would be a pity to lose it just because at the beginning you didn’t think anyone could get into a difficult situation. I am not saying to assume that you will not want to pay later. It’s not about that, because if you feel that way, you shouldn’t go into the business and save yourself from disappointments.

A word, like a hundred, is a precursor to recovering debts.

What preventive steps will help you recover later?

The first and most important thing is to have an appropriate contract between the parties. Because a contract can be created not only in writing, but also orally, so there is always a contract between the parties. The only question is how easy it can be proved later, and how clear it is to determine who, why, when and how much to pay. Because debt collection is harder to recover, the fewer clearer conditions that both sides have previously agreed. It is not at all irrelevant whether we can refer to a written contract or an oral agreement stamped with handshake.

Before you think that a client candidate runs away, if you put a contract in front of your nose, you should consider the situation. The contract must serve and protect the interests of both parties. In this way, it is possible to avoid later surprises, the “I do not understand” objections that not only make recovery difficult, but also damage the relationship.

If there is no other, at least have a written order and one answer.

Although this does not cover all the details, it is definitely better than an oral agreement.

money loan

In the contract, we can also lay down safeguards that can not only help recovery, but may also precede the debt. A client with a liquidity problem will consider how much it will hurt him if he doesn’t pay. For example, a properly defined default interest is not a negligible aspect. There are other options available that can be taken into account in an appropriate contract preparation process.

If we want to keep our customer relationships, then human communication must always be at the forefront. That is, it is not advisable to strike the hardest tools of the law in the first 1-day delay, although this is not the case. Rather, it is the opposite of what is often observed. It is neither good nor even detrimental to the chances of recovery if you do not take appropriate legal action for too long. But what can we do if we do not want to be too hard, but is efficiency important?

It is not worth to wait without a word. If the customer just forgot about the payment deadline, be sure not to take the wrong name, if we kindly remind you, we ask if the invoice was successful. However, if the payment is not received because the customer is in “financial trouble”, the better you see it as soon as possible. In such a case, many people do not choose what they are paying for and what they do not, but on the basis of their feelings. That is, they try to “get away with it” as long as they can, so they pay for those who are not just waiting quietly.

After a while, the phone, the interested e-mail?

It is time to take things a little more seriously. The payment request may follow. This will be sent in writing to provide you with the necessary torque and to provide a good basis for a controversial situation later on. You can also have a polite tone in your payment request, but be factual. We tell you how much the debtor is entitled to by the contract, what the payment deadline was, how long he has been late and what other obligations have arisen for this, ie how much the default interest or the cost to be paid is. Notice that we will send the letter to the correct address. If this is not specified in the contract, the debtor’s domicile, in the case of a private individual, is the permanent address. In the notice, let us also set a deadline for settling the debt, but this should not be too long.

In vain, the debtor still does not pay?

The recovery of legal claims will sooner or later require the use of legal instruments that can help to resolve the situation If we have already tried kindly, with interest, we have sent out the factual notice, and yet the amount is not received, it is time to face the issue more seriously. situation. At this point it is advisable to ask for legal assistance and to discuss the possibilities with a lawyer. This may result in non-litigation or court proceedings for issuing a payment order.

Legal options alone do not guarantee full success in every case, because if a debtor does not have the money, he does not have to recover from it. However, it does not matter how long we wait when we enter the line of creditors.

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Lender

Why a credit redemption is more advantageous the first years?

How is the repayment of interest distributed throughout the loan?

How is the repayment of interest distributed throughout the loan?

The vast majority of mortgages are amortizable. The peculiarity of this type of loan is that the maturities are identical throughout its duration. This distribution of interest has the effect that the monthly payments of the first years only reimburse a small part of the capital in exchange for a large part of interest.

Take the example of a loan of 150,000 euros over 15 years at a rate of 1.5% (excluding insurance) with monthly payments of 931.11 euros. The interest share breaks down as follows:

  • 1 st year: 180 euros/month
  • 6th year (same monthly payment amount): +/- 100 euros

The purpose of a loan buyback is essentially to take advantage of lower interest, it is strongly recommended to use it in the early years of its loan to achieve real savings and buy the mortgage at the best rate.

Credit buyback: savings for sure?

Credit buyback: savings for sure?

To find out if your credit redemption is financially attractive, factors other than borrowing rates should also be considered:

  • Compensation (IRA or PRA) for early repayment. For a home loan the indemnities amount to 3% of the outstanding capital, capped at 6 months of interest. Since the Cogilaw Act, IRAs can also be applied to depreciable consumer loans, beyond a threshold of 10,000 euros of prepayment per 12-month period;
  • Application fee;
  • The cost of raising the potential mortgage related to the old credit and the fees of the one required with the new loan.

How to get a credit redemption easily?

How to get a credit redemption easily?

Many organizations offer credit buy-back offers, each with its own acceptance criteria: maximum debt ratio, amount of household tax income, as well as the balance to be lived after deduction of the new monthly payment, etc. To know which one to choose according to your profile, do not hesitate to consult the opinions of consumers and to make play the competition.

To lower your monthly mortgage payments, also consider the borrower insurance change. The Cogilaw Company allows you to subscribe whatever you want, so play the competition!