Some tips to help pay payday loans

Each of us may experience a misfortune that will result in the loss of a large sum of money. For someone who has no creditworthiness, often the only solution is parabank loans, or payday loans.

However, this is only short-term help that can cause us to fall into a spiral of debt. The first step towards debt relief should be a firm decision that you will stop taking further loans.

You must stop borrowing and stop buying in installments

You must stop borrowing and stop buying in installments

Avoid using credit cards and debits in your accounts. Calculate how much you spend on interest during the year, the result may shock you, but also motivate you to act. It is also worth doing a community interview and finding out what can be done legally and what is not allowed.

Practical advice when paying back payday loans is not to pay any extensions in the absence of funds to pay back the loan you have received . Remember that you have no such obligation. The only effect you may have if you do not pay the extension is to charge interest for the delay.

It is much more profitable to regulate interest than to pay for an extension. Interest for every PLN 100 (as at July 21, 2014) may increase by PLN 16 per year . In turn, the average cost of extending a PLN 100 loan for a month is about PLN 20. After a year, this gives PLN 240, i.e. PLN 224 more than the maximum value resulting from legal regulations.

This trick is often used by companies offering payday loans

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In fact – along with the cost of recovery – is the basis for earning them. How not to extend the loan? You should not make any statement about your intention to extend the repayment period.

Therefore, do not log into the online system of the loan company and choose the option of extension, in the telephone conversation that the loan companies perform several days before the repayment date, you should not agree to the extension and you should not respond to SMSs with information about the extension offer.

The downside of such a solution is that in such a case there is a delay in payment, which may result in additional debt collection costs and even going to court.

This fact affects the cost of the loan

This fact affects the cost of the loan

Detailed terms of the offer and contracts with loan companies may, however, mean that the effects of the delay will be different than described above. Fortunately, it is possible to challenge debt collection expenses that are set too high. These costs are limited in the light of case-law, and companies often specify them in any way, e.g. PLN 300 for sending a written request for payment.

According to the jurisprudence of the Office of Competition and Consumer Protection, the cost of sending a written request for payment in the amount of PLN 20 is too high, and if the creditor charges such costs, we have no obligation to pay them. However, we will have to pay the cost of debt collection in accordance with the law.

Remember that getting out of debt related to payday loans will be a difficult, monotonous path, but regularity and solid organization will bring results!

Help in paying off the loan!

In 2015, an act appeared that guarantees help to those who have financial problems and are unable to pay back their loans.

Great! According to official information, the Borrowers Support Fund still has over PLN 600 million. Why do they not reach those who need help paying back the loan? Is the public sufficiently informed about this fact?

Few benefited

Few benefited

At the beginning of 2016, banks paid PLN 601 million to the account of Bank Good Finance. The obligation to pay funds to the fund was specified in the Act of October 9, 2015. It describes the rules for granting repayable financial support to natural persons obliged to repay a housing loan who are in financial difficulties.

The support is paid for a period not longer than 18 months in the amount of the capital and interest installments of the housing loan – not more than PLN 1,500 per month. The condition for receiving support is of course submitting the application to the bank where we currently have a housing loan.

It should be emphasized here that this support is not free. It is returned after two years of grace. The repayment lasts 8 years in equal and interest-free monthly installments. The borrower will be informed by post by Bank Good Finance about the support reimbursement schedule, installment amounts and the invoice number to reimburse the funds received.

What are the borrower’s obligations?

What are the borrower

In order to obtain support, the borrower should submit an application (at the bank in which he has a housing loan) by December 31, 2018. To obtain support, he must declare – under pain of criminal liability – in the application for: a) the existence of circumstances constituting the basis for granting support, including which of the prerequisites referred to in art.

clause 1, is the basis for applying for support, b) the conditions of all insurance contracts, on the basis of which he is entitled to unemployment benefit, including the date on which the period of payment of benefits under these contracts expires – in the event that he concluded the insurance contract repayment of the loan, guaranteeing the payment of benefits in the event of job loss, c) the coefficient expressing the relation between the amount of the installment paid for the housing loan and the monthly income – if the borrower applies for support pursuant to art.

3 clause 1 point 2, d) household income within the meaning of the Act on social assistance and the number of household members of the borrower – if the borrower applies for support pursuant to art. 3 clause 1 point 3. At the moment when the support was granted on the basis of art. 3 clause 1 point 1, which says that “the support may be granted if the borrower has the status of the unemployed on the day of submitting the application for support (…)” – the creditor sends information about granting support to the poviat labor office competent according to the borrower’s place of residence. Support may be granted in cases specified in Article 3 of the Act on support for borrowers in financial difficulties who have taken out a housing loan: 1) on the day of submitting the application for support, the borrower has the status of the unemployed, or 2) the borrower shall bear the monthly costs of servicing the loan housing in an amount exceeding 60% of the household’s monthly income , or 3) monthly household income, less the monthly cost of servicing the housing loan, does not exceed: a) in the case of a single-person household – the amount specified in art. . 8 clause 1 point 1 of this Act, b) in the case of a multi-person household – the product of the number of household members of the borrower and the amount indicated in art. 8 clause 1 point 2 of this Act.

Suspension of support payments

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Bank Good Finance may suspend the payment of support in the event of:

  • loss of unemployment status,
  • disposal of the subject of credit,
  • termination of the housing loan agreement (on the day the notice period ends),
  • taking enforcement action on the subject of the loan (on the day of taking the first enforcement action),
  • loan repayment (on the day of paying the last installment),
  • increasing monthly revenues, lowering the monthly installment or reducing the number of household members (which does not meet the specific requirements for providing support, according to the Act).

Scam, phishing etc. Beware of scammers UK loans

Less and less often we are exposed to the fact that someone will attack us or take out the wallet from our pocket. With the development of the Internet, however, new types of financial fraud have emerged. Who is scammer and what is phishing? How to protect your credit card and bank account? We explain.

Unfortunately, but criminals are also moving with the times. They are constantly changing the way they act. However, they all have a common goal: to steal our money. Over the years, their method of operation also does not change. They use our carelessness and sometimes naivety.

The Internet has become their new field of activity

The Internet has become their new field of activity

Today, most financial operations are performed online. We will not run away from it. It makes life a lot easier for us, often opening new and previously unknown possibilities for us. It is thanks to new technologies that we can pay for a hotel at the other end of the world with a few clicks. We can also bring the thing we need from the other end of the world without leaving home.

We don’t have to go to the bank to make the transfer or to the post office to pay the bills. All we have to do is pull our smartphone out of the pocket. However, all this has its price. Banks are doing their best to secure our money, but sometimes it is very difficult.

Especially if we are careless. We will present the most common types of fraud on the Internet. How to protect your bank account? The Financial Conduct Authority (FCA) informs about the threats.

phishing

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This is the method of sending you fake emails. They are pretty similar to messages sent by companies you know. This can be e.g. a fake PayPal email. We are often clients of a given website or bank, so the message inspires our trust. The whole problem is that a scammer sent her. Such messages often ask you to provide your details. It usually sounds very credible, but you should always be on your guard in such cases.

Most banks never ask for passwords or other information by email. Therefore, just don’t do it. And if you really need to, or the email seems credible to you, then contact the company in question whether they actually sent the email. Check the hotline numbers on the website, never call the one from the email. Remember that the data you provide opens criminals’ way to your account.

They can also fake your identity and, for example, take credit on your behalf. It is also worth checking from his e-mail the message has been sent. Often the address does not even have the company name. On her page you can see the standard address.

What is a scam?

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Scam consists of sending a message in which you are most often offered some profit. There are different types. This is a big industry, which often has its headquarters on other continents. The perpetrators are therefore usually unpunished. Perhaps the most common type of scam are messages that refer to your feelings or your desire to make a profit. The former consist in the fact that an attractive person is writing to you. It could be an American general, a beautiful Russian woman who dreams of great love, or anyone else.

It is especially easy to be fooled if we actually have profiles on dating sites. What is significant for this type of message is that they are often written in broken Polish or English. We can delude ourselves that this is because the person is from abroad, but it is simply because someone in a distant country has used a translator. Such messages usually catch the heart. An inseparable element of them is, however, that after making contact you will be asked for financial support. And this for a flight to the UK, for a bribe for a visa, for an operation … The imagination of scammers knows no bounds. Similarly, with a scam that offers you profits.

An African prince, son of a billionaire, anyone can speak to you. He will always want to share his fortune with you, but he will always have a problem. For example, he will say that he must pay a bribe to an official, get to the place where he hid a bag with money, etc. Of course, he will need some help for this. Specifically yours.

11000 USD Loan

Conditions for a $ 11000 loan

Conditions for a $ 11000 loan

For example, a smart small car or a new kitchen can be financed with a credit of 11,000 USD. With appropriate credit, it is also no problem to obtain such a loan. Especially direct banks are currently offering cheap loans. However, before deciding on a particular bank, you should do an exact credit comparison. Below are three banks currently offering the most favorable conditions for a $ 11000 loan.

Targobank has long been known as a provider of cheap credit. So it is not surprising that she offers the cheapest conditions even with a 11000 USD loan with 48 months duration. Starting with an effective annual interest rate of 4.29 percent and a monthly installment of 249.39 USD, you can receive a loan of 11,000 USD here. The interest rate depends on the creditworthiness of the borrower. The maximum annual percentage rate is 10.99 percent. Of course Targobank also offers other loan amounts. Between 1500 and 50,000 USD are easily possible with appropriate credit. The term can be flexible between 12 and 84 months. The annual percentage rate of charge for all loans depends on the loan amount, term and credit rating.

The offer of astro finance is very favorable at 48 months with a starting interest rate of 4.35 percent. Depending on their credit rating, borrowers only pay an interest rate of up to 10.90 percent. The monthly rate is in the best case at 249.68 USD. In astro finance borrowers can even receive up to 200,000 USD, of course, provided sufficient creditworthiness. But even those who need only a small sum can find a cheap financing from 1000 $ astro finance. Again, the annual percentage rate of interest on loan amount, maturity and existing credit rating depends.

In third place of the comparison for a $ 11000 credit comes the credit offer of the Credit Europe Bank. Depending on its credit rating, it offers an APR of between 4.40 and 11.95 percent for a term of 48 months. Upon request, Europe Credit Bank grants loans up to an amount of 50,000 USD. As with all other offers, special repayments are possible at any time after 6 months.

Requirements for a 11000 USD loan

Requirements for a 11000 USD loan

The loans mentioned can be applied for by both employees and self-employed or freelancers. The only important thing is that the credit bureau contains no negative entries and that the borrower has a sufficient income. Employees need a permanent contract of employment and must have been employed at the current employer for at least 6 months. Proof of this are the last two salary statements. If you are self-employed or self-employed, you can simply submit the last two income tax returns instead of the wage and salary statements. In any case, the prerequisite is that the borrower is at least 18 years old and has his permanent residence within the Federal Republic of Germany.

Anyone who wants to hedge against unforeseen events can take out residual debt insurance with all banks. This protects, for example, in the event of involuntary unemployment or incapacity for work, a default on the monthly installments. In the event of death of the borrower, the entire outstanding balance is covered by the residual debt insurance. The costs and benefits may differ depending on the bank. Borrowers should therefore carefully study the terms of each contract before concluding the residual debt insurance.

Mortgage consolidation loan, loans, liquidity

The debt consolidation loan is a single financing solution to solve the economic difficulties due to multiple monthly installments to be paid. With this financing solution it is, in fact, possible to combine all the installments in a single installment that includes all the loans but reducing the amount that was previously paid and lengthening the amortization plan.

The debt consolidation loan can be applied to personal loans and ongoing mortgages, also allowing you to get an additional liquidity to support other incoming expenses. Let’s see together the details of this particular type of financing that can be requested to reduce the amount of monthly debt created by more than one loan that can include a loan or a mortgage: here is all the information to request it, evaluate its advantages and disadvantages in costs.

Mortgage consolidation loan, loans and added liquidity: WHAT IS IT?

Mortgage consolidation loan, loans and added liquidity: WHAT IS IT?

Debt consolidation mortgage is a new loan. The bank that offers this financial product evaluates the total sum that the customer who wishes to access this personal loan solution still has to pay and for how long (the amortization plan). Following an initial assessment of the total monthly sum to be paid, the sum of the installment that the subject can actually pay monthly on a regular basis is valued to revive his economic position.

The bank calculates the maximum transferable amount of the customer’s remuneration and arranges a new installment based on a new repayment plan. With the debt consolidation loan there will be only one monthly installment which includes all the loans in progress, taking the longest period of one of the loans taken as amortization plan. With this type of new financing, it is possible to revise one’s condition and financial statement and pay the due installments regularly.

Mortgage consolidation loan, loans, liquidity: WHEN TO REQUEST IT?

Mutual consolidation must be requested when it is realized that you are borrowing. This refinancing solution cannot, in fact, be accepted by customers who have not already incurred penalties for non-payment, in surcharges or have a lawsuit for insolvency in progress. The loan and mortgage consolidation loan allows us to revisit our economic condition when it is difficult to pay all the monthly installments but not when an insolvency lawsuit has already started.

Mortgage consolidation loan, loans, liquidity: WHAT TO CONSIDER?

Mortgage consolidation loan, loans, liquidity: WHAT TO CONSIDER?

The first factor to consider before requesting mutual consolidation, both for current loans and for your mortgage, is the applied interest rate regime. There is no doubt that the rate of this form of refinancing is higher than the other forms of personal loan but it allows to modify and improve one’s own economic condition without incurring in penalties. The total monthly fee that would be paid by counting all the installments is renegotiated, ie a monthly sum is recalculated that the customer can actually pay based on the current financial situation; the total amount is reduced and included in a single installment with a longer repayment plan.

PLEASE NOTE : consider that if you have different loans in progress or you have a loan for the purchase of a first home and a loan to pay the amount requested by the bank for the down payment and taxes, the initial amortization plan is very long (up to 40 years for some types of loans) but can still be redefined due to its financial resources.

Mortgage consolidation loan, loans, liquidity: TYPES

Mortgage consolidation loan, loans, liquidity: TYPES

On the financial market there are different types of debt consolidation based on the purpose for which they are chosen. As a rule it is possible to choose between three types of consolidation loan in relation to the new loan to be requested and to the forms of loan that are in progress:

  • mutual consolidation for loans and mortgages;
  • mutual consolidation for personal loans;
  • mutual consolidation for loans, mortgages and additional liquidity.

Mortgage consolidation loan and loans: CHARACTERISTICS

Mortgage consolidation loan and loans: CHARACTERISTICS

It is the most common mortgage consolidation solution, one for which a customer requires a mortgage and a personal loan for the purchase of the first home. The bank, in fact, for the acceptance of the loan for a property provides up to 80% of the total cost of the building and this means that to buy, renovate and recover a building it is necessary to have the 20% missing to support the total costs of the interventions and additional expenses, or taxes and the cost of the notary for the deed of sale and the same documentation for the subscription of the loan.

If you do not have the 20% sum, you can request (if this is the possibility that this second loan is granted) another personal loan. This is where the customer who intends to buy a home has a mortgage and a personal loan at the same time; will have two monthly installments to be paid which could become high with the addition of other expenses (for example, for example the birth of a child, a child who enrolls in university, the necessary purchase of a car, etc). The solution to solve this type of unexpected and financial is to choose the loan consolidation loan and mortgages, allowing you to combine the amount of the two installments in a single monthly installment, calculated on the basis of the maximum transferable amount based on your salary and total expenses, with a lengthening of the amortization plan.

Mortgage and loan consolidation loan: TABLE

Mortgage and loan consolidation loan: TABLE

To better understand and summarize the mutual consolidation solution for loans and mortgages, it is advisable to also observe the following table which proposes a simulation of financial difficulty during the payment of the first home loan and a personal loan:

FINANCING IN PROGRESS INSTALLMENT AMOUNT LOAN MORTGAGE CONSOLIDATION AND LOANS
PERSONAL LOAN 200 USD REDUCED INSTALLMENT
MUTUAL 450 USD REFUND PLAN EXTENSION
TOTAL AMOUNT OF MONTHLY installments 650 USD 400 USD

Mortgage consolidation for loans: CHARACTERISTICS

Mortgage consolidation for loans: CHARACTERISTICS

It is the most widespread solution among young people or young couples, that of having more loans in progress, especially small loans, which at the time of subscription provide for small monthly installments, small amounts, some even at zero interest, but which together collectively they constitute a total sum that very often could cause economic difficulties. It is precisely the loans in small and comfortable installments that make the service so appealing and so apparently simple to pay but at the end of the month, when three or four installments have to be paid, the sum is high.

The loan consolidation debts only for loans allows to evaluate the total sum of all the personal loans in progress, calculate a single monthly installment sustainable by the customer and lengthen the amortization plan. In the case of personal loans only, the extension of the installments and the extension of the repayment plan is more feasible than the mortgage which already includes a very long period. Usually this form of small personal loan does not last more than 5 years, so if you extend the repayment plan to 10 years, it is not so serious.

Mortgage consolidation for loans: TABLE

To better understand, also observe the table below which summarizes the main features of the mutual consolidation solution for loans, with a simulation of three loans in progress :

FINANCING IN PROGRESS INSTALLMENT AMOUNT LOAN MORTGAGE CONSOLIDATION AND LOANS
PERSONAL LOAN I 100 USD
  • REDUCED INSTALLMENT;
  • REFUND PLAN EXTENSION.
PERSONAL LOAN II 150 USD
PERSONAL LOAN III 200
TOTAL AMOUNT OF MONTHLY installments 400 USD 200 USD

Mortgage consolidation loan, mortgage and additional liquidity: CHARACTERISTICS

Mortgage consolidation loan, mortgage and additional liquidity: CHARACTERISTICS

The loan consolidation solution for debts for loans, mortgages and with the addition of additional liquidity has the same refinancing methods described above with the two forms of consolidation. In addition, there is the request for an additional sum to support additional costs incurred following the signing of the loan, a personal loan or another loan.

However, this type of mutual consolidation moves on to a different calculation and installment of monthly installments. If you request the addition of a liquid sum, the bank that grants this form of loan combines the amount of all the remaining installments and adds the required liquidity; based on the total amount, it recalculates the loan and defines the duration of the repayment plan.

Loan consolidation loan, mortgage and additional liquidity: REFINANCING

Loan consolidation loan, mortgage and additional liquidity: REFINANCING

The mutual consolidation constitutes a refinancing in which the total sum of the residual debt is completely recalculated based on a longer repayment plan. This means that for the subscription of a new personal loan you must be in order with the payment of the payments. So to speak, one cannot request one of the loan and mortgage consolidation solutions if you have not been regular with the payment of the installments.

With the mutual consolidation it is possible to consolidate, by bringing together in a single installment, all the types of personal loans contracted, starting from the sale of the fifth to small rechargeable loans. However, the fact that, when calculating the residual amount of all loans, personal loans and mortgages, the maximum amount must be sustainable based on one’s own remuneration must be considered. It is not, in fact, said that a very high amount, especially if one is dealing with the consolidation of a mortgage and a personal loan, is accepted by the bank.

Mortgage consolidation loan, mortgage and additional liquidity: BENEFITS

The mutual consolidation operation is economically advantageous if they really have difficulties in paying the installments for reasons regarding the production of income and there is a real need to reduce the total amount of the installments. In all other situations it is preferable to reassess one’s lifestyle and expenses in the family budget, as this form of refinancing could also consist of a significant increase in the interest rate: the result would be the payment of a much higher final capital high compared to the previous contract.

PLEASE NOTE : with the subscription of the consolidation loan it is the banking institution to pay off all debts, or to pay the residual sums to the credit institutions; a new and unique loan is entered into with the same bank: mutual consolidation, with a different interest rate in relation to the purpose of consolidation.

Mortgage consolidation loans, mortgage and additional liquidity: HOW MUCH IS IT GET?

Mortgage consolidation loans, mortgage and additional liquidity: HOW MUCH IS IT GET?

A second possibility for the subscription of a new loan to combine all the installments in a smaller amount, is the possibility of obtaining different amounts of liquidity based on one’s own remuneration, even if always in compliance with the maximum transferable sum. It is recalled, in fact, that in the act of signing the loan, for example, the maximum amount that could be transferred had already been calculated based on the payroll in question. Even with the request for mutual consolidation, this maximum sum must be respected, as it is not sustainable for the user who requests the new loan (consider that he is already in financial difficulty with more loans in progress).

Loan consolidation loan, mortgage and additional liquidity: TABLE

Loan consolidation loan, mortgage and additional liquidity: TABLE

Based on the general lines of the amount of the additional liquidity with the request of the mutual consolidation, it is possible to obtain from 10% to 20% of the sum of the residual credit requested. The amount is added to the residual amount of all current loans and mortgages and is deferred in installments with a higher repayment plan. To better understand and summarize, also observe the following table:

LOAN CONSOLIDATION LOANS, LOAN, LIQUIDITY MONTHLY INSTALLMENT AMOUNT OF LIQUIDITY
MONTHLY RATE REDUCTION AND ADDITIONAL SUM TOTAL AMOUNT OF ALL THE FINANCING IN PROGRESS 10-20% OF THE CONSOLIDATION CAPITAL