Installment Loans Online For Bad Credit -Bwcawiki.Org http://bwcawiki.org/ Sun, 21 Jul 2019 16:36:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.6 Short term debt – what is it about? Help for the indebted http://bwcawiki.org/short-term-debt-what-is-it-about-help-for-the-indebted/ Sun, 21 Jul 2019 16:36:54 +0000 http://www.bwcawiki.org/short-term-debt-what-is-it-about-help-for-the-indebted/ See More]]>

Cash loan for debtors offered by loan companies and parabanks is a product for debtors of varying degrees, some lenders even offer cash loans for debtors with bailiffs. The rules for such loans may differ from the payday loans in the basic offer.

 

Pursuant to the Banking Law, banks may not grant loans to indebted persons. Lending companies operating under the Consumer Credit Act do not have such restrictions, but many of them introduce limits on the amount of debt of the applicant for a loan. Many companies offer payday loans for those in debt, on their own terms. Installments, usually installment mortgages, are a form of assistance for those in debt.

Payday debt for the indebted – who can get it?

Payday debt for the indebted - who can get it?

Loan companies operating in accordance with established business standards and in accordance with ethical principles rarely grant loans to indebted persons. This is due not only to the desire to build a positive image as a reliable and honest lender, but also to credit risk, which is very high for those in debt. A risky client from the lender’s perspective is one who has no fixed income, is in debt or has a debt collection for over PLN 2,000.

Online payday loans for the indebted are a product found in the offers of some loan companies and parabanks. Usually, lenders set a debt limit for which they grant loans. Many of them offer installment loans, payday loans, for those in debt. The feature of such loans is that they have a repayment period shorter than 12 months, then they can be defined as payday loans, in practice the name “installment loans for debtors” is more common. They consist in the fact that the lender grants a loan for the amount that covers all debts of the borrower and expects to pay the debt within the prescribed period. Most often, mortgage collateral is established for such consolidation loans.

Loan companies, if they can grant loans to indebted persons, only a percentage of them decide to borrow money to persons with bailiff seizure. Parabanks and private investors offer payday loans for debtors with debt collectors. They usually require additional security for debt repayment, e.g. mortgage security or the appointment of a guarantor who will guarantee repayment with his assets.

Payday loans online and on the phone – how do you take payday loans?

Payday loans online and on the phone - how do you take payday loans?

The instant cash loan is available via the Internet, telephone or with the lender’s representative. In all cases, the procedure is similar to payday loans for people without debts. You need an ID card to take out the loan.

An application for a quick payday loan can be submitted online on the lender’s website by completing the appropriate form. Confirmation of identity is required for the application to be processed. This can be done via the Internet by performing a verification transfer or by using the instant verification platform recommended by the lender (logging into electronic banking is required).

Payday loans for those in debt also require data verification. One option is a verification transfer, as in the case of payday loans online, the other – a meeting with a representative who will confirm the data. Instant debt for online debt is the most convenient for the applicant, because all formalities can be done online.

Payday loans for the unemployed and indebted as well as people without income are paid to a bank account or by postal order, money can also be picked up at the lender’s branch or from a representative operating in the field.

Payday loans for debtors with bailiffs and payday loans for debtors without BIK and KRD

Payday loans for debtors with bailiffs and payday loans for debtors without BIK and KRD

Cash payday loans without BIK and KRD are more expensive than “regular” payday loans in the lenders offer. This is due to the increased credit risk of this group of customers – the lender protects its interests in the event of late repayment or default by the borrower.

Cash loans for debtors in KRD are the domain of parabanks, but they are also provided by some loan companies. Not all lenders check available debt register and Credit Information Bureau. Some declare that they verify only individual lists of debtors. This makes it possible to obtain loans for indebted persons who are not on all registers.

It is harder to get a loan if you do not have an income source. Payday loans for indebted unemployed are a rarity on the market. They are only provided by companies that accept sources of income other than legal work, e.g. alimony or illegal work. In such cases, payday evidence for debtors almost always requires a guarantor or a mortgage security.

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Credit purchase: he can get on well with a new project! http://bwcawiki.org/credit-purchase-he-can-get-on-well-with-a-new-project/ Fri, 19 Jul 2019 16:48:01 +0000 http://www.bwcawiki.org/credit-purchase-he-can-get-on-well-with-a-new-project/ See More]]>

 

Do you know that a credit buyback operation may include financing a new project? New car, works and even a little cash can be included in the amounts grouped by the pool of credits, without impact on your debt ratio. Follow the guide!

Credit redemption: pool your credits to lighten your expenses

 

If you think that your monthly payments are too high or that you can negotiate a more advantageous rate, you can at any time make a credit buyback for your home loans or even buy back your consumption credits. The operation is simple enough to achieve and will allow you to reduce your budget through the extension of the loan term and therefore the monthly payments less important. If you want to add a new amount, it will be sufficient to indicate it at the outset to your broker so that it includes this sum in the total amount of the loan. It is good to know that in general, the total amount of this sum is of the order of 15% of the total amount of the repurchase and that the bank is always very attentive to the capacity of borrower of the borrower.

A new real estate project or renovation?

A new real estate project or renovation?

If the new project you want to integrate concerns a real estate purchase, second home or rental investment for example, or even work in your current property, you just need to justify the amount requested with quotes or invoices for example.

A new car in sight?

A new car in sight?

The purchase of a new or used car, a motorcycle or a camper can also be financed by the credit buyback transaction. You can even buy your vehicle with a LOA credit (Lease with Purchase Option), this type of financing can be fully covered by a credit redemption. In this case, the bank pays the funds directly to the professional, which simplifies all the steps.

An unexpected or leisure to finance?

An unexpected or leisure to finance?

Marriage in the family, back to school or vacation in sight, you can also provide additional cash in the overall amount of the purchase of credits. You continue to benefit from lighter monthly payments, a single deduction and a renegotiated rate for all of your financing.

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Repurchase of credits: can we group together two mortgages? – Loan consolidation http://bwcawiki.org/repurchase-of-credits-can-we-group-together-two-mortgages-loan-consolidation/ Fri, 19 Jul 2019 16:38:53 +0000 http://www.bwcawiki.org/repurchase-of-credits-can-we-group-together-two-mortgages-loan-consolidation/ See More]]>

 

The repurchase of credit makes it possible to group several loans in one in order to reduce its monthly payments and to regain purchasing power. It can be set up to consolidate several credits, and it is therefore possible to group two real estate loans for example. What are the specific conditions for this operation?

Consolidation of loans to rationalize its debt

Consolidation of credits to rationalize its debt

The credit buyback consolidates several loans into one to reduce its monthly expenses. By collecting all its credits, the borrower extends the duration of the credit but benefits from a monthly payment better adapted to its repayment capacities. The operation also helps to lower its debt ratio or even to consider new projects.

How to group two real estate loans

How to group two real estate loans

When grouping several credits, it is not necessary for them to be of the same nature (consumption, real estate, etc.). The grouping can thus concern two mortgages, whether they finance the same property or two different dwellings (principal residence and rental investment, for example) Only one property can serve as a guarantee for both loans, but it is also possible to take a double guarantee.

To find out the terms and conditions of the credit redemption according to the loans to be repurchased, consult our section Credit redemption solutions

What conditions for it to be really interesting?

What conditions for it to be really interesting?

In order to benefit from a real added value, two cases arise:

  • if you are in the first third of the repayment, the interest rate on the repurchase of credit must be at least one point below the previous rate;

  • if one is in the second third, the new interest rate must be two points lower.

This allows a profit to be greater than the financial expenses generated by the buyback transaction. If the credit is in the last third of repayment, the transaction has no interest.

What are the advantages?

The interest of grouping two real estate loans is the same as the grouping of conventional loans. Indeed, depending on the outstanding amount shown in the depreciation schedule, the borrower can re-evaluate the duration of his loan. If it stays the same and the rate is more attractive, it may allow it to reduce its monthly payments and to generate a larger living income each month. In any case, having a single monthly payment allows you to better manage your budget.

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Say NO! to the miraculous savings schemes http://bwcawiki.org/say-no-to-the-miraculous-savings-schemes/ Sat, 13 Jul 2019 00:10:16 +0000 http://www.bwcawiki.org/say-no-to-the-miraculous-savings-schemes/ See More]]>

The concept of savings is a fundamental part of any budget, this allows you to raise money to have resources in the future. To do it safely it is important not to entrust our savings to anyone, the recommendation is always to resort to regulated financial institutions.

Informal savings schemes are better known as batches pyramids 

money

More recently as: “The Flower of Abundance,” “The Gratitude Cells,” “The Circle of Prosperity.” First impression they are very attractive because they offer huge returns in a very short time.

These schemes work as follows

These schemes work as follows

There is an organizer, which is the one in the center of the flower or at the top of the pyramid, this person has two support people who will be in charge of recruiting two more people each and so on.

The recruited people will give a contribution, which can range from hundreds to thousands of pesos. The money collected will be given to the one in the center of the flower or at the top of the pyramid. Subsequently the others will level up in order to reach the center / cusp and be benefited with money.

In order for these systems to be maintained, members need to keep raising money from new savers / investors, otherwise they will never get any money.

Miraculous savings schemes

Miraculous savings schemes

Obviously these schemes reach a point where they are unsustainable and, when the chain is broken, they end up in the dissolution of the scheme before those who already contributed their money can recover it. That is, the only people who benefited were the people who initiated the scheme.

Do not put your assets at risk, always make sure you deposit it in safe hands that will answer for it.

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Debugging – what does that mean? Help in debt relief http://bwcawiki.org/debugging-what-does-that-mean-help-in-debt-relief/ Sun, 07 Jul 2019 17:07:04 +0000 http://www.bwcawiki.org/debugging-what-does-that-mean-help-in-debt-relief/ See More]]>

 

Debt relief is a series of activities designed to restore the financial stability and solvency of a private or business person with high debt at various stages of maturity.

 

Debt relief for individuals and companies is now also a financial service offered to people in debt. Currently, debt relief assistance includes debt collection, payment of payday loans, loan extension, debt collection and debt collection (debt repayment).

What is it and how does the debt removal work?

What is it and how does the debt removal work?

Assistance in the debt relief of natural persons boils down primarily to the fact that debtors are disbursed for the benefit of the debtor (without BIK ), consolidation loans(debt relief – the purpose of disbursement of funds), a debt relief loan is paid (even to the account indicated by the bailiff ). In the case of a usually smaller amount of debt (up to PLN 6-10 thousand), a debt loan is not necessary, and debt loans are sufficient for smaller amounts. Real estate debt reliefit usually boils down to paying off a person’s debt, followed by supporting them in applying for the release of mortgage collateral from a given property. Debt relief is a multi-stage process, which usually begins to determine the actual amount of the person’s debt, and ends with closing the last debt, checking if entries in the debtors’ database are deleted when the debts are closed. The debt relief can be carried out independently, but also with the support of professionals from agencies mediating in these activities.

How to get longer? Step by step

How to get longer? Step by step

For debtors, diligent pursuit of debt relief and a responsible approach to the subject are important. The debtor should:

  • determine the amount of your debt, due to payday loans, loans, borrowings or other types, all that is his debt to be repaid at the moment,
  • provide some priorities, e.g. which debt is most past due, should be repaid first,
  • assess realistically your financial situation, income, employment, credibility, in the context of choosing a product for debt relief, i.e. debt loans, debt relief loans with a debt collector, debt relief without BIK,
  • go to loan companies, banks, private individuals to learn about their debt loan offer offerings or to use the services of a professional intermediary in the process of debt relief, debt relief with debt collector, debt relief for natural persons.

Effective debt relief, who can help with this?

Effective debt relief, who can help with this?

Debugging private individuals is sometimes more difficult than companies, so it is reasonable to use the services of professionals. Advisors in such companies provide the client with:

  • determining the amount of debt to be repaid,
  • developing a debt repayment plan,
  • submitting applications for an appropriate debt relief product ( debt loan with a debt collector, non-bank debt loan),
  • comparison of loan offers, debt relief loans, the most optimal choice in a given situation for the Debtor.

Is it possible to postpone payday loans?

Is it possible to postpone payday loans?

Delaying payday loans must be carried out wisely and preferably under the guidance of professionals. Many indebted people in payday loans make a notorious mistake, namely rolling their payday debts. He decides to take out new payday loans, only to repay previously incurred loans or to extend their repayment period. This approach increases debt rather than solving the problem. Debt relief from payday loans should start with the suspension of the extension of the repayment period, incurring new loans, and entering into settlements with lenders (obtaining consent for repayment in installments), as soon as possible to obtain funds to pay off the debt. Systematic deleveraging is important. Helpthis is conducive to professionals, especially when they motivate the debtor to work more, close e.g. one payday loan during a month, etc. In the case of payday loans, a loan for debt relief is also a good solution, however, it is best from private individuals who do not check customer databases, income. Such loans debt loans without BIK should have a long loan period – the debtor is then guaranteed low installments, which in stages serves to build his financial stability.

The removal of natural persons is a difficult but possible activity. Determining, using the help of professionals, careful planned repayment of the entire debt is crucial. Determination, orderliness and refraining from rolling up debt are the best principles of effective debt relief. Even if it is debt relief with a bailiff, it is possible because parabank institutions are becoming more flexible in mobilizing funds for indebted or unreliable people according to financial bases. It may be associated with additional costs, however, debt relief with a bailiff is an achievable product. For many debtors, the only chance to return to normality is to get out of financial problems.

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Mortgage loan buy-back: do not confuse with buying back mortgage http://bwcawiki.org/mortgage-loan-buy-back-do-not-confuse-with-buying-back-mortgage/ Sun, 16 Jun 2019 17:20:57 +0000 http://www.bwcawiki.org/mortgage-loan-buy-back-do-not-confuse-with-buying-back-mortgage/ See More]]>

 

Buying mortgage credit and repurchase mortgage… It is tempting to think that it is a single operation, especially since the purpose is a bit the same: you save on your monthly payments of ready. But these are two different operations. We explain why.

The purchase of mortgage credit

The purchase of mortgage credit

A repurchase of credit consists of consolidating all or part of its loans to pay only one monthly payment. All non-professional loans can be included in the operation: home loan, consumer loans (personal loan, revolving credit, auto loan…), etc. Tax debts and bank overdrafts can also be grouped together in the transaction.

Types of credit redemption

There are two types of credit redemption (also known as credit consolidation or debt restructuring):

  • the purchase of consumer credit. Only consumer credits are grouped together;

  • and the purchase of mortgage credit. A home loan is added in the transaction which is necessarily secured by a mortgage.

The benefits of credit redemption

By paying only a monthly installment and increasing the duration of the loan, you reduce your debt ratio. This allows you to restore a financial situation that has deteriorated. But we must not see the redemption of credit as a solution to only reduce its debt. By lowering your monthly payments, you can find new savings capacity. You can also invest more easily in a new project: purchase real estate or car, realization of works…

The purchase of real estate credit

The purchase of real estate credit

The repurchase of mortgage has represented in the last months the bulk of the production of mortgages (more than 60% in January 2017). This seems surprising but in this period of very low bank rates, the success of this operation makes sense. It allows households that borrowed a few years ago at a significant interest rate to renegotiate their loan on current financial terms, much more advantageous (by lowering the interest rate or the borrowing period). And so to achieve significant savings.

You can renegotiate your home loan with your bank (in this case, it is called credit renegotiation), but the lender, by lowering its interest rate, loses money. In other words, this type of application from his bank is generally refused, you will have to go through another institution.

Note that the operation is not always profitable. For this really interesting, the proposed real estate rate must be at least 0.80 point lower than the old rate. As for the remaining capital, it must be more than 70 000 €.

In sum, the difference between repurchase of mortgage and repurchase of mortgage credit results in the number of loans bought back. The first only takes into account the mortgage loan while the second includes several financings, in addition to the mortgage.

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Over-indebtedness: assets are also concerned http://bwcawiki.org/over-indebtedness-assets-are-also-concerned/ Thu, 13 Jun 2019 17:28:15 +0000 http://www.bwcawiki.org/over-indebtedness-assets-are-also-concerned/ See More]]>

The Crufier association recently published a survey on overindebtedness in France. With an eloquent statement: this type of situation does not affect only “fragile” people. Active employees are also affected.

More than 50% of the over-indebted people are active

The study, piloted with 30,000 people helped by Crufier, shows a figure that chills: 55.7% of people with debt are active. The share of pensioners is also important (24%), in front of the unemployed / disabled indebtedness (12%).

Faced with a tense financial situation, households turn to different types of support: Crufier (52%), the Francia Bank (29%), social services (17%) and relatives (2%).

Households are indebted to the level of…

Households are indebted to the level of...

The majority of the persons accompanied must repay a debt higher than 45 000 € (37%). The following amounts of amounts follow:

  • less than € 15,000 (23%);

  • from 15 to 30,000 € (21%);

  • from € 30 to 45,000 (19%).

For Crufier, ” a national file of credits would avoid situations difficult to recover, acting in time “.

A credit register to protect against over-indebtedness

A credit register to protect against over-indebtedness

The latter seems to win votes to fight against over-indebtedness. They are 40% to consider this measure ” very effective ” and 27% ” fairly effective “.

Only 33% seem to cast doubts on this device: 20% deem it ” inefficient ” and 13% ” not effective ” at all.

Crufier, kezako?

Crufier is an association supporting over-indebted households for 25 years. She has been advocating for a national credit file for several years. ”   France is one of the last European countries not to have one. There is today an emergency   “, Justifies the president of Crufier France, Jean-Louis Kiehl.

And to argue that “this is the time to finally stem the plague that eats away at French society and endangers every year hundreds of thousands of households and French entrepreneurs and that strikes, contrary to popular belief, the middle class and destroys values! “

In this sense, the association has recently issued 6 proposals:

  • to create the said national registry of credits in France;

  • open over-indebtedness procedures to non-salaried workers and individual entrepreneurs;

  • increase efforts around the financial and budgetary education of young people, right from the middle school;

  • set up a National Budget Day in France;

  • institute unemployment insurance for self-employed workers (craftsmen, farmers, auto-entrepreneurs…);

  • write an ” Inclusive Charter for Fragile Entrepreneurs “.

Solutions in case of financial difficulties

Solutions in case of financial difficulties

Your charges are too heavy? You can perhaps lighten them, for example by reducing your daily expenses. Some are “priority” with deadlines to meet (rent, EDF bills…), it will be difficult to reduce them. On the other hand, it will be easier for you to cut back on the occasional expenses of the type leisure, holidays or furniture.

In the same vein, if you have a revolving credit, it may be interesting to turn it into a depreciable loan. Your interest rate will be less important.

You can also redeem credit. The principle? An organization groups your home loans and / or consumer loans to offer you a single loan. By paying only one monthly payment, you reduce your debt ratio.

Finally, the last solution: if you are unable to meet your monthly payments or if you are not eligible to buy credit, do not wait to knock on the door of an over-indebtedness commission. After studying your file, it will propose a recovery plan in agreement with your creditors. \

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Payday loan discounts: definition and types http://bwcawiki.org/payday-loan-discounts-definition-and-types/ Tue, 11 Jun 2019 02:43:28 +0000 http://www.bwcawiki.org/payday-loan-discounts-definition-and-types/ See More]]>

Many standards must be followed by HR professional when making payday deductions. So, let’s summarize here your definition and the types of discounts available.

Simply put, rebates occur when a corporation’s employee payments are written off, so some rebates are made on renumerations.

What are payroll deductions?

payroll

The discounts are nothing more than values ​​defined by law, which must be deducted from the workers’ salary according to the CLT (Labor Law Consolidation), federal and social security legislation.

These are the Social Security (Social Security Contribution) and the IRRF (Withholding Income Tax). It can also happen the deductions by judicial determination, as for example, food and transport voucher.

These discounts also include some benefits, such as discounts when the company has an agreement with financial and medical assistance.

What are the types of discounts defined by law?

We will present each of the mandatory discounts:

Social Security

Contributing to the National Social Security Institute (Social Security), the worker benefits from retirement benefits, 13th salary, sickness benefits, post-mortem pension, among others.

  • Do not you understand anything about 13th salary? See all you need to know about the benefit

The amount of the discount varies according to the worker’s salary and work situation (self-employed or employed)

  • Work with a formal contract or be self-employed?

However, it is possible to follow the percentage of the salary-based amounts on the Social Security website, click here. (updated 2018)

IRRF

The Withholding Income Tax, as well as the Social Security, also suffers variations according to income.

However, its calculation is given by the difference between the salary and the Social Security, added to a fixed rate for each dependent.

To track such fees, click here. (updated 2018)

  • Do I need to declare my loan on income tax?

Union Contribution

The union contribution provides resources for the workers’ union to continue operating.

The discount is made once a year, usually taking place in the month of March.

Food and PAT

Food and PAT

Any company that has more than 300 employees is obliged to offer food. To do this, she must participate in the PAT (Worker’s Feeding Program) in order to gain exemption or tax rebates and make food available.

Registered in the PAT, the company can charge up to 20% of the cost of the meal, on the other hand, if it is not in the PAT, it can deduct up to 20% of the worker’s salary.

  • How to have a healthy diet without spending too much?

Transportation vouchers

The company can cut up to 6% of the employee’s salary to cover the cost of moving the employee to work.

However, if the value of public transport is lower than this rate, it should therefore deduct a proportional value.

As determined by law, the court can, through the company, reduce the employee’s salary if he has to pay.

Salary advance

Salary advance

When requested by the official, the payday advance is written off for the following month’s payment. Usually the down payment corresponds to 40% of the rent.

It should be emphasized that, the company is not obliged to provide the advance, if this is not provided for in labor law.

Faults and delays

Faults and delays

In the absence of a justification, the worker may suffer a discount on the sheet.

However, according to the CLT the employee can not suffer any penalty within the tolerance of 5 to 10 minutes of delay.

  • It is important to note that there is a limit of 70% allowed to make discounts in the payday, the remaining money must be delivered to the worker.

In case of tightening, remember, Financial Group can help you. Loan insurance, fast and without bureaucracies.

Financial Group, you far from red.

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Personal Loan – Meet Good Finance Credit Solutions – Just Loans http://bwcawiki.org/personal-loan-meet-good-finance-credit-solutions-just-loans/ Sun, 09 Jun 2019 02:53:32 +0000 http://www.bwcawiki.org/personal-loan-meet-good-finance-credit-solutions-just-loans/ See More]]>

 

Personal Credit is one of the most widespread credit lines in the national credit market, offered by several banks and financial institutions is a practical and simple method of obtaining credit for the most diverse purposes, be it travel, studies, purchase of real estate , automobiles and mainly to meet specific needs that arise, giving an excellent financial breath to the borrower.

Good finance – Far Beyond Credit Card Carrier

Good finance - Far Beyond Credit Card Carrier

Good finance is a financial institution. Its main products are credit card for individuals and the Good finance sales receipt, more in line with companies.

  • Credit Card: The main advantages of Good finance credit card is that it does not have any type of annuity, to be accepted in establishments worldwide, as well as discounts in various establishments.
  • Good finance: Focused on companies that wish to accept credit card sales, the Good finance machine has receipts from 2 business days, has a three-year warranty and is sold for 12 installments of R $ 14.90. No rental fees.

Good finance Personal Loan

Good finance Personal Loan

Good finance Personal Credit is an excellent benefit available to customers who have Good finance credit card, online completely the interested person performs the loan simulation, which can be contracted in installments between 3 and 24 times.

The main advantages are that you receive the amount integrally in any current account that has the same ownership of the credit card, the value is also totally independent of the credit limit of the card, which allows to maintain its use in the day to day normally and the installments are fixed, with no surprises in payments.

In order to carry out the hiring, simply access the Good finance website, using your credit card access data, make the simulation, have your credit approved and receive the credit in your checking account within 48 business hours.

It is an option to be considered

It is an option to be considered

Another very interesting point in this product is that you will not be asked for any type of additional guarantee to release the value, ie it is a personal credit that will not have any link to your salary or alienated to any other good, which gives you enough flexibility and also ease in hiring.

Good finance Personal Credit rates are presented at the time of the negotiation, but because they are an unsecured personal loan, it usually has fees that are slightly higher than a payroll loan, or loans linked to assets as collateral.

For this reason, it is important to evaluate the other options available before hiring. Good finance is an excellent alternative for paying outstanding debts, credit cards, current account limits, or even some low value account that will not be honored for financial matters. In a simplified way, it is an option to be considered for small short-term debt.

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What happens if interest on your mortgage rises to 3% p.a. http://bwcawiki.org/what-happens-if-interest-on-your-mortgage-rises-to-3-p-a/ Thu, 30 May 2019 00:19:36 +0000 http://www.bwcawiki.org/what-happens-if-interest-on-your-mortgage-rises-to-3-p-a/ See More]]> Interest rates on mortgages in Slovakia are the lowest in history. Currently, most people can get a mortgage with interest from 1 to 1.5% pa But what happens if interest on your mortgage grows to 3% pa? How much does the monthly installment grow?

Why am I thinking about it? A few weeks back, I missed an email from one Czech mortgage comparison. In the text of the mail was mentioned interest on mortgage 3% pa

I wasn’t surprised. At the moment I have a 1.2% interest on my mortgage and if it would rise to 3% pa, the monthly payment of € 156.9 would increase. It’s a pretty decent difference.

Slovak mortgages are much cheaper than Czech mortgages

mortgage

When I got the basic data into the mortgage comparison, I got this output. They are interested on a mortgage of 2.4 mil. CZK and 80% LTV.

What do you say? In Slovakia, we have forgotten that interest on mortgages can be higher than 3% pa Our neighbors in Bohemia have interest on mortgages much higher than ours. It even seems that interest can go even higher.

I will not discuss in detail the reasons why this is the case. At this point, I do not consider it essential. What is important is that it cannot be ruled out that they can look like interest in Slovakia.

Why am I writing about it? Imagine that interest on your mortgage would grow to 3% pa ​​Want to know what would happen? How much would the monthly payment increase?

How much does the monthly installment pay on your mortgage when interest increases to 3% pa?

How much does the monthly installment pay on your mortgage when interest increases to 3% pa?

I’ll show it on specific calculations. It will probably be the easiest. For simplicity, I only count with a maturity of 30 years. The difference will be at any mortgage maturity, but it will be different numbers.

What if the interest on the mortgage was 5% pa as it was less than 10 years back? Those numbers would look even worse. I had even more interest on my first mortgage. It was automatically transferred to the amount of interest paid and the higher monthly installment.

How can you prepare to raise interest rates?

money

I don’t know what interest will be on mortgages for a year, three, or five. Perhaps interest rates will be low for a long time, and we may see interest rates rise over the years. Anyway, it is good to prepare for any scenario.

What can you do?

  • Negotiate your interest on an existing mortgage and fix it for as long as possible.

In most banks it is now possible to negotiate interest beyond the fixation period of 1.2 to 1.5% pa for 5 years of fixation. If this is not the case, you can go to another bank with a mortgage, where you will even be reimbursed for the early repayment of the old mortgage.

  • Make a provision for repayment of the mortgage or a provision for its early repayment.

Postpone at least the difference between the current installment and the higher interest rate mortgage. If you can postpone more, you can create capital to repay the mortgage early. If the repayment of the mortgage is not profitable or the monthly installment is not increased, you can use the money for whatever you want or you can further appreciate it.

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