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Is a loan to pay off a loan a good idea?

In a sense, this is a shortcut and a good solution, but only for a moment. If you have had trouble repaying your loan so far and are looking for a loan to pay it back, be aware that it may be worse … Remember that loans are offered on worse terms than loans and it will be difficult for those with a limited budget to pay back this type of liability on time, and as a result – there will be interest added for each day of delay. Loan companies also tend to add additional fees for sending reminders about the repayment of liabilities, about which we wrote in the article “I am in arrears with payday loans! What to do?”.

Lifebuoy or nail in a casket?

Lifebuoy or nail in a casket?

Borrowing loans to pay overdue installments is the fastest way to lose control over your finances. With one loan you will be able to pay back the loan installments, but how can you pay back the loan? Going in this direction, you can take another – to pay off the previous one. This is how you fall into the classic debt spiral, where your debts are rising instead of decreasing. After all, there will be so many loans that losing control over their repayment is only a matter of time.

A prescription for debts

A prescription for debts

Each creditor wants to get his money back, so if we are in default of payment, sooner or later we will receive reminders to pay and later the bailiff will take our account to recover the money due. How to prevent this?

Just contact the lender or lender to renegotiate the terms of repayment. If you don’t know how to do it – take advantage of the knowledge and experience of mediators. They are effective negotiators, they can propose on your behalf, among others about:

  • Installment reduction,
  • credit holidays,
  • partial or total cancellation of accrued interest
  • suspension of bailiff execution or reduction of its nuisance.

Debt relief is a difficult process that requires commitment, but only for the benefit of both the debtor and the creditor. After all, restructuring is very good, if not the best solution for both sides. The bank can be sure that the debt will be repaid on time, and the debtor will have peace and control over his own budget.

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Cash loan – directly or through an intermediary

money loan

Cash loans are very popular, so we can count on a wide range of choices when it comes to the variety of offers. Banking and loan companies are doing their best to encourage us to sign a contract with them. There are also brokers who offer to take care of all the procedures for us. So how is it in practice – is it worth trusting the broker or maybe it will be better to take care of all formalities in person? Which of these solutions will be best for us?

 

Cash loans directly at the bank

Cash loans directly at the bank

If you decide to take care of all the formalities directly in the bank alone, you should be aware that we will be forced to spend a lot of time on all procedures. Applying for cash loans is simply time-consuming and there are plenty of difficulties along the way. It is often necessary to visit the bank repeatedly to make up for deficiencies, which can be annoying.

In addition, we are not able to familiarize with all the offers available on the market, and what else can be said about comparing them with each other and choosing the best one. The sheer number of banks in Poland is large. We should also remember that banks place extremely attractive offers on their websites, which are really intended only for a few customers. This is usually a marketing gimmick in the hope that the customer will overlook worse conditions. So we only waste our time browsing them.

Of course, taking a loan directly from the bank has its advantages. These include even full control over the application and close contact with the banker. In addition, regular customers can usually count on a better offer.

 

Or maybe at the broker?

cash loan

A cash loan for any purpose can also be taken via. In this case, our application is sent to several banks. The broker is rewarded by the bank with which the client decides to sign a contract.

However, you have to be aware of the fact that there are plenty of dishonest people who direct us to the bank that offers them the highest salary. So the priority is then your own earnings, and not choosing the best offer for our needs. Therefore, it is worth having knowledge about cash loans, which will allow us to assess the rightness of the choice. If we find an honest broker, we can count on matching the offer to our individual preferences.

 

Cash loan for any purpose with a broker or in a bank?

Cash loan for any purpose with a broker or in a bank?

Whether we decide to take a loan directly at the bank or through an intermediary depends, of course, on our individual needs, expectations and preferences. Certainly a good and honest broker proves to be very helpful. With it, you can save a lot of time and nerves, and sometimes even money. It is not without significance who we find.

Usually, brokers of smaller companies offer services at a higher level and have a more friendly attitude towards their clients. Of course, there are also exceptions to the rule. It is definitely worth reviewing a dozen or so offers before we decide on this one. It is very easy thanks to online comparison websites. Let’s remember that where we apply for a cash loan for any purpose is just as important as the one we ultimately choose.

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UK Cash Loans Financial assistance for Poles UK loans

Cash loans are the foundation of today’s economy. GDP is not driven by savings at all, but by consumption. And the driving force behind this consumption is loans. Thanks to them, we can buy an apartment, car or TV right away, without having to save several months or even years. It also happens that there is an unexpected expense that we have to cover immediately, because how to live with a broken washing machine or fridge. Sometimes we have to invest some money in a new job, e.g. to cover the cost of traveling to it. This expense can not wait either. Without a cash loan, we would not have earned much more than the cost of a subway ticket. In general, nothing bad at all. If we borrow wisely and only as much as we can afford, everything is fine.

Let us remember, however, that irresponsible debt can lead us to serious financial problems and more. Granting mortgages to people who were unable to pay them off caused a global economic crisis, the effects of which we struggled for many years. The crisis was also a lesson for those in power who, wanting or not, had to regulate the cash loan market. Not only for the benefit of the economy, but also for the client, who is now better protected by law. Although, on the other hand, getting a cash loan is much harder than 10 years ago.

What is a cash loan?

What is a cash loan?

I think each of us was once in a situation where he immediately needed money and the account was empty. We can then ask for help from family or friends, but often we do not have such opportunities. Especially that for our relatives in Poland, the amount needed is much more valuable than for us living in the UK. Another issue is that we often do not want to have a debt of gratitude to someone or simply, we do not intend to abuse someone’s goodness.

The ideal option in this case seems to be to use the services of a bank or non-bank loan company. The latter did not enjoy good fame, but after the financial crisis, their situation in the Islands was regulated by the Financial Conduct Authority. If you want to be sure that you are dealing with a company that meets general standards, always choose those registered with FCA. Information about this and a special number can be checked on the lender’s and the institution’s website. Cash loans in the UK are divided into different types. It all depends on our creditworthiness. Some are cheaper but less accessible, others vice versa.

The simplest and cheapest loan to cover small expenses for which we ran out of money is to do an overdraft. Overdraft is also an overdraft, sometimes called a credit line. This is because you can do a minus without risking the consequences. In other words, it is a situation where you have spent more than you have on your account. The most common is that when you top up your account enough to be in the plus, you don’t have to pay any costs. The term depends on the bank, but is usually around 1-2 months. It is worth noting that overdraft is repaid automatically as soon as you get the transfer. However, one should remember that never, even by a pound, do not make a minus sign greater than that agreed with the bank. It threatens with really high and disproportionate penalties. The upside is that you don’t have to apply for a loan every time.

Simply put, if you top up your debit, you can use it the next time at any time. Another form of quick borrowing is having a credit card. In this case, it also costs you nothing if you pay back on time. Each bank sets its own terms. A credit card, in many ways resembles overdraft, differs in that it is not repaid automatically. It is better not to use it to withdraw cash from an ATM, because it creates high costs. Depending on your creditworthiness, you get it from the bank and you can spend a certain amount. In principle, you don’t have to pay it back for quite some time, in such cases you pay only interest. It is also a good solution for those who do not want to use it and plan to take a larger loan or mortgage. Such a card builds our credit standing, of course, unless we are in arrears with its repayment.

Another form of cash loans, also for Poles working in the UK, is a traditional bank loan. Usually it is low-interest, it is paid in installments. This is a good option when you want to borrow money for longer. In such cases, the bank usually provides a representative APR, i.e. the total annual interest rate, but remember that loan terms are a very individual matter. Not everyone gets an interest rate, such as in advertising. It all depends on your creditworthiness. If your credit score is low and you need money immediately, you can use the services of a non-bank loan company, e.g. via the UK Loans page.

The interest rate is usually higher than in a bank, but the loan is much more available and often without certificates. This is a good option if you need cash and you have a sudden expense that you cannot wait for with. The loan period is usually short, up to six months. The conditions, however, are very different and depend on the particular company. Of course, the longer you want to pay off the debt, the more you will pay. Always check the real interest rate in your case in such cases. All you need to do is add all the installments and then subtract the borrowed amount. Then you will know how much a loan costs you. A home loan is also very popular. Here, however, the procedures are much more complicated and the requirements greater.

Am I eligible for a loan in the UK?

Am I eligible for a loan in the UK?

The procedures for granting cash loans in the UK are more stringent than in Poland. It all depends on which bank or company we go to, what amount we want to borrow and, above all, what is our credit score. Credit score is, in other words, creditworthiness. Credit check result, i.e. checking it by a given institution. The first rule is to measure your intentions. It should be remembered that applying for a loan too often, especially when we meet with a refusal, reduces our ability for several months. We appear to the lender as an unreliable person. The one that bases its financial life on loans. How to fix it?

First, you can use the services of a broker. However, for smaller amounts, it is not very profitable. So you can do so. soft credit check, i.e. non-binding check. One whose trace will not be recorded in our credit history. Some websites make this possible. Some of them are free for the first month. Therefore, you must remember to unregister in time. Therefore, when we know that we have a good chance of being approved by a bank or loan company, we can apply for a loan. However, many are wondering what criteria are taken into account when assessing it. Well, first of all, this is our credit history.

The lender wants to know if we have regularly fulfilled our obligations in the past. And this is not just about loans, but also about bills. Contrary to appearances, it does not look good when we have never borrowed anything. At first glance, such a person seems trustworthy, after all, he never lived beyond his means. For the lender, however, she is an unverified person. Many people therefore do so that even without needing, they take, for example, a credit card. To build your story. This makes sense especially when in the future we want to borrow more money. For example, for an apartment. Our credit score will not only be affected by whether we pay our obligations on time.

It is also important how many there are. If we have another loan, telephone subscription, gym membership, etc., it means that we do not have too much free money that we could spend on installments. However, when making a decision, the lender also uses several other criteria. It is very important how long you have lived at this address. In general, stability is the key to success. Therefore, a bank or loan company will also check how long you have been working in a given place and … whether you are registered in the voter list. The latter is quite easy to do. You will then be seen as a person who has permanently associated with the community, and therefore will not run away from commitments. Finally, the most important thing. Permanent work.

The more you earn, the more and on better terms you can borrow. The type of contract is also important. The employment contract is more rewarded than, e.g., self-employment. If you take out a mortgage, you need to be aware of much more thorough control. The bank may ask you for everything listed, plus spending. Even as small as eating out. You will need to provide excerpts from all the cards you have. In turn, for non-bank loan companies, the criteria are much easier to meet. The standard is that you only need to have a job, receipts of several hundred USD, be at least 18 years old and a bank account.

Many of these types of companies provide online cash loans, even if someone is in the UK recently. It should also be remembered that the so-called cooling off period. So fourteen days, during which the borrower can change his mind and cancel the contract. Of course, he must pay back the amount borrowed, along with the interest that accrued until his resignation. It is also important not to take a loan if you are not sure that you will pay it back. Especially in the case of payday loans, it can cause serious financial problems. It is worth noting, however, that in many companies, the calculation of penalty interest or fees stops when the sum to be donated reaches twice the amount borrowed. Therefore, he will never give up more than twice as much as borrowed.

Can I get a cash loan with a bad history?

Can I get a cash loan with a bad history?

It is often the case that life, especially financial life, does not go our way. We work hard but we lack the current expenses. It also happens that one, not very responsible decision gets us in trouble. Still others have applied for credit too many times, not knowing that it may harm their credit score. The reasons are different, the effect is the same. We have a bad credit history. Remember to check your creditworthiness in advance.

The easiest solution is to go to the bank where we have an account. His employees often receive a commission on the financial products they sell to us. Therefore, they also want to submit such an application so that it has a good chance of success. People who usually have a lot of experience in granting loans do it every day. However, if we want to have greater certainty and we want to get to know various offers impartially, we can consult a broker. This is a common practice for larger loans, e.g. mortgages. The UK loan market is very complicated and you need a specialist to get an idea of ​​it all.

Requirements may vary, conditions may vary. The broker will advise us which offer to choose and what credit we have the chance to get. The downside of this option is that the salary for such a specialist is usually high. If we borrow a smaller amount, it is worth doing a soft credit check on a free website, as we wrote earlier. Remember not to trust non-bank loan companies that convince us that they will lend us money without checking our credit score. Well, according to English law it is illegal. The good news is, however, that most of these companies, even though they check our credit history, are willing to give us credit online, even when it’s bad.

Non-bank loan companies have the basic advantage that the requirements are very low. Even if we had problems with payments in the past, this does not prevent our chances of a loan. However, it should be remembered that if our credit check fails, we will receive a proposal for worse conditions than a person who has never had problems with repayment. The amount for which we are applying or the loan period may also be questioned. It may therefore be that the lender will lend us less and for a longer period. It all depends on the individual case. We should remember, however, to always recalculate if a given offer is profitable for us and, above all, whether we will be able to pay the installments. Different companies have different policies in this respect. Therefore, before submitting the application, you should read the general conditions and avoid those companies that warn us in advance that we will not get loans. All this in order not to spoil our creditworthiness even more.

What are the loan costs in the UK?

What are the loan costs in the UK?

This is a standard question. After all, we usually want to borrow money as cheaply as possible. A representative APR, i.e. typical annual interest rate for a given financial product, is usually available on the websites of loan companies and banks. However, it cannot be uncritically guided. This does not mean that we will receive such conditions. It all depends on our creditworthiness. On non-bank loan companies’ websites, we usually have an easier task. Special loan calculators are available, thanks to which we can calculate exactly the installment, interest and, above all, how much we will have to pay back in total.

APR does not say much in such situations, because we usually do not take payday loans for a year. It is therefore worth calculating the total interest on your own. To do this, add all installments and deduct the amount borrowed from them. Then calculate one hundredth of the sum we borrowed (comma two places to the left or cut two zeros) and divide by it the total costs that we must pay off in addition to it.

We’ll get the percentage we had to give back. We will explain it with an example. You borrowed 400 USD for three months. After adding up the installments, it turned out that you have to donate 566.79 USD. That’s 166.79 USD more than you borrowed. So we divide 166.79 USD by one hundredth of four hundred, or four. The result is 41.7 percent. It is also worth looking at daily interest, which is usually around 0.8 percent.

This is especially important in the event of late repayment. For larger loans, e.g. for a house or flat, you often have to add the costs of a broker. Unfortunately, he will not advise us for free. His fee is quite high. For example, when applying for a loan of 350,000. USD, we’ll have to pay him around 1500 USD. However, we should remember that thanks to it we can significantly save, because it is able to choose a favorable offer for us. There are also special websites, such as UK Loans, which act as brokers. They offer a comparison of cash loans. You don’t have to worry about additional fees, because companies handle it among themselves.

What if I can’t pay?

What if I can

Usually, loans from non-bank companies are repaid using the CPA. This is a type of automatic direct debit. Specifically, it means that you give your company permission to collect debits from your account. In this case, she does not have to obtain permission each time. You have the right to withdraw such consent at any time. To do this, you need to contact either directly the company where you took the loan or the bank where you have an account.

This does not mean, however, that the debt is disappearing. In this case, you must propose an alternative form of repayment. For example, through recurring transfers. Unfortunately, it also happens that, despite strenuous intentions, we are not able to pay the installments on time. The rule in such situations is one: get along. Companies of this type grant thousands of loans. They have extensive experience with clients who are unable to meet their obligations. It is also in their interest to amicably resolve this type of situation and get it less or later than exposing the client to hide.

The standard fee in this case is $ 15, but that also depends on the lender. It should also be remembered that daily interest is charged, its amount is available on the website of such a company. Most often, however, the sum of all fees and penalty interest may never exceed the amount we borrowed. Therefore, we will never give back more than twice as much as we borrow. You certainly should not hide and avoid contact.

In such situations, the company perceives it as our bad will and may start looking for us, for example by contacting our employer. Therefore, you should always contact the lender immediately if you realize that we are unable to pay the installment. Various options are available. From postponing the deadline to a new, more convenient repayment plan. What should also be avoided and what may come to our mind first is taking a new loan to pay off the next one. It’s easy to fall into the so-called debt loops. In this case, the amount to be repaid is increasing. This is because each subsequent loan generates more and more costs. Our credit standing, in turn, is steadily decreasing and we can not borrow anything. We have to pay back the debt anyway, often much more than at the beginning. It is worth looking around for some extra occupation or other way of getting money. One that will help us get out of trouble instead of driving us into even greater ones. A cash loan cannot become a way of life, it should be taken only if we are sure of its repayment. There are also special institutions that will deal with your case impartially. They often act on behalf of the government and help people in financial problems. Thanks to them, you can reach a settlement with the creditor and determine how to pay the debt. As a last resort, if you are unable to pay your debts in any way, you can file for consumer bankruptcy.

Is it worth paying off the loan earlier?

Is it worth paying off the loan earlier?

There is also a reverse situation than in the previous paragraph. Well, we have more money than we need. We got an extra cash flow. The reasons can be different. We had a decline, we received a bonus at work, we won the lottery. Each accident combines one thing. We are then thinking about using this money wisely. We don’t want to lose them and have nothing of it. In modern society, almost everyone has cash loans. Whether for a car, a house, but also a smaller one, for a TV or a new laptop, the purchase of which could not wait. Therefore, it seems very reasonable to use additional funds to repay the debt.

After all, each loan is a burden. Something we would happily get rid of. The question, however, is whether it is worth doing it. Is it profitable? The first rule in such cases is to read the contract carefully. If in doubt, we can contact an employee of a bank or loan company. Regarding the former, contrary to what common sense tells us, they are not happy that we want to give them money earlier. Banks earn interest, and early repayment will deprive them of it. When it comes to credit card or debit, there is usually no problem. We have a free hand in this matter. However, the situation is different with cash loans, especially mortgage loans. Penalties for early repayment may even be charged here. Sometimes overpayment is possible, but only to a certain extent.

It all depends on the type of loan and the bank where we have it. So it’s best to find out before you sign the contract, you never know if there’s going to be extra cash in the future. When it comes to cash loans from non-bank loan companies, there is usually no problem. However, let us remember one important rule that applies to most modern loans. Well, if we want to repay it earlier, we must give up all the capital calculated at the moment.

This seems obvious. We have to pay back as much as we have left. Let us remember, however, that the first installments are characterized by the fact that they mostly cover interest and, to a smaller extent, capital. It may therefore be that we borrowed 5,000. USD, we donated in installments of 2,000 USD. It would seem that it is enough to give away 3 thousand. USD. However, it turns out that the capital has decreased to 4 thousand. USD and we have to give back if we want to get rid of the commitment, because a thousand USD was used to pay interest. It is therefore worth finding out in advance whether such early repayment will pay off. This is best done directly with the lender. He can also find out what capital remains to be repaid.

Common sense comes first

Common sense comes first

As you can see, the cash loan offer in the UK is very wide. Virtually everyone will find something for themselves. It is worth building your credit history, even if you do not need money at the moment. You never know when it will happen. Building a positive relationship with your bank or loan company is also a good solution. Often regular and proven customers get better offers. First of all, you need to use common sense and recalculate everything.

One should also remember about cooling off period, i.e. the right to resign from the contract within 14 days. If you have problems paying back, you should always contact the lender. It’s really not worth hiding. Nor are the revelations that it is enough to leave the UK and the credit does not need to be returned. There is such a thing as a European Payment Order. The creditor has the right to pursue us on its basis throughout Europe. I don’t think we want to receive every registered letter with trembling hands when in Poland. If our problems are more serious, it is worth reporting to government agencies that help in such situations. Specialists in this field will not only advise us, but will negotiate real repayment terms on our behalf. It is even possible to write off part of your debt or interest. This institution is, for example, IVA. Another form of assistance is establishing the so-called Dept Management Plan, i.e. setting one installment for all receivables that the debtor is able to bear.

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How to get a free loan: detailed step-by-step instructions

A free loan is a loan for which you do not pay interest, in other words, it is granted with a 0% commission.

For example, you want to take 2,000 PLN . After submitting the application, 2,000 PLN is sent to your verified bank account and 2,000 PLN for repayment period (up to 35 days) – i.e. you do not overpay and use the money without any interest!

How to get a free loan?

How to get a free loan?

You can get every 5th loan for free, but the four previous loans granted by are subject to the following conditions:

1 You used a loan of 14 days or more;

2 You returned the amount due within the time limit specified when applying for the loan

3 Between the loan repayment date and the date of the next loan, no more than 30 days should pass.

And that’s all! These conditions are simple ?

For example, if you took out two loans and both were covered by the terms of the loyalty program and the third loan was not repaid on time (she no longer participates in the loyalty program), don’t worry! This means that you have 2 loans belonging to the loyalty program on your account. Just pay back another loan on time and you’ll be one step closer to a free loan!

Well, only those loans that meet three simple conditions participate in the loyalty program. It doesn’t matter how many loans you actually have. But 4 loans, corresponding to the terms of the loyalty program, guarantee you a 5th loan for free!

If I find out how many of my loans take part in the loyalty program, and how soon can I get a free loan?

If I find out how many of my loans take part in the loyalty program, and how soon can I get a free loan?

After each loan accepted by the system, information will be sent to your email address regarding the status of the loyalty program. The message will indicate how many loans you have on your account that are participating in the loyalty program.

Also, the message will indicate how many loans are left to the 5th free loan. If the loan has not been included in the program – you will also be informed.

Does the interest-free loan have restrictions?

Does the interest-free loan have restrictions?

The free loan can be granted from 100 to 5000 PLN for up to 35 days within 15 minutes. There is only one limitation – the loan amount without interest cannot exceed the amount of the previous loan.

If you have questions about how to get a loan without interest or want to learn more about the loyalty program – contact Customer Service. We wish you good luck and hope that this is the beginning of our long-term cooperation.

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How to pay back a loan in a bank when you have no money

How do you repay a bank loan when you have no money? The situation may vary. For example, you got a loan but you lost your job or you have a sick relative and all the money went to treat him. In general, you simply don’t have money for your monthly installment. The question arises: “What if I have no money to pay back the loan?” The answer to this question can be found in the article. First of all, let’s try to talk about the consequences of defaulting a bank loan.

The main problems or consequences of defaulting on a borrower can be listed in descending order:

Loss of housing for which he took out a mortgage, debt collectors, bad credit history, broken relations with relatives and the loan guarantor. Later in the article you will learn how to deal with it.

What not to do when you can’t repay your bank loan

  1. Do not count on the debt disappearing by itself. Banks never forget about debts. Even if debt collectors do not contact you, this does not mean that they have forgotten you. Even when you think everything is fine, the bank charges interest and the credit history deteriorates. Report your problem on your own initiative. Banks usually appreciate this.
  2. Don’t disappear Trying to disappear is a very bad idea. If the bank sees that you are avoiding it, you can get to the database of unreliable borrowers. At the beginning you will feel the climate change, they will refer to you not as a customer, but a cheater. The sooner this happens, the sooner your contacts will be in the hands of debt collectors.
  3. Do not panic. It is known, the situation is not very pleasant: the debt is increasing, the commission is increasing, debt collectors are in contact. Remember that debt is only a financial problem, no one has the right to threaten your health and life, as well as offend you and your family.
  4. Don’t bring the case to court. If it comes to court, bailiffs will try to sell the property at a bailiff’s auction. You can lose half of your real value and still pay court costs and commission to bailiffs.

Can you hide and pay nothing?

Can you hide and pay nothing?

Loop Loop. Sooner or later you will have so many debts that you won’t be able to pay them back. Interest increases every month. Such a loan can be paid to old age.

Remember: even if the customer has never violated the contract before, the bank automatically charges penalty interest for any delays.

  1. Calls from the bank. The consultants call first, but if the customer does not contact us and does not repay the loan, the matter is transferred to the Debt Collection Department.
  2. From now on, your Debt Collection Department takes care of your debt. Their main purpose is that you pay the loan in full and it doesn’t matter if it will also ruin your nerves.
  3. Debt collection companies and court. If debt collectors in the bank fail, the bank sells the loan to a debt collection company or passes the case to court.
  4. External debt collectors will threaten your guarantors. Usually their methods are more aggressive than the methods used by debt collectors in the bank. They can call you to work, write to friends on social networks, and even visit you at home.
  5. The court is the last stage. Fighting lawyers or debt collection companies is almost useless. After the hearing, bailiffs come to you and you can have property execution.

What to do if you can’t pay back your bank loan

A borrower who does not hide, informs about his financial problem, can contact the bank and take the situation under control.

Where to take money to pay back the loan

Where to take money to pay back the loan

Option 1: Repay the loan with a quick loan

We assume that this is one of the fastest ways to get money and start negotiations with the bank regarding loan repayment.

Option 2: Relatives and friends

Before borrowing money from friends, make sure that you can 100% refund the right amount. It will be easier for you to ruin your relations with relatives than to pay off your debt yourself.

Option 3: Additional work

If you lost your job, look for additional earnings on the Internet, don’t forget to look for this main job.

If you have a permanent job, but your payment is not sufficient to pay off the bank loan – think about additional income. Of course, you need time to get extra income, but to speed up the process, you need to start now.

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5 ways to get a loan back and get your loan back faster

In addition, you can borrow both small and medium amounts of money, and the loan is easy to apply. To qualify for such a loan, the prospective borrower only has to meet a few requirements:

  1. Must be of legal age.
  2. Must be officially registered in the territory of the Republic of Latvia and actually live at this address.
  3. Must have a stable income, albeit small.
  4. There should be no violation of previous credit repayments.
  5. Must have a phone number and a checking account with any bank.

Quick loans help you deal with urgent cash problems, such as:

  • You must pay your bill promptly.
  • Not enough money until your next salary.
  • Debt must be repaid in the short term.

There are many reasons to apply for a quick credit. In addition, such loans are perfectly legal and are issued by registered credit organizations. But it is with these types of loans that the borrower often overestimates his options: you seem to be paying off all your credit right away when you get your next paycheck, but by then you have expenses and needs, so you no longer have to repay all your debt straight away. Some simply ignore the rapid repayment of loans, which will have very negative consequences in the future.

Conscientious borrowers in these situations ask themselves: how to repay a loan if it has not been repaid in full, or how can you reduce the interest on the loan, thereby reducing the monthly payments?

In this article, we want to answer some of the most common questions about quick credit repayments.

Loan repayment delays

Loan repayment delays

This option is most disadvantageous to the borrower, as if the creditor does not authorize the deferred payment and you, in your discretion, delay the repayment, it will not only lead to the repayment of the debt, but you will also have to pay any penalties for late repayment. Unfortunately, most borrowers who face financial problems most often do just that. And they do so simply because they do not know what to do to avoid calculating large fines. Already at the time of considering a credit offer, it is possible for any prospective borrower to know what amount will be charged to them for each day of credit delay. Such information can easily be found in the loan calculator of every popular Latvian creditor.

To better understand this, let’s consider an example:

  1. The amount of the fast credit is 300 USD.
  2. Loan repayment term – 35 days.
  3. Payment delay 20 days – 71.40 USD.
  4. The interest fee for using the loan is 57 USD.
  5. Total payment amount: 300 + 57 + 71, 40 = 428.40 USD.

On the basis of these figures, it can be concluded that the fine represents 23.8% of the amount of credit originally raised. In different situations, this percentage may vary depending on the amount of credit, the repayment term and the length of the delay.

Extend payment deadline

Extend payment deadline

If you have already realized that you will not be able to return the loan on time, you always have the option of asking the creditor to defer payment. This period can be 5, 7, 14 or 30 days, and you may apply for such an extension countless times, but note that the annual rate for each deferred payment will increase, but the procedure itself will incur additional charges. But even with such extra expense, deferral often tends to be justified. Many borrowers easily pay off overdue debts at maturity. This option works when you clearly know that you will soon receive a large sum of money and that you will be able to pay off all your debts at once.

The fee for extending a loan is usually 15-30% of the total loan amount. Therefore, if you decide to apply for a credit of USD 200, in the event of an unexpected situation, you will have to pay USD 30-60 per procedure if you extend the due date.

In this regard, each creditor shall determine its own terms for the extension of the credit payment. The most loyal creditors allow you to pay interest on completing the extension date based on the amount of debt remaining.

It is important to think ahead with extending your credit repayment date, not when your bank has begun to charge you a penalty for late payment. If in doubt, call your lender and inquire about the consequences you may expect from a late payment.

Combining fast loans

Combining fast loans

If you have already processed several quick loans with different credit organizations and are unable to deal with their repayment now, the best option will be to apply for one large credit, which will allow you to cancel all previously drafted quick loans. Undoubtedly, a new loan will require additional expenses to get it, sometimes you will have to make a down payment, but as a result, the combined loan will cost you less than the lengthy repayment of several quick loans and the myriad payments to extend your due date.

For example: The borrower has made two quick loans via SMS. The first loan was issued for 100 USD, the second – 300 USD. Later, the borrower has ordered a 15-day extension of both loans.

  • The first loan had an interest rate of 10%, so the borrower had to pay an additional 10 USD along with the total debt. As a result, the payment amount is 110 USD.
  • The second loan had an interest rate of 12% and the borrower had to repay USD 336 (300 + 36) at maturity.

Along with the basic credit costs, the borrower had to pay 30 USD for the first loan extension and 50 USD for the second extension, so the total cost of both loans increased to 140 USD and 386 USD respectively.

It is in such cases that it is most useful to apply for a compound credit, but its amount should be equal only to the total value of the loans, taking into account the interest rate, not the overpayment on the repayment date.

Align with the ability of creditors to restructure their debt

Align with the ability of creditors to restructure their debt

Any credit institution will usually meet its borrowers and allow its clients to hope for a compromise solution at difficult times. Therefore, before deciding to extend your due date or allowing your payment to be delayed, contact your creditor’s representative and explain the situation.

Usually, when the lender finds that the borrower has difficulty repaying the loan, he starts to call and inquire about the situation with the loan. And at this stage, each bank chooses its own tactic for further action:

  1. Calling and threatening to include borrower in Single Debtor Register and go to court for debt recovery.
  2. Call and offer to meet to discuss installment repayment. In order for your creditor to offer you this scenario, you need to pay at least 1-2 times to extend your loan repayment date, and explain to the bank why you are no longer dealing with your debt.
  3. It should not be forgotten that it is not the creditor’s responsibility to look for a way out of your situation, but you have to offer ways to get your credit back on track.
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What is a revolving loan – advantages and disadvantages of a credit card

Are you in need? Do you need a large amount of cash? There are many different forms of financing; loans, payday loans, but our main goal is to make it beneficial for us. We may consider taking a cash loan, but why should we do it, if there is a better and more flexible option? It is a revolving loan. What is characterized by? Who can use it? Let’s see!

What is a revolving loan?

What is a revolving loan?

A revolving loan is a loan in an account. It is related to the current account. This form of financing is a very attractive solution for people who urgently need a large injection of cash. This is a permanently available credit line on your personal account, which can be used for any purpose.

We will try to explain it as simply as possible. Let’s imagine that we have 5,000 zlotys on our personal account and we use a revolving loan of 3,000 zlotys, so in total we have 8,000 zlotys on our account. When using a revolving loan, the funds obtained from it belong to us and we can use them freely, e.g. by paying online for purchases or making transfers.

How to repay a revolving loan?

Both repayment and renewal of a revolving loan usually takes place automatically. We receive the next “pool” of revolving credit when we repay the previous “pool”. When funds appear on our personal account, the bank takes the amount of debt and in this way our loan is restarted / revived.

A standard contract of this type of financing usually lasts for 12 months.

Revolving loan interest rate

Revolving loan interest rate

The revolving loan interest rate depends primarily on the bank. Usually, it is around 10% per annum, i.e. on average 1% per month, which is why many clients “get” this form of financing, hoping that they can cope with repayment due to such low interest rate.

Who can get a revolving loan?

Each bank has different rules for granting a revolving loan, however, the general rules for granting it are similar everywhere. The following may apply for this form of financing:

  1. individual clients who have Polish citizenship and live permanently in Poland,
  2. individual clients who are citizens of foreign countries, but are employed by an entity that has its headquarters in the country or persons receiving e.g. a pension or a scholarship.

In addition, such persons must:

  • have an account at a given bank for a specified period of time (usually 3 months if they were made systematically, monthly receipts or 6 months, if these inflows were made less often,
  • have creditworthiness,
  • may not have an unacceptable debit balance within the time specified by the bank before submitting the loan application (usually 3 months).

A revolving loan for companies

A revolving loan for companies

Entrepreneurs who run their own business, when they need an extra cash injection, often have several forms of financing to choose from, but they don’t always know which one to decide on. As it turns out – the best and most advantageous option is a revolving loan for companies.

Why is a revolving loan a good option for companies?

When we decide on a revolving loan, we get something like an overdraft or overdraft. Our personal account receives funds that we can freely use, including perform financial operations, withdraw from an ATM. The amount we can get as a revolving loan usually depends on one key factor – the income of the person applying for the loan. Typically, a revolving loan is a multiple of your monthly income.

What can we use the revolving loan for companies for?

It doesn’t really matter. His destiny depends on our needs. Everyone who runs their own business knows that there are often situations that we urgently have to pay something (e.g. PIT or VAT to the Tax Office), and our contractor is late with payment. So a revolving loan gives us more cash, as well as freedom, because we don’t have to worry that we won’t be able to pay anything.

What is overdraft?

What is overdraft?

Overdraft is a negative account balance. It arises when the client pays more money out of him than is on it.

How does debit work?

We receive an additional cash limit on our bank account, which remains at our disposal when our own cash runs out. With the next cash flow (eg income from work), the amount we are indebted to, ie “in minus”, will even out.

Summary

It should be remembered that when deciding on any form of financing – whether it is a revolving loan or a credit card – we cannot forget about reason and responsibility. We need to think carefully about our needs and capabilities. Credit is often a good and useful tool that helps us in urgent situations, and also allows you to efficiently manage your home budget.

Before we make a final decision about a loan, it is good to check the opinions of other customers and be guided by your own judgment.

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The payday loans have changed over the years

Non-bank loans in the world date back to the 1970s, while they reached Poland several years ago. Initially, only people in a very difficult financial situation decided to do so, with time, when banks tightened the rules on granting loans, more and more customers began to apply to non-bank companies. How have payday loans changed over the years?

What legal changes were introduced during this period?

What legal changes were introduced during this period?

Non-bank loans have been growing in popularity for several years. Why? To a large extent, due to the tightening introduced by banks in 2008 regarding the principles of granting loans and credits. It is also important to spread the Internet thanks to which more people reach for modern online payday loans.

How did the history of non-bank loans entering our home market look like? What legal regulations have been introduced in this area over the years?

A few words about the history of payday loans in Poland and in the world

A few words about the history of payday loans in Poland and in the world

The idea of ​​non-bank loans appeared in the USA already in the 70s and 80s of the last century, in response to the growing inequalities in terms of generated income. It came to the point that the richest people earned even more, while the poorest, less and less.

At the turn of the 1980s and 1990s, as a result of deregulation of the banking market, a lot of loan companies appeared, which noticed the demand for their services among the poorest social strata. Over the years, the payday market has grown. The success of non-bank companies in the United States meant that the idea of ​​non-bank loans soon reached the UK, and finally covered the entire European continent.

What is the history of payday loans in Poland? This idea did not reach our country until a dozen or so years ago. Initially, people were skeptical about them, but over time, this changed a lot. Why? Mainly due to the financial crisis and subsequent restrictions introduced by the banks regarding the criteria for granting loans. As a result, fewer people could count on a bank loan.

Non-bank loans perfectly filled this gap. The development of modern technologies is also important. Fasting on the Internet made online payday loans, and later popularized, appear. Online loans are fast and convenient, so they perfectly match the needs of the modern, demanding customer.

What has changed in the legal aspect?

What has changed in the legal aspect?

Payday loans have a number of followers and it is not surprising, because using them wisely is for many people an effective way to get rid of debts. They also have opponents who point to high interest rates on non-bank loans. In the interests of users of this type of loans, the state began to introduce appropriate legal regulations. The Act on non-bank loans is constantly taking on a new sound. All this to eliminate unfair practices on the part of loan companies.

Another chapter in history – loans without BIK

Another chapter in history - loans without BIK

The changing provisions of the loan law and the general, full of fluctuations, financial situation of the society contributed to the creation of a special type of loans offered to people with a bad credit history.

More and more people, due to various adversities, are in financial trouble, which often results in an entry in debtors’ registers such as BIK or KRD. In such a situation, you can no longer count on a bank loan, because these institutions cannot provide financial support to people with a bad credit history.

Loan companies perfectly filled this gap by offering payday loans without BIK , i.e. without checking your credit history. Thanks to this, people who once had a leg curled up at some point in their life can still count on getting a loan or credit. The more that as a rule they can afford a loan, but the unfortunate entry in the debtors’ databases, almost always cuts off the possibility of receiving a loan from the bank.

As you can see, the development of non-bank loans and the dissemination of online payday loans is not all that has changed over the past several years. It is also important to regularly introduce and improve legal regulations that make loans of this type a safer solution available to everyone. It is no wonder then that as the years go by, they are becoming more and more popular and it seems that this tendency will persist for a long time.

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What documents are needed to take a cash loan

money loan

Cash loans, although they are for much smaller amounts than even home loans, can generate a number of additional and burdensome costs. Visit progconcepts.com for a summary

Everyone who needs cash knows that you need many different documents to avoid any surprises, it is best to prepare the right documents in advance and plan everything carefully. Each bank has similar requirements, but nevertheless there are often differences in those requirements that have a significant impact on the terms of the loan.

Anyone who needs cash and has decided to take a cash loan for the first time in their life must know that you need different documents. It is best to prepare them in advance and plan the entire meeting.

 

Credit collateral

Credit collateral

A large number of banks require a minimum set of collateral. Therefore, some institutions expect the borrower to take out appropriate loan repayment insurance, making the loan conditions conditional on the premium being paid.

It is worth considering whether we really need credit insurance, there are banks that do not require them.

 

Basic documents

credit documents

First of all, each candidate for a cash loan is required to have an ID card or other document that certifies his identity. He will also be required to complete a loan application. Many banks have the option of sending it electronically. You can also opt for a loan in an online bank and then it is possible that all formalities will be carried out via the Internet, as well as by post.

This does not mean that there are less formalities. Note: do not submit applications to several banks or more, each BIK inquiry lowers your scoring and this is very important for getting a good loan or even getting it. Get ready in advance and think about which bank you want to apply to.

 

Income Certificates

Income Certificates

Most banks require a certificate that will show the amount of income they earn. In this way, they can calculate a person’s creditworthiness. Banks also require a spouse’s consent to take the loan above the loan amount of 50,000. The bank also requires pensioners to submit decisions and recent adjustments as well as pensions or pensions. Various financial institutions offer loans to people who also work on a specific task or mandate contract. People running a business are required to testify annually for the company’s financial documents, farmers are required to receive certificates from the Commune Office on conversion hectares and sales invoices from crops or farming and not, which banks additionally accept EU subsidies.

 

Creditworthiness

Creditworthiness

When the required documents have been submitted, the bank may begin a thorough analysis of the creditworthiness of the person applying for the loan. Then the bank checks the credit history at the Credit Information Bureau. If the customer had various arrears in the repayment of loans that he had previously drawn, the bank may not grant the loan. In addition, it calculates the maximum loan a person can receive and determines their ability to pay loan installments. As above, every BIK inquiry lowers your scoring and this is very important for getting good credit or even getting it.

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Cash loan or mortgage loan?

mortgage loan

The renovation or purchase of real estate is a considerable investment. Many people who decide on such an undertaking do not have enough cash to undertake it. The option for them is a cash loan or mortgage loan. Which of these two financial products is worth choosing?

 

What to look for when applying for a loan?

What to look for when applying for a loan?

Customers pay primarily to the cost of credit. And it would seem that they are doing the right thing. In this respect, a mortgage will always be more favorable. However, it is worth remembering that we are primarily on the road to getting money from a mortgage. Setting a mortgage on real estate is a possibility to get a loan on more attractive terms. Definitely such a solution carries a lot of risk. In the event of difficulties with repayment, the bank can collect the property without any obstacles.

 

How much will you borrow?

How much will you borrow?

When deciding to take a loan, we should consider first of all how much we will borrow. If you need more cash (over $ 50,000), you may need a mortgage. The maximum amount we can apply for under a mortgage depends on the bank itself, the cost of the investment, as well as our financial standing. Cash loans allow us to borrow even small amounts. The minimum limit depends on the bank’s individual offer. The maximum, however, on the source and amount of income. In some banks it may amount to as much as $ 500,000.

 

When can we take a mortgage?

When can we take a mortgage?

A mortgage is a special-purpose loan. In practice, this means that we can only take it if we can clearly specify and document the purpose of the loan. The money awarded to us for the mortgage will not be transferred to our account. We will not receive them in cash. They go directly to the seller’s account. However, there is an exception to this rule. If the money from the mortgage will be used to cover, e.g. renovation costs, we will have to document their use by settling with the bank.

In this respect, the mortgage is in considerable opposition to the cash loan, in which we receive the money in a form suitable for us and it can be used for any purpose.

 

Cash loan – much more expensive

Cash loan - much more expensive

The lengthy mortgage procedure can deter some customers. When submitting an application for a cash loan, we do not have to wait long for the bank’s decision. Unfortunately, the lack of collateral in the form of a mortgage makes it much more expensive than a mortgage. Compared to a mortgage loan, the loan interest rate ranges from 10 to even 40% per annum. Where in the case of a mortgage we can count on interest rates ranging from 8 to 10%.

The undeniable advantage of a cash loan is also the minimum of formalities. If we decide on the offer of the bank in which we have an account, most likely, we will only need an ID card to conclude the loan agreement.