Instant Same Day Payday Loans Online -Club-fuer-Molosser.Net http://club-fuer-molosser.net/ Sat, 01 Jun 2019 14:50:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.6 Normal Installment Loan http://club-fuer-molosser.net/normal-installment-loan/ Sat, 01 Jun 2019 14:50:08 +0000 http://www.club-fuer-molosser.net/normal-installment-loan/ ( more... )]]>

 

In finance and credit, there are concepts that at first glance do not seem so completely understandable. One of these terms is certainly the word “balloon financing”. So, if the question arises as to what balloon funding really is, where are you used and what should you look for in this form of credit? Questions that we would like to answer with this article. First and foremost, so-called balloon financing is probably more familiar to most people among us than the term “credit with final installment”. A form of credit that is used in a high percentage of a car loan, but is also increasingly used in high-priced consumer goods.

Characteristics of a loan with closing rate

 Characteristics of a loan with closing rate

In the case of a loan with a final installment, a loan amount corresponding to the normal installment loan is agreed between the borrower and the lender. The big difference to a conventional installment loan, however, is that the loan amount is not divided as usual over the entire term, but is included only in a previously agreed share in the term financing. As a result, at the end of the life of the loan, the borrower has the obligation to return the remainder of the loan to the lender in one go.

Plain: The difference between completed installments and the total financing will be redeemed at the last installment, the so-called closing rate, at the end of the repayment term.

Benefits of a credit closing rate

Benefits of a credit closing rate

The most obvious advantage of such a loan lies in the possibility to keep the rates for this loan quite low and thus to superficially reduce your own monthly financial burden. Ostensibly because, the lower the monthly installments, the higher the final installment. Thus, at low monthly installments, it must be ensured that the borrower at the end of the term will then be financially able to settle the then agreed, high final installment.

Another advantage is that the interest rate is also effectively reduced, as it is credited only to the previously paid installments, but not to the final installment of the loan.

Typical application of a loan with closing rate

Typical application of a loan with closing rate

In the banking sector, a credit with a final installment is a common financing model, but this is mainly used when the loan has a trackable investment. From the point of view of the bank, this has, above all, security reasons that should ensure that, as already mentioned, the loan or the last installment can also be completely repaid. Therefore, a loan with a final installment usually requires that the bank has an attachable item, for example a car, in the event of an emergency, which can be called in the event of default. Since the final installment is much higher than the previous monthly installments, lenders want to hedge so that the loan can still be fully repaid.

Our conclusion

 

If you are sure that with a credit with a final rate your own financial options can also raise a higher final installment, or you put in wise foresight already money back for this rate, you can save considerably in the interest incurred. Therefore, a loan with a final installment is usually only allowed if there is a firm and ideally long-term employment relationship, so that the lender does not have to fear a sudden termination and thus a payment default.

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Promotional Loans of the Major Credit Portals Actually Work With Their Discount Battle http://club-fuer-molosser.net/promotional-loans-of-the-major-credit-portals-actually-work-with-their-discount-battle/ Mon, 27 May 2019 14:21:02 +0000 http://www.club-fuer-molosser.net/promotional-loans-of-the-major-credit-portals-actually-work-with-their-discount-battle/ ( more... )]]>

 

This is a loan we know most people: You apply for a loan and you pay it over an agreed period at a specific interest rate to the lender – usually the bank – back. The additional costs resulting from the interest rate thus provide a kind of fee from which the bank derives its profit from the lending business. So far so good. But how does a lender generate profits when the interest rate on the loan moves in the negative? Exactly as it is currently the case with the so-called “minus 5% loans”? Where is the advantage for the bank? How can a bank afford such an obvious minus business? A question that has been answered so far, as it is a marketing action and subsidized from appropriate budgets. Really? No – who knows the scene, knows that the calculus behind it is different. What? It’s about customer data, because the actually really valuable currency on the internet is personal data.

Loans with negative interest rates act as data bats

 Loans with negative interest rates act as data bats

The fact is that nobody has something to give away and certainly not money. And banks do not even! Conclusion? Either an installment loan is paid back in a classic way with money including an interest premium and thus profitably for the bank or else with a mixture of money AND data.

Something that is widely understood as a digital economy, but is rather a verbal whitewashing for data octopi. Wanted examples? Facebook, Google Plus, Twitter, Instagram – all free for users and yet these services generate huge revenue with targeted advertising. The basis for this is the user data and their digital motion profiles.

And this is exactly how the current promotional loans of the major credit portals actually work with their discount battle. Anyone claiming such a loan must therefore be aware that he is revealing his financial as well as private personality in large part for the alleged credit bargain. For example, when making a loan application, state how high your monthly earnings are, whether you are married, how many children live in your household at what age, if you have your own home or if you have a warm rent, if a car or motorbike is coming, etc.

But it goes even further, because in addition to these, but very personal data, is often the view of the bank account of the applicant and that with request of account number and password for online banking. But who now protests inwardly and asks the question, if this is allowed at all? Yes, it is. The legislator allows to use digital interfaces to retrieve account movements as part of a credit check. For it serves the validation of the information previously made by the credit customer with regard to salary receipt etc ..

The conclusion

 The conclusion

Retrieval of data and an associated validity check is basically nothing unusual, as it has been used daily for many years by banks and their consumer loans. The question is, however, whether one indicates all of these data directly to a bank or via the detour of so-called comparison portals, which then possibly pass them on to third parties. What can happen if, when applying for certain cases, you forget to read the “fine print” and blindly agree.

 

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The Bank Had Demanded The Position Of A Loan Guarantee. http://club-fuer-molosser.net/the-bank-had-demanded-the-position-of-a-loan-guarantee/ Sun, 19 May 2019 14:19:07 +0000 http://www.club-fuer-molosser.net/the-bank-had-demanded-the-position-of-a-loan-guarantee/ ( more... )]]>

It is a situation that is quite commonplace when applying for a loan . The bank is not completely convinced of the creditworthiness and the collateral offered for a loan. It makes it clear to the potential borrower that you are only willing to provide the loan you need by placing a loan guarantee. So the borrower and usually the spouse, life partner or another family member is often willing to sign under the loan agreement. The bank is satisfied, because it is now very well secured by 2 persons with equal rights in case of imminent loan default . All right?

Credit burst despite guarantor: who is responsible and bears the damage?

 

 Credit burst despite guarantor: who is responsible and bears the damage?

Not at all, because what happens if the credit still bursts and also the supposed security by the second borrower turns out to be a soap bubble? Thus, the loan bureau was not in a position to be financially sound and currently is not in a position to fulfill its guarantee obligations under the loan agreement? Has the bank been knowingly cheated here? Or has the bank simply refrained from conducting a detailed examination of the guarantor’s financial situation at the time of signing the loan? It is therefore necessary to determine who the victim is here and acted grossly negligent or immoral. However, there is no clear legal line to date.

Groundbreaking verdict of the Federal Court?

 

 Groundbreaking verdict of the Federal Court?

It was not until the end of last year that the Federal Court had to make a decision in a contentious case. With the result that the decision was made in favor of the defendant borrower and his insolvent wife. Judge Richter justified this decision by saying that his wife was “financially crassly overwhelmed” by the joint liability. This “blatant financial overcharge” applies whenever the attachable income and assets of the guarantor are not even sufficient to service the current interest payments on the loan. The credit agreement was thus classified as “immoral” (judgment of 15 November 2016 – XI ZR 32/16).

The background of the decision: The borrower’s wife had signed in the 90s, the credit agreement of her spouse with because the bank had demanded the position of a loan guarantee. A situation that often creates a high psychological pressure and leads to ill-considered actions.

Guarantees for a loan are often taken over hastily

 

 Guarantees for a loan are often taken over hastily

 

Especially when it comes to support the partner in his credit request in the best possible way, in which one vouches for her, there is an immense psychological pressure behind it. After all, one wants to help and also to maintain peace in the relationship. Also often the decision to take over a credit guarantee of the own advantage, which results from the credit, in the foreground. Nevertheless, anyone who takes out a loan guarantee should be aware of the responsibility of this act. Because the current judgment of the BGH is not a license for the consequences of accepting such a guarantee.

 

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Not All providers of Loans are Same. Examine them Properly http://club-fuer-molosser.net/not-all-providers-of-loans-are-same-examine-them-properly/ Thu, 25 Apr 2019 14:19:39 +0000 http://www.club-fuer-molosser.net/not-all-providers-of-loans-are-same-examine-them-properly/ ( more... )]]>

It’s so beautiful: Once in the clutches of Schufa and it’s over with the financial flexibility! And there is undoubtedly a lot of truth in it, because who has a negative entry in the SCHUFA, who has definitely significant difficulty to open an account to get a credit card or even a loan. It is considered a person with a SCHUFA entry simply as “untrustworthy or someone with a non-existent payment moral!” Whether it is justified or not to be so stamped, it should not be highlighted here, but rather an offer that exactly human served with a SCHUFA problem: the loan without SCHUFA .

The solution: The loan without SCHUFA?

 

It is no wonder that people who do not get loans from their bank due to a negative contribution in their Schufa file or for other reasons, see in a loan without Schufa a last resort out of a financial misery. But what about this form of credit?

Advantages and disadvantages of a loan without Schufa

 Advantages and disadvantages of a loan without Schufa

In general, a loan without SCHUFA is actually only useful in two situations: on the one hand, if the borrower wants to keep his Schufa file clean and, on the other hand, if existing credit debts should be replaced in the form of a controlled debt restructuring. In addition to advantages such as the quick, on request, anonymous settlement and the possibility of free use of money brings a loan without Schufa also some disadvantages and risks. Thus, the higher risk for the lender often leads to higher fees plus interest and a limit on the loan – usually a maximum of 4,000 euros are available.

Who seriously offers a loan without Schufa?

 Who seriously offers a loan without Schufa?

Basically, in the offers for a loan without SCHUFA is usually the question in the room, who is actually behind these loan offers or loans such? The answer to this often stumbles many people, because they are often quite regular banks. Admittedly, it’s not the big banks that catch us every day as we walk through the city. No – they are smaller, often lesser-known banks and often also banks based in other European countries. This is often the name of a “Swiss credit” synonymous with a loan without SCHUFA.

Beware of dubious providers

 

 Beware of dubious providers

Incredible offers can usually be identified quite quickly by a few simple criteria. For example, credit intermediaries, which are frequently active in this market for schufa-free loans, should in principle offer their services without obligation and free of charge. Reputable credit providers also usually have a free service hotline and a real existing business address. Also, the transmission of the contract documents required for the conclusion, whether digital or in writing, should not cost the borrower anything. In addition, no reputable provider will grant a loan without demanding collateral such as salary statements or the like. If the creditworthiness is checked neither at the Schufa nor on the payslip, non-performance-related up-front fees are incurred or salary assignments or blank remittances are expected – hands off! Then it can be assumed that the loan offer is not on a serious financing background.

Credit without Schufa – really that easy?

 

Many providers advertise in the highest terms for a loan without Schufa – so we also from Mother Courage and we are synonymous. It is also true that it is not so difficult to obtain a loan without SCHUFA or a burdened SCHUFA. But and this is exactly what we would like to point out here: There is always the possibility that even a schufa-free loan can be refused!

For example, unemployed applicants have little chance of obtaining a loan without Schufa if they can not provide adequate collateral or a loan guarantee. The same is often true for self-employed and freelancers. However, if all prerequisites – for example for our mini loan – are met, there is a good chance of a Schufa-free loan.

 

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A Loan Is Needed Due To A Special Situation. Credit Loan http://club-fuer-molosser.net/a-loan-is-needed-due-to-a-special-situation-credit-loan/ Mon, 22 Apr 2019 14:51:15 +0000 http://www.club-fuer-molosser.net/a-loan-is-needed-due-to-a-special-situation-credit-loan/ ( more... )]]>

 

Who does not know: A loan is needed due to a special situation. One informs oneself on the Internet by means of a credit comparison over suitable credit offers. These are matched with your own requirements and ultimately the decision for a specific loan offer is made. So the application process is initiated and at some point an insurance offer appears: the so-called residual debt insurance. The explanation of why such insurance is highly appropriate is then also included. Because you should take over the agreed installment payments to pay off the installment loan , even if you are no longer able to do so as a borrower. For example, in the case of job loss, prolonged illness and associated loss of earnings or as a result of premature death. So makes sense to accept the offer for the conclusion of a residual debt insurance ? Not necessarily and that has cost reasons first of all.

Remaining debt insurance: How expensive is the loan?

 

 Remaining debt insurance: How expensive is the loan?

 

Basically, the hedging of financial risks, which undoubtedly includes a loan and the resulting long-term obligations, is recommended. However, this security is never in vain, and that is exactly where the residual debt insurance for credit is the danger. Because they make a originally favorable credit on closer inspection significantly more expensive. After all , the costs of the residual debt insurance are NOT priced into the APR of the installment loan . The reason for this is as follows: The insurance premium is usually paid as a lump sum, including all other additional costs, as a lump sum at the beginning of the contract. A procedure that can be interpreted as a concealment of the actual cost of credit. – and also should. For example, experts’ independent credit calculations show that this approach results in the real interest charge on the loan taken up doubling. Obviously, consumer advocates again and again criticize the lack of transparency of this debt insurance massive publicly and advise against the conclusion of such insurance in all clarity.

 

The legislator intervenes in the residual debt insurance

 

 The legislator intervenes in the residual debt insurance

 

This constant criticism on the part of the consumer estimator has finally also found itself in the legislature and caused a corresponding reaction. This reaction is now reflected in a corresponding bill. The core of this draft is that banks have to send the customer another written notice of cancellation within seven days of signing the loan agreement. The content of this cancellation policy must be the exact listing of the conditions of that residual debt insurance and the entire loan. In addition to the anyway necessary reference to the right of withdrawal, which is valid as of receipt of the letter another 14 days. The aim of the legislator is to use this requirement to create a legally binding regulation of residual debt insurance for the protection of the consumer. Because so far, there is in the residual debt insurance compared to other insurance just not those statutory regulation. Until now, banks are not subject to comprehensive, regulated information obligations when offering a residual debt insurance .

Well thought, poorly implemented? Consumer advocates remain critical

 

 Well thought, poorly implemented? Consumer advocates remain critical

Although the right of withdrawal and the obligation of the banks on the part of the consumer advocates is welcomed in the core, so there are two main points of criticism:

1.) the cost of insurance

Again, for good reason, because the amount and structure of the fees for a residual debt insurance, the new law will change nothing.

2.) The transparency

Transparency will only be created after the conclusion of the contract if the customer receives the cancellation policy. It would be significantly better and, above all, more consumer-friendly if the loan offer were already informed in detail about the effective annual interest rate with and without insurance.

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Credit Behavior of Germans http://club-fuer-molosser.net/credit-behavior-of-germans/ Tue, 16 Apr 2019 15:11:19 +0000 http://www.club-fuer-molosser.net/credit-behavior-of-germans/ ( more... )]]>

What are the German citizens to their obligations from a loan ? Will he be repaid on time? Are citizens inclined to make a hasty loan? These and a few further questions have occupied the SCHUFA for years. Every year, the credit behavior of German citizens is evaluated using their own databases. The results of the evaluation of the credit behavior of Germans can be found in the annual SCHUFA Kredit Kompass . So also this year. And the result is relatively clear and can be summarized in a few words: Loans are usually taken wisely and compare the loan terms in detail. In addition, loan repayments this year are exceptionally high. Please find attached the most important results of the SCHUFA Credit Compass 2017.

Loans are repaid on time in a high percentage

 

 Loans are repaid on time in a high percentage

A result that stands out in particular from this year’s Credit Compass 2017 is the high percentage of borrowers who fulfill their repayment obligations over the entire credit term. It follows that never before have borrowers in Germany repaid their loans more reliably than last year. 97.8 percent of all consumer loans paid back the Germans properly to the bank. A percentage that has never been achieved in the history of the SCHUFA so far.

Comparison of loan offers is becoming more significant

 

Comparison of loan offers is becoming more significant

The Schufa counted 22.9 million condition requests last year. This represents an increase of around 17 percent compared to 2015. On the other hand, however, the number of new installment loans rose only slightly from 7.4 to 7.7 million. From which it can be concluded that the German citizens often compare 3 and more loan offers here before concluding a consumer credit.

Moreover, the significant difference between the number of completed loans and the number of offers made is also due to the fact that not every requesting loan applicant, and ultimately also a loan request or received. Particularly often, borrowers between the ages of 25 and 29 compare loans. They caught on average 2.4 loan offers before they finally decided on one of them – and thus most likely secured even better terms for a installment loan than the low-interest phase already had ready.

 

Low interest rates motivate you to take out a loan

 Low interest rates motivate you to take out a loan

It is a well-known wisdom of the finance industry: low interest rates fuel consumption and motivate people to buy more on credit or borrow more. In the past year, 36.6 percent of all borrowers borrowed more than € 10,000 and more. By comparison, in 2015, this share had been 34.5 percent, in 2014 even only 31.2 percent. At the same time, the number of small loans and mini loans has fallen. Only less than 1,000 euros have recently been lent to consumers (2015: 24.8 percent, 2014: 27.5 percent).

 

Every sixth German citizen takes out loans

 

 Every sixth German citizen takes out loans

After all, every sixth German citizen had at least one current loan in 2016. After all, this corresponds to around 15.5 percent of all Germans. What sounds quite remarkable, however, is to be viewed positively in comparison, because the number is declining. Because in comparison to the previous year, this value has fallen by at least 1 percent from 16.5 percent. It follows that although German consumers absorb less credit, they are asking for higher credit due to the low-interest phase.

 

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Make Special Repayment – Reduce Credit Costs http://club-fuer-molosser.net/make-special-repayment-reduce-credit-costs/ Sat, 23 Mar 2019 14:56:24 +0000 http://www.club-fuer-molosser.net/make-special-repayment-reduce-credit-costs/ ( more... )]]>

 

The majority of German citizens are happy every year when the decision to tax return the previous year in the house. Because connected with the receipt, the notification is that a corresponding tax credit is available for payment. The joy is great and at once the question arises: what to do with the extra money? A question that is easy to answer for citizens with current loans : special repayment. And the willingness to make special repayments is not uncommon.
According to a survey of an online tax return provider, well over one in ten wants to use their tax refund for a special repayment. But what are special repayments and what should borrowers pay attention to when using the offer “special repayment”? Let’s take a closer look at individual aspects.

What is a special repayment and what does it bring to borrowers?

 What is a special repayment and what does it bring to borrowers?

As already mentioned, loans are repaid by monthly installments, the amount of which is defined in relation to the loan amount, interest rate and term. However, agreements can be made with banks to prematurely repay the loan itself through appropriate special repayments, reduce the installment size and / or significantly reduce the term. If such an agreement for the performance of special repayments results in significant benefits for the borrower >>

• The goal of debt freedom is achieved much faster

• The monthly burden can be reduced by reducing the rate

• The term of the loan is shortened

• The amount of the interest charge is lower

It should be noted that the above points can not be achieved in total. With the performance of special repayments, it is therefore always necessary to clarify with the lending bank which of the aforementioned goals should actually be achieved.

 

Are special repayments always possible with current loans?

 Are special repayments always possible with current loans?

 

Irrespective of which goals are to be achieved when repaying a loan by means of a special payment, it is not unusual for borrowers to ask whether this is even possible. The answer to such a question is a clear “yes”. For classic installment loans, unscheduled repayments during repayment are possible at any time and without restrictions. The legislature has taken care of that. For example, the Bürgerliches Gesetzbuch (BGB) stipulates that borrowers can meet all or part of their liabilities under a consumer loan agreement at any time.

Special repayment on credit – the right time

Special repayment on credit - the right time

 

In order to get the best possible benefit from the possibility of special repayment, the time of the special payment is a criterion which should by no means be neglected. It is true that the later one or more special payments are made during the repayment term, the lower the potential savings in the interest payable. Because once paid interest within a loan can not be saved. In this respect, the rule of thumb here is that the sooner you, as a borrower, can make a special repayment within the loan, the harder it will be at the original borrowing costs. In plain language, the earlier you can make special payments, the greater the savings in interest rates.

Stumbling block on special repayments – the prepayment penalty

 Stumbling block on special repayments - the prepayment penalty

But care: The possibility of special repayments on loans can also be a financial pitfall. In particular, if the Bank allows for special payments but has a premature termination of the loan by means of one or more such payments, it would have to complain about financial losses (interest losses). A loss, because many banks try to avoid by a clause in the loan agreements by a so-called clause on prepayment decision is incorporated.

However, here too, the existence of such a clause should be kept calm: In the case of consumer credit and / or installment loans, the maximum cost of such compensation is quite manageable. The reason for this is a statutory provision from 2010. From this point on, the legislator has introduced a cap that states that banks may claim a maximum of 0.5 percent of the amount repaid early as a fee. That, on the premise that only twelve or less installments would have to be paid. If the residual maturity is more than one year, the prepayment penalty is limited to one percent of the special repayment amount. In no case, however, may the bank demand more than it actually escapes interest.

 

 

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What happens to Credit Protection After Death http://club-fuer-molosser.net/what-happens-to-credit-protection-after-death/ Thu, 21 Mar 2019 14:14:22 +0000 http://www.club-fuer-molosser.net/what-happens-to-credit-protection-after-death/ ( more... )]]>

Granted – it’s a topic that people are reluctant to talk about. Surreptitiously displaced by many people up to a certain point of their own life and yet inevitably a topic to be dealt with: the passing away. Not only when it comes to making personal arrangements such as the will for the bereaved, but also on the subject of finance. Financial matters should be regulated in the event of death, in the form that any surviving dependents are free of charge. But what if this is not the case? For example, if the deceased still has one or more loans that are not fully paid at the time of death? Does the loan contract automatically end with the death of the borrower? In this aspect, what should be considered when concluding a loan? Which possibilities of protection exist? We followed these questions.

Loans can be secured in the event of death

 Loans can be secured in the event of death In principle, the following rule applies when concluding a loan: The debt of the deceased remains in existence even after the death of the borrower. Like the deceased’s assets, they transfer to his heirs. The debt together with the funeral expenses and other existing receivables form the so-called estate liabilities. If there is no will, the statutory succession comes into force. With several heirs a heirs community is formed. In this case, the community of heirs is jointly and severally liable for the obligations of the deceased until the distribution of the inheritance in accordance with § 2058 BGB. However, none of the co-heirs must settle the claims from his private assets, but can refer the creditors to the estate. As far as the legal regulation. However, just so that the situation does NOT occur, there are ways to take appropriate safeguards already with the conclusion of a loan. On the one hand, the residual debt insurance known in other contexts or the term life insurance are available for this purpose.

 

Credit protection in the event of death: residual debt insurance or term life insurance?

 Credit protection in the event of death: residual debt insurance or term life insurance?

 

If the borrower wants to ensure that his heirs are not burdened with his credit debts after his death, the first option is to take out residual debt insurance when the loan is taken out. In case of death of the borrower, the credit (residual) debt existing at the time of death is then settled by the insurance company. An impending financial burden on the heirs after the demise of the borrower is thus averted. The second alternative is the conclusion of a term life insurance. In the event of death, term life insurance is paid directly to the surviving dependents. This sum can then be used to pay off the outstanding amount of credit. The advantage of term life insurance is that, in contrast to residual debt insurance, the use of the sum insured is not tied to a specific purpose. As a result, there may be some leeway for using the money for the heirs.

 

Credit protection with term life insurance: this is to be considered

 

 Credit protection with term life insurance: this is to be considered When concluding such an insurance, it is important to ensure that one or more persons are designated as contract beneficiaries in the contract. The sum insured will then be paid in full to this person (s) in the event of death. The beneficiary of the insurance contract may also be the heir, but this is not necessarily necessary. Furthermore, it is important to know that if a beneficiary is named in the insurance contract, the payment of the sum insured to the beneficiary will not be treated as inheritance but as a gift. Thus, there is also a tax benefit for the beneficiary.

 

 

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Six Myths that can Lead you to Over-indebtedness http://club-fuer-molosser.net/six-myths-that-can-lead-you-to-over-indebtedness/ http://club-fuer-molosser.net/six-myths-that-can-lead-you-to-over-indebtedness/#respond Mon, 18 Feb 2019 12:54:08 +0000 http://www.club-fuer-molosser.net/six-myths-that-can-lead-you-to-over-indebtedness/ ( more... )]]>

Not having savings habits and postponing debt repayments are some examples of negative behaviors that can lead to over-indebtedness. Many of these errors stem from the lack of financial literacy received by consumers throughout life. Get to know some of the most common myths that can make you lose money and control your personal finances. Criticism at http://dudubluelagoon.com

 

1. “I can not save”

The hardest is to start. Putting aside a small amount of money, like the cash left over from the wallet at the end of the week, is a first step in that direction. If you can save ten euros every month it is a start for those who want to start a savings but have little income to do so. To achieve this goal it is important that you make a family budget to reduce the excessive spending you may be committing.

 

2. “I want my children to have everything I did not have”

2. "I want my children to have everything I did not have"

Saying no to your children is a way to educate them financially. This is because gifts, toys or other objects have a cost that can not always be borne by parents. Also, giving everything your child wants is giving you unhealthy habits. Hearing a “no” from time to time, with due justification, can make your child value certain objects when they receive them and encourage him to save enough money to have what he wants.

 

3. “My car is an investment”

3. "My car is an investment"

Having the idea that buying a new car is safer or that it is an investment for the future is a frequent idea. However, this is not always the best option for all families. Remember that in most cases, the purchase of a new car implies the hiring of a car loan that can be extended for several years and will have a considerable weight in the family budget. That is why it is vital that you get a car that suits the size of your wallet. In addition, you will have to account for the devaluation effect of the car: If you buy a new car and want to sell it soon it could mean a 20% depreciation against the purchase price. That is, you will never be able to sell your car for the same price that you bought it.

 

4. “Pay Later”

4. "Pay Later"

Credit card can be a good tool in managing the personal finances of consumers. But customarily using credit cards to make purchases, it can become a headache at the end of the month for those who do not control the payments made with this means of payment. Remember that there are two modes of payment of cards: You can pay your debt at 100% or just one installment. If you opt for the first hypothesis, the debt gets settled and you do not have to pay interest. If you choose the second option and pay only a portion of your debt you will have to pay interest on the amount that is not settled. Do not forget that you will have to make a minimum payment of 10% on the amount of debt.

 

5. “I deserve”

5. "I deserve"

For those who already have debts, choosing to spend a luxury vacation or allowing yourself to be consumed can be a big problem: at the end of the experience, the luxuries have to be paid. In these cases, it is necessary to have patience. If you want to get out of debt, it is important that you have a strict discipline in managing your family budget so that you do not spend more than you earn and you can keep paying your charges. If you have a high effort rate (greater than 35%) it’s a warning sign to get your finances in order. Otherwise you are at risk of default.

 

6. “I will receive an inheritance”

6. "I will receive an inheritance"

Making expenses today to think about the money you will receive in the future – whether by an inheritance, a gambling bonus or even IRS repayment – is not a healthy personal finance strategy. Without realizing it you may be overindulging. Regardless of the income you have at present (or you may have in the future) it is vital that all consumers have an emergency fund to guarantee the payment of household expenses over a period of six to 12 months. Do not forget that you may suffer a setback in your life (such as unemployment, divorce or illness) that may jeopardize the fulfillment of your duties.

 

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