martinlukac.com / My WordPress Blog Mon, 03 Feb 2020 00:25:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.3 Loan tips – how to take a loan responsibly? /loan-tips-how-to-take-a-loan-responsibly/ /loan-tips-how-to-take-a-loan-responsibly/#respond Mon, 03 Feb 2020 00:25:35 +0000 /loan-tips-how-to-take-a-loan-responsibly/ A loan is a great way to finance various expenses, both unforeseen and planned. At the same time, when borrowing, you need to use common sense and act carefully.

 

Loan amount

Loan amount

If we want to borrow money, we should think about the amount we really need. The principle is simple – we do not borrow more than necessary. We also need to precisely define our financial capabilities, ie what amount we will be able to pay back and when it will be possible. If you need a large injection of cash, it’s worth considering, for example, an installment loan. Paying off installments is not only easier, but also less stressful.

 

Lender

Lender

Of course, we also need to consider who we will borrow money from. Often, the best solution is to use the help of family or friends, but this is not always possible. In such a situation, the choice remains between a bank, a loan company or a private person dealing in granting loans. Banks carefully check their clients and require the delivery of many documents. Non-bank companies offer a quick loan without unnecessary formalities, but they often limit the amount available to new customers. However, you should be very careful when borrowing from a private individual.

 

Choosing a good offer

Choosing a good offer

Before you decide on a specific solution, it is worth getting to know all offers and choose the one that will be the most profitable. Information on available offers can be found in various rankings. It is also worth asking people who have already used the services of a given company. The credit forum is a place where you will find useful opinions and advice from more experienced borrowers.

 

Agreement

loan Agreement

Regardless of who we borrow, we should always draw up a relevant contract in writing. Such a document must contain all the most important information, ie the amount of the loan, its repayment date, as well as the consequences if the liability is not paid in time. The contract must always be read carefully before signing. This may be obvious, but many people are still reading these types of documents only briefly.

 

Watch out for the debt spiral

debt spiral

If the decision to take out a loan is carefully thought out, we should not have a problem with its repayment within a specified period. Unfortunately, it is not possible to predict all the situations and sometimes it happens that we will not be able to pay the liability. It is worth knowing what to do in this case and what solutions we have at our disposal. For example, many loan companies offer the option of extending or refinancing a loan. Borrowing to pay off old debts is the least favorable. In this way, we will easily fall into a spiral of debt when our commitments grow over time and eventually become insolvent. That is why responsible borrowing is so important, as it will avoid serious financial problems.

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Unfavorable credit history – how it affects your business /unfavorable-credit-history-how-it-affects-your-business/ /unfavorable-credit-history-how-it-affects-your-business/#respond Fri, 10 Jan 2020 00:37:39 +0000 /unfavorable-credit-history-how-it-affects-your-business/

Many start-up companies need money to start. It is often necessary to take out a loan, without it it is difficult to start a business, buy equipment or invest in new technological solutions. But what if you have a bad credit history? We will explain how it can affect your business and what steps to take so that everything in your company runs smoothly.

 

What is bad credit history?

bad credit history?

The Credit Information Bureau collects all kinds of information about repayments. This is where all kinds of information about overdue payments over 30, 60 or 90 days are collected. This means that this order of delay, whether it is a loan, loan or installment, already creates a “negative credit history”. When applying for a loan, such unpaid arrears are of great importance.

Of course, in many cases, it is often said that it is better to have a credit history than not to have one at all, so you should avoid any backlog of any kind. The worst option is the lack of any history, for the bank such a person is completely unpredictable.

 

Can you erase an unfavorable credit history?

credit history?

Many companies on the Internet advertise themselves claiming to be able to help people and companies who do not have the best credit history. Is this effective? In principle, all kinds of activities that such companies undertake, such as rectifying outdated and false information, submitting a request to restructure a loan or a request to prohibit the processing of personal data, we can submit ourselves.

It is really difficult for such companies to change anything, and we can do all the activities they undertake. Unfortunately, often various types of activities will not help, sometimes you have to wait 5 years before the negative information is removed from our account. Then all you can do is build a new good credit history. During this time, you can buy an item in installments, take a small loan and pay the installments on time.

 

How to help yourself

credit history

If you apply for a loan, a negative history can make a big difference. And it is not that we will not get credit at all, but that we will get it on worse terms. However, other obligations may be more important for the bank – credit card and account limit. Even if we do not use these facilities, it will constitute our debt for the bank. It’s a good idea to close your credit cards and remove the limit option. However, if we used these benefits in moderation, ie we paid the arrears on time, and we did not use the entire available limit every month, it could be additional information about the fact that we are a person who can control our finances.

And in advance you should think about it to make it easier for us to pay our debts. The best solution is a consolidation loan, which will allow you to pay all your liabilities in a way that will not unduly violate our budget. It is also a good signal for the bank that we can anticipate certain circumstances in advance and we do not fall into a spiral of debt, and we are trying to find the best solution.

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I don’t have a job – can I get a loan? /i-dont-have-a-job-can-i-get-a-loan/ /i-dont-have-a-job-can-i-get-a-loan/#respond Wed, 08 Jan 2020 00:28:50 +0000 /i-dont-have-a-job-can-i-get-a-loan/

Looking at the financial market in Poland, one can safely conclude that the average Kowalski has many opportunities to take an attractive loan. There are many banks in Poland, offering various loans, and non-bank institutions have similar offers for people who cannot borrow in a traditional bank. These branches, although they have offers similar to traditional banks’ loans, have slightly different conditions for granting the loans themselves, thanks to which people with no documented income can count on the loan.

 

How is it with the banks?

How is it with the banks?

The banks that are on the market the most offer various forms of loans – from classic consumer loans for any purpose, through consolidation or mortgage loans. When applying for a bank loan, however, you must have documented income that is the basis for calculating your creditworthiness, and thus affects the amount of credit granted. This is one of the main conditions for granting a bank loan, which means that people without documented income – ie not working or working in the gray economy – cannot count on the loan.

 

An alternative to banks

unemployment loan

The offer that typical non-bank institutions have is slightly different. Known as “payday loans”, having quite different opinions, but having their own group of customers. What is the difference between the offer of popular “payday loans” and the offer of banks and why this type of financial support is ideal for people without employment? First of all, non-bank institutions have a more preferential, flexible offer that is more suited to clients and their individual needs. Although some of these institutions take into account income and credit history, this is not the only condition for granting a loan, thanks to which the unemployed have a chance to consider their application positively.

 

What should you watch out for?

unemployment loan

Non-bank institutions have different opinions regarding their activities for a reason. There are many companies of this nature on the Polish market and most of them have many years of experience in the industry, but not all of these institutions have equally attractive and transparent lending conditions, and in many cases non-bank institutions are the only form of financial support for borrowers. Therefore, if you want to take advantage of the loan office offer, you should carefully look at the offer they offer, and then compare them with the competition and choose the option best suited to you.

 

What for the unemployed?

What for the unemployed?

Unemployed people applying for a loan are unlikely to have a positive opinion on their claim at a traditional bank. However, it often happens that people without a permanent source of income are forced to seek financial assistance. In such a situation, you should compare and choose the offer of non-bank institutions with calmness and prudence and choose the option that is best for you. Thanks to this, the average Kowalski will find a safe, preferential loan offer just for himself.

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Small Business Financial Fundamentals /small-business-financial-fundamentals/ /small-business-financial-fundamentals/#respond Sun, 27 Oct 2019 11:38:04 +0000 /small-business-financial-fundamentals/

After the umpteenth small business advice, I think it is worthwhile to rewrite the most basic small business financial mistakes.

What they have in common is that the small entrepreneur works hard, struggles, knows his profession well and even thinks he is successful in the market, but he has everyday penny problems and doesn’t know where the mistake is.

What is your cost?

cash

My recent client explained that when they calculate a price, they don’t forget to include the $ 6,000 overhead rate in the final price. When I asked how this number came out, the only answer was that everyone in the profession counted so much.

This is where the first and most serious problem begins. We have no idea what the real cost to the company is and how it should be allocated to production.

We only know the wages of the employee and the cost of the raw material (although sometimes there are serious problems in determining the cost of the material), we do not count on anything else. However, everything has to be added up and divided for working hours. The mean everything to everything. Fax paper, phone bill, monthly cost of accountant, rent and insurance of office space, annual cost of air conditioning for office, cost of repainting warehouse every three years, marketing expenses, payment of administrative staff, everything, everything, everything that ever comes about the company.

If you have four production employees and one administrative employee, you will be required to redistribute the one-year cost based on 4 × 8 working hours a day, 22 days a month, and this will be an item of the overhead rate.

To do this, of course, you need to make a note of all the expenses you incur in the life of the company, be it as small as a $ 300 parking fee.

All you have to do for this task is accurate administration and common sense. You add up everything and divide that amount by eight hours a day for the four productive workers in the example. (Didn’t you forget that every employee is not working 35 days a year on holidays and there are paid holidays as well as sick leave? That is, an average employee only works 10 out of 12. So the above 22 working days is not 22 days really , but only a little over 18 days.)

That’s the damn depreciation

cash

It is a constant problem that small businesses forget to depreciate their production assets. If you bought a machine for $ 10 million, worth $ 1 million in 9 years, you would slightly simplify the depreciation of $ 1 million a year, or $ 83,000 a month. If the machine goes 120 hours a month, then the depreciation of the machine is only 700 HUF per hour, and where else are the maintenance, refurbishment and maintenance costs? It’s just a release that, after 10 years, the trash is a productive device. Get $ 6,000 in overheads.

But I hope you haven’t forgotten that your business office computers are also depreciating. If you buy 3 new laptops in the office every three years for 700,000 forints, then re-stock it. And cell phones. Yeah, and of course the value of cars, which is also millions of items a year. These must all appear in the overhead rate.

I wrote an informative article about this earlier.

money

Thus, the overhead hourly rate includes all current costs divided by the depreciation of capital goods. But we’re not done with that yet.

What will you develop?

Most small businesses forget that it takes money to develop, and they forget to calculate the price to be charged to their customers. Since he did not calculate the commitment price, he would have to make up his own pocket and develop his business from his private assets. Well, that is why he will never have money, because he is going through a new means of production, so his company will not increase his wealth, but on the contrary, will constantly lose it due to development needs.

Therefore, calculate in advance the direction and cost of the expected improvements and add it to each job. Because if you don’t, you will not understand why you are constantly being poor and not gaining.

Need a new machine in two years for 8 million. In the meantime, we will be generating 13,800 hours of work with the four people, so $ 580 is still to be added to the overhead.

Capital also costs money

Capital also costs money

Another common mistake is that people forget the cost of capital. If I have $ 50 million in the firm’s fixed assets, I can’t put it in the bank, so I lose interest on it. If I count on a 4% return every year, then I have 2 million bucks as an owner to keep my capital here, let’s say, in stock. That’s 6,900 working hours a year for me to spend 290 forints as an owner.

Here I wrote an equally instructive article that there is a business that seems to be profitable because we miscalculate it.

If you calculate all of the above items with honor, you will get a rough estimate of the minimum cost you would have to put in for each job to be at least zero .

If you work during this, you are only making a loss.

But once I get into that, let’s look at some other common issues.

Never belong to the tax office!

Never belong to the tax office!

Most loss-making businesses live much longer than they should because the owners make up for the losses with tax office money, deceiving themselves because they do not realize that they are making week-to-week losses.

They don’t pay VAT, they slip in with that. First they only roll a week or two, then a month or two, and finally millions of debts.

The tax debt is very fraudulent. The tax office does not call you weekly as your supplier, you do not turn off your phone as your mobile service provider, so many people are patching deficiencies with tax.

However, when the debt reaches the tax office’s stimulus threshold, it becomes the worst lender, and it is also favored by law. He’ll be your nightmare, whatever you do, seize or withdraw all your money from your account anytime you even have a debt.

Never walk into this trap. Taxes should always be paid on time. If you can’t do this, it should be an alarm for you that you are likely to lose your business and it is better to change or quit it as soon as possible.

Cash flow and profitability are two separate things

Cash flow and profitability are two separate things

We call cash flow the company’s cash flow that there is always money to pay the bills. It has nothing to do with whether you are profitable!

You can be terribly profitable, but if everyone pays late, you can ruin your company by the way, otherwise your profit margin was 100%.

That’s why it’s so important to have cash flow management so that you have cash on hand at all times.

It is therefore prohibited, for example, to invest in working capital from working capital. Because production will be more profitable with the new machine, only the company will die because of a lack of working capital.

Of course, if you always produce at a loss, sooner or later it will affect your cash flow. Very often, the lack of cash is due to loss-making production. This is a very serious symptom of the fact that the production of a company may not be profitable.

Is it my money or your business?

Many small entrepreneurs mix the money of their company with their own, find the corporate cashier, then pay the company costs out of their own pocket, bring the kids home from school with their company car and more.

The end of this is a big catwalk, and you will have no idea how much profit your company is making now, or if it is profitable at all.

Make a clear distinction between corporate and private spending, otherwise you will be unable to see clearly your finances and you will not be able to make good financial decisions.

The solution is as simple as a tree fringe: give yourself a paycheck and spend just that. (Not necessarily in the tax sense, I’ve written about this before.)

Why do you want to serve everyone?

I constantly hear that many small businesses take every job out of habit, so there’s no time to make money. Uncle Józsi is turning a new shaft for a handful of rice, or she is upgrading Aunt Joli’s hundred-year-old furniture for buttons.

Often you cannot afford the luxury of undertaking such work.

20% of clients generate 80% of revenue and 80% of problems are generated by 20% of clients who typically come from a circle that is otherwise unprofitable.

In this case too, it was suggested that up to two people out of four could be sent off if they did not take up the urinal work. For the 80% of the work, the remaining two people are enough and the cost to the company would fall so that with less work the company would probably earn more.

Forced to grow

I talked to a lot of people who told me that they were really looking good until they worked alone or as an assistant at the company. Then they started to grow, the company already has 30 employees, but actually the boss takes less money home than when he worked alone.

The question then arises, what are you doing this miracle?

A guy also repaired furniture at the house and the store went really well. He had an assistant, a broken van, and he was looking for coal.

Now, in a huge leased premises and showroom, he deals with dozens of people in the furniture repair, furniture manufacturing and sales industry, with a huge inventory and headache, and can bring home less than before.

But as I said, this is a surprisingly common occurrence.

So don’t want to grow at all costs! If, based on the above, you calculate how much you need to earn and calculate in advance that your profits will grow at least linearly with growth, then increase, otherwise not. Growth only makes sense if your profits grow, not if the size of the company, the headache, the risk and the amount of work just grow.

Never without a down payment

cash

I talked to someone who made millions of pieces of cut metal parts but refuses to pay upfront because what they don’t trust is that they will only be paid when the job is done.

Never be so naive and irresponsible. First of all, we do not shop with a company that cannot pay half of the work in advance. Such a company is a sham, you can say goodbye to your money for the slightest disruption.

Why should I trust him, trust me. If you make something and don’t take it over, you can then apply it on your hair, you can’t sell it, just scrap.

Stress test

Related to this is to always perform a stress test on your company before taking on any work. This means looking into what your business would be like if you did not get paid for this job, or if you were only paid 90 days late, or you could be fined if you missed the deadline.

If your company gets stuck, if the job is unpaid, or you can’t manage a tens of millions of penalties, say no to the offer, no matter how attractive it is. It’s just too big for you.

Never stand on one foot!

It is a recurring phrase that an entrepreneur spends all his money on his business because he brings the most there.

This is very dangerous and short-sighted.

Just as we do not keep all our money in Hungarian government securities, let’s say in Google stock or whatever, so we cannot have all our assets in our own business.

Enough of a clumsy accountant, a fraudulent business partner, a bad business decision, a $ 200 million lawsuit, anything and all your life’s work will be nullified.

Therefore, it is important that you do not take all the money out of the company so that it can grow (if it makes sense, see above), but it is just as important not to keep all your money in the company.

How much do you want to earn?

money

Doing business makes sense if you earn at least three times as much as if you were an employee. You have the risk, the responsibility, the non-paying customers, the problems, the tax obstacles and everything else.

Decide how much you want to earn on the net and start counting down how much revenue or profit your company should make.

There has been advice that has come to an end that since there is no way to get enough income out of the company to make a decent employee salary, you have to close the company and go out as an employee.

There’s nothing wrong with that, but a lot of people don’t dare to face it, and for years they only produce the minus. Don’t be afraid to face the facts.

Since the volume has slowly become a book rather than an entry, I will stop now. I hope I was able to help you a little bit with what you should look at in the finances of your business.

If you want to know more about finance, come to Good Finance and the next one will be coming soon. For just $ 25,000, you will learn everything you need to know in a basic way in six steps.

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Mortgage loan – an opportunity to receive money /mortgage-loan-an-opportunity-to-receive-money/ /mortgage-loan-an-opportunity-to-receive-money/#respond Sat, 26 Oct 2019 11:28:21 +0000 /mortgage-loan-an-opportunity-to-receive-money/

Have you heard of the lender’s mortgage loan?

 The possible amount of the loan will depend on the year and model of your car .

Lending company offers you the opportunity to receive money – up to 90% of the market value of your car .

You can borrow the value of the car as much as you think necessary – choose the amount of credit you need. The loan is issued with a repayment term of 1 to 60 months . Just like the loan amount, the repayment time is up to you. Choose a repayment term that will be appropriate and “friendly” for your loan repayment.

The possible amount of the loan will depend on the year and model of your car .

The possible amount of the loan will depend on the year and model of your car .

Your cars – make, model, and color – don’t matter, most importantly :

  • It is not more than 20 years old;
  • Must have passed a roadworthiness test – must be valid for at least another month;
  • There is OCTA insurance;
  • It is registered in Your name;
  • There is no need to continue paying leasing payments for it.

Borrowing from offers you two important benefits:

1) Loan against car collateral .lv – and you can continue to use your car – the car will not be retained as collateral!

2) Mortgage loan .lv – and cash loan is easy to repay! Repayment according to a previously prepared payment schedule. You can repay your loan faster – without penalty! If you have the money you repay to the lender, do not wait for the repayment to end, but return it without undue delay.

Steps towards a cash loan.

1) You are a car owner who wants a cash loan ;

2) Apply for a loan – it will only take a few minutes of your time;

3) Your application will be considered and a decision will be made within 30 minutes ;

4) Electronic signatures of the loan agreement ;

5) By courier you will be sent a power of attorney, which you will take to register your car as collateral for the loan ;

6) That’s it – you’ll get a cash loan up to 90% of the market value of your car! Money at your disposal – same day!

The loan is issued solely on the basis of the value of the car. No account is taken of the applicant’s credit history or monthly income. This means that this is also an opportunity to borrow money for people who are denied cash loans by other lenders due to damaged credit history, or for people who do not work in a formal job, and their source of income is not salary.

You can also borrow if you already have another loan from another credit company. The only obstacle to getting a loan against a mortgage is if you have to continue to make leasing payments for your car.

Larger or smaller cash loans may be needed both to prevent short-term financial problems and to fulfill an ancient idea that requires additional money. If money is needed urgently, action must be taken without undue delay. Mortgage loan – is your opportunity to get cash loan in just one day.

If you are looking for a cash loan that does not jeopardize something you own, like a car, turn to . It’s your chance to get a cash loan and continue to use your car. Also – accepts not only cars but also motorcycles and other machinery. Borrow wisely and responsibly!

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Low interest rates: Like any good thing to an end – Loans /low-interest-rates-like-any-good-thing-to-an-end-loans/ /low-interest-rates-like-any-good-thing-to-an-end-loans/#respond Sun, 22 Sep 2019 11:54:15 +0000 /low-interest-rates-like-any-good-thing-to-an-end-loans/ Most people take a good look at the low mortgage rates we’ve seen in recent years. Individually, of course, they gave us an ability to get into debt that our parents did not have or that we did not have ourselves before. While the historically low rates we have experienced have allowed many to access property, there are not only good sides to this situation. Whether it is a false sense of security or power or the perverse effects of over-indebtedness on the entire economy of the country, the consequences of a change that would not have been taken into account would affect Canadians individually or collectively.

 

Mortgage rates are essentially determined

Mortgage rates are essentially determined

Depending on whether they are fixed or variable by the bond market or by the Bank of Canada’s policy rate. The bond market benefits from steady and sustainable growth rates and therefore moderate economic growth. The policy of keeping inflation low is supporting steady but quiet growth. This Bank of Canada policy is part of the decisions that are made by the monetary authorities to support the entire economy of the country. Everything is intimately linked and this explains the interest in knowing the destination of the funds borrowed by the households, because significant negative repercussions on the national economic results can be associated, especially in times of unusual tensions.

Household spending accounts for almost 65% of total spending in Canada and is therefore a very important driver of the economy. Household borrowing has been rising steadily in recent years. Mortgage credit, which includes loans for home purchases and mortgage refinancing, accounts for nearly 70% of the total outstanding household credit. The other part of this outstanding amount is consumer credit, which includes lines of credit secured by equity, unsecured personal loans, car loans and credit card loans.

Several factors have contributed to the rapid growth of household debt in recent years. The skyrocketing mortgage credit is in line with the growth in the population and the number of people who own their homes, on the one hand, and the improvement in homeownership, on the other. While home prices have increased (which is a barrier to accessibility), other factors – such as income growth and lower interest rates – have generally contributed to the affordability of homeownership. obtaining mortgage credit. Financial innovation has also contributed to credit expansion. By giving rise to a wider offer of credit products launched with great publicity, it has made these products more attractive and more accessible to households.

 

The main perverse effect of low interest rates remains

loan interest

For individuals, the false sense of security for homeownership or a higher category home and possible over-indebtedness. Collectively, the impact of a financial shock that would affect these borrowers would upset the country’s economy.

So, all good things having an end, let us know how to profit intelligently from this historically exceptional situation, while being certain that the situation will evolve and change. When exactly ? No one knows, but it will evolve, we can be sure and must use caution.

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Say Goodbye to Traditional Banking /say-goodbye-to-traditional-banking/ /say-goodbye-to-traditional-banking/#respond Sun, 01 Sep 2019 12:07:38 +0000 /say-goodbye-to-traditional-banking/

When I say that Mexican companies lack financing options, I am not finding the black thread of the national economy. We know, the banking system, besides being expensive, is complicated. dmsband.org has more information

The limited information in the requirements and commitments is the main reason why companies do not get or are not interested in accessing a loan. To these variables, add the authorization delay, high interest rates, exaggerated commissions and poor quality in customer service.

The situation would not be so important if we did not compare it with the results obtained by the National Institute of Statistics and Geography (INEGI): in Mexico there are approximately 4 million 15 thousand companies, of which 99.8% are SMEs that generate 52% of the Internal Product Gross (GDP) and 72% of employment in the country.

However, only two out of 10 companies reach five years of life. What is the main problem? The lack of financing.

Given this situation, in The Duchess we were quite clear: We had to act.

That is why we are “cooking” an alternative: A loan platform for SMEs, where interested parties can access loans with low interest, at any time and practically without leaving their office.

Who will fund these projects?

Who will fund these projects?

This question reveals the most interesting of the model, because the credits will be granted by other companies and even people who are interested in obtaining high returns for lending money.

This model is known as Peer to Peer (P2P) Lending, and has been catapulted in the world as one of the most important alternatives to banking.

In the United States alone, the P2P loan industry handles more than one billion dollars a month. While in the United Kingdom the model has had exponential growth of more than 250%.

I want to lend Is there a risk of losing my money?

Yes, the chances that the company you are lending to will not pay are latent (as in any kind of loan). But so that this does not happen, P2P platforms have protection systems to minimize risk and inform you at all times what you are exposed to.

It is essential to inform you before deciding where to put your money. In the case of P2P Lending, those who do not know the system should start by familiarizing themselves with it. What platforms do they offer? How do they work in other countries? What problems have they generated?

Convinced? Now analyze the companies that are requesting: How much do they ask? What is your risk? What are they going to use money for?

DEFINE YOUR TOLERANCE AT RISK

I want to lend Is there a risk of losing my money?

Applicants for P2P platforms are classified by risk. That is, you can differentiate between those who are more likely to pay, those that may cost more work and even those that represent a high risk.

These classifications respond to a study of variables, so you should always keep in mind the relation profitability> risk. The higher profitability, the more risk.

How much money would you be willing to lose in case things don’t go as planned? Although the idea is always to obtain a return, it should be defined and fulfilled.

INCREASE RISKS LITTLE TO LITTLE

To familiarize yourself with a P2P platform, it is a good idea to focus only on “safe” loans, even if they are the ones that offer the lowest returns. Although in the long run, if you stay too long in these types of profiles, you may feel that the evolution of your finances is not as satisfactory as you had planned.

To avoid this, it is best to choose applicants with a higher risk and thus get more benefits. Of course, remember that the key to your security is diversification, so always keep a good balance between the safest loans and those that provide you with more profitability.

REINVERT YOUR ORIGINAL MONEY

money

Once the initial funding has been recovered, it is a good idea to let the interest earned continue to generate benefits, but also to reinvest the initial amount in a new loan. So you can expand and diversify your portfolio easier.

ORDER BEFORE EVERYTHING

As you have already verified by previous research, your funding may be subject to default on some occasion and that will impact the total benefits you expect to receive. Regularly controlling the management of your account can allow you to make decisions to compensate for profit and loss.

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Consumer credit rate revision /consumer-credit-rate-revision/ /consumer-credit-rate-revision/#respond Thu, 22 Aug 2019 12:35:54 +0000 /consumer-credit-rate-revision/

In the context of a consumer credit, this is a recalculation of the interest rate. When you take out such a loan, interest is calculated based on a rate and a repayment term. When, some time later, a borrower realizes that the economic situation is favorable to him and that the interest rates have fallen, he can make an appointment to his adviser and ask him for a rate revision . This can have a very significant impact on the repayment of a loan. With this rate cut, it is possible to reduce the repayment period or the amount of monthly payments.

 

Why request a rate review?

Why request a rate review?

Bark and Sophia realized a consumer credit a year ago. However, the rate of their credit was then 5.75%, the amount of their monthly payments suffers. Recently, Bark heard that interest rates were falling, so he decided to contact his bank advisor and request a rate review . The latter then studied his request and recalculated his credit according to the new rate applied namely 4.85%. Every month, Bark and Sophia manage to save money.

 

Reimburse consumer credit

Reimburse consumer credit

When Arnold saw that the rates were going down, he too decided to meet his advisor. Now, after calculation, Arnold realized that a rate revision was not so favorable to him. In fact, this involves fees that often represent a percentage of the gains made after the rate revision.

Marine, meanwhile, wanted to revise its interest rate or his bank did not wish to make any special effort. She completed a form on Sergeant Frans Pixel and was able to compare in a few minutes offers from various banks and other credit agencies. It has managed to increase its rate from 6.25% to 5% for substantial savings in the end. It is essential for borrowers to be interested in interest rates which, when they fall, save money. While some choose to reduce their monthly payments, others prefer to reduce the term of the loan and are even more successful.

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