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How to get out of debt, or when consolidation pays off?





How to get out of debt, or when consolidation pays off?

Are you considering using a consolidation loan? Do not you know if in your case it will be the best solution to the problem of too high installments? We checked whether and when debt consolidation pays off.

The bank encourages you to take out a loan to repay existing loans, but you heard from your friend that it is not worth it? Well – it’s true, consolidation has its pros and cons. Instead of theorizing about its (not?) Profitability, it is worth considering its advantages and disadvantages on specific numbers.

Case study 

Let us assume that our model borrower – has two loans. He took the first one two years ago for PLN 25,000 for 4 years, so he still had 24 installments to pay (equal). He took the second loan a year ago for PLN 10,000 and 24 installments (equal to him) were also paid for him. Both debts have an identical interest rate: 10% per annum and were associated with the payment of commission in the same amount: 10%. For the sake of simplicity, we assume that the interest rate on the contracts would remain unchanged throughout the whole period of their duration, and the commission was paid out of their own pocket (ie it did not increase the gross loan amount from which interest is calculated). Interest and commission are the only costs of both obligations.

“Cash loan 1” : PLN 25,000 for 48 months

  •     commission: 10% (PLN 2,500)
  •     interest rate: 10%
  •     installment: PLN 6,006
  •     repaid capital after two years: PLN 11,529.28
  •     capital remaining to be repaid: PLN 13,740.71
  •     the sum of all interest accrued for the entire loan period: PLN 5,375,10
  •     the sum of interest repaid in two years: PLN 3958.27
  •     the sum of unpaid interest: PLN 1467.82

“Cash Loan 2” : PLN 10,000 for 36 months

  •     commission: 10% (PLN 1000)
  •     interest rate: 10%
  •     installment: 322.67 PLN
  •     capital repaid after one year: PLN 3007,43
  •     outstanding capital: PLN 6992,58
  •     the sum of all interest accrued for the entire loan period: PLN 1616.19
  •     the sum of interest repaid after one year: PLN 864.63
  •     the sum of unpaid interest: PLN 751.56

“Consolidation loan 1” : PLN 20,737.29 (PLN 6992,58 + PLN 13,740.71) for 48 months

  •     commission: 0%
  •     interest rate: 10%
  •     installment: PLN 525.85
  •     the sum of all interest accrued for the entire loan period: PLN 4,507.50

“Consolidation loan 2” : PLN 20,737.29 (PLN 6992,58 + PLN 13,740.71) for 48 months

  •     commission: 5% (PLN 1036.66)
  •     interest rate: 5%
  •     installment: PLN 477.47
  •     the sum of all interest accrued for the entire loan period: PLN 2,185.42

The initial cost of “Loan 1” is PLN 7,105.10 (PLN 5,371.10 interest and PLN 2,500 commission), and “Loan 2”: PLN 2616.19 (PLN 1616.19 interest and PLN 1000 commission), which gives a total of PLN 10551.28. That’s what would pay if he timely settled installments according to their schedules. So far, it has incurred a total cost of PLN 8322.90 (commissions and interest already paid on both loans), and there is still PLN 2228.38 to be settled .

Consolidation costs

Due to the fact that would pay two installments every month for a total of PLN 956.73, he decided to consolidate. Thanks to the two-time extension of the repayment period, which he still had for both loans, he wanted to ease his monthly home budget. The amount of capital that he had to return under both contracts is PLN 20733,29, so he had to take out a new loan for that sum. He received two proposals for consolidation loans from the bank. The first with the same interest rate as in the case of existing loans, but without commissions. The other half with a lower interest rate, but with a 5% commission. It turns out that the first consolidation would cost him PLN 4,507.50 and the second: PLN 3222.08 . He would pay from PLN 993.70 to PLN 2279.12 for extending the repayment of debt for another two years.

Is it worth combining debts?

In the case of ‘s credit dilemma, a thousand or two thousand zlotys for reducing the installments by almost half? It all depends on the situation of the borrower. Although consolidation is usually an additional expense, it can bring a huge advantage – it can save you from losing financial liquidity, and even save from bankruptcy.

Payday loan without income / salary

To secure a payday loan you usually need a proof of income, ideally a salary statement. Those who can not present such, but do not despair.

 Come to the loan with collateral

There are also opportunities for people without a fixed income on a much-needed payday loan. Here, the payday loan without income or the payday loan without salary would be a possibility.

Come to the payday loan with collateral

A serious financing can be recognized by the fact that collateral is required . This can be a solvent guarantor or a car or condominium or other property. In any case, the borrower must be of legal age, be a German citizen or foreigner with valid identity documents, have a German bank account and at least have a small, possibly even irregular income.

The payday loan offer will be calculated so that the borrower can pay his installments without being driven deeper into the debt trap.

Plan for higher costs

Therefore, mostly only small payday loans are granted, for example, from 500 euros. Compared to fixed-income financing, the processing fees and the interest rate are usually higher. There are fairly large interest margins depending on the payday loan rating . These in turn affect the amount of the monthly installment and the term. It may also require the completion of expensive insurance, especially if the payday loan is offered without insight into . Here you should look at the fine print very carefully, because there are also dubious providers.

It is best if the payday loan is requested together with a co-applicant who has a good payday loan rating. Since the lender in this case has particularly great opportunities to get his money back, he will offer better terms .

Small payday loan without income with guarantors

Also, a guarantor gives the lender security, so that he can grant payday loan without proof of income and grant good conditions. However, the legal situation is different: while a co-applicant can be prosecuted at any time during the term for the installments, this is only possible with a guarantor if the borrower does not fulfill his payment obligations permanently .

The guarantee is entered in the guerrilla’s file , so that he may get in trouble if he wants to apply for a payday loan himself. In addition, a guarantee can burden the personal relationship between the two persons.

It is worth considering whether to ask someone who would be co-applicants or guarantors to apply directly for a private payday loan . Repayment may then be more flexible and cheaper. In any case, you should be sure that you can return the money so as not to jeopardize the personal relationship.

Personal payday loans as a possible alternative

Alternatively, you can look around for a personal payday loan on a payday loan marketplace. In addition to the general payday loan rating, the payday loan check also takes into account the project behind the payday loan request. With successful payday loan brokerage a commission and relatively high interest rates are to be paid.

If you only need money for a short period, a mortgage payday loan is an option. Since the pawnbroker can use the pledge , he is not interested in the income situation of the pledgee. The payday loan is issued promptly and easily and without any query or entry to the , but the interest is by law 1 percent per month. There are also high processing fees, so this is a pretty expensive option.

A special form of a small payday loan with no initial costs is the conclusion of a mobile phone contract or several mobile phone contracts with a fixed term of 24 months. Instead of a mobile phone you get between 250 € and 2500 € as equipment subsidy transferred to his account. You do not need a proof of income but only a German residence.

Conclusion: Depending on your personal situation or project, a small payday loan without proof of income is possible.

4 tips for small payday loan without income

1. List collateral

If you have no income, but should have appropriate collateral . For example, those who have just become unemployed may still have various items that have a certain material value. These can usually be shown as collateral for a payday loan.

This can also be a car. The important thing is that it is a seizable property, because without its own income, there is nothing that the bank could fall back to secure the payments. Anyone who has created a home during their working hours or has a condominium can also lend it to them.

2. Find guarantors

A very good way to get a payday loan without income is when another person is ready to act as a guarantor. This can also be your own partner or wife, provided that she has a regular income and has no negative entries in the . As a guarantor, however, any other person can occur.

For strangers or friends, it is advisable to set up a guarantee contract to clarify all eventualities in advance. As a last resort, a guarantee insurance can be concluded, in which then monthly contributions are paid.

Be sure to pay attention to the double burden of monthly payday loan installments and payments to the insurance company.

3. Create extra income

Just because there is no income does not necessarily mean that you are not payday loanworthy . Often only a few hundred euros are missing before the payment of a small payday loan at least is granted. For this purpose, a secondary income can be created, which can also be operated from home. The Internet offers a lot of work that can be done directly and quickly from the PC.

For example, anyone who enjoys writing can turn their talent into a career. Certainly, there will be no income from which one can live, but this amount of money could open the door to a small payday loan.

4. mortgage life insurance

Anyone who has taken out a life insurance policy in their professional life has a good chance of getting a payday loan through them . Often it is not worth canceling the insurance and paying off the amount. However, this can also be pledged to the bank . It practically springs in when one is no longer able to pay off the accruing installments.

If the amount is high enough, sizeable sums can be borrowed. Beware of use: Also with the bank applies that often the total amount is not paid.

This is how you get a payday loan without proof of income

Basically, lending is quite simple. Most lenders follow the same procedure. Often you can find many providers on the Internet, which provide a payday loan without proof of income. Here, the purpose and the duration are in the first place queried. The more plausible the intended use and the more realistic the duration, the higher the chances of a payday loan being awarded.

It is important to pay attention to the effective interest rate when selecting the payday loan. This can lead to significant differences between the individual providers. Experience has shown that the interest rate is slightly higher than is the case for a payday loan with a query.

This is mainly because this interest rate should serve as collateral for the lender. Nevertheless, the effective interest rate should not be excessive. A healthy mediocrity points to a reputable provider.

The payday loan can now be applied for on the Internet. You enter all the important data and send the application forms. Within only a few working days will be decided on the lending . In most cases, the processing of applications is much faster than with conventional payday loans, as there is no payday loan check . If the payday loan is approved, you will get the money directly transferred to the account.

In addition, to increase the chances of lending, you can also specify certain collateral. So you can, for example, note a guarantor or deposit property as collateral. However, one should very carefully consider what this form of security is worth.

For whom is such a payday loan suitable?

As mentioned earlier, basically anyone can benefit from such a payday loan. Especially people with a low income , such as students or trainees, can benefit from it. Also, a payday loan without income proof is suitable for those who have already failed in the lending by a bank, because a proof of income has not been sufficient as sufficient security. Furthermore, self-employed people can benefit from a payday loan without proof of income.

In particular, if you want to start a business, it will be hard to come up with a proof of income at the beginning. This is mainly due to the fact that you have not yet generated any income in the current industry. In order to fulfill the dream of self-employment , a payday loan without proof of income is the right solution.

Is a payday loan without proof of income reputable?

Basically, one can say that this type of payday loan is also serious. Ultimately, each payday loan company decides which applications to accept and which not. Generally, you should only trust in reputable companies . Furthermore, the contract should be transparent and a contract may not come about without the consent of both parties. This is an important criterion to watch out for.

In particular, if you want to conclude the payday loan without proof of income on the Internet, you should read the reviews of the bank. Thus, one can recognize important clues about the seriousness of the provider .

As a rule, companies are required to provide collateral when granting a payday loan without proof of income. These should by no means be too high. If, for example, a plot of land is required as compulsory security, this could be a clue to a dubious company.

Considering these important aspects, one can certainly find a cheap and serious payday loan without proof of income and get in this way to the money needed .

Typical situations for the payday loan without salary

Most widespread is the payday loan without salary in the direct financing of purchases via the trade. In this case, by far the most transactions require only the presentation of the identity card and a bank or payday loan card, except for large amounts. Finally, the discretionary payday loan is a payday loan without salary in the strict sense.

Although the bank has information regarding the receipt of funds when it is granted. It does not know, however, whether the employer transfers contributions exclusively as compensation for wages or possibly together with salary payments.

When applying for a payday loan card, the issuance of which is subject to the granting of a short-term payday loan, however, most issuers only ask for income. However, they refrain from submitting a corresponding receipt and only request the salary statement if the cardholder asks for a card limit that is higher than the default limit.

Furthermore, the mortgage payday loan is one of the payday loans, which are always awarded without salary , since the pawnbroker’s pledge serves as collateral.

Loan of 7000 Euros Online

If you are thinking of carrying out reforms in your home, paying a car or a new home, and even traveling, you can choose to borrow a 7000 euro loan from any of the financial institutions or lenders, they offer you a loan with which you can buy or supplement the cost of something you need.

On the web you can find several financial institutions willing to grant loans, you only have to enter online a credit simulator of 7000 euros, so that you know the installments, installments and interest payable. They also offer loans or urgent loans with lower amounts that can be canceled in a shorter time and with 0% interest, since the longer you delay or the longer your term to pay, the more interest is calculated on your loan.

By opting for loans of 7000 euros you have the possibility to carry out those projects that you have in mind since you can use this resource to finance your studies, pay your car bills, reunify debts or use your loan for personal matters such as medical emergencies or perform Some trip.

Loans of 7000 euros without endorsement

7000 euros 4

When you want to opt for a personal loan of 7000 euros, it is common for you to demand an endorsement, especially if it is a bank, they always demand something to support your debt, but there are private equity financial institutions and credit financial institutions that also grant quick loans. of 7000 euros without the need for an endorsement.

Before granting a credit of 7000 euros to the client, he must present his solvency status, while his data is subjected to an analysis to verify that it is not in delinquency lists.

And if what you need is to get out of a small debt you can opt for the 500 euros credits, which are granted much faster and there are many platforms that also offer them without endorsement or paperwork.

7000 euros loan without payroll

I need a loan of 7000 euros, but I do not have a payroll you only have to prove if you have solvency or stable income, and even if you do not have a fixed job you can get in simulators payment options for personal loans of 7000 euros

Not all financial institutions grant a loan of 7000 euros if you do not have payroll since they must guarantee the payment of their fees in such a case which if they offer also have loans of 5000 euros.

Loans of 7000 euros with Financial Credit Institutions

Entering the delinquency lists is very easy, but leaving many times is difficult that is why some platforms offer online loans of 7000 euros, where despite being in Financial Credit Institutions your request is subjected to a rigorous analysis to know if you opt for a loan.

After the analysis to grant credits of 7000 euros, even if you are in a delinquency file you must prove your solvency.

Because to get a loan of 7000 euros while at Financial Credit Institutions, the financial institution must ensure that you do not have multiple loan or credit defaults to other financial institutions.

When fulfilling the payment of your loan or credit the financial institution can also be offered to request credit options of 9000 euros.

Loan of 7000 euros in installments

7000 euros 2

Most simulators offer credit or a loan of 7000 euros to 5 years, as a fixed fee in the simulator, but these fees can be changed according to your convenience months or less, because the more time you spend in canceling your loan. 7000 euros higher are the interest rates.

For when you place on the web I need a loan of 7000 euros you should look at your ability to pay, the more you extend your fee the higher the interest rate.

Ask for a loan of 7000 euros

  • To apply for a loan of 7000 euros you must be resident in Spain, in a province accepted by the financial institution to grant loans.
  • You are also required to apply for a loan or ask for a credit of 7000 euros you must send your ID can be ID or passport, in addition to have a minimum age of 18 years or 21 years depending on the financial institution to which you request the loan
  • Enter the web requesting how to request a loan of 7000 euros, you will be presented with several simulators of personal loans offered by banks or private financial institutions.
  • You can compare in different simulars how getting a credit or personal loan is the most attractive for you, this will depend on the fees or interest payable.
  • When sending the form, you must send the receipts that each financial institution requires to submit your credit to an analysis. In cases that ask you to send a guarantee or proof of payroll. This will also serve to submit to a risk assessment where your income, your job (fixed, retired, unemployed) and the ability to pay are examined.