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Different debt reduction strategies – Debt Consolidation

by admin

No paid loans are just like all other short term loans, but they carry very low interest rates and processing fees on them. The fee is so low or negligible that they can sometimes be called as free loans.

The second consequence is that it will be difficult for you to take out a loan until you have finished paying on debt consolidation. Companies don't want to put financial strain on you again by lending money for something else. They don't want to give you all the more payments to worry about. No need to worry about this because you won't be taking any more loans anyway. You need to pay off debt consolidation before you worry about anything else.


Before looking for a low cost loan

Before looking for a low cost loan

The first is that how much you want to borrow; secondly, the repayment term for this loan; and the PPI (Payment Protection Insurance). These three factors must be considered before availing a low cost loan.

Almost every home owner at least starts out with a secured loan called a mortgage. As mentioned above, credit card companies are developing cards to help people with less than perfect credit get their credit in order. These protected cards are becoming a great option for those who want to rebuild their credit.

After the information provided by the borrower has been verified, he gets immediate approval for cheap loans. The loan amount transferred to your account can be obtained within 24 hours of the approval date. He needs to be cautious of his loan repayment, because any delay in not repaying would hinder his credit history. Therefore, it is advisable that borrower should research well before applying for unsecured loans if it is a bad credit holder.


So how can you lower interest rates on your auto loan?

debt loans

Well, the first step is obvious. You should beware of the loan as many lenders as you can reasonably. Unlike home loans, you tend to have a good range of quotes from different lenders. They can vary from one point or more depending on the credit situation. Try it and you will be surprised at how different the offers are.

Property loan seekers can benefit from their expert advice. They can also look forward to getting the best deal on their home loans. Now, it is very easy to get the best property loan. These companies can provide answers to all questions related to real estate loans.

Imagine a big, big mountain in the distance. You don't know exactly how far it is, but you know it's there, waiting to be climbed. Meanwhile, between you and the mountain is a fog-covered valley. You don't know what kind of ups and downs it will be in that valley, but you know the journey through won't be exactly smooth.

Zero plus rate loan (PTZ +): all you need to know

by admin


Want to know all about the zero plus loan rate (PTZ +)? Created in 1995 and intended to facilitate access to property, the zero interest plus loan has many advantages (no application fees and no interest). 

What is the zero plus loan rate?

What is the zero plus loan rate?

The zero interest plus loan, called “interest-free loan” in the legal texts, aims to promote home ownership. Since 2011, it replaces the old zero rate loan (set up in 1995) as well as the property pass and the tax credit on mortgage interest. It takes into account the geographic area of ​​the accommodation concerned and the real needs of the applicant. The PTZ is a State-assisted loan, allocated throughout France (mainland and overseas departments).

It can be used to build your main residence. This, in order to acquire new housing. Since January 2015, the zero rate plus loan has also applied to old housing.

It can also finance various operations, depending on whether the property has already been inhabited (if you are in social housing or in old private sector housing) or not (in the case of housing to be built or the transformation of a local accommodation).

Special case: households having acquired real estate before December 31, 2010 remain beneficiaries of the tax credit.

What are the features of PTZ +?

What are the features of PTZ +?

The advantages of PTZ + are its simplified implementation and its ability to obtain accommodation for the applicant in the areas where they are the most expensive. Above all, the PTZ + is guaranteed interest-free, no application fees and expert fees.

However, it is impossible to subscribe only to a PTZ +. It must be added to one or more additional loans, intended to finance a mortgage. Among them :

  • The housing action loan
  • Social accession loan (PAS)
  • The loan under agreement
  • The bank mortgage
  • The home savings loan

How to subscribe to a PTZ +?

How to subscribe to a PTZ +?

The zero interest plus loan can be taken out with banking establishments that have signed an agreement with the State. They are responsible for calculating your ability to repay a credit (this is the creditworthiness) and your guarantees. However, it should be noted that no establishment is forced to grant you a PTZ +.

What are the conditions?

You must be a first-time buyer , i.e. not have been the owner of your main residence during the last two years preceding the loan. However, you can own one or more secondary residences (rental investments or shares in a SCPI).

Specific cases

Although it is attributed to first-time buyers, the Construction and Housing Code provides for some exceptions. Therefore, if you meet the conditions below, there is no need to be a first-time buyer.

  • If you, or one of the inhabitants of the accommodation receive a disabled adult allowance (AAH) or a disabled child education allowance (AEEH). You must justify it with a 2nd or 3rd category disability card or inclusion mobility card attesting to the mention of disability.
  • If you are the victim of a natural or technological disaster, making your main residence an uninhabitable place. It is therefore imperative to apply for the loan two years after the certificate attesting to the loss.

In addition, you must live in the accommodation concerned by the loan at least 8 months per year. Except for :

  • Health reason
  • In case of force majeure
  • In case of professional activity resulting in regular trips
  • In case of rental accommodation (attention, subject to specific conditions)

What are the elements to take into account?

  • The nature of the accommodation: in the case of low-cost housing, new or old property (the work of which is estimated at 25% of the total cost of the operation)
  • The geographic area of ​​the property: zone A, B1, B2, C
  • Household size and subscriber resources
  • The amount of the acquisition
  • Person contribution


What are the means test?

In order to qualify for the zero plus rate loan, the resources of the applicant household must not exceed a certain ceiling. This ceiling depends on the area of ​​the accommodation concerned, the resources of the home and its composition.

In addition, the tax revenue of the applicant and of the other persons who will live in the accommodation are recorded (in the event of a separate tax declaration). More specifically, these are the tax revenues obtained the penultimate year preceding the loan (year N-2).

For example:  for a loan contracted in 2020, the fiscal year taken into account is the year 2018, for income declared and paid in 2019.

Finally, the amount of estimated resources corresponds to the highest amount between  the sum of tax revenues and  the total cost of the operation  divided by 9.

Maximum resource ceiling, depending on the geographic area and the size of the household

Number of occupants Zone A bis and A Zone B1 Zone B2 Zone C
1 $ 37,000 $ 30,000  $ 27,000  $ 24,000 
2 $ 51,800 $ 42,000 $ 37,800 $ 33,600
3 $ 62,900 $ 51,000 $ 45,900 $ 40,800
4 $ 74,000 $ 60,000 $ 54,000  $ 48,000
5 $ 85,100 $ 69,000 $ 62,100 $ 55,200
6 $ 96,200 $ 78,000 $ 70,200 $ 62,400
7 107 300 $ $ 87,000 $ 78,300 $ 69,600
From 8 $ 118,400 $ 96,000 $ 86,400 $ 76,800


How is the amount of PTZ + calculated?

How is the amount of PTZ + calculated?

The PTZ + is intended to finance part of the total cost of the operation (inclusive of tax). This total cost is capped according to the geographic area of ​​the accommodation concerned and the size of the household that will live there.

It includes the amount of the construction or the acquisition of the real estate (works included, excluding eco-PTZ +), without counting the negotiation costs in agency. However, notary fees are not included.

The amount of the PTZ + depends on a percentage applied to the total cost of the operation:

construction cost ÷ purchase + negotiation costs

This percentage represents 40%  of the cost of the operation for new and old real estate (regardless of the area) and 10%  of the cost of the operation for housing in the social housing stock.

Maximum amount of the total cost of the operation depending on the geographic area and the size of the household

Number of people living in the accommodation Zone A bis and A Zone B1 Zone B2 Zone C
1 $ 150,000 $ 135,000 $ 110,000 $ 100,000
2 $ 210,000 $ 189,000 $ 154,000 $ 140,000
3 $ 255,000 $ 230,000 $ 187,000 $ 170,000
4 $ 300,000 $ 270,000 $ 220,000 $ 200,000
5 and more $ 345,000 $ 311,000 $ 253,000 $ 230,000

How long is the repayment period?

How long is the repayment period?

The duration of repayment of the loan at zero rate plus is calculated according to your income, the total cost of the operation, the size of your home, the type of your accommodation and its geographic area.

Thus, the higher your income, the shorter the term of the loan. The repayment period is 20 to 25 years depending on the case. It includes two phases:

  • The deferral period: you do not reimburse the PTZ +. It is estimated at 5, 10 or 15 years depending on your income.
  • The loan repayment period: begins once the deferred period has ended. This phase fluctuates between 10 and 15 years.

 Repayment terms may be revised. This is the case when:

  • The repayment period is equal to or less than 8 years. The applicant can then reduce the amount of his loan (up to a limit of 50%).
  • If the PTZ + includes a refund in two periods. The first can be reduced at the request of the borrower (within a minimum of 4 years).

Indebted as a student – solve your financial problems

by admin

The current debt of all students is already twice as high as 5 years ago. On average, a student with financial problems has $ 1755 to give away.


National Debt Register statistics are worrying

student debt

Where does this group's debt come from? When choosing paid studies, you must pay tuition fees regularly. Unfortunately, some students sign a contract, pay the first installment, and they can't afford another one.

According to the information provided by the National Debt Register, the number of educational debtors together with their total debt increases from year to year. Five years ago, indebted students had 5,192 unpaid tuition bills. Today this number already reaches 15,486 commitments.

The debts of students are not only due to arrears at private universities, it is public schools that account for almost 2/3 of outstanding student commitments. One thing is certain - most of the financial problems result from debts to universities.

Allan Backi, president of the National Debt Register of the Economic Information Bureau, reminds that financial discipline is a valuable skill at any age.

  • You need to start learning as soon as possible, because bad habits will take revenge in adulthood. The first step is regular payment of tuition fees. This rational approach will pay off later when young people want to take out a loan for an apartment or their own business. However, when they have unpaid liabilities and are entered in the register of debtors, the bank will not grant them credit or loan. And this complicates the life of email - he says.


How much and who are the students guilty of?

student loan

  • total debts to public universities, schools and training centers amount to $ 9.9 million
  • financial arrears to private universities are $ 6.2 million
  • on average, a public student must give $ 3,026 in public institutions
  • in the case of private centers - $ 1,046

The indebted can be divided into two groups:

  • university students - their total debt is $ 12.3 million
  • students of post-secondary schools and training centers - the liabilities of this group reach $ 3.8 million


Why do students get into debt?

Why do students get into debt?

There can be many reasons for the financial problems of students. Sometimes it is a simple forgetfulness, and sometimes high costs of living in a big city. Dormitory or study fees, unexpected visits to doctors, materials for classes, food - all this costs money. Added to this is tuition fees and ... the problem is increasing.

It also happens that students simply forget to unsubscribe from their old or interrupted faculty.

Not everyone is aware that the contract must be terminated. Even if you don't use classes, you still have to pay for your studies or course. If we assume that the monthly tuition fee is only $ 500, then $ 2,000 is collected during the semester. And this is a considerable amount to be repaid, when at the same time you have to pay the same amount for new studies. Therefore, you must remember to submit a written resignation. Otherwise, such a person may be entered in the National Debt Register, and the debt collector will request payment - explains Jaross Kospen, President of the Management Board of the debt collection company 13Kids Financials.


Portrait of a student in debt

student debt

  • people aged 26-35 have the most obligations
  • the said age group has to be given a total of $ 8.9 million
  • women have more educational debts - 67.7%
  • the largest number of educational debtors live in the Pomeranian Voivodeship (1164), Mazovia (1052) and Lesser Poland (993)

Can I refinance? New Loan Requirements

by admin

Question: I would like to find out if I can refinance my mortgage. What is needed for this?

Answer: To get a new loan, you need to apply for a new loan and qualify with your lender.

Do you qualify for refinancing?

Do you qualify for refinancing?

Before applying for a refinance, it is a good idea to determine if you would qualify for a loan. If not, you know sooner and later you can start solving any problems.

To qualify for a home loan, you need the following:

  • Decent credit
  • Sufficient income
  • Enough home equity

First, look at your credit. By law, you are allowed to order free credit reports from each credit reporting agency every year. Look for errors in these reports. Ideally, you have no late payment, and your credit is better (or better) than when you got your original loan. You can refinance with less perfect credit, but you have fewer options.

Next, see if you have enough revenue to refinance. You probably have an idea of ​​what your new monthly payments will be (if not, use a credit calculator to find out). Make sure your debt and income relationships are sufficient to qualify for a new loan.

Finally, you get an idea of ​​the relationship between credit and value. You can usually refinance without much difficulty if your credit balance is less than 80% of the value of your home. However, your credit and income can always cause problems.

Challenges of refinancing

Challenges of refinancing

If you find that you cannot refinance because lenders do not like your loan, income, or value-for-money loan, try to find a solution. If your credit or income is to blame, consider using a co-signer to qualify for the loan. That person can make lenders more secure in repayment.

If your copier has strong credit, the approval is even greater.

If you can't refinance because you don't have enough capital (or your home is underwater), research government programs. There are several refinancing programs designed for homeowners who have fallen on hard times. You can only refinance through these programs if you meet certain criteria, but it's always worth a try.

Generally speaking, government loan programs are your best bet if you cannot refinance with a bank or mortgage broker. These programs have the best conditions when it comes to credit scores and home equity.

Move forward

Move forward

Lastly, the only way to find out if you can refinance is to apply for a loan (however, you should familiarize yourself with the topics above before actually applying). When you are ready to move forward, contact the lender and begin the process. 

Credit with instant approval without credit check

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The instant loan without credit check promises quick money in emergency situations for people who do not get a loan from their house bank. Specializing in difficult cases, thanks to this option, debtors and the unemployed can create financial scope in the shortest possible time, make dreams and wishes come true or settle invoices.

The loan with immediate approval without credit check compared to normal quick loans

The loan with immediate approval without credit check compared to normal quick loans

Basically, a distinction can be made between two different loans without credit check. On the one hand there is the credit check-free credit, which is not recorded in the credit check, and on the other hand, there is no credit check information. The latter is particularly suitable for groups of people who already carry negative credit check entries.

The loan with immediate approval without credit check information differs from a normal quick loan in that no information is given about existing obligations. With this, even highly indebted people can quickly and easily get cash at their free disposal. Obtaining such a loan is not that easy.

Mostly, foreign banks are used to apply for credit, which are usually only possible through a cooperating financial intermediary. The difference from a loan with immediate approval without credit check entry to a normal immediate loan, however, is that no entry is made in credit check.

Typically, each borrowing has a note in the credit agency, but not in this case. This should particularly appeal to the self-employed and freelancers who do not want potential business partners to learn about the borrowing. Such loans without credit check registration are also suitable for people who plan to take a second or third loan in the near future.

The conditions of a loan with immediate approval without credit check

The conditions of a loan with immediate approval without credit check

However, not only in view of the formalities, a loan with an immediate commitment without credit check differs from a normal loan, but also in terms of the conditions. For example, the interest on a credit check-free loan is often much higher than expected. Ten percent and more are no longer uncommon, especially if it is a foreign bank. The repayment period, on the other hand, can be equated with that of a simple instant loan. The payment can usually be made within a few days.

Requirements for a loan with an immediate commitment without credit check

Requirements for a loan with an immediate commitment without credit checkRequirements for a loan with an immediate commitment without credit check

Although a credit check-free loan is available to over-indebted people, the granting is tied to mandatory requirements that must be met. The borrower must have a regular income that covers both their own living costs as well as the regular monthly charges and the repayment rate for the loan with immediate approval. The availability of such an income must be proven accordingly, only in rare cases it is without evidence. Income can be proven through wage notices, employment contracts, approval notices or bank statements.

Through upcoming credits – how it happens, what to do

by admin

The downside is a situation where the amount you owe is more than the market value of your vehicle or home. This often happens when an item loses value faster than a credit balance goes down. How exactly did this happen, and what can you do about it?

How the numbers worked?

How the numbers worked?

Loans pay off over time. In general, each monthly payment is partly related to interest expenses and partly to a reduction in the credit balance.

Lastly, pay off your loan balance in full. This process is called depreciation.

With credit amortization, you want the credit balance to be zeroed before the value of the item is made.

How credits get above?

How credits get above?

Credits go above and beyond when the item you buy loses value faster than the credit balance decreases. For example, a brand new car can cost $ 25,000. A few years later, that can only be $ 15,000. If you owe more than $ 15,000 on a loan, you have a loan upside down. You will have to write a check to sell the item or keep paying for it after it is worthless.

To avoid this problem, you need to pay (or amortize) the loan faster than the item has lost value. For auto loans, you typically want a loan that is less than five years old. Longer terms (such as six-year and seven-year loans) can help keep your monthly payments low, but you run the risk of being upside down at the end of your loan.

Home loans upside down?

Home loans upside down?

Portable home loans are more complicated because you can expect homes to increase in value over time (cars lose value due to depreciation pretty much after you buy them).

However, the earthquake debacle since 2007 has shown that a fall in the domestic market is a very real risk. In the real estate world, the term "underwater" or negative equity is sometimes used instead of upside down.

Loss price is not the only risk: certain types of mortgages can you raise under water because your loan balance increases over time.

Options for reimbursed loans

Options for reimbursed loans

If you find your credit wrong, you have difficult decisions.

Perform: One option is to keep your car or home and continue to pay off your loan. Unfortunately, this is not always feasible. Modest repairs can make the vehicle more of a problem than it is worth, and you may need to relocate and sell your house. If you take this route, research gas insurance to manage your risk.

Sell ​​(and pay): Another option is to sell - just to get things done. The bad news is that the sale will not make enough money to repay the loan, so you will have to get the money yourself. If you are selling a car, it might be best to sell it because you can often get more price from private buyers than you would from a dealership.

Do it: You can also stop the bleeding by working with your lender. Discuss your options with your lender and your local bank or credit union. One way can be to sell your car and create a new loan for any outstanding amount. This could require voluntary repossession. You will not have a car, but you will have lower monthly payments and lower interest costs. Combine this with buying a cheap used car, and you might be going for solid financial terrain.

Or you can try renting a car instead.

Roll of debt: A tempting option, used more than it should, is to cover debt under the rug. Head over to the dealership and explain your situation. You can replace your existing vehicle for a new one and add an unpaid loan amount to your new airline loan. Of course, then you pay for your new car and your old vehicle every month - which is generally unacceptable. You will end up with higher monthly payments and pay more interest than you need.