Redeeming real estate loans: save several thousand euros

The fall in interest rates is now lasting. For over a year now, borrowing rates have been falling steadily. This unprecedented situation is enough to please many. This is the right time to invest in ‘s cheaper stone. For those who do not have a real estate project to implement, this period can also prove fruitful. To benefit from discounted loan rates, you only need to have one or more outstanding mortgage loans. In this case, it is through the repurchase of home loans that borrowers will save money.

Understand the mechanism of credit redemption

Understand the mechanism of credit redemption

The repurchase of credit encompasses two types of financial transactions. On the one hand, the purchase of loans is a financial restructuring solution for households whose debt load is too heavy. This procedure is a consolidation of loans. The main goal is then to reduce the household debt by simplifying the management of the family budget (one credit, one monthly payment) and extending the initial repayment term of the loans. This credit buyback solution is offered by specialized banking organizations. To gain access, it will be necessary to seek the services of a broker specializing in buyback loans.

On the other hand, the French are increasingly resorting to the redemption of real estate credit called renegotiation of real estate. In contrast to financial restructuring, the goal is to reduce the cost of the original as much as possible. Given the interest rates that have fallen in recent months, this procedure has become very common in France. Borrowers who financed a real estate project before the rate cut can be refinanced by the competing banks at prevailing rates. The repurchase of mortgage gives rise to additional costs (refund penalties in the initial bank, mortgage guarantee fees). But in general, these fees are supported in the amount of re.

The only constraint for individuals who wish to benefit is the need to change banks. Indeed, the bank that the project will undoubtedly require a commitment to domiciliation of income. This account transfer is now simplified by banking services that take care of the administrative formalities. Nevertheless, it is essential before contracting the purchase of credits, to ensure that the bank management fees are not too expensive.

Decrease in duration or monthly payments: How to make a choice?

Decrease in duration or monthly payments: How to make a choice?

The lowering of the interest rate of the contracted loan generates a decrease in the cost of the loan. This gain is far from negligible since it can represent several thousand euros. The amount depends on the weight of interest in the repayment. As time goes by, the share of interest paid by the borrower decreases. It is therefore more interesting to launch a credit redemption procedure during the first years of amortization.

The borrower then has the choice of impacting the reduction of the rate over the duration or directly on the monthly installment of credit. The first option is to amortize the loan faster, the second is an opportunity to reduce its monthly financial burden. The best choice is, first and foremost, the one that best suits the debtors’ priorities. It is true that the gain realized is more important in the context of a decrease in the duration.

The reduction of the monthly payment is nevertheless a solution not to be neglected. Indeed, this possibility is distinguished since it offers an immediate gain. In the month following the buyout, borrowers see their borrowing load lighten up. As a result, it is a way of anticipating a fall in the net income paid by the employer as early as 2018. Indeed, the move to the collection of income taxes at source will have an impact on the French budget.

Support for indebted persons

As shown by the NBP data on debt, our country is not the worst in comparison to Europe. We only take 14th place. However, there are over 2.5 million people in debtors’ registers who do not pay off liabilities such as online loans, loans, alimonies and utilities. It is true that the situation of debtors is improving. More and more new programs are being created aimed at economic education. Banks and loan companies are often the initiators of these programs. Although these institutions earn money by granting loans and payday loans, they are also aware of the risks arising from the bad use of the products they offer. Appropriate education of consumers means that loans taken out are repaid on time, thanks to which both customers and loan companies achieve their goals.

The law is also changed in favor of those who are not debt-free. Persons in crisis can file for consumer bankruptcy. The rules for this procedure have been significantly simplified, so that consumer bankruptcy can be a real help for people with serious financial problems. Mediation with creditors is also promoted. It should be remembered that having financial problems should not avoid contact with creditors.

How not to get into debt

How not to get into debt

First of all, to avoid falling into debt, you need to make informed financial decisions. When deciding on a quick online loan, we should properly assess our financial capabilities. Let’s not get into debt without need. So make sure you use products such as credit cards or overdrafts on your account. It is also worth to save money on the so-called “Rainy day” to have additional funds in the event of job loss or prolonged illness that will enable us to pay our debts on time.

What to do if you can’t deal with debts

What to do if you can

First of all, remember not to avoid contact with creditors. Contact the company you owe and explain briefly and concisely what situation you are in. In such situations, many companies try to offer their clients unique solutions, e.g. in some loan companies with a short-term commitment – we can apply for a payday loan in installments. The offer of consolidation loans can also be an attractive solution. This type of activity is not a common practice but to meet clients in exceptional situations.

The Association ” Debt Support Program ” also operates in Poland. This association provides both mental and advisory support for people who have fallen into a spiral of debt. Groups of Anonymous Debtors are currently operating in three cities in Poland – in Warsaw, Poznań and Gdańsk. The Community of Anonymous Debtors is a place where we can share our experience, get psychological support and support others who also have problems similar to ours. Participation in classes is free, and the only condition the Association sets for participants is their willingness to get out of debt

 

Get a buyout of loans without paying anything like fees

Making a purchase of credits is not free and generates more or less significant fees. However, it is possible to directly integrate these various costs in your credit to avoid having to spend money. In addition, it is also possible to negotiate with credit institutions to obtain significant discounts depending on the quality of your file

The redemption of credit: a new breath for an overburdened home

The redemption of credit: a new breath for an overburdened home

Taking credit is a simple way projects such as buying real estate or consumer goods, planning work or travel, or coping with unforeseen expenses in case you do not have not enough cash. Nevertheless, with several credits in hand, repayments can greatly reduce your purchasing power and therefore your quality of life. In addition, multiple bank levies can make your budget management more complex.

Also be aware that an unexpected situation such as sudden loss of income can worsen your debt level. Many situations can make repayments more difficult. You risk banking when you accumulate two monthly payments of unpaid on the same line of credit. In addition to prohibiting you from taking advantage of certain banking services, an over-indebtedness situation prevents you from getting a new loan if needed. Making a credit redemption allows you to renegotiate the repayment to reduce the amount of monthly payments, to have a single bank levy and thus regain flexibility in your bank.

A reprocessing that integrates all fees

A reprocessing that integrates all fees

A repurchase transaction generates fees in the event your application is granted and you finalize an agreement. Note that the study of your file is completely free as long as no agreement is signed as the request for information from a broker.

In addition, it is also advisable to take out insurance that will cover your monthly payments in the event of death, disability or temporary incapacity for work for example.

The preponderant role of the broker

The preponderant role of the broker

Although it is possible to apply directly to a credit institution or a bank to request a restructuring of your debts, it is strongly recommended to go through a broker for the redemption of credits. Indeed, the expertise of a professional allows you to find the best opportunities available on the market. The broker will make sure to compare the offers taking into account your situation to make the most of your file. This will give you a better chance of seeing your redemption request accepted.

In addition, it should be noted that many negotiations will have to be conducted during the credit redemption process. In this way, the broker will ensure better terms of redemption and, in particular, minimize costs. Finally, having recourse to a broker will allow you to have a better visibility on your possibilities of re-bank. Using simulation tools, you will be able to directly compare your financial situation before and after a debt restructuring procedure in order to better appreciate the possible improvements.

Loan Rate Renegotiation and Loan Consolidation

While interest rates charged by banks and agencies have never been so low, it appears that the process of renegotiating mortgage rates or undertaking a redemption of its credits has not never been so solicited.

Renegotiation of mortgage rates

Renegotiation of mortgage rates

For the end of 2016, many people who want to renegotiate mortgage rates to benefit from a fixed interest rate more advantageous. Then the question arises “Is it worth renegotiating my mortgage? “. Unless you have subscribed to your current mortgage for the last two years, yes, it’s worth it to renegotiate a mortgage.

Indeed, the approach significantly reduces the total cost of borrowed money. It is said that the real estate renegotiation transaction becomes profitable for the borrower (s) from a decrease of at least 1% compared to the current interest rate. This margin makes it possible to absorb the prepayment indemnities (IRA) which are of the order of 3% of the capital remaining due, as well as all the ancillary costs.

The first reflex is to visit his banker to ask him if it is possible to renegotiate. The advantage of renegotiating with your bank is to avoid prepayment penalties that are in the order of three percent. But generally, your bank advisor will consider this leeway for calculating the total cost of credit, and will not offer you the best rate right off the bat.

So, you have to make an appointment with several banks to submit your renegotiation request. Of course, do not hesitate to present the latest proposal that has the best conditions (interest rate, amortization period, total cost of credit, etc.) in order to try to get better.

Make a redemption of his credits to reduce his monthly payments

Make a redemption of his credits to reduce his monthly payments

Redeeming your credits to reduce your monthly payments is another story. Unlike the renegotiation of mortgage loans, the purchase of credits amounts to undertaking a restructuring of several credits in order to redevelop them appropriately to the repayment capacity of (s) borrowing (s). It is no longer a question of negotiating a single credit, but on the contrary, it is a question of negotiating several credits in one new credit.

And generally, when it comes to restructuring several claims in the process of repayment, it is that the debt ratio of the applicant (s) is above 33%, and that the holding of bank accounts knows a few difficulties. Or, simply, not being able to get a new cash loan because of excessive debt.

It is recommended to use an intermediary in the redemption of credit for the processing of his loan consolidation file. Your broker takes care of the complete assumption of your request of gathering of credits, in a single appointment benefiting from the offer of all its banking partners privileged and obtain for the best proposal.

A loan repaid with a loan – how not to fall into a loop of payday loans?

 

Temporary financial difficulties are one of the main reasons for applying for payday loans. These types of loans have a very big advantage. They are very easy to get. Virtually anyone can get such a loan, regardless of earnings or debt, which is why they are very popular and willingly taken by people who have financial problems. Unfortunately, loans of this type also have a disadvantage – they are quite expensive. There is always much more to pay back than you borrowed. People who need such a loan often do not pay attention to it. The need to receive money is greater than common sense. Borrowed money helps, but there is a problem when you have to pay back the loan. A problem that can always be solved with another loan.

Loan repaid with a loan

Loan repaid with a loan

Repaying a loan with another loan is a seemingly reasonable solution. Instead of exposing yourself to debt collection or debt collection activities, you can take another payday loan and pay back the money that should be paid off immediately. However, it is worth remembering that this is a very risky solution. Repeated repayment of payable payday loans with subsequent loans can cause a so-called payday loan loop, i.e. a situation in which we cannot receive further loans, and there will be too much to pay off to deal with. People who fall into such a loop have serious problems to solve this situation, so it’s better not to fall into the payday loans loop.

How not to fall into a loop of payday loans?

How not to fall into a loop of payday loans?

How not to fall into debt? In order not to fall into the loop of payday loans, you must first and foremost approach the borrowing of money from non-bank companies. Payday loans are expensive, so it’s better not to borrow, if at least, and on good terms. In the event of difficulties in paying back the loan, it is better to look for other repayment options, e.g. consolidation of payday loans, than to repay the old loan with another one. If, despite the risk, we decide to repay the loan with another one, the latter should be a clear signal to us that it is not good and the risk of problems with debt repayment is getting closer. It is worth rethinking your actions and try not to borrow further. It is better to look for a different way of paying off the debt and not risk further debt. Banking and non-banking consolidations

The debt loop is a seemingly distant perspective, especially with one or two loans. It’s not worth thinking like that. Adverse circumstances, unreasonable approach to borrowing, urgent needs can even force us to borrow more money, and their repayment may prove to be a serious problem, so it’s better not to fall into the debt loop, solve problems with debt repayment as soon as possible and preferably not with subsequent loans.

Can you go to jail for debts?

October 4, 2017 At the time of the first Piasts, the insolvent debtor became the property of the creditor. Today, an unpaid loan is threatened by bailiff’s execution. You cannot go to jail for any outstanding financial obligations. The exception is when the debt is due to non-payment of maintenance. Also, an offense punishable by imprisonment is withholding property from a bailiff and extorting credit or a loan. 

Number of prisoners in Poland

Number of prisoners in Poland

In Poland, the number of prisoners is 73 417, including 2813 women. Interestingly, 2,700 people are imprisoned for unpaid maintenance debts.

According to the National Debt Register, the debt of Polish consumers is PLN 32.5 billion. Statistically indebted people are men aged 36-45. The average amount of the liability is PLN 18 thousand. Can I get to jail for failing to pay my credit or loan?

Are you in danger of being in jail?

Are you in danger of being in jail?

Dura lex sed lex – this Roman sentence fits perfectly with the laws applicable in … the United Arab Emirates. In the UAE, you go to jail for your outstanding loans. Therefore, debtors (in most cases foreigners) prefer to abandon the luxury car bought on borrowed money on the side of the road and flee the country.

According to current regulations in Poland, you cannot go to prison for unpaid debts. The penalty for evading a loan is execution by bailiffs followed by an auction of property.

An exception may be situations when the debtor knowingly conceals assets from a bailiff. The sanction may also apply to persons who deliberately do not pay their liabilities. Such situations can be interpreted by the prosecutor’s office as extortion. The prison also threatens those who avoid paying taxes.

Situation threatened with imprisonment

  1. Non-payment of maintenance debt
  2. Concealment of assets before a bailiff
  3. Phishing loan or loan
  4. Debt arising from non-payment of tax

Sanction for dishonest alimmen – prison for maintenance

Persons who do not pay child support are punished by imprisonment of up to 2 years. It is worth noting that in June 2017, the amendment to the Penal Code entered into force. The amendment provides for sanctions for those alimonists who are in arrears with payment for at least 3 months. The maintenance debtor will avoid being punished if he settles the debt within a month of receiving the request for payment.

Interestingly, the debt of dishonest alimenders amounts to PLN 11 billion. The average debt per head is PLN 33,725 (January 2017). The record belongs to a resident of Podkarpacie – his maintenance obligation is PLN 723 thousand. zł.

How to cheat a bailiff – i.e. criminal liability for concealing property

How to cheat a bailiff - i.e. criminal liability for concealing property

Some debtors against whom bailiff proceedings are pending hide their property from the enforcer. It is worth noting that in accordance with art. 300 of the Penal Code, this act is punishable by up to 8 years imprisonment. In 2016, 2,478 proceedings were initiated in connection with “thwarting or reducing the satisfaction of creditors”.

The most popular ways of concealing assets are

  1. Transfer of property to a family member – depletion of property is sanctioned by imprisonment from 3 months to 5 years
  2. Undercutting remuneration – the debtor makes an appointment with the employer to reduce earnings to an amount that is free of bailiff’s attachment The rest of the salary is paid in cash, in black
  3. False divorce and alimony – the debtor divorces and undertakes to pay maintenance to the notary for the ex-spouse. The benefit is not paid and the maintenance debt goes to the bailiff. It is worth noting that the enforcer first takes over the property due to unpaid alimony, and only then takes care of the rest of the claim
  4. Sale of property – after cash in tangible goods, the debtor hides money

Tax avoidance – tax debts punishable by prison

Tax avoidance - tax debts punishable by prison

A taxpayer who hides income to reduce his tax liability commits a crime. A person whose conduct exposes the State Treasury to losses as a result of tax depletion is punishable by a fine or imprisonment. In some cases, both penalties may be awarded simultaneously.

On the other hand, a payer who is notoriously late in paying tribute, commits tax offenses. This is punishable by a fine.

Important – a single failure to pay e.g. a tax on a loan is not a crime. In this situation, the taxpayer will not be held criminally responsible.

How to get out of debt and avoid losing your property?

How to get out of debt and avoid losing your property?

A debtor whose financial situation does not allow for a smooth recovery from debt should, first of all:

  • Be in constant contact with the creditor. A friendly solution can be the key to eliminating debt
  • Respond to bailiff’s letters – by compromising with the enforcer, you will avoid property auctions
  • To have additional income – increasing external influence through occasional work will significantly reduce debt
  • Declaration of consumer bankruptcy – after the bankruptcy proceedings are over, the court introduces a debt repayment plan. In this case, the debt settlement consists of payments in installments. The claim is settled in part. The repayment period under bankruptcy can last a maximum of 3 years
  • Take out a debt-free loan – in this case you should be careful not to lead to even greater debt
  • Wait for the statute of limitations on debt. However, this is an inefficient method, because the creditor will take steps to recover the debt before the debt expires. Cash loans or online loans expire after 3 years.