Credit restructuring and all the benefits it offers

A restructuring or a repurchase of credit is possible to be able to finance new projects like renovations, purchase of a vehicle and others. It also makes it possible to obtain the desired cash flow in a new grouped loan, which is more practical to manage than several direct debits. In fact, they can lead to financial incidents such as rejection of direct debits and bank charges. Furthermore, credit restructuring makes it possible to reduce the personal debt ratio of a borrower so that he can once again save, by building up savings.


Credit consolidation or the possibility of saving

Credit consolidation or the possibility of saving

The main purpose of a credit consolidation would be to lower the burden of financing on the overall income of a household. Thus, it improves the remainder of living, which is the amount available after paying all of the month’s expenses. Obviously, the reduction in monthly payments implies an increase in the amount available, which has not been spent. The household concerned will be able to finance a consumer good, a family weekend, or even put money aside in a savings book. Buying back credit saves you money. To know the precise estimate of the amount of its maturities after the loan repurchase, the borrower can carry out a free simulation without commitment.


The repurchase of credit or a largely facilitated management

credit or a largely facilitated management

Loan restructuring can take the form of a financial transaction aimed at solving an excessive debt problem. Beyond the reduction in the number of credits, the grouping of credits makes it possible to reduce the monthly payments, to change them into a single monthly payment. In this way, the borrower can easily manage his monthly budget effectively and more flexibly. Depending on the borrower’s situation, he may be able to reduce his monthly payments by up to -80%.


The repurchase of credit or how to rebalance its budget

credit loans

Another advantage of buying consumer credit would be keeping your bank and having only one direct debit, occurring on a specific date. In order to better manage your budget, this withdrawal is recommended to be made at the beginning of the month, to remain attentive to the sums remaining available to the borrower. Also, even if the repurchase of credit is an operation easy to implement, the study, as well as its assembly, require the services of experts. It is advisable to approach a broker in repurchase of credit. You should know that the broker establishes a close relationship with banks and lending organizations, in order to find advantageous loan conditions. So do not hesitate to ask for it.This will give the borrower an opportunity to take advantage of a more attractive interest rate, in order to reduce the monthly payment in a more drastic way.

Loan period – how long to take a loan?

They are much higher in the first period than equal installments. If you can afford to pay and you have the ability to take this type of repayment, I recommend decreasing installments. They are also an obvious choice if you plan to pay back the loan earlier.

Sometimes customers know that for example in a few years they will sell land or another real estate. Knowing this beforehand, they will choose decreasing installments. During these few years, much more capital is paying off with decreasing installments than with fixed installments.

If, on the other hand, your current capacity is “in contact”, or you plan to spend all surpluses on, for example, finishing the purchased property, then simply opt for fixed installments. You can always change your repayments into decreasing ones after a few years. It will require an annex to the loan agreement, but it will cost between USD 150-300 and sometimes it is worth it.

Loan period – how long to take a loan?

Loan period - how long to take a loan?

Currently, the maximum period for which a mortgage can be taken is 35 years. Of course, whether you can take that long depends on how old you are at present. Banks set the maximum age of the client that they can have when they repay the loan they apply for. Currently, banks with no derogations will not lend you money for more than 35 years and no longer than the difference between 80 and your current age.

Assuming that 56-year-old applies for a loan, he will receive a maximum loan of 80-56 = 24 years.

You must be aware that the longer the loan period, the more interest and other costs you pay. Simply put, a longer-term loan will be more expensive than a shorter loan on the same terms.

It is also obvious that the shorter the loan period, the higher the monthly installment.

Now you should only collate this information and choose the shortest possible loan period, taking into account the need to pay the repayment installment.

Mortgage loan step by step

Mortgage loan step by step

Most of us, unfortunately, are not able to buy their dream apartment for cash and wanting to not want to use a mortgage.

In this part of the article, I will try to show you what the whole process should look like from the time you decide to buy an apartment until you live in it.

In my opinion, the whole process is not complicated, but for most of you, it is certainly a big problem and a reason for concern.

Creditworthiness test

So resolved. You are buying a flat.

This is the most important decision, but very often before the final purchase decision you ask yourself the most important question from the buyer’s point of view:

What flat can I afford?

and this leads to two further questions:

What is my maximum credit standing, so what is the maximum loan I can get?

What will the loan installment look like for a given amount?

You should answer these questions before signing any pre-booking or contract.

You will get answers to both questions in three ways:

  • You can search for several calculators on the internet and calculate the installment and maximum capacity based on them,
  • visit several banks where advisers will also help you answer these questions,
  • or get help from an independent credit advisor.

Here I will be biased and say that in my opinion, it is best to choose the third option. There are several arguments for it, but first of all, it seems the possibility to receive full information in one place, but also the opportunity to receive advice on the selection of one or several offers. Another important argument is saving time and blaming most formalities on a specialist.

In the first part of the article I already wrote about it, but I will repeat it to boredom.

Trust advisors, but check them.

It’s about huge sums of money and your assets.

One more important note.

Most often, people testing their ability to visit 2-3 banks and on this basis estimate their maximum creditworthiness. I have already written that we have over 20 financial institutions where you can get a mortgage, and the capacity in each of them is calculated differently.

Looking for an apartment

Looking for an apartment

Most people looking for an apartment start doing so by browsing the ads posted on the Internet.

You can also use the services of a real estate agency – the broker will help us find this dream property and also help in completing all formalities. The exact property selection is described here.

Preliminary agreement

You have already found your dream apartment and it is very beautiful.

Great, now is the time to sign the preliminary contract. This agreement sets out a few things:

  • describes in detail the subject of the contract, i.e. the apartment (area, number of rooms, land and mortgage register number),
  • determines how much you agree to buy a flat and whether you have paid a down payment/advance payment,
  • defines the date by which the sale is to take place, i.e. the date of conclusion of the notarial deed of purchase from the notary public.

I would not be myself if I did not draw your attention to two very important provisions in the preliminary agreement here.

First, the difference between a down payment and an advance. Sellers write down the funds you have deposited differently and you rarely realize how big the difference is in these two similar-sounding words, and the matter is about your money and your safety.

Both the down payment and the advance is the amount that, when signing the purchase contract with a notary public, will be a contribution towards the purchase of the apartment. By concluding the act of purchasing the property by this amount you will have to reduce the amount due to the seller.

The difference between a down payment and an advance arises when there is no transaction. If the seller withdraws from the contract for any reason and has the right to do so. Then…. attention …… the advance will be refunded by him and that’s it.

However, the deposit will have to be returned in a double amount. So it is in the interest of the seller that the amount paid as an advance payment and yours as a buyer down payment. The down payment protects both sides, but if you care about buying a flat, give a big down payment, and you will almost be sure that the seller will not back down. However, if this happens, you will have extra cash to wipe away your tears.

The second thing you should pay attention to is the date of the contract. Remember that the credit procedure takes a while, and if the deadline expires, the seller will be able to legally keep the deposit. I suggest to my clients that the term of the final contract should be a minimum of two months. Depending on the bank, the whole procedure takes one week to a month, but the “hill” is absolutely necessary and allows you to sleep peacefully without worrying about your invested funds.

Choosing a bank and submitting the application

Choosing a bank and submitting the application

If you expect me to list the banks to which it is best to apply, then you will be disappointed.

It is impossible to provide one or several universal banks in which you can finance yourself.

It all depends on the individual financial, legal and personal situation.

As the old financial advisors say, how many clients there are so many situations.

Therefore, again, it is best to have a good, proven advisor who will guide you through the meanders of banking and legal regulations.

If the bank has already been selected, it remains to complete the documentation and submit the application. The documents needed to submit an application are fairly standard, but of course, they depend on your situation.

Generally, they are divided into:

  • personal documents ( copies of identity documents, all kinds of licenses, diplomas, etc., invoice histories and a few others depending on your situation)
  • financial documents ( income statement, but if you run a business, the amount of financial documents swells )
  • documents regarding the purchased property ( all acts of ownership, depending on the type of property, are different )

You will receive the exact list of necessary documents from an adviser in a bank or office.

Courts with banks on loans: court practice

If the bank has a problem with the debtor in the process of repaying the loan, then in the vast majority of cases it ends with a court with the banks on loans. At the same time, you have to understand that this is a turning point in relation to the financial structure, and once the court decides, it will hardly be possible to influence the current situation.

After conviction bailiffs enforce it. It is worth noting that the courts with banks on loans take place quite often because financial institutions are well aware that bailiffs have very, very broad powers, from the possibility of withholding salaries to the seizure of personal property. How much money you owe to the bank and whether you owe it at all will directly depend on the effectiveness of your defense during the trial.

How to protect your interests

How to protect your interests

For the purpose of courts with banks on defendant loans, they should collect the most effective information, including the place of the meeting, the clear requirements of the bank and much more.

Today, some of these problems are quite easy to clarify over the Internet, which means you don’t even have to leave your home, but in order to get really important information, you need to go directly to the court, which will have to provide you with case materials for further acquaintance.

Why it is necessary

On the basis of this information, it will be possible to decide whether you are ready to meet the requirements set by the bank or if you are not deprived of which part you are in dispute. It is noteworthy that in most cases, banks’ lending courts take 3 to 12 months, so you have to be prepared for a rather lengthy procedure.

How to find a venue


If you find that you have court trials from the adopted agenda, then in this case you are unlikely to have a question of where and when this procedure is carried out because the agenda contains all this information.

However, practice suggests that a court with a bank that has a loan can often be faced with a number of difficulties, so try to play safely and pre-check the information posted on the court website.

For this reason, you can not only protect yourself from possible errors by bailiffs, but also from counterfeiting, which is regularly referred to by representatives of some banks or collection agencies, to put pressure on your debtor.

Of course, falsification of documents is not always the case when bank proceedings are being conducted on a loan, court practice suggests that this is somewhat rare, but if you fall for just such a company, you will have to spend a lot of nerves and time to get rid of these problems.

What to do when not just summoned

What to do when not just summoned

In some situations, it may not send you a summons and immediately the entire file of documentation, including a copy of the bank’s claim statement, as well as the purpose of this procedure and a number of other records. In all these documents, it will be easy to find the name of the court, the address of the institution, as well as the exact time and date when the meeting is scheduled.

Although there are virtually no cases of falsification of these documents, it is still best to go to the court website and check the necessary information additionally, since it all depends on the company with which the bank is lending. Feedback from experts suggests that in some cases banks resort to a number of methods to win the case.

In the vast majority of cases, you only need to enter your surname, but in some cases, it does not give a result and should be searched for by other parameters such as the case number, the date it was received, and several others. It is not always that borrowers can obtain timely summons and other official documents.

In some cases, reports of filing a claim with a court for failure to pay a loan are delivered by other means, including, for example, a call to borrow a borrower from an office or a person simply finding that they are facing a court in dealing with their bank.

Private loans – is it worth taking?

In the era of globalization and universal access to the Internet, additional money can be obtained easily and quickly. We usually borrow money from banks and non-bank companies. Borrowing in banks is a practice that takes a lot of time. In addition to online loans and fixed-line facilities by large brands, there is also a well-developed private loan market.

In the past, such financial support could be obtained from family or friends. Nowadays, private loans are granted by companies (unrelated to the bank) or, simply, by private individuals. Specific, independent investors lend money to potential borrowers – usually without unnecessary formalities or having a solid credit history.

Private loans can be taken in different amounts – it can be several hundred dollars or several hundred thousand dollars. An instant loan will help us when we need additional money to cover various costs, for example, buying new equipment for the home, traveling, covering bills for which we did not have enough money this month.

What is a private loan?

What is a private loan?

The demand for loans is constantly growing. Many of us live from payday to payday and are unable to save money on unplanned expenses. For borrowers, this is a great opportunity to get money they can’t borrow from a bank or loan company. At present, private loans are one of the oldest and still common forms of non-bank loans granted to people struggling with loss of liquidity. We can obtain such an obligation from a natural person, i.e. one who has no registered activity as a loan company. It can be a family member, friend, neighbor, or someone completely unknown to us. Private loans that exceed USD 500 should be made in writing in order to assert your rights before a court.

In the case of a private loan, the amount limit is set between the lender and the borrower. Interest is negotiable, as well as the type of security in the event of lack of timely repayment. Thanks to this, we can borrow an amount that would not be available to us in the bank or in most popular loan companies. Private loan offers are most often addressed to indebted persons, with a bailiff, entered in databases with negative checker and finally to those working in black or living on benefits.
Private loans can be granted traditionally, i.e. in the office of the individual who deals with it, via the Internet, by phone or at the customer’s home. Regardless of how private loans are contracted, it is imperative that you read the terms and conditions of the loan agreement before entering into a contract. Private loans from investors require a responsible and informed decision.

A loan from a company is a surer option

A loan from a company is a surer option

Nowadays, more and more people are looking for loan offers from private investors. First of all, many people notice that it is getting harder and harder to get credit from banks. In this situation, private loans will be the most convenient solution. These types of loans are granted to private individuals who provide borrowers with money that is their property. They also include loans taken from friends, family or through social networking sites.

In the current opinion, it is best to borrow a private loan from someone you know – you can then individually set the contract terms and repayment period. However, taking private loans over the internet from foreign investors carries some risk. All because this type of “transaction” is not closely controlled by any laws and other legal documents. A non-bank loan seems to be a much safer option.

Swiss credit – rip-off or last resort?


Anyone who can no longer get a loan from a normal German bank due to their poor credit rating, existing loans or a poor credit bureau score will come across a different type of loan offer, especially on the Internet: Swiss credit. This loan offer is a synonym for the well-known loan without credit bureau, and the name Swiss loans is explained by the fact that these loans are usually granted by banks from the Confederation or from Liechtenstein.

File is not requested when the Swiss loan is taken out

File is not requested when the Swiss loan is taken out

As the name Kredit ohne credit bureau suggests, the consumer’s credit bureau file is not requested when applying for a Swiss loan. Bypassing the credit bureaus is, however, only possible for foreign credit institutions – German banks are legally obliged to obtain information on the creditworthiness of the respective consumer in public before issuing the loan.
Since foreign banks receive only minor information about the borrower’s payment behavior due to the omission of the credit bureau query, very high interest rates are usually due on Swiss loans. With the so-called risk premium on the usual loan interest rate, the bank compensates for this ignorance of the customer’s creditworthiness – and the associated higher default risk.

Beware of dubious loan offers on the Internet

Beware of dubious loan offers on the Internet

Apart from the increased risk of indebtedness due to the expensive lending rates, taking out the Swiss loan harbors a high risk due to numerous, dubious offers. Although there is no rule of thumb that can be used to identify a serious loan offer without a credit bureau query, there are few, clear characteristics of dishonest providers: The demand for a down payment on the requested loan amount or the delivery of the credit documents on delivery are indications of a dubious offer. In addition, honest Swiss banks, for example, do not ask their customers for money to give them advice over the phone or to compare various loan offers.
A serious Swiss loan offer can be a financing option in an emergency – however, due to the high costs and numerous, shady providers, it should always be considered as the last solution.

Credit despite minus on the account.

A loan in spite of a minus in the account is “no broken leg”. It is not uncommon for the loan search to be made against the reasonable background of balancing an overdrawn account. The article provides information on which offer is particularly cheap and which offer is better avoided.

Credit in spite of minus in the account – everything half as bad

Credit in spite of minus in the account - everything half as bad

The checking account provides the necessary flexibility to remain solvent in all situations. Nobody can say that they have never redirected their checking accounts. It is easy to balance the account again if it is only a few USD in the debit. The topic for the account holder is already dealt with at the next salary receipt. The “pleasure” was also not expensive. The trip in the red has cost a maximum of a few USD.

If you handle your current account in this way, you use it exactly as it is intended. Short-term money requirements are financed through the overdraft facility, the following month the account should remain in the black again. In theory it is easy, in practice it takes a lot of self-discipline. At the latest, if nothing works without the overdraft facility by the middle of the month, then it is time to act. A loan despite a minus in the account is necessary to ward off the high overdraft interest.

Overdraft rates are around 10 percent – 12 percent APR. Installment loans are significantly cheaper. In addition, they actually “force” them to make a deduction every month.

Installment loan – overcome the minus on the current account

Installment loan - overcome the minus on the current account

A credit in spite of minus on the account, which is needed for the timely settlement of the overdraft facility, is usually a small loan. If, for example, a loan amount of 3,000 USD is sought for overdraft settlement, the loan comparison provides particularly favorable interest offers. When comparing interest rates, it is advisable to always give preference to interest rate offers that are independent of creditworthiness. Only about 10 percent of all borrowers benefit from interest rates dependent on creditworthiness.

With a loan amount of 3,000 USD and a term of 36 months, Cream Bank leads the loan comparison. (Reading day 05.10.2013). Instead of the 2.89 percent APR otherwise required by Santander, a special offer is available. The expensive overdraft facility with around 12 percent APR can be converted into an installment loan at 2.78 percent. With a constant monthly installment of USD 86.91, the loan pays off without straining the household budget.

The credit example mentioned is of course not tied to any purpose. The money could also be spent on new purchases or a vacation.

Loan offers with poor creditworthiness

Loan offers with poor creditworthiness

Loans that are advertised in spite of a minus in the account and poor creditworthiness often come from the offers of the credit intermediaries. If the current account is to be rescheduled, it is by no means certain to actually save money.

Lite bank is happy to arrange the extra credit. The required effective annual interest rate of 11.95 percent is at the same level as the overdraft facility. Saving is hardly possible in this way.

A credit despite a minus in the account cannot be forced. Anyone who tries it pays.

New Government Agency Mortgage Loan Fixed Rate: Amounts, Rates And Installment Calculation 2018

How Government Agency 2018 fixed rate mortgages work

How Government Agency 2018 fixed rate mortgages work

Although the current market conditions reserve more advantageous interest rates to those who request a variable rate mortgage, the Italians continue to prefer fixed rate mortgages. Loans that guarantee a constant rate and installment for the entire amortization plan. Among the best offers of fixed rate mortgages of the moment we mention the Government Agency fixed rate mortgage.

Government Agency mortgages are products dedicated to public employees and pensioners. In fact, these are loans granted by Social Institute. Social security institution that absorbed the former Government Agency benefits following its abolition, which took place in January 2012. The reference office for the Government Agency loan application is the Social Institute Public Employee Management.

For access to credit, however, several requirements must be met. So let’s see who can get an Government Agency fixed rate mortgage and the conditions of the offer.

Who can get them

Who can get them

Government Agency fixed rate mortgages can only be obtained by public employees and pensioners registered in the Unitary Management of credit and social benefits (Social Institute Credit Fund). For civil servants it is necessary that the applicant is in service and can count on an open-ended employment contract.

Both employees and public pensioners must have been enrolled in the aforementioned Management for at least one year. Not only. For access to credit, the applicant and the other members of his family must not be owners of any other home located on the national territory.

However, exceptions are made for the latter requirement. Among which we remember, for example, the houses received by donation or in succession. Government Agency mortgages can also be obtained by those who own a home that has been declared unfit for use following events resulting from natural disasters.

Aims and amounts Government Agency fixed rate mortgage

Aims and amounts Government Agency fixed rate mortgage

As regards the purposes allowed for the Government Agency fixed rate loan, the loan can be requested to meet various expenses. In fact, it is possible to request a mortgage both for the purchase of the first home and for other purposes related to the home.

Specifically, the Government Agency Mortgage Regulation provides for three categories of interventions:

  • Purchase, construction on one’s own, completion and / or expansion of owned land or assignment by cooperative companies in shared ownership of a non-luxury home.
  • Execution of maintenance works (both ordinary and extraordinary), expansion, adaptation, renovation or transformation of the home.
  • Purchase or construction of a garage or a parking space not more than 500 meters from the house, to be used as a property of the same.

In any case, for the purposes of accessing credit it is necessary that the property referred to is the only property owned by the applicant. The house must also be used as the residence of the applicant and his family.

The amount that can be financed varies according to the purpose. For mortgages intended for the purchase or construction of the house or for the other cases indicated in the first point, the maximum amount that can be financed is set at € 300 thousand.

For mortgages intended for renovation or other interventions on the first house (maintenance, transformation, etc.) the maximum amount that can be financed is equal to 150 thousand. The financeable amount is reduced instead to 75 thousand USD for those who want to buy or build a garage or a parking space.

The repayment takes place in 10, 15, 20, 25 or 30 years and the amortization plan provides for six-monthly installments of a constant amount.

Mortgage rates 2018

As regards the interest rate applied to the Government Agency fixed rate loan, this is defined with the loan to value method. System that provides for the definition of the Tan based on the relationship between the mortgage value and the value attributed to the property.

Below is the table containing the rates applied to mortgages with fixed interest.

Government Agency mortgage application and calculation

The loan request must be sent electronically, using the specific service on the Social Institute official website. The application must be sent in compliance with the time windows set by the social security institution.

In fact, it is possible to transmit the application only in the following periods:

  • from 1st to 10th January;
  • from 1st to 10th May;
  • from 1st to 10th September.

On the Social Institute portal there is also a service that allows you to calculate the installment of the Government Agency mortgage. For more information on how to carry out a mortgage simulation, please read our in-depth analysis.