Stan Smith Loans Bad Credit Loans Wed, 03 Apr 2019 15:43:21 +0000 en-US hourly 1 Can it pay to take a consolidated loan? Wed, 03 Apr 2019 15:43:21 +0000 Consumer consolidated loans cause many financial problems. More than 200,000 people are registered in the RKI because they have had problems paying a consolidated loan, bills or other.

We have therefore asked three experts from expert panel,  about the pros and cons of taking a consumer consolidated loan, and whether it is a good solution at all to take out a consolidated loan if you are missing out on money.

1. If you stand and need money here and now for rent, for example, how is it best to get the money?

“It is best to always have an emergency saving for these particular situations. Because then you do not have to borrow money if a minor economic crisis should arise. Review your budget for costs you can cut down or completely eliminate. Please take an extra job or get more hours at work to ensure that you always have enough money for your necessities – so you avoid having to incur expensive consumer debt. ”

“It’s best to make sure you always have money for that kind of account in the account and haven’t spent so much that you can’t pay your bills. But most probably know well, even if they have ended up in a situation where they lack money. Should you lack money for a month to be able to pay your rent, you can contact the place where you pay your rent. Present a plan for when you can pay the bill and then cross your fingers to make sure your landlord will participate in it. If that is not possible, you can get hold of family or friends and see if they can borrow the money for you. It is important to do as much as possible to avoid having to borrow money in the bank or as a consumer consolidated loan. In my opinion, the consumer consolidated loan is not at all a solution. I would recommend that you go to the bank if you have exhausted all the other options. But be aware that the bank also charges. Even a small consolidated loan in the bank can quickly become expensive. Alternatively, if you are a student, for example, you can find a bank that offers cash credit for cheap money. It could be consolidated loan & student account. ”

“The best thing is really to look at your expenses and income and put a realistic budget today. Because if you need money ‘now and then’ for such an important expense as rent, then you have a lot to learn about finances. Rent is a ‘VIP expense’ that comes before most other expenses. In other words, then you must and must save everything else, whereas the rent must be paid, otherwise you smoke on the street. If it happens once that you are missing the money for the rent, you can, for example, borrow from your family or your credit card. But it only has to be this one time, because you have to get the budget right away so it doesn’t happen again. ”

2. Can it pay to take a consolidated loan?

“In general, you should be careful about borrowing money, especially for consumption. If you need to borrow money to fund your spending, then you have an overuse and it only bids you in the tail. You have to pay back the money you have borrowed – and it is with the interest rate of interest. Remember that when you borrow money, you take money from the future and use them now. This can cost you dearly, and it will only strain yourselves later if you have accumulated a large amount of consumer debt. It can rarely pay to take a quick consolidated loan, and often these consolidated loans are more expensive than the consolidated loans offered by the banks. ”

“No. It is the most expensive consolidated loans that exist, measured in the APR (annual percentage rate reduction). ”

3. What to pay attention to before borrowing money?

“When you borrow money, you, as mentioned, take money from your own future to use them here and now, which has its costs. An interest rate never sleeps, it is attributed 24/7. That is also when you sleep. But if it is necessary to borrow money, it is a good idea to pay attention to the following:

  • The type of consolidated loan. For example, is it a fixed or a variable rate?
  • Annual percentage rate. This is an expression of your annual real costs. ÅOP allows you to compare prices to borrow money from the various consolidated loan providers. A consolidated loan with a low interest rate can immediately look profitable, but accrued costs such as miscellaneous taxes, ongoing fees, collection fees, land registration fees, formation costs and so on can result in the consolidated loan being not as profitable anyway due to a high APR.
  • The maturity, that is, the period it takes you to withdraw and repay the consolidated loan.
  • consolidated loan terms and conditions.
  • Whether the benefit and the consolidated loan are properly geared to your current financial situation so that you are able to meet the payment of the agreed service (interest + installments + any fees). The repayment of the consolidated loan must be possible within the foreseeable future. ”

“Look at the fees. You typically pay both interest, contribution or similar and set-up fee. See what the total credit costs are. If you pay twice as much for an Iphone as it costs cash, don’t do it. Be aware that if you end up in the pocket of the aggressive quick borrowers, it is part of their business model that they know you can’t pay back. In fact, they are hoping that your consolidated loan will remain for a long time, because it will end up in very high interest rates, as they eventually sue you. It can be very difficult to get out of the Gordian knot if you first get there. ”

“You only have to borrow if it is important and cannot be different. Check what the total cost of the credit runs up in kroner, and what the annual percentage rate of running up in percentages. Find the cheapest consolidated loan: You can use the ÅOP figure to compare the price of different consolidated loans. A low APR points to a cheap consolidated loan, while a high APR points to a more expensive consolidated loan. Remember, however, that when you compare the APR on different consolidated loans, the repayment time of the consolidated loans must be the same. You cannot compare the APR for a consolidated loan that runs for 12 months with one that runs for 24 months. Some borrow money from the family, and it can also be a solution in some cases. ”

4. What to do if you have taken one or more quick consolidated loans and have difficulty paying back?

4. What to do if you have taken one or more quick consolidated loans and have difficulty paying back?

“If you have admitted one or more quick consolidated loans that it is hard to pay back, it is a good idea to revise and adjust your budget so that there is room to pay the benefits on the consolidated loans. If you have several different consolidated loans, you can advantageously investigate which of these is most expensive in terms of interest, current costs, fees, taxes and so on, because it is best to pay it off first. This does not mean that you do not have to pay off your other consolidated loans. Just look at the remaining consolidated loans to see if you can put the service down to a minimum, so you can spend the money to pay off the most expensive consolidated loan. Once the most expensive consolidated loan has been redeemed, you can reimburse the other consolidated loans for the amount your budget can hold. ”

“Get hold of a skilled private advisor who can help you negotiate sensible arrangements with the companies behind your consolidated loans. The worst thing you can do is avoid paying, because that’s what interest rates are running very fast. ”

“You have to ask for help to see your finances through and possibly clean up everything and get a total consolidated loan from a normal bank. The sooner the better!”

Change the queue out with experiences

The conclusion is, therefore, that it does not really pay to borrow you for money. Not for small consumer goods at least. Then it is better to turn down the consumption and desire to buy things and cases, or see if you can make some more money. That doesn’t mean you never have to borrow money. You just have to avoid it as far as possible, think carefully and examine your options before you decide on a consolidated loan.

Also remember that money and things are not everything. You will not be much happier at buying a brilliant new mobile phone. At least not for a long time. It shows happiness research . After a few weeks, the new phone is just a phone like everyone else. It can actually be fatter to go out with the family and enjoy each other’s company for free. For experiences gives a more lasting experience of happiness. So the next time you get the urge to buy a cool gadget, try not to swap the urge with an experience and get more happiness for less money.

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Guide to consolidate your debts Tue, 02 Apr 2019 15:05:10 +0000 The consolidation of debts is one of the most popular tools to face the “messes” that are accumulated by the use (and abuse) of plastic money and other revolving credits easily accessible to the user.

“Consolidate” is nothing more than unifying two or more debts into one. As the interest rates of the debts to be consolidated are typically high, such as 60% of the plastic money or 240% of the usurer, there is an important financial saving that could well benefit the debtor.

Imagine that Ana has two cards with balances of RD $ 50,000 each and that she only pays the “minimum”. It also has a commitment to the “reasonable 20%” of RD $ 100 thousand, to which it pays only interest.

In her first year, Ana will pay RD $ 300 thousand in interest … That is, she will pay RD $ 25 thousand a month … And she will still owe RD $ 200 thousand that generated them!

Alternatively, the debtor could access an 18% annual loan to consolidate the three debts, combining them into a single promissory note of RD $ 200 thousand.

Instead of paying RD $ 25 thousand monthly, it will face a fee, now of principal and interest, of RD $ 18 thousand. If he honors them in time, in 12 months he will have amortized all the debt and instead of paying RD $ 300 thousand in interest, he will only pay RD $ 20 thousand. Total! A saving, in other words, of RD $ 280 thousand in just one year.

Some will ask: So much beauty … Is it possible? Yes it is. Consolidation is a product commonly offered by the country’s financial institutions.

Beauty can also end in a work of terror, if before we do not answer a series of necessary questions, we modify some financial behaviors and we improve, in general, our relationship with debts.

We will share in this guide twelve key aspects to consider before, during and after consolidating your debts.

The advantages of consolidating

Apart from the obvious savings in interest to be paid, converting a revolving debt (which only pays interest) to a “forward” debt, which also amortizes capital, makes it possible to visualize a maximum date on which the note will be paid.

Unification can also help organize the debtor. Ana, instead of having three creditors with three potentially different payment dates, will now simplify her life with a single commitment.

It should be said that the consolidation process, obviously depending on the situation of the debtor and its finances, is relatively quick and simple.

Costs and risks when unifying debts

If the debtor does not prepare as we recommend in this guide, he could be risking his own financial and patrimonial health, beyond the damage already done.

As a minimum, at the time of consolidation, a bank will require the signing of a contract with a notarial contract, insurance with a specific guarantee or guarantee.

The benefits of consolidation may well justify formalizing debts in this way. As long as they are fully paid and honored!

In other words, the debtor must know that if he fails to comply, he is now risking not only his credit history, but also the properties given as collateral and others, such as his bank accounts.

Attention: The biggest risk is not to stop paying the consolidated commitments. It is rather worrying that new commitments continue to be assumed, perhaps because a pattern of disordered consumption is maintained, generating a monstrous “snowball” of debts.

I hope that whoever is going to consolidate their commitments does not underestimate the risk of getting carried away by the spiral of more consumption and therefore new debts. If it does, the salt will be more expensive than the goat.

Are there alternatives to consolidate?

Let’s go back to Ana and her “card holder” balances of RD $ 100,000. If you choose to consolidate, at 18% but to five years, you will pay a monthly fee of RD $ 3 thousand and around RD $ 53 thousand in total interest.

One wonders if Ana would be able to impose, for her own account, during one year, an austerity plan that allows her to focus on making monthly payments of RD $ 11 thousand, obviously without making new consumption in her plastics.

If he succeeds, instead of taking on debt for sixty months and committing all his assets, he would pay only RD $ 35 thousand in interest (a saving of RD $ 15 thousand compared to consolidation).

Of course, not everyone has the discipline and self-control that we require from Ana in the example, but it is valid to do the analysis. Maybe not for all debts, but for some of them.

The debtor may also ask the credit card issuer bank to cancel it and put it in liquidation or under a payment plan.

Although a significant reduction in the cost of financing could be achieved and it is obviously preferable to default or stop paying, hopefully this last alternative will be avoided. Why?

In addition to potentially having to handle several payment plans, this change implies, in banking language, a “restructuring in the conditions originally agreed upon”.

Unlike a programmed consolidation of debts, a payment agreement will be reflected negatively during a period of time in the debtor’s history, including in his credit score.

So better a consolidation to a payment agreement, although this always (always!) Will be better to a default.

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Do you know how to consolidate or unify a debt? Sat, 19 Jan 2019 16:52:52 +0000 Most entrepreneurs have difficulty making efficient financial management. The consequence is the need to obtain loans for lack of working capital. In this situation, what do you do? One solution is how to consolidate a debt.

The idea is to gather all your debts into just one account. This is an attitude to facilitate the payment of credits obtained, which lessens their financial concerns.

Among the advantages of this modality are the payment of only one installment per month, the joining of all the credits in one and – best of all – the reduction of interest rates.

Want to take advantage of these benefits? So, read on to understand better about debt consolidation.

How to consolidate a debt?

How to consolidate a debt?

This practice is also called reunification or unification of debts and is a strategy that helps avoid situations of financial insolvency and bankruptcy.

The process is quite simple: you hire a loan in order to pay off other credits or financing. By doing this grouping, you can borrow the money from an institution that covers a lower interest rate.

Of course to get this loan you need to fulfill some requirements of the financial entity. For example, you may be asked to own a property, even under a mortgage.

This is a good long-term solution that causes you to have fewer debt and pay a lower monthly amount. But you need to follow some tips to be more effective:

Have a good reputation

Debt consolidation requires obtaining a new loan, as we indicated. If your company has a reputation as a good payer, it is best suited for hiring this funding.

Take advantage of and take copies of your company’s monthly expenses to present to the financial institution and prove how much you can pay per month. You should also make a budget to find out the monthly amount available.

Look for options to lower the interest rate further

Look for options to lower the interest rate further

You can further lower the interest rate if you can make a guaranteed debt. In this case, you offer something like guarantee of payment. The advantage is being able to make tax deductions and get a lower share.

However, you must be sure that your company’s revenues will be able to honor that commitment. If it’s still not good for you, you’d better look for another institution that offers a more facilitated payment condition.

Know all the rates built into the plot

You must know all the fees that will be charged in the installment that will pay on this new loan. This is important, even if the monthly amount is lower.

By knowing all fees, you may find, for example, that you pay a reduced interest rate, but very high associated charges. That is, you win on the one hand and lose on the other.

The ideal is to compare with your current doubts and pay interest and lower charges. This will save you money.

Pay the new loan on time

This attitude is critical to maintaining your business reputation as a good payer and ensuring that in the future you can unify your debts and get more reductions.

To avoid contingencies, make more conscious decisions in your business and avoid making impulsive investments. It is best to keep accounts under control and to manage cash flow well by writing down all income and expenses.

Make projections and make sure the bills and the loan are paid. This is the best way to be efficient in your financial management and avoid delinquency .

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Consolidating loans is possible Thu, 17 Jan 2019 16:16:12 +0000

Merging & consolidating loans: merging a mortgage and other loan types are possible!

With whom?

Fortunately, there are a number of credit institutions that offer this service and Mortgage Brokers works as an independent broker with all these companies. Because the major banks do not offer this solution and sometimes even say that it is not possible at all, there is no clear word or expression for it. One society calls it ‘debt centralization’, the other ‘the consolidating of loans’ and another simply says ‘the merging of loans’. Anyway, if you have multiple loans with a mortgage then you can all combine these loans into one mortgage loan. See for the scoop


What does that mean for you?

By merging a mortgage, for example with an installment loan, credit card, credit opening or car financing, one loan will remain. A positive consequence of merging, consolidating or centralizing your loans is in most cases a lower monthly payment. Moreover, you have a better overview of your finances because only one loan continues to run.

Another additional benefit to possibly lower your monthly costs arises because the term of a mortgage is usually longer than the term of an installment loan. Because the longer the term of the loan, the lower the monthly charges.

Conversely, it may also be the case that you want to shorten the term. This can also be achieved if you centralize, combine or regroup your loans. Then the lower interest rate ensures that you can pay off faster.

What are the conditions?


Value-debt ratio

To regroup your mortgage with one or more loans, it is important that the value of the home is higher than the sum of the debts. If you have been paying off your mortgage for a number of years, it makes sense that your debt will be slightly lower each month. The value of the home may have increased in the meantime due to market developments or because you have done work.

A new mortgage where the mortgage and the loans are merged or centralized, may never exceed the value of the home. The higher the value of the home compared to the new (combined) mortgage, the lower the interest rate that you will pay for this new mortgage.


The income

Moreover, centralization is only possible if there is sufficient income.

When we finance up to 80% of the value of the home, any income may be included; such as children’s money, meal vouchers and even a temporary income. The only exception to this is an interim income of less than two years. The bank sees this as too great a risk.
If you have a fixed income for an indefinite period, this means more certainty for the bank than if you have a temporary income and this in turn has an effect on the interest rate. So with a fixed income the bank will often offer a lower interest rate for merging or consolidating loans than with a temporary income.


The purchase

Michael and Sarah are a couple with two stable fixed incomes, both earn € 2,000 net per month. They bought a house a few years ago; a semi-open building, the home value of which is now € 300,000.
They still have a mortgage of € 160,000 (originally € 200,000 with an interest rate of 3.6% and a term of 25 years). For this they pay € 1,005.75 monthly

With the purchase all own money was put into the home and due to all kinds of circumstances a number of loans with a total amount of € 40,000 are now running. The total costs for these loans are € 654.23 per month. (interest 9.95% term 7 years)
An annual debt balance insurance of € 200 per person is also paid. That brings the current monthly burden to a total of € 1,675.89.


The merge

If we would merge this, we can do so at a low interest rate of even 1.6% (dated prospectus N ° .91 01/04/2017). Including notary fees, reinvestment compensation, a small cash reserve and a debt balance insurance, the new mortgage that is taken out when the loans are centralized amounts to € 210,000. The proposal that Mortgage Brokers makes for the consolidating of all loans where all loans are merged including all additional costs, then looks like this:

  • Loan sum: € 210,000
  • Duration: 25 years
  • Interest: 1.6% (à 3/3/3 *)
  • New monthly payment : € 848.62 per month

After consultation with Mortgage Brokers, the choice is made for a term of 22 years:
€ 210,000 à duration 22 years à 1,6% à 3/3/3 * at € 943.04 per month
At 22 years of age, this is still a lower charge of € 800 per month, and an example that is really no exception.



Suppose that … the incomes had now been € 2,000 in total . Mrs has an invalidity allowance and is entitled to child allowance. Mr. has a contract for one year and earns € 1,200 a month. There is no attachable income in this case, so an interest rate of 1.6% is not possible here. The proposal made to them in this case is:

  • Loan sum: € 210,000
  • Duration: 25 years
  • Interest: 2.75% (à 5/5/5 *)
  • New monthly charge € 965.09 per month

A new one-off basic tax certificate will be issued for the part of the original mortgage, so that the tax benefit will continue to exist.

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Non-bank mortgage loan consolidation Mon, 14 Jan 2019 16:14:19 +0000

You can consolidate a non-bank mortgage with both banking institutions and non-banks.

Basically, consolidating a non-bank mortgage means that the client transfers the mortgage to another bank or non-bank institution before the end of the fixation period. Consolidating a non-bank mortgage can give you much more favorable terms than the original mortgage. You have the option of obtaining a lower interest rate, lower repaymets and also a considerably longer maturity. By consolidating, you can get considerable extra money. This is especially true when the value of a property has risen and you have not been able to use a 100% mortgage. for a critique

Can I consolidate a non-bank mortgage?

Of course, consolidating a non-bank mortgage is possible. Consolidating a non-bank mortgage is exactly the same as that of a bank. You can simply choose another non-bank institution and save a lot of money. The mortgage is in most cases secured by fixation. The classic fixation time is 3 to 5 years. The best option is to find a more advantageous option for a competing non-bank institution at least three months before the end of the fixing period itself. You can then consolidate your mortgage loan easily. With consolidating, the current mortgage costs will be reduced, and the fees for setting up a new contract will be eliminated. Neither is there a need for a new estimate of the property’s price. The most important thing is to find out to which day your mortgage fixation ends. Do not be afraid to approach the specialists in the field, who will be happy to help you even if you refrain from consolidating. Find out which institution will offer you the most advantageous consolidating of a non-bank mortgage .

How to consolidate a non-bank mortgage?

Tell your bank in advance of your consolidating intentions, provided you have a consolidating bank already secured. Also, ask the bank for a transfer to a new bank. Then just need to arrange the necessary documents and boldly do it.

Do you want to change your family budget? Take advantage of consolidating your non-bank mortgage Depending on the amount of the loan, you may also be granted a non-bank mortgage without a pledge A non-bank mortgage calculator also quickly calculates your repayments Execution mortgage, your rescue from auction The whole blog

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