Credit Redemption Guide | Debt consolidation

Our Guide to Credit Redemption is intended to help you understand the redemption of credits and understand all aspects of them. We explain to you the different stages of the loan redemption process, the different types of credit redemption, its benefits and its cost.

What is the purpose of the redemption of credits?

What is the purpose of the redemption of credits?

The redemption of credits allows to group in one line of loan all of its credits, whether they are for real estate or consumption. It can also integrate a bank overdraft, debts or receivables and a cash envelope to carry out a project. The objective is to make a new loan with a single rate, the duration of which will make it possible to obtain a monthly payment adapted to the repayment capacities of the borrower. This loan replaces all old consumer credits and simplifies the borrower’s budget management.

Credit Redemption Guide: Types of Projects Funded

As with any type of consumer credit or real estate credit, the redemption of credits exists in different forms and is possible for different types of projects. The purpose of a loan redemption being to make a new loan, with a clean rate and monthly payments, therefore, this new credit could very well be a simple consumer credit, a mortgage and credit conso ( in order to consolidate the debts at the same time as to finance the purchase of a real estate), a credit to have a cash envelope, etc.

The possible types of projects with a redemption of credits are:

  • Purchase of real estate loans
  • Purchase of consumer credit
  • Purchase of real estate and consumer loans
  • Purchase of credits and request for cash
  • Purchase of credits and consolidation of debts
  • Redemption of credits and loan work

Each of these credit buy-backs therefore have their specificities, as well as their own conditions and criteria. Learn more about the types of credit redemption.

What are the steps of a credit redemption?

What are the steps of a credit redemption?

The redemption of credits follows strict implementation rules. The financial package is more complex than for a simple consumer credit or a mortgage loan. But a redemption of credits is also prepared before the financing plan. Learn more about the steps of a credit redemption.

Credit redemption: for which types of profiles?

Credit redemption: for which types of profiles?

Whether you are on a fixed-term contract, a liberal professional or retired, there are solutions for the purchase of credits. The setting up of the file of the financing and the file of repurchase of credits will be subjected to certain different criteria according to your professional situation. Learn more about the purchase of credits according to the professional situation.

The cost of a credit redemption

The cost of a credit redemption

The cost of buying back credits is subject to different variables and different criteria for granting. These different types of fees may also vary depending on the total amount of the loan (s) to be redeemed and depending on the nature of the new transaction. Learn more about the cost of buying back credits.

The benefits of buying back credits

The benefits of buying back credits

The redemption of credits has several advantages: a single monthly payment, recovered cash, avoid a situation of over-indebtedness, enjoy more attractive rates, etc. So many benefits for the financial well-being of your household. Learn more about the benefits of buying back credits.

What are the documents to provide for a purchase of credits?

What are the documents to provide for a purchase of credits?

As with any financing file, various documents must be collected for a purchase of credits. And all of these supporting documents may be different depending on the type of purchase of credits. In addition, if there are two borrowers when buying credits, it will be necessary to provide the documents for each of them. Learn more about supporting documents for a buy back of credits.

Distinctions of the redemption of credits

Distinctions of the redemption of credits

Depending on the nature of the loans to be consolidated, the redemption of credits can be divided into two broad categories.

  • Consolidation of consumer loans: It is intended for the purchase of consumer loans, revolving loans, debts or receivables, overdrafts and a cash envelope.
  • Consolidation of real estate loans and consumer loans: it is intended for the purchase of one or more real estate loans and may include outstanding consumer, renewable, overdrafts, debts or receivables and a cash envelope.

Depending on the category in which the borrower is located, the loans granted may vary in amount, duration and guarantee.

The most frequently asked questions

The most frequently asked questions

In terms of redemption of credits, many questions may arise, other than on its operation or its cost. The Central Financing Office gives you its answers to the most frequently asked questions about the purchase of loans:

After buying back credits, can I take out new loans?

After buying back credits, can I take out new loans?

It is entirely possible to subscribe or not to new loans, but you must first check your ability to repay and, if necessary, seek the advice of professionals such as La Centrale de Financement.

What is the age limit for a credit surrender?

What is the age limit for a credit surrender?

Credit redemption has no specific age limit and depends on the lending institutions. In general, the repurchase of credit can be carried out until 75 years. In the case of financing senior profiles, the end date of the contract will also be taken into account, around 85 years maximum.

What is the maximum duration for a credit redemption?

What is the maximum duration for a credit redemption?

The maximum duration for the redemption of credits depends on the type of redemption. In the context of a buyback of consumer credit the maximum duration is 12 years. In the case of secured loans, the repurchase may be up to 25 years and 35 years for a mortgage loan repurchase (within the maximum age limit of the end of the loan).

What is the withdrawal period for a credit surrender?

What is the withdrawal period for a credit surrender?

When the borrower receives the loan offers as part of a mortgage repurchase (minimum of 60% real estate credit in the repurchase of credit), it is protected by the Scrivener law. This means that the loan offers must be returned no earlier than 10 days after receipt, to allow time for reflection to the borrower. If the borrower decides to retract he will owe no fees to the institution. In case the lending institution has already made money available to the borrower before the end of the withdrawal period, the borrower will have to repay them within 30 days with the interest due. When the offer to buy credits is accepted, the borrower has a withdrawal period of 10 days for repurchases of real estate loans and 14 days for the purchase of consumer credits.

Property debt background debt

Your own property or your own property offers excellent security for credit institutions. And high collateral goes hand in hand with low risk to the bank, reflected in a favorable interest rate. For the taking up of a loan, the home offers itself as security so officially. So that the security is also recorded in writing, it is necessary to enter the loan as a mortgage on the house. This is done at the land registry, which enters a mortgage. If the property is currently unencumbered and the lending bank is the first to be registered, it will be ranked first. That is, in the case of a case, for example, a foreclosure sale, the first-ranked registrant is preferred and gets the money first. On the other hand, if the auction does not bring enough, it may be empty. If the mortgage is paid off at some point, it will be deleted. The registered mortgage remains however. See http://ayaaaak.net for an illustration

Mortgage has no debt

Mortgage has no debt

However, it does not necessarily have to be a bank in whose favor a mortgage is registered. Even a homeowner can do that by registering a landlord’s lien on his property. Under German property law, the landlord’s lien is therefore a mortgage, which is entered in the land register in the name of the landlord. Since a mortgage has no debt – that is, a mortgage is not a repayable loan – any landlord or landlord can register a landlord’s lien without incurring any monthly costs, as is the case with a mortgage , For the following reason, this makes sense first and foremost with an empty lot:

A landlord’s lien gives the landlord the opportunity to secure a “pole position” for (later) targeted borrowing. As just described, a high rank offers some benefits. For example, the owner may offer his first mortgage to a credit institution, resulting in a loan with more favorable terms than subordinated debt. Especially with a Eigentmer-letter Grundschuld a quick securing means is available. The owner can therefore at any time provide security for a loan by transferring the mortgage deed to the bank. The beneficiary no longer has to be entered in the land register, so that there are no additional costs due to a rewrite.

Repayment of the loan

Repayment of the loan

In order to own a landlord’s own debt, the passage to the land registry office is not necessarily required, because this can also arise by virtue of law. As we have already seen, a mortgage is always associated with registering a mortgage. If, however, the secured claim is extinguished in whole or in part in the case of a mortgage, for example by repayment of the loan ( 1164, 1177 BGB), then the “free parts” of the mortgage are automatically converted into a landlord’s lien. It is available to the owner for further use.

However, this provision only comes into effect if there are no other (equal or subordinate) land charges of third parties apart from the landlord’s land charge that has just arisen on the property. Should this be the case, the owners of the subordinated land charges can claim a statutory cancellation of the landlord’s land charge. This is regulated since 1977 in 1179a BGB. If such a claim is asserted, then the owner must cancel his own landlord’s lien. The purpose of this regulation is to allow equal and subordinate land charges to be called. This claim for indemnification may be excluded by contract; but this requires the entry in the land register.

Consumer creditworthiness not properly checked

When taking out a loan, most people quickly think of a visit to the bank. Or to request a quote from an online loan provider. But since fairly recently (as of January 1, 2017) a mobile phone that comes with a subscription also counts as a loan. And from last May (2017), telecom providers must perform a credit check if a customer purchases a mobile phone with a value of more than 250 euros. The idea behind it is self-evident that consumers will not enter into obligations that they cannot handle financially. So far all nice and nice, but do the new rules work? The AFM (Financial Markets Authority) was curious about that. And when the AFM started investigating the way in which telecom providers dealt with the new rules, it turned out that things could still be improved.

Amounts are entered as standard

Amounts are entered as standard

The research shows that most telecom providers have already set a number of amounts in the form on their site in advance. Clients must state their family situation and, based on this, (monthly) expenses and income will come forward. The idea is that the consumer then adjusts the amounts so that they match reality. In itself a nice service from the telecom provider, because the less a consumer has to fill in himself, the easier and faster it goes of course. But then it is of course useful if the customer actually checks the amounts and does not simply confirm the amounts entered in advance. And there it turned out to go wrong quite often in the research.

Completed forms lead to over-credit

Completed forms lead to over-credit

The AFM investigation revealed that many customers do not adjust the standard amounts to their actual financial situation. Logically you get a financial picture that is not right. You could even say that completing the creditworthiness test is of no use in this way. This test must make it clear whether someone can safely take out the loan (in this case the telecom subscription) without getting into trouble. That of course only becomes clear if the data is actually correct. The AFM therefore concluded that forms on which advance amounts were entered as standard could lead to over-credit. In short: a risk was created for the consumer in this way.

Telecom providers must stop entering data in advance

Telecom providers must stop entering data in advance

Because the AFM considered the risk of over-crediting too large, the telecom providers were called to account for this. The AFM has forbidden them from already filling in the forms for the credit check in advance. In the meantime (almost) all telecom providers have listened to the AFM and no more amounts are entered in advance. The AFM has indicated that it will also check with other financial products what the effect of entering data in advance will have on the consumer.

Redemption suspension

The repayment repayment, or as often mentioned the repayment suspension, is a term that is primarily associated with mortgage lending. The fixed mortgage sometimes appears as a term. Whatever the name may be, this type of financing differs significantly from the annuity loan.

During the repayment suspension, only the interest on the loan amount will be paid during the entire term. A direct repayment does not take place. Of course it is possible for any type of loan to suspend the repayment. However, this does not mean an interruption of the installment payment for a small period of time, because there is a shortage of money, for example. What else is meant by this, you will learn in the following.

Borrowers have various ways to repay a loan. It can be repaid continuously, and then it is a beard restoration. However, if the loan or loan is not repaid with current installments until the end of a fixed term, there may be a repayment suspension. In the area of ​​mortgage lending, this could mean:

If a repayment suspension is chosen for financing, then only the interest accrues over the entire period of financing. A repayment does not take place at all, and the remaining debt or rather initial debt remains the same over the entire term. Of course, no one in the distant future will make the repayment from the petty cash. This means that any amounts that would actually be received by the lender will drip into another pot so that they are available for repayment at maturity. In addition to the interest, a contribution X is thus invested in the repayment installment. After the agreed term of the loan and repayment, the loan is repaid from the saved benefits. Then the borrower is debt free.

How could such a pot look like that would catch the guesswork?

How could such a pot look like that would catch the guesswork?

 

This could be a capital-forming life insurance or annuity insurance with a capital option. The unit-linked life insurance, a (as safe as possible) investment funds and Bauspar contracts are also suitable.

By the installment in a (for example) life insurance is already defined exactly at the beginning, when the loan comes to an end, which is not the case with a financing as Annuittendarlehen. The annuity loan is always only for a certain time an interest fixed, which is renegotiated after expiration of the contract, perhaps even with another provider. But not only the term fits in the life insurance to the month exactly, the contributions remain unchanged. In the case of an annuity loan, however, they decrease.

A considerable advantage is the fact that, in the case of life insurance as a premium product, the payments on the death of the insured person come to a standstill and thus provide a fatality cover. With the payment from life insurance, the loan can then be repaid early. Financial problems for the bereaved are therefore not an issue. The amount of the installments to be paid can even be reduced by juggling, because if the life insurance is extended to the lives of children, the contributions are lower than for older people.

For whom is the amortization replacement particularly suitable?

For whom is the amortization replacement particularly suitable?

 

Self-users who want to protect their family at the same time, will certainly use a life insurance as a repayment. This saves an additional risk life insurance to cover the residual debt. Investors and investment in commercial property can also be mentioned here, since this group can claim the same interest for tax purposes. The tax benefits improve the return. Redemption suspension may also be useful for leased property.

When choosing the repayment suspension, the following must be observed: In order to ensure the repayment of the loan at the end of the loan term, life insurances should be calculated with the guaranteed insured sum. On the other hand, if the bank calculates with an anticipated expiry performance including profit participation, the full repayment is not secured at the end of the term. If the expected maturity payment of the life insurance including profit shares (profit participation) is not reached, a credit institution may demand special repayments in view of a financing gap that has arisen. It certainly needs little explanation that the choice of mutual fund is not a safe bet, since there is no set expiry date. At most with the Bauspar contract can still be counted as a fixed number.

Life insurers bring yet another advantage to the race: the insurance companies offer their money for home loans usually offer something cheaper than other lenders. On average, these interest rates are approx. 0.5 percent below the usual banking conditions. A disadvantage can affect that insurance companies set a very low mortgage lending limit – about 40 to 50 percent of the mortgage lending value. Lack of money must therefore be procured by other lenders as a subordinated loan. However, this subordinate status costs extra in the form of an

 

20% of households in the Netherlands have payment problems – Loan and credit solutions. – Loan and credit solutions.

According to Delavega, no fewer than one fifth of all Dutch households have money problems. For example, more than 21% cannot pay the bills on time and arrears arise. What is very striking is the sharp increase in the number of households with serious money problems at the higher incomes.

10% of households have serious money problems

10% of households have serious money problems

More than 10% of Dutch households even have serious payment problems. They must make arrangements and receive reminders, so that the financial problems only get worse. Manyu conducted a survey among 2,500 Dutch people.

Great concerns about money problems with higher incomes

Great concerns about money problems with higher incomes

Manyu announces today on its website that it is very concerned about the number of people who have to deal with serious payment problems, especially because they do not receive help. In the meantime, they are lagging further and further behind with their mortgage or rent. In 7% of the cases, even the energy threatens to be cut off. Of the 2,500 respondents, one third in 2018 appear to pay a bill more often later. It is striking that they then usually chose to postpone payment of the health insurance. 19% of the respondents paid the energy bill too late or the mortgage / rent. What worries Manyu a lot is the huge rise in higher incomes with financial problems.

Where does the rise come from?

Where does the rise come from?

It is therefore higher incomes that are more often confronted with money problems. For the time being, agencies such as Manyu are in the dark about the cause of the increase in this group of people. The body thinks that people with a higher income more often have a higher spending pattern, so live a more luxurious life. If they earn less or the costs for rent or mortgage increase, then this group gets into trouble sooner.

What many respondents indicate is that they do not know which institution they can turn to for help, while another large group (285,000 Dutch households) underestimate the problems. They sometimes pay a bill too late but do not find help necessary. However, we recommend that you always turn to organizations that guide people with money problems. Without professional assistance, it appears to be almost impossible to get out of trouble.

Apply for credit cards; Visa or Mastercard?

Using credit cards for your purchases is very useful because you do not have to have cash. For example, when you are abroad, for vacation or for business, you can pay your hotel costs with the credit card. These days, the card has become so established in our modern payment system that it has become almost necessary for online purchases that you make. The biggest difference between a traditional transfer and making a payment with a credit card is that the transfer is much slower compared to the immediate processing of the visa credit cards.

Credit cards do not have to be expensive by definition.

Credit cards do not have to be expensive by definition.

Some banks even give them for free when you want to open a new current account or savings account, and payments that you make with it cost virtually no money and a credit card has now become a very safe payment method. Paying with a credit card is easy because of the wide and worldwide acceptance. Your personal signature and showing the identity card is sometimes still sufficient, but because paying with a signature became relatively unsafe, the pin code on the credit card has now been introduced.

With the help of this secret personal code, a payment became safer. Essential to a PIN payment is the presence of a direct connection to the credit card issuer. If this connection is not present, you can still pay with a signature. A bigger step in the ease of payment with a credit card is the introduction of the chip on the credit card. The pin code can be verified by the chip without the presence of a connection to the card issuer.

The most famous credit cards in circulation are: the visa card and master card. It is recommended that you compare the various providers and publishers of these payment cards! After all, the annual costs can vary considerably. This way you can save yourself a lot of interest in the long term!

The Credit card as an alternative payment method.

The Credit card as an alternative payment method.

There are few alternative payment methods that are nowadays used as often as credit cards. These small rectangular plastic cards offer us a lot of convenience, but inattention with this form of payment can also cause a lot of misery.

Credit cards can also become one of the easiest ways to continuously have a standing cash reserve of revolving credit, always available when you need it. Those who cannot handle this form of payment run the risk of making credit card debts, but everyone agrees that, despite the risks, there are more disadvantages to not having a credit card.

Credit cards as we know them today are relatively new and constantly evolving to make them even safer and more user-friendly. The most important legislation to protect consumer rights with regard to credit was implemented in the mid-1970s. Most companies nowadays also have the option of having their customers pay with a credit card (for example, visas).

A credit card is no longer a superfluous luxury but can not only offer you a permanent reserve of money but also the speed with which transactions are carried out linked to the fact that the owner of the credit card has a repayment period of at least 1 month. to consider the purchase of a credit card.

For example, if you book your trip online these days, you usually have to use your credit card to reserve your flight or hotel. It is the payment method that is now accepted worldwide without actually having a lot of cash in your pocket! With a credit card you can pay easily, quickly and securely all over the world. You can request various credit cards through this blog via the internet regardless of which bank you are at now. You have applied for a credit card securely via the Internet and you will receive it by post within a few days after approval of your file.

Discover the different mortgage loan guarantees.

 

 

The four groups of different mortgage loan guarantees

The four groups of different mortgage loan guarantees

The various mortgage loan guarantees can be categorized according to the type of organization that dispenses them.

  • Mortgage and priory lien registration
  • Bank guarantees
  • Mutual guarantees
  • The pledge

Mortgage and lien registration of money lender

Mortgage and lien registration of money lender

Mortgage and lien registration (IPPD) are at the initiative of the state. The IPPD allows to guarantee already built goods, goods for which there can be a transfer of ownership, while the mortgage makes it possible to guarantee the non-tangible goods (sales in the future state of completion, construction of a home or renovation work,)

The bank guarantee

The bank guarantee

Bank guarantees are real estate loan guarantees from surety companies. These companies were set up by the banks themselves, financial institutions or groupings of banks in order to reduce the costs of government guarantees paid by individuals. The best known sureties are:

    • The Crédit Logement guarantee from a group of major French banks
    • The SACEF bond of Groupe Caisse d’Epargne
    • The MHC bond of the Mutual Credit Group
    • The CAMCA guarantee of Crédit Agricole
    • The SOCAMI deposit of Banques Populaires

The mutual guarantee of official

These are the guarantees of the mutual guarantee societies called “mutual guarantee” or “mutual guarantee of civil servant”. Officials in certain occupational categories may have access to it, including:

    • National Education and the Ministry of Research and Culture, through the bail Casden (Bank of Education, Research and Culture) or the bond MGEN (Mutual General of National Education)
    • From the French Atomic Energy Commission (CEA)
    • Military Military Provident Group (GMPA)
    • Mutuality of the Public Service (MFP)
    • From the RATP
    • From the SNCF

The pledge

The pledge

The collateral which is a guarantee made by the borrower himself. The collateral is based on a sum of money blocked in the form of life insurance for example.

To receive information on the various mortgage loan guarantees from one of our experts, submit your mortgage application.

 

Cash Loan

The loan for Fast Cash is offered by ABC Financial Services, as It targets cash loans but also upon loans for entrepreneurs. We now have recently heard that the lady bought BET Money, that was known as the Clever Loan. In this post, we’ll take a closer take a look at Fast Cash services.

Fast Cash company reviews

Fast Cash service reviews

There are 3 credit products to choose from:

Cash loan

  • CZK 5, 1000 to CZK 70, 1000
  • maturity associated with 14, 17 or twenty months
  • the total amount is paid monthly — repayments are collected simply by sales representatives directly at the place of residence

A non-cash loan guaranteed by real estate

Non-cash loan secured by real estate

  • Intermediation of a loan associated with CZK 10, 000 in order to 10, 000, 000 to get a period of up to 20 years
  • necessary pledge from the property
  • chance of refinancing
  • Mortgage for individuals who failed in the financial institution

Company Loan

Business Loan

  • advance loan for entrepreneurs
  • CZK 5, 000 in order to CZK 70, 000
  • maturity of fourteen, 17 or 20 a few months
  • installments are usually collected by the sales consultant

So what do I need to handle the mortgage?

What do I need to handle the loan?

  • valid identification card
  • work contract or trade permit
  • confirmation associated with a permanent or temporary home
  • proof of revenue

Benefits of the loan

Advantages of the loan

  • cash loan – paying directly on your hand
  • fast processing
  • it is not necessary to have a banking account

Drawbacks of the loan

Disadvantages of the loan

  • The loan is very costly
  • maturity is just not very variable

Fast Cash debate and client experience

Fast Cash discussion and client experience

Whether the client’s experience great or bad, it’s always a person who cares. All businesses must comply with the law, however, it is up to you to pay your own obligations on time and if you understand you are not performing the agreement, contact your lender instantly and negotiate a payback schedule.