Consolidation Loan: Is It Worth Betting on such a Solution?

The offer of banks currently operating in our country includes the so-called consolidation loan. This is a proposal addressed to people who already have several bank loans on their account. By deciding on a consolidation loan, you can reduce the monthly installment. Thanks to this, the burden on the household budget is lower. 

Is a consolidation loan a good solution?

Is a consolidation loan a good solution?

It is difficult to state clearly whether a consolidation loan is a viable solution. It depends on many factors that look slightly different for each borrower. However, before we make the final decision on taking a consolidation loan, it is worth knowing at least the most important advantages and disadvantages.

A consolidation loan primarily converts several loans into one. What do we gain from it? The loan period is longer, which translates into lower installments. However, it can not be forgotten that there are additional costs, including, for example, credit insurance. Often, a consolidation loan costs more than a regular bank loan. However, when it is difficult for us to repay a few years, it is worth considering a consolidation loan that will help to ease the budget.

When to report to the bank for a consolidation loan? It’s best before there are difficulties with timely payment. It should be remembered that banks are reluctant to provide loans to people who are late in paying subsequent installments. So if we feel that several installments are overcharging us too much and we will not be able to pay the next installments on time, it is worth considering taking a consolidation loan.

When deciding on a consolidation loan, it is worth knowing the offer of at least a few bank branches. Similarly as in the case of cash, housing or car loans, banks have a different offer. Not every one is just as beneficial. Therefore, you should do everything to choose the most favorable loan, which will help in improving the financial situation.

Loan with property as collateral

For a loan with a property as collateral two cases have to be distinguished: On the one hand, the mortgage financing or purchase financing for such. This does not only apply to a new building or the acquisition of an existing property, but can also be used for extensive renovations and modernization. On the other hand, it is possible to use a property that has already been paid off as security for borrowing and thus to benefit from the favorable interest rates of a real estate loan.

The property as collateral when borrowing to build or buy

The property as collateral when borrowing to build or buy

In the case of a real estate loan, the property purchased serves as collateral. Thanks to the excellent coverage, the interest rates for this type of loan are significantly lower than for a standard installment loan, with no repayment guarantee except for the expected income. Usually the financial institutes expect an equity capital amounting to twenty percent of the incurred purchase price or construction costs, but calculate this from different points of view. In part, all financing components not taken over by the respective bank, and thus even the building society loan and a promotional loan, are included in the determination of the equity ratio. Other financial institutions, on the other hand, exclusively relate to the actual assets available in the equity valuation.Homes as well as investment properties can be financed. In the case of the latter, the banks expect a calculation of the expected rental income in addition to the usual real estate loan documents.

Borrowing for any purpose with a property as collateral

Borrowing for any purpose with a property as collateral

As an alternative to a installment loan, it is possible to take out a freely usable loan with a property as collateral. This variant is suitable for larger amounts required, where the interest savings higher than the additional costs incurred by the Notarbesuch and the land register entry. At the same time, lenders can reduce their credit rating if their client provides property as collateral. Thus, it is possible to successfully apply for a loan with a property as collateral even with a soft Schufa negative entry.The easiest way to apply for real estate is to lend a property as collateral if they do not cancel the mortgage after repayment of the purchase or mortgage. In this case, it can be used again at any time. However, this advantage only works if the previous partner bank also pays the new loan. In other cases, a cancellation of the previous land charge is required so that another financial institution can be registered in the first place. The possibility of maintaining the previous contribution and giving the new lender second place is only theoretical, since the latter will not be satisfied with a secondary mortgage.Interested parties in a non-mortgage, home modernization or acquisition credit with a property as collateral pay attention in their credit comparison on which financial institutions offer such. To a not inconsiderable extent, banks tie up real estate lending that the customer actually uses the money for appropriate purposes. Credit seekers are thus looking specifically for a lender, where they can use the property for any borrowing as collateral.Incremental costs are generally prohibited when lending. The loan with a property as collateral is sometimes an exception, as the lender may charge reasonable estimates of the value of the property. The banks and credit intermediaries either demand the esteem of a sworn valuer or commission one of them. Also, the inspection of the property to be leased by a dedicated expert is conceivable.

Claims to a real estate loan

Claims to a real estate loan

The punctual payment of all credit installments is mandatory for a loan with a property as collateral, as a serious late payment can lead to a foreclosure sale. The legal provisions protect private real estate borrowers against such drastic measures in the event of a single payment default, but not in the event of repeated non-operation of the loan. The best protection against default offers reasonable monthly installments and a rate protection insurance, the conclusion of mortgage loans is advisable.In the case of a loan with a property as collateral over a medium amount, it is possible to make the full repayment within the first fixed interest period. For higher credit sums, however, the fixed interest period is shorter than the total term. The longest possible binding period facilitates the calculation of the installments due, especially since the borrower can not be sure on which conditions he will receive follow-on financing. Early repayments can be contractually excluded or limited in real estate loans. In addition, the bank may charge a prepayment penalty during the first ten years of the loan. The ideal real estate loan agreement allows free special repayments, at least to a limited extent.As an alternative to an annuity loan with fixed interest rates, the loan with a property as collateral can be selected from the bullet loan and a variable-rate bank loan. Final-term real estate loans are taken up by homeowners, predominantly in insurance companies, whereby the repayment is made from the expiry of a simultaneously agreed life insurance. With some banks, the tapping of a loan with a property as security is also possible, in this case, a savings contract loan repayment at maturity. Variable lending rates are often used when borrowing through a foreign bank. They are initially cheap, but are regularly adjusted to the current market situation, so that they can increase noticeably during the term.

Fast Changed Payday Loan Consolidation Also Online

When you need to quickly access a loan but you can not get a common personal loan is often referred to the loans changed fast online .

Before understanding how they work, we try to explain why they are so popular and have a great success in the financial world. Surely the word fast comes from the fact that those who need liquidity, in most cases, need money almost immediately.

Therefore, whenever possible, the applicant does everything to get his funding very quickly. But why are loans being changed? These are loans that were going out of fashion with the increase in requests for transfer of the fifth and traditional personal loans.

The economic crisis that currently affects our country, however, has often played “bad jokes” to many Italian families. Those who had opened a traditional loan and found themselves suddenly unemployed or could not sustain all the increases in the basic necessities, found themselves in difficulty in terms of repayment terms and times. When you do not pay an installment of a loan or do not reimburse it by the established date, the banks can request that your client be registered in a public register called Crif, also called the central risk termination. This register records all those who have been bad payers . It is this registration that no longer allows such subjects to obtain a credit again through a credit institution or a bank.

Prestiti Cambializzati Veloci

The bad payer, as well as the protested, almost always sees his request for a personal loan rejected just because the banks before granting a loan check if the applicant is registered with the Crif. The exit routes at this point are two: the transfer of the fifth and the loan changed. The assignment of the fifth, however, can be requested only and only by those who have a paycheck or a pension. Its operation is characterized by the fact that to repay monthly the amount due will not be the customer but his employer or his pension institution. Those who do not have a job, are self-employed or do not have a regular employment contract, so they do not have a paycheck and turn out to be a bad payer or a protégé can only turn to those financial companies that offer loans that have been changed.

Some of them are able to provide the money within 48 hours and for this reason we are talking about fast loans. What characterizes this form of credit is the repayment method. In fact, it takes place through the payment of a bill instead of the traditional installment. And it is precisely the functionality of the bill that also allows protestants and those registered with the Crif and is therefore a bad payer to be able to take advantage of a loan again.

The bill is in fact an enforceable title so if the customer should be insolvent the bank can request the attachment and then the sale of the customer’s assets in order to recover the amount necessary to pay off his debt. Precisely for this reason, in order to take advantage of this form of credit it is necessary to present real guarantees or alternatively to request the loan together with the help of a guarantor. In this case the guarantor is responsible for repaying the debt if the customer is no longer able to do so with his own economic possibilities. Given the delicate position that is going to be covered, the figure of the guarantor is almost always occupied by a very close friend or a relative.

Whenever the customer pays a promissory note, it will be returned to him and the debt will be declared extinguished when he / she regains all the signed securities. If the request for funding is accepted, it is possible to obtain the requested money within 48 hours from the presentation of the documents requested by the bank.