So quickly, consumer loans increase -3 tips to prevent the debt trap

The fact that household debt has risen sharply in recent years is not news. What has mainly been on the wallpaper in this context, however, is the mortgage. Rising housing prices mean a greater need to borrow money, which automatically results in higher general debt.

More recently, the rise in consumer loans has been noticed by politicians and the media. Consumer loans, ie private loans and fast loans, are increasing in both number and size. Interestingly, the increase in private mortgages has a lot to do with the stricter rules on mortgages that have been introduced in recent years.

In this article we will first tell you something in general about the sharp increase in consumer loans. Then we present things to think about for those who are thinking about taking private loans for cash.

 

Double the growth rate in two years

debt loans

The fact that there is a very clear link between the liabilities for private loans and tougher rules for mortgage loans is clear when comparing the growth rate of consumer loans between January 2016 and July 2018.

In January 2016, the growth rate for consumer loans was 3.2%. The implication of the figure is that the total amount of SEK lent out had increased by 3.2% compared to January 2015. 30 months later, in July 2018, the annual growth rate was instead 6.1%, according to statistics from Statistics Sweden.

It was precisely in 2016 that the government and the Swedish Financial Supervisory Authority began to impose tougher rules on mortgages and the figures speak their clear language. More home buyers use private loans to pay for parts of the purchase. Above all, it is the cash contribution that is financed with private loans.

 

Alarm reports on increased debt

increased debt

If households have large debts, their ability to consume is affected. There is simply not much left in the household budget when repayments and interest are paid. This in turn may lead to households taking even more loans or choosing to consume less.

Both of these consequences are negative for the Swedish economy as a whole and therefore many politicians and leading economists are concerned about the development.

 

Hot economics give higher debt

higher debt

The stricter mortgage requirements are not the only reason for the increased indebtedness. Another important factor is that private individuals simply tend to borrow more for consumption in “good times”. It may sound contradictory, but when the economy gets tough, the perception is that you can afford the little extra. It is in the boom, not the recession, that it is borrowed for kitchen renovations, holiday trips and cars.

 

Borrowing for cash – think about this

Borrowing for cash - think about this

Under current rules, anyone who buys a home must pay 15% cash. Anyone who does not have that amount saved, or only part of it, can supplement with a private loan.

The disadvantage of financing with private loans is of course that there is an interest cost in addition to the interest costs for the mortgage. In addition, the private loan will be amortized together with the now compulsory mortgage repayment.

So the first thing to think about is if your finances are robust enough to handle interest payments and repayments month after month. It is very important that you make a calculation and a true budget before you even consider taking a private loan. For those who fail to pay down on their housing costs, it is often the private loan “on top” that puts it off.

3 concrete tips – private loans for cash

If you decide to borrow for cash, there are some things you shouldn’t miss to research and think about.

1. Do you need to borrow the entire amount required?

Every dollar you take in a private loan for cash is extra expensive. If you have the option of withdrawing saved money or possibly borrowing from family members, this is a good solution. Own, saved money is always the cheapest, and if the home purchase is not imminent, it may be an idea to try to save as much as possible before the purchase becomes a reality.

2. Compare interest rates and terms

You can choose to compare up to 100 lenders when applying for private loans and all price proposals will be different. Therefore, choosing the first best lender is never a smart move. When comparing interest rates, you should look at information on effective interest rates and also request representative examples. Often, you can find representative examples in the form of “SEKKI” on the lenders’ websites.

3. Compare all lenders at once

One way to compare many lenders at once and also get ready loan proposals to choose from is to apply through a loan broker. It is a method that is becoming increasingly popular, not least because it saves time. However, you should be aware that you are not guaranteed the very best interest rate based on your circumstances. Respective loan intermediaries cooperate with a smaller selection of all the lenders on the market.

Special repayment option for credit: advantages and disadvantages at a glance

In principle, loans are repaid via fixed monthly installments. Outside of this agreed repayment, however, there is often the possibility of a special repayment in order to also trigger the loan completely outside the fixed monthly installments. At Good lender loan we usually agree a free special repayment option with our partner banks for you. You can definitely benefit by saving money and getting out of debt faster !

Definition: What does special repayment mean?

Definition: What does special repayment mean?

If you have additional capital at your disposal, you can use it to repay a current loan thanks to the special repayment right. The special repayment is therefore ideally suited in order to be debt-free more quickly and to save money.

If no special repayment is stipulated in the loan agreement, unscheduled repayments are unfortunately only permitted in exceptional cases and additional fees in the form of prepayment penalty are due. The bank demands prepayment penalty because it loses interest income if you repay the loan or part of it early.

The free special repayment, on the other hand, enables unscheduled repayment without fees at any time. Depending on the contract, however, the special repayments can be capped at a certain percentage of the loan amount per year – for example between five and ten percent. Therefore, when applying for a loan, make sure that the free special repayment is possible and up to what amount you can repay annually.

Advantages of the special repayment option for loans

Advantages of the special repayment option for loans

If you have a special repayment option in your loan agreement, you can save money . Due to the unscheduled repayment, you repay the loan faster and lower the entire interest charge . In addition, the monthly payments are eliminated in one fell swoop , which means that you have more money at your disposal all year round.

Thanks to the special repayment, you can use unforeseen income for the repayment without paying additional fees . Expected but not yet fixed income can also be used for a special repayment. If you are looking to sell a property or expect bonus payments or a raise, you should consider a loan with a special repayment option. However, you have to pay attention to a few points!

You should pay attention to this during the special repayment

You should pay attention to this during the special repayment

Special repayment is included as standard in many loan agreements. However, this varies from bank to bank. If the lender does not grant a free special repayment, you have to pay fees for early repayment of the loan – the so-called prepayment penalty . The banks charge this fee because you are missing income from the loan agreement with which you previously calculated.

The prepayment penalty for installment loans is usually one percent of the remaining debt . If the term is less than six months, the prepayment penalty is 0.5 percent of the remaining debt. Therefore, pay attention to the free special repayment right when you conclude the contract. It is generally not necessary to agree on a free special repayment later. Use the credit inquiry on Credit bureau right from the start. We also take care of a free special repayment on your loan.

Make sure that the free special repayment is included in the loan agreement. You should also take into account the amount at which the special repayment may take place annually. The amount is usually determined in proportion to the loan amount. However, it is also quite common to define absolute total amounts that you can repay annually.

Do lenders have to offer a special repayment option?

Do lenders have to offer a special repayment option?

The offer of a special repayment is not legally required for the lender. A bank is therefore not obliged to offer a special repayment option. This is just an additional service that is often given to you as a borrower.

First alternative to special repayment: statutory right of termination!

In special conditions, however, the statutory right of termination can be applied to repay the loan early and without prepayment penalty. However, this affects loans with a variable interest rate and long-term loans such as construction loans that run for more than ten years. With variable loans, you have the right to cancel the contract at any time with three months’ notice. 

Second alternative to special repayment: Loan contract terminate after a long term

If you have agreed to a fixed interest rate of more than ten years , on the other hand, after ten years you have the option to terminate the loan agreement with a six-month notice period . This is specified in Section 489 (1) No. 2 BGB. In other cases, you have to pay a prepayment penalty if there is no corresponding special repayment right in the loan agreement.

Keep flexibility and use special repayment on loans from Credit bureau!

Keep flexibility and use special repayment on loans from Bon-kredit.de!

In exceptional cases, early repayment of the loan amount is possible after consultation with the lender. However, a prepayment penalty is then charged, which reduces the savings. It is all the better that Credit bureau generally agrees a special repayment option with its partner banks , which means no additional costs for you. Apply now for a loan with a free special repayment option!

The free special repayment has only advantages for you as a borrower . You can put additional capital that is available to you into the repayment of the loan and thus become debt-free faster. It is important to pay attention to the annual sum up to which special repayments are possible. If you do not use the special repayment, there are no additional costs. You then simply pay back the loan at the fixed monthly installments.

Instant loan without Credit bureau without upfront costs

With an instant loan without Credit bureau and no upfront costs, you can count on a permit even in difficult cases and you can rely on the fact that the lower credit rating has no influence on the loan decision.

Unforeseen bills, urgent repairs or new purchases, but also a vacation or the desire for more liquidity are reasons for an instant loan. With negative creditworthiness, a rejection is always to be expected at the house bank, so that the application is not worthwhile and you can immediately go looking for an online loan. The free financial market offers numerous options for an instant loan without Credit bureau and no upfront costs, in which the credit rating does not matter at all.

Make the right decision with a comparison

Make the right decision with a comparison

In order to bring transparency to the numerous offers for an instant loan without Credit bureau without any upfront costs, it is advisable to compare different providers directly and not only to see the interest and fees, but also the general conditions. There is a corresponding loan for all requirements, which can be selected based on your own focused criteria and thus presented as an optimal solution.

Private donors and independent financial intermediaries can be included in the comparison. Loans from foreign banks also prove to be a cheap solution and are offered by the free credit broker even for seemingly hopeless cases. An online loan eliminates long waiting times and is approved within 24 hours and can be paid out very quickly. In this way, urgent bills can be paid from the loan amount or the necessary new purchases made promptly.

Have collateral available to the lender

Have collateral available to the lender

Since the instant loan without Credit bureau is granted without any upfront costs and no creditworthiness, the borrower has to come up with other guarantees. This can be, for example, real assets such as real estate or cars, but also capital-forming insurance or savings investments, as well as pension products for retirement. The options for providing collateral are very diverse on the free financial market and therefore allow every applicant to choose how he wants to secure his credit and to provide the lender with something in return.

Even if no tangible assets or investments can be deposited, approval does not have to be waived. Each lender recognizes a guarantor as security for the instant loan without Credit bureau at no extra cost. The guarantee also makes it possible for unemployed or Social Welfare recipients to get a loan and to get a quick commitment and payment without a financial background. The guarantor is only held liable if the actual borrower does not pay the agreed repayment installments or behaves contrary to the contract.

Consumer loan without Credit bureau

Chic furniture, the latest technology for home cinema or lots of current fashion: the beautiful things in life cost a lot of money. Fortunately, there is the consumer loan , with which even big wishes can be paid for. Because you can easily repay a consumer loan in small monthly installments. On the other hand, you can enjoy your new acquisitions from day one.

Shopping is fun with a consumer loan

Shopping is fun with a consumer loan

Just go shopping as you please without having to turn around twice every USD – that would be nice, wouldn’t it? Maybe this wish will come true for you soon. Because if you want, Across lender is now looking for a cheap consumer loan for you. Loan amounts of 2,000 to 50,000 USD are possible, the terms are between 12 and 120 months.

You see: No matter what is on your shopping list – you can afford it with a cheap consumer loan. Lending rates are currently lower than ever. Therefore, the monthly installments remain manageable even with relatively high loan amounts. Let our financing experts simply tailor a consumer loan to your needs. This is guaranteed free of charge and does not oblige you to do anything.

Your consumer credit in black and white

Your consumer credit in black and white

Would you like to find out how easily you and your family can finance something beautiful? Then it’s best to have your individual offer for a consumer loan created today. Use our online form for your loan request and let us calculate a loan for, for example, 5,000 or 10,000 USD. Bet you will be amazed at how cheaply you can get fresh money into your account with the help of receipt credit?

In our offer, which is non-binding and free of charge for you, you will find all the details of your consumer loan clearly and easily understandable: no “technical”, but clear words and easily understandable numbers. All the facts are on the table so that you can choose your consumer loan with a clear conscience.

Your personal credit advisor

Your personal credit advisor

Perhaps you have questions about your consumer loan or would like to express special wishes? With receipt credit, this is not a problem at all. Because here you get a personal contact person who you can call or write to by email. You don’t end up in an anonymous call center, you have the credit professional on the phone who takes care of your consumer credit. He will help you in a friendly, competent and quick manner.

Everyone knows that there is not always a lot of sunshine in life. In stormy times problems sometimes arise that can only be solved with a little effort. Anyone who pays an invoice too late or is in arrears with an installment payment knows the consequences: negative entries at Credit bureau. The cause is sometimes negligible, but the negative effects can be serious. With a “bad Credit bureau” you will no longer get a loan from your bank.

But that’s no reason to hang your head – because receipt credit can help you get a consumer loan even if you have negative Credit bureau characteristics. We don’t leave you alone, especially in difficult situations, and we search intensively for the best solution.

Incidentally, it does not always have to be a consumer loan without Credit bureau, just because your score is too low. We know a number of banks in Germany and abroad that offer you a cheap regular consumer loan even if you have negative Credit bureau characteristics.