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Mortgage credit for foreigners in Chile

If you are a foreigner in Chile and you need your own home, it is of great importance that you know that there is a mortgage loan for foreigners in Chile, which will allow you to access a home if you meet the requirements for it. It should be noted that, like mortgage loans for Chileans, foreigners must meet a series of requirements to access this product. Next, we will see what are the characteristics and the requirements to obtain mortgage credit for foreigners in Chile.

 

Mortgage credit for foreigners in Chile

Mortgage credit for foreigners in Chile

Mortgage loans are par excellence the bank product for those who wish to have their own home and need financing for it. However, it is well known that the vast majority of these credits are granted to people with Chilean nationality, this being one of the first requirements. But there is also good news for foreigners residing in Chile.

Many of the foreigners who opt for mortgage loans to acquire their home in Chile prefer to buy them in areas near the center of Santiago and that do not exceed 2500 dollars. But in order to access this benefit, the foreigner residing in Chile must obtain his RUT.

In addition, for a foreigner to obtain a mortgage loan in Chile, he is subject to the type of visa he has:

  • Visa or residence subject to Contract: This visa is granted to foreigners traveling to Chile for work contract reasons and ends when the contractual relationship that originated it ends. With this type of visa, the foreigner can aspire to obtain the definitive residence in a term of 2 and a half years (including the 6 months that the procedure takes). After this, the resident foreigner will be able to access a mortgage loan meeting the following requirements:
    • A third party must document the checks in front of the real estate.
    • Have savings capacity.
    • Have an indefinite work contract.
    • Apply for definitive residence to opt for a mortgage loan.
  • Visa or temporary residence: For foreigners who have this type of visa they will be able to access a mortgage loan after obtaining the definitive residence in a term of one year and a half and it is renewable up to two years. After obtaining the definitive residence, the foreigner will be able to qualify for a mortgage loan provided that he has a current account in a commercial bank and has savings and payment capacity as established in the requirements of the bank.

 

Foreigner can access a mortgage loan

Foreigner can access a mortgage loan

However, a foreigner can access a mortgage loan even without permanent residence, but it is mandatory to have a RUT and bank account. You can get the credit through the bank or a mortgage company, the process being faster.

Obtaining a mortgage loan being a foreigner in Chile is not a complicated process as long as the requirements are met. In addition, it is necessary that you have the advice indicated so that the process can flow without complications.

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The 5 lies most used by banks and how to avoid them

” Banks are your friends “, of course, note the sarcasm in the sentence, it’s time to wake up. This is in particular one of the biggest lies that have been introducing you since you started being a newbie in the world of finance. The reality is different, and although it sounds hard, these banking institutions use many great tricks with one purpose: to take our money .

Large banking groups live on money, like blood-sucking vampires, but in an economic version. Is there a way to avoid his tricks? Yes, there are, but you will have to pay attention here and apply each advice. In this article, we will present the 5 lies most used by banks and how to avoid them.

 

You are obliged to pay commissions

loan payment

The first lie on the list is one of the most common and surely you have already encountered it. This is the blessed commissions , which, anyone would get a good headache. These are applied for ” account maintenance” and endless reasons that really do not have much foundation.

This point is that banks say they cannot eliminate them from any natural person account, or even from small businesses. It is a fact, however, that these can magically be eliminated from large accounts. Not a suspect?

But for your information, and your own benefit, you can evade these commissions, quiet, all legally. For this you only need negotiation skills and follow certain tricks. First record this. The client is not obliged to pay commissions .

Surely they will send you straight to the office of some promoter, from where they will entangle you with lots of words and credit promotions. Evade all this and raise your situation. As a last option if they refuse to help you with the arrangements, announce your final withdrawal from the bank. Believe it or not, this works, since they won’t want to lose a customer.

 

To cancel your account you must go to where you have opened it

Any bank wants to keep its clientele “dependent” on its financial management and the whole thing. The point is that when one of them finally wants to cancel their account to stop dispensing with their services, they turn to the second lie of this article: ” You must close your account at the branch where you have opened it .” Total lie!

It should be noted that, any bank has the power to close an account from any branch , whether or not the client is physically speaking. You can use media such as telephone, written requests , either on paper or digital (email).

As you may have already noticed, losing a customer to the bank is an intolerable fact. They won’t let you go that easy. Insistence is the key to achieving your mission.

 

Advise you about investments

investment loan

The so-called ” investment advisors ” are a strategy widely used to attract large and small victims to a trap that will end up just getting your money. These come to you, looking for you to make investments in the products that they consider effective for capital gain, which is nothing more than a hoax.

In this situation you should find out that every action carried out by the bank is actually linked to the orders of government institutions, which clearly have other purposes than helping you with your money.

For example, in Spain , there is the case of the Territorial Directorate , who is in most cases, the one that dictates to the banks “what products they should sell to their customers”.

Once these meetings have been held, which are not so different in other countries (even in Latin America ), the banking groups must sell a specific product right and left. This includes youth or elderly clientele.

Remember, the bank is not your friend, much less is trained to advise you on how you should manage your finances. Such staff may not even have any training at the economy level, so you have an idea of ​​how serious the matter is.

To avoid falling into this vile trap, he better uses other measures to obtain information regarding elements involved in the current market. This way you will have a much more real idea of ​​where you should invest your money.

 

Promote “ instant and low interest credits ”

credit interest

Get in this situation: you are looking for a quick way to get money to invest in your new project or business. You go to the bank for a loan and perfect, they’ve approved one! Everything seems magically good, and they have mentioned an interest rate of 2% within 2 or 3 years. What more could you ask for?

Be very careful with falling into this specific lie, since the repercussions that could have on your financial life could be quite harmful. Loans rarely remain at a fixed interest rate and less for such long terms.

Inflation is a factor that you should consider before going to any of those fake friendly loans proposed by the bank. In extreme cases, people have ended up paying more than double what they initially acquired for simple increases of up to 15% interest abruptly.

 

Offer “free” products

Offer “free” products

On many occasions the banks go to the lie of offering credit cards, specific products or ” giving away ” discounts. They boast of offering their customers all this for free , do not be persuaded! Without exaggeration, in at least 95% of cases it is like signing a contract with very small letters hidden in between.

The bank will never tell you about the hidden costs that are included in the gifts it offers. Among them are tax costs, annual maintenance or transportation, in case it must be dispatched to your home.

These costs are sometimes really exaggerated, for example to be three times the cost of sending any of these gifts to your home, than what you would pay for high quality parcel services. How about?

But more than that, the products that banks offer for free will force you to stay in the bank . You may be accepting to keep your card, account and other tools linked or affiliated to a specific bank without the right to cancel any. Be careful with this!

Finally, the best thing you can do is limit the use of the bank to save your money without many commitments, or if you prefer, go to other institutions such as Credit Unions or cooperatives, which do not go (not so often) to such lies .

It should be noted that not all banks enter the same lot described here. However, since the paper money ceased to have the gold backing it had previously (more than 100 years ago), we are facing an economic society that cannibalizes itself . It is better to keep the operations you carry out with these institutions at bay, since there is no other.

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Why didn’t I get a transfer from a loan company? Reasons for Delays

Every now and then on the loan forums regarding payday loans online, there are queries about the content “I have submitted a loan application with [company name] and I haven’t received the loan yet. I used to take a loan from another company and I waited there for no more than 30 minutes. Why haven’t I got the money yet? ” Borrowers have already got used to the slogans “loan in 15 minutes” and loan 24/7.

Although this is possible and is becoming more common, such loans will not be available everywhere. Sometimes this is due to the company’s business specifications, and sometimes it depends on external factors. So it may happen that the borrower receives the money later than he would have expected. What are the reasons for this?

A loan in 15 minutes and bank sessions

money cash

The above slogan will not necessarily be a marketing ploy aimed at attracting as many customers as possible, but in some cases it may bear its hallmarks. For most companies, this time will not apply to the time to receive the money, but to the time spent on completing all formalities, submitting the application and obtaining the loan decision. This actually happens very quickly – the conclusions are simple and intuitive, and then considered by an automated system. It is worse with how much time it will take for the transfer to reach the customer.

So you can be lucky and receive a transfer really expressly at the next banking session. You can also choose a company that has accounts in many banks, including one in which you have an account yourself. Transfers within the same bank are booked expressly and are not subject to session hours]. The full list, as well as what determines the speed of granting a loan, can be checked in the article “Which company will I get the loan in the fastest way – company review”.

Loan companies don’t always send money immediately

money cash

Although loan companies announce that the loan will be sent to the customer immediately, this does not always mean a few seconds after the loan decision is issued. Usually this is the case, but just in case loan agreements contain clauses stating after what maximum time the loans can be sent (it can be even several days) and try to fit in this area. This is insurance against unexpected situations (e.g. system failure). In addition, it is highly probable that the delay in payment may occur during hot loan periods, e.g. pre-holiday periods. Loan companies must then handle a larger number of clients than usual and analyze more applications. It is therefore natural that delays may occur.

The fault may lie with the bank

money cash

While waiting for the bank transfer to be received, one should also bear in mind that the delay in booking the payment of the loan may also be on the side of the banking institution. The reason can be both technical breaks and failures. The first ones are not extremely bothersome and usually take place at weekends and at night, so as to make the lives of customers as little as possible. They will not be a problem. However, it may be failures, which unfortunately happen quite regularly. This is by no means incomprehensible – the numbers of customers using electronic banking are huge, and therefore the number of operations performed at the same time is huge. Some banking systems do not tolerate overloading well and may not be able to handle so many operations at once. Sometimes there are delays in delivery of transfers (and even mistakes about recipients) or operations will be performed twice. What to do in this case? Information about bank failures spread at the speed of light, so if we know that this is what happened in our case – it remains to be patient and wait for the failure to be removed.

What to do if the transfer did not arrive in time?

money cash

After making sure that the fault is not on the bank’s side and waiting for hours of bank sessions, do not panic. It is better to contact the loan company and ask for clarification in the transfer. Handling multiple requests at once can sometimes result in a small mistake or omission. An informed lender should, however, solve the problem immediately. A considerable delay in repayment of the loan may be the basis for submitting a complaint and demanding compensation – it may be e.g. a reduction in the cost of the loan. However, we should remember that the loan company has 30 days to consider it, so if our loan is payday loan, we will most likely have to pay it back before the loan company reviews the complaint. Under no circumstances should the repayment be waived!

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The wedding loan, the financing for the organization of the wedding

Organizing a wedding is a great adventure. You have to not only think about the details, but you have to provide funding to make this big day a success. Do you have a project like this? No need to save years.

A wedding loan is a personal loan

A wedding loan is a personal loan

On the banking lines, you still can not get an affected marriage loan, and that kind of loan is still in the personal loan category. Personal loans, and especially the wedding loan, are known for their simplicity. To request it, you do not have to provide proof of use. You have full authority over how you manage the budget. But this kind of unrestricted credit is also more expensive than credit for a specific purpose. Belgian banks offer higher rates on the pretext that borrowers have complete freedom to manage capital.

Enjoy a low rate for your wedding loan: how to do?

Enjoy a low rate for your wedding loan: how to do?

Nevertheless, it is possible to reduce the rates of a marriage loan. It is enough to present reliable and quality guarantees. For example, even if it is possible to avoid credit insurance banks, opt for a contract of the same quality to reassure them. Also be sure to provide a bond and / or personal background. In addition to minimizing the amount to ask, the personal background is a good way to reassure the banks on your ability to repay. In general, 10 to 30% of the amount needed for the big day is recommended as equity. Your quality of borrower counts a lot in the eyes of the bank. This is the basis for accepting your request, but not only. It is also a way to facilitate rate negotiations. For a successful marriage loan application, you must build a record that includes:

  • A photocopy of an identity paper

  • Certificate of residence

  • The latest tax notices

  • A salary notice

To increase your chances of success, it is better to have a stable and important income in addition to quality loan insurance. Attention, However, it may happen that in default of payment, you had to mortgage your property.

Compare offers from banks

Compare offers from banks

Any credit application must start with several simulations and comparisons of offers. It is a question of the success of the steps, but also of the security of the borrower. A wedding loan commits you to its perfect repayment. In case of failure to pay monthly, you can be stuck in the banking incidents, be prohibited from borrowing, and lose the property of your property in mortgage. Do you want to avoid these difficult financial situations? Take a few minutes to compare the offers of banks to be sure to take advantage of the best financing solutions.

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Loans for an apartment for rent

Books by Robert Anastashi make a sensation around the world. Robert runs several parallel activities. One of them is to buy apartments for rent financed with a loan. Rental income is to cover the entire loan installment and generate a small surplus.

In Poland, buying a flat even in a loan for 30 years is still perceived as something more reasonable than a flat in a rented flat. Ultimately, we pay off instead of “paying someone”. Stereotypical thinking prevails over arithmetic.

Many people with a certain capital often decide to buy a flat, dedicating their own savings and borrowing for many years. Ultimately, it is not the buyer and the landlord will pay off the loan. The fact that the strategy may work in the performance of Anastashi in the US does not mean that it can be copied in the Polish reality.

What distinguishes Anastashi from the average Kawasashir so much?

What distinguishes Anastashi from the average Kawasashir so much?

First of all, buying not one apartment, and several dozen we get a huge discount that often reaches up to 20%. The developer is able to settle for a much smaller margin because with complete sales he can quickly take up another investment.

Secondly, and what is crucial for the entire operation in Poland, no fixed-rate loans guaranteeing security are available. Such a loan guarantees us a fixed interest rate regardless of changes in inflation or interest rates.

Ultimately, if something goes wrong, in the US you can leave the property a bank that secures the loan and our adventure with the bank is definitely over. In Poland, on the other hand, the bank will be pursuing us until we repay the full amount due, even though our property could have been auctioned for a long time.

In order to understand the essence of buying a property in a loan, we must realize a few things:

In order to understand the essence of buying a property in a loan, we must realize a few things:

The amount of interest consists of: the Erubirs rate, usually 3-month, and the bank’s margin. The Erubirs rate is variable and depends on the amount of inflation and the availability of credit on the interbank market. However, the bank’s margin remains fixed throughout the loan period.

We currently have a historically low Erubirs of 2.7%. Over the last 10 years, it has fluctuated between 2.6% and 7%. Note that we are near the bottom border.

Since Erubirs has been falling for several years, why can not it still fall? Well, maybe, but a much greater chance is that it will start to grow. If anyone has any doubts, let them come back to mind until 2007 when the mortgage sellers pressed everyone into a franc mortgage as the CHF against the PLN would continue to fall. How it ended, we all know.

Credit margin, the second factor that affects the amount of interest on the loan remains fixed throughout the loan period. What we agree to in the loan agreement will be likely to apply throughout the entire loan period.

Although currently the loan in PLN seems to be relatively cheap, we have an accumulation of 2 unfavorable factors. The high margin of banks, which will remain high throughout the loan period and low Erubirs, which will return to its average for some time and is likely to be much higher than at present. A high margin and higher interest rate is an explosive mix.

How does it look like in a particular example?

How does it look like in a particular example?

To show how the amount of loan installments can change, I have prepared a quick analysis for a property bought for 360,000. which consists of 60,000 own contribution and loan in the amount of 300 thousand.

For loans with own contribution, the average bank margin is 1.65%. The bank’s margin should be increased by 2.7% (Erubirs 3M). Our hypothetical loan will therefore be charged with interest at the level of 4.35%. In the calculations, I omit the bank’s margins for granting the loan and the cost of insurance.

Under the current conditions, the monthly loan installment will amount to PLN 1870.

The amount of interest rates is variable. How will this affect the amount of our loan installment?

a) Erubirs returns to levels from 2012, or 5%. The installment amounts to PLN 2260, or 20%, and suddenly the rates have returned to levels from two years ago.

b) Erubirs returns to 2004 levels, or 7%. It was also the highest level recorded in the past decade. The installment amounts to PLN 2,630. Increase by 30%.

c) As a curiosity, let me say that if the NBP raised interest rates to the levels from 1998 (it was 16 years ago, and yet the loan is taken for 20 years), the installment would jump to astronomical PLN 6440.

d) At the same time, it should be noted that the field for interest rate cuts is already minimal. If Erubirs fell to symbolic 0.1% which is absolutely unrealistic, then the bank’s margin of 1.65% will be paid to us, ie the installment would amount to PLN 1,468. Fall by 16%.

As you can see, the potential for an increase in loan installments is definitely much higher than in the fall. The current level of interest rates is definitely lower than the long-term average and an increase in rates to real levels is a matter of time.

So if, suddenly, interest rates increase, and thus for many people the mortgage will be unreachable, will not increase the amount of rents, what compensates for higher loan installments?

In theory, it could look like that. In practice, hired rents depend much more on earnings. Suppose someone is able to spend up to 40% of their income on renting a flat. Suddenly, rents are starting to rise as a result of the lack of new premises for rent. Many people simply will not be able to afford an apartment that absorbs more than 40% of income. Such people will start looking for a smaller apartment, located in a less attractive district. In the end, many people who came to large cities taking up temporary work will give up on it because expensive leasing will consume the difference in remuneration between the home and the destination city.

 

Legal problems

Legal problems

The law in Poland clearly favors the banking sector compared to other countries. First of all, there are practically no loans with fixed interest rates ensuring predictability as to the amount of installments in the long run.

Secondly, in the case of problems with repayment of the loan, the bank’s takeover of the flat does not end problems. The loan is secured by all our assets, not just a flat that is a direct collateral for the loan. Throughout the property we mean: cars, funds in the bank or on brokerage accounts, other real estate as well as current and future income from work or payment of any benefits.

In practice, a situation may arise in which we repay a loan for several years, and then there is a drastic increase in interest rates. The installment of our loan increases significantly. If we are not able to pay it back, after a few months the bank may auction our flat. Due to the fact that high interest rates would practically kill the real estate market, the bank would have to significantly lower the price of the flat to find a buyer. If the amount for which the bank would pay the flat would not allow the repayment of the entire loan, the bank would have the right to claim payment of the remaining amount.

Banking Enforcement Title

Banking Enforcement Title

It is a document in which the borrower voluntarily submits to the bailiffs’ execution. If the bank denounces the loan as a result of arrears in the repayment of installments or refers to another record enabling the termination of the contract, we must immediately repay the entire loan. If we do not do this, the bank will issue a bank enforcement order, which, after giving it the enforcement clause, goes to the bailiff. Then, the bailiff’s execution begins while the debtor is deprived of any legal protection.

Bank bankruptcy

Bank bankruptcy

Many people believe that the bank’s possible bankruptcy deprives the debtor of the loan. Nothing could be more wrong. Our loan is the bank’s asset. In the event of the bank’s bankruptcy, the assets are put up for sale and after a short time our loan will be in the hands of another bank.

Currency reset

Currency reset

The mortgage loan is most often taken over a period of over 15 years. In the period much shorter, we will have to move to the new monetary system. It also means abandoning the old currency. Seeing at what pace we are growing real debt in a few years, we will have to deal with the repayment of debt with newly printed zlotys, which Rostowski accidentally accidentally soaked up. The official debt has just dropped, but this happened in the result of the theft of savings from retirement accounts, which will certainly be repeated in two years.

Regardless of how we go through transformation, I would not count on our credit to be dramatically devalued. If the old PLN is replaced by the new currency, the loan will be recalculated in such a way that the banks will not incur losses on that. Ultimately, the whole crisis began with the banking sector and all activities, no matter how socially harmful, only aim to rescue banks.

It would be naive to expect that the situation would suddenly change, especially in a country where the direct theft of pension funds practically went unnoticed.

Summary

In general, I think that buying a flat for rent is not the best idea at the moment. In particular, this applies to purchases financed with a loan.

In the following years we will have the accumulation of several phenomena:

1. Interest rate increases translating into an increase in loan installments.

2. As a result of implementation of the “S” recommendation, the number of people eligible for a loan will fall. Lower demand for flats is a factor that influences the decline in the price of flats. For clarification in line with the “S” recommendation, the minimum own contribution is to be 5% of the value of the flat from this year. With each passing year, the threshold is to be raised by another 5% until reaching 20% ​​in 2017.

3. If the cadastral tax is finally introduced, this will translate into a significant increase in apartment sales offers. The asset burdened with the additional cost is simply less attractive, which reduces its price.

4. In the next 5 years, the government plans to purchase 20 thousand. apartments for rent. The project in itself is devoid of the slightest economic justification, but a significant increase in quantity will certainly cause a certain reduction in rents.

5. Demography.

a) For many years, the number of Poles has been steadily declining. The situation intensified after 2005, when we joined the EU and the phenomenon of economic emigration intensified. As a result of economic problems in many countries, the influx of emigrants, among others from Poland may be slowed down, but I would not count on a quick reversal of this phenomenon.

b) A low birth rate of 1.3 children per family is a guarantee of population decline. To keep the population at the same level, the ratio would have to be at 2.1. Meanwhile, nothing promises change.

c) Number of students driving the rental market by MNiSW forecasts will fall by 400,000 over the next 10 years

From my point of view, there are too many arguments against the application of Anastashi’s strategy in Poland about the current realities. We have too high a risk of increasing credit burden while accumulation of several factors that will make rental income fall rather than increase.

What’s more, when calculating profits, we forget that:

– a new beautiful flat in an elegant district will look completely different when the loan is finally paid off

– we do not count the costs associated with keeping the flat unchanged

If, despite this, my arguments do not appeal to some readers, let them at least prepare a reserve of cash providing security in a situation when suddenly interest rates will double from day to day as it happened in Turkey two weeks ago.

 

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Finance your projects with a personal loan

A project in progress or special desires? Need funding without supporting documents? Your finances can sometimes be gray and the use of a financing solution may be necessary. Flexible and personalized, the personal loan makes it possible to finance all kinds of projects. It is a convenient credit solution for financing up to 75,000 euros worth of goods or services.

What you need to know about personal loans

What you need to know about personal loans

 

Personal loan or consumer credit is a flexible financing solution to obtain credit up to 75,000 euros. Its rate as well as its monthly payments fixed upstream guarantee a loan without surprises. It is with the auto loan the solution of the most requested financing in Belgium. Relatively fast obtaining, with a personal loan, no need to provide proof of use to your bank. You have full freedom to use this amount. But this great provision of personal loan comes at a price. After revolving credit, the loan has some of the highest rates in the market. Insofar as the banks do not require any proof of the sum granted, they insure their risks with rates that can exceed 10%. Finally, to aspire to a personal loan, having a quality borrower profile is a plus. Banks only provide credit for “good payers” and those with the most insurance.

Personal loan and revolving credit: making a difference

Personal loan and revolving credit: making a difference

 

In Belgium, banks can offer two types of loans. It is also an obligation for them to give you the choice between an unallocated personal credit and a revolving credit also unaffected. With a revolving credit, the banks grant you a capital of up to 15,000 euros. As its name suggests, revolving credit is a money guard. Every month, you will have a capped capital released into your account. The amount of the monthly payments varies according to your expenses.

For example, if you have not spent anything on the basic 15,000 euros this month, you will not have to pay any monthly installments. On the other hand, if you used 5,000 euros on this reserve, you will only need interest in the bank on this amount. With a personal loan, the amount granted and capped at 75,000 euros will be released in one go. You then repay fixed and agreed monthly installments ranging from 12 to 120 months.

Compare personal loan offers

Compare personal loan offers

 

To obtain a personal loan in Belgium, make it easy for you to find the best deals. Start your process with a simulation and comparison of credit offers online. In just a few minutes, you will have a list of offers at the best rates in Belgium. The rate is an important indicator, the repayment monthly also because they will impact your daily life. The services offered on your loan agreement should also be taken into account. Be aware that a quality personal loan agreement must have certain advantages: the possibility of delaying the monthly payments, limitation of the penalties for early repayments, litigated or even litigation file fees, and responsive customer service that can be contacted at any time. In addition to avoiding future over-indebtedness, the comparison of offers allows you to find the best banking services in Belgium. Comparing is saving, it is also acting as an informed consumer. Why hesitate?

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Online payday loan lenders -Get money now via the best online payday loans

Get money now via the best online payday loans

If, on the other hand, you have problems with debts, taking a consolidation loan is not a bad idea at all. If the sum of installments that you pay every month exceeds your financial capacity, the consolidation loan can do a lot to solve here.

Consolidation loan with bad history

Consolidation loan with bad history

Unfortunately, you have a bad credit history and probably banks fall out because a good credit history is one of many conditions that a borrower must meet when applying for a loan for debt consolidation.

What will a consolidation loan for indebted give me?

A consolidation loan for indebted people will allow you to:

  • lowering the monthly installment
  • will provide one installment, not several installments
  • will allow for credit holidays (grace period in loan repayment)
  • maybe additional resources if you have good creditworthiness

As you can see from the above, such a loan has many benefits. With this solution you can break out of the debt loop that slowly tightens your tentacles on your home budget.

Where to get a loan for debt consolidation?

It is a pity that you have a broken credit history, because the banks offer for a consolidation loan are very wide and there is a lot to choose from. An interesting feature is also the submission of online consolidation loan applications, it is a great time saver, especially for those who have no means communication (eg me) or living away from the city.

Non-bank consolidation loan

Loan companies that are not subject to KNF supervision remain in your situation. Plus, the private companies do not put as many conditions as banks. Loan companies do not check:

  • BIK-u
  • KRD
  • BIG InfoMonitor
  • or ERIF

On the other hand, the downside is that non-bank consolidation loans are much more expensive than in banks. It is worth remembering to calculate everything and decide for such a loan if we are 100% sure that we will be able to repay such a loan, otherwise our debts will grow to much larger sizes!

Before you apply for such a loan, carefully write down your debt on a piece of paper, that is:

  • total amount of debt
  • the total amount of monthly installments
  • Average interest rate (APRC)
  • also calculate the maximum installment you will be able to afford every month!
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Consolidation of Debts – Advantages and Disadvantages

Visit our site for good payday loans no credit check

Discover what debt consolidation is and when you should consider taking a consolidation loan. http://www.fortworthabvi.com/2019/08/10/payday-bad-credit-loans-same-day-payday-loans-same-day-funding-up-to-1000/ for an assessment

Because there is something you should know, since consolidating debts has its advantages and disadvantages.

Debt consolidation

If there is something that does not leave you in peace.

You must:

  • a bank loan for 1500 dollars ,
  • a credit card worth 900 dollars , and
  • Car loan of $ 1200.
  • a phone for the value of 500 dollars .

They are quite debt, and therefore you should be thinking about making a loan for $ 3100 to another bank to pay all your debts and keep only one.

What do you think, is it better to take a consolidation loan or is it better to pay the debts individually?

First of all we must be clear …

What is the consolidation of debts

Because consolidation credit is also a debt, like any other. With the difference that this is a money to pay the other debts you have.

The bank will not send this money to your account, but will send it directly to other banks or institutions with which you are indebted. This way all your current loans will be paid and you will have a single loan , which you need to pay.

A single debt instead of 3, 5 or 10 debts? Sound good, right?

However , you must take into account one thing.

Nothing is for free

When you take a consolidation loan you earn two things.

First , you stop worrying that you forgot to pay one of the installments of your debts. Since you have only one loan and responsibility with only one bank.

On the other hand, surely, you want your monthly payments are lower, than the totality of your current debts.

For example, Francisco, today the day pays 100 dollars for his bank loan , another 100 dollars for a car loan , 50 for his card, and 20 for his phone .

In total Francisco pays 270 dollars monthly. It is likely that after taking a consolidation loan , you will have to pay only $ 200. That ‘s right, your monthly payments will be lower, and this is an advantage … But!

Is the term of paying a consolidation loan equal to the term of all your current debts?

Surely the time is longer, because this is the price you pay for having lower monthly payments.

Instead of paying your debt in 3 years , you will have to pay for the next 4 or 5 years .

And there is something more . You need to verify that there are no other additional costs, such as the cost of security in case of not paying on time. In addition , sometimes you have to guarantee the payment of your loan with your properties or real estate.

That ‘s right, they often charge you commissions and additional costs, and despite paying a lower monthly amount, the total amount of your debt grows. Finally, you’ll pay everything, and this means that moves further away the day when you will be debt free.

Well, you know that consolidation credit has its advantages and disadvantages. So, should you take it or not?

When should you consider taking a consolidation loan ?

It is an option when you meet these 5 points:

  • you have prepared your family budget and know your income and expenses well
  • you’ve cut all unnecessary expenses to the bone
  • you have sold all the things you do not need
  • you did everything to increase your income and earn extra money
  • You have organized your finances and have a plan to pay your debts.

So, if despite doing all this, you are not able to pay your debts on time, the consolidation credit is for you.

In other words, consider consolidating your debts, only when you have seen and put into practice our guide to get out of debt .

But be careful!

Even if you decide to take a consolidation loan and your monthly fee decreases, this does not stop you from looking for changes and improvements in your finances.

When should you not take a consolidation loan ?

When you can pay the installments of your debts on time, and you only want to reduce your monthly payment with the consolidation loan . Because you already know that this has its price.

Neither if you have a mess in your finances, or your problem is forgetting to pay the debts on time, because they are several.

In these cases, I recommend you watch the video of how to pay the debts with the snowball method .

As you can see, looking for comfort is not a good reason to take credit for consolidating your debts, because this solution only sleeps your conscience.

What you need is not a solution that suits you, but a solution that works.

I trust that with this information you will make the best decision .

Final reflection on consolidating debts

Take a debt to pay other debts, without changing your financial habits that led you to fall into a spiral of debt, is not a solution , but only postponing another financial catastrophe . First of all, order your finances, your habits and your thoughts.

Do not hesitate to share your experience with consolidation credits in the comments.