Social Institute Pension Card Loan: How to view it online

View and download the Social Institute pension slip: online services

View and download the Social Institute pension slip: online services

With the elimination of the Government Agency defined by the Save Italy Decree of 2011, all the functions of the institution have passed to Social Institute, which has set up Social Institute Public Employee Management to administer them.

To view the pension slip, therefore, public pensioners must take place on the Social Institute.it portal, more precisely in the reserved area of ​​the Online Services Section. In fact, since October 2013 the site www.Government Agency.gov.it is no longer active and its functions have been merged into the Social Institute site.

To access the pension slip, you must have an online Social Institute Pin code or device. Who is not in possession of the code can request it at any Social Institute office, or directly online, through the guided procedure available in the “The Pin On line” section of the Social Institute.it site.

For security reasons, those who use the online Pin must change it at least every six months. But let’s see how to proceed to view and download the Social Institute retirement slip ex Government Agency.

Consultation of the Social Institute pension slip

Consultation of the Social Institute pension slip

For those in possession of the Pin, simply connect to the official Social Institute website and first choose the “Online Services” section and then “By type of service”. At this point select “Services for the citizen”, where authentication via Tax Code and Pin will be required (starting from the second access the Pin is replaced by a password chosen by the user).

After logging in you will be able to access the pension by following the path: first of all select ” Citizen’s Social Security File”, from here you need to click on “Services> Payments> Pension “. Here are shown the monthly fees of the treatment already paid, each of which is indicated with the wording “RataXX”.

At this point it will therefore be possible to view all the information relating to your pension. Among the features available to the pensioner we also find the possibility to view and download the CUD (Single Certification), the Model 730 and the history of pension slips since 2005.

Online coupon and future pension: how to calculate

Online coupon and future pension: how to calculate

For those who approach the retirement age, however, want to know the amount of the future pension, the ” My Pension ” online service is available, accessible via the path: “Home – Services – My Pension”. A calculator that estimates the retirement date and the amount of social security treatment due. The simulation takes into account current legislation and is based on three factors: age, work history and subject’s income.

Finally, we remind you that the service for viewing the Social Institute ex Government Agency pension slip is also available on smartphones. As a rule, pension slips are accessible on the website from the 10th of the month.

Government Agency mortgages for civil servants 2016

Government Agency mortgages for civil servants 2016: requirements

Government Agency mortgages for civil servants 2016: requirements

With Government Agency loans for civil servants in 2016 you can buy a house, renovate or buy a garage. All at discounted conditions and with repayment periods that can reach 30 years. Here’s how to get the liquidity you need quickly. philadelphiamodifiers.com for further clarification

The first issue relating to Government Agency mortgages for civil servants, which poses an important skimming, is the access to credit requirements. The beneficiaries must have been registered, for at least one year, in the unitary management of credit and social benefits. They can be both employees and retirees, the former must also have a permanent contract.

Government Agency mortgages for civil servants: mortgage purposes

Government Agency mortgages for civil servants: mortgage purposes

On the other hand, with regard to the amounts, there are significant variations in relation to the purposes considered:

  • if the employee intends to buy or build the first house (which cannot be a luxury home) a maximum sum corresponding to 300 thousand USD may be granted;
  • in the event of maintenance, adaptation, transformation or renovation, workers or retirees have the right to obtain liquidity up to 40% of the value of the home. However, the maximum limit of 150 thousand USD must be respected;
  • by choosing the purchase or construction of a garage or parking space, you can receive up to 75 $. It must also be considered that the garage or parking space must belong to the main house owned by the member (maximum distance 500 meters).

As part of the new Government Agency mortgages for civil servants 2016, we find the opportunity to switch from one type of rate to another: from fixed to variable rate or vice versa. The borrower can only use this possibility once during the entire repayment plan, after having repaid the loan for at least two years.

Mortgage rates Government Agency 2016

Mortgage rates Government Agency 2016

So let’s get into the interest rate. The borrower has two options:

  • with the fixed rate mortgage the beneficiary will pay a rate of 2.95%;
  • instead taking advantage of the opportunities of the variable rate, a 6-month installment rate will be applied, calculated over 360 days, increased by 200 points.

The repayment period is quite elastic, starting from a minimum of 10 years up to a maximum of 30 years. Maximum bond that is reduced to 15 years if the borrower has reached 65 years.

The loan request must be sent within specific periods of the year : from 1st to 10th January, from 1st to 10th May and from 1st to 10th September. The user must use the online services of the Social Institute portal. The possession of the PIN and the tax code is essential. The first is provided by Social Institute only following the recognition of the user.

If you need more information on Government Agency mortgages, we recommend you visit the specialized portal mutuoGovernment Agency.org

First Home Mortgage loan calculation online installment

The activation of a mortgage determines the constitution of an economic commitment that will unfold in the space of tens of years. The study of the repayment plan is consequently an activity that must be carried out scrupulously. As for the financing for the first home ex Government Agency there is a tool that allows online simulation: Government Agency mortgages first home installment calculation, how to perform it on the Social Institute portal.

Calculating mortgages online: what to do for the simulation

Calculating mortgages online: what to do for the simulation

The simulation of the loan repayment plan pursuant to Government Agency is produced by using the features of the website of the National Social Security Institute.

The URL of the site is www.Social Institute.it, the page where the calculation system has been implemented is called ” All services “. The related link has been inserted in the portal home.

The service to which the user must refer is ” Public employee management: mortgage loan amortization plan simulation “. This is the central tool for our in-depth analysis of Government Agency mortgages before home installment calculation.

The simulation is elaborated on the basis of the data communicated by the user of the site. It is therefore up to the user to define the interest rate (fixed or variable), the value of the home, the economic entity of the loan he wants to request, the duration, etc.

Unlike many other Social Institute online features, the simulation does not require a login. Social Institute members who do not have a PIN can therefore calculate the loan.

First Social Institute home loan for civil servants: the contractual characteristics

First Social Institute home loan for civil servants: the contractual characteristics

Not all Social Institute members can receive the former Government Agency mortgage. It is in fact a reserved proposal for those enrolled in the unitary management of credit and social benefits.

Employees with a permanent employment contract are involved as well as pensioners. The loan allows those who meet the requisites to receive high amounts: 300 thousand USD can be reached. In terms of duration, there are several variations: the minimum time interval is 10 years, but it can extend up to 30 years. The other relevant aspect corresponds to the interest rate.

The beneficiaries of the former Government Agency loan will have a fixed rate amortization plan, defined with respect to the LTV system, or variable (6-month Euribor plus 200 points). The request will be sent via the Web (using the Social Institute online service Mortgage Loans Questions ). There are specific periods within which the request can be made: the first ten days of January, May or September.

Ongoing unemployment credit: what to do?

It is a very bitter reality: as long as you are in an employment relationship or at least have regular income, your own life is secured from an economic point of view within the conditions created by the income. This security means that purchases and, at best, larger investments – necessary or not – can be made. If the financial resources are insufficient in such a case, thanks to a regular income, financing with the help of a loan is also available.

If such a loan is then taken out, this usually means entering into a financial obligation to the lending bank over a longer period of time. So basically no problem, since the income is available for repayment. But what if, due to unexpected unemployment, this financial security dissolves into “noise and smoke”? What happens to the still existing installment obligations from the current loan? What is the legal situation in such a case and what can a borrower do in such a situation?

Loans must be repaid – even if you are unemployed

Loans must be repaid - even if you are unemployed

The fact is that everything that has to do with the credit system in any form in Germany is legally founded and regulated. In principle, this means that as a borrower you are obliged to repay a loan. The only exception here is if it can be demonstrated that certain clauses in the credit agreement are immoral and / or the interest rate corresponds to the legal definition of the usury. So if sudden unemployment makes it impossible to pay the monthly loan installments, good advice is expensive at first. Nevertheless, as a borrower, there are definitely opportunities to act in such a situation. Here are a few behavior tips in such a case:

  • If it is clear that unemployment is likely to result in a loss of credit rates, the bank should and must be informed immediately. This is the only way to maintain the relationship of trust and to prevent an impending dunning procedure. This strengthens your own position for appropriate solutions to the situation
  • If it is foreseeable that the unemployment rate is only temporary, the deferral of the loan installments is available as a solution for a predictable period. If the bank can be shown such a new source of income on the basis of appropriate documents such as a new employment contract, the bank will generally be open to a temporary deferral.
  • If, on the other hand, longer unemployment is expected, debt restructuring should be negotiated with the bank. Their goal must be to adjust the monthly loan installment to the new financial situation. In practice, this means a significantly reduced monthly loan rate and the resulting extended loan term. However, even with such a debt rescheduling, the possibility of special repayments and early redemption of the loan should be agreed. A must especially for very long-term loans!
  • In order to prevent such a situation from occurring in the first place, there is of course also the option of securing the loan against unemployment by taking out residual debt insurance. However, you should carefully inform yourself about the conditions of such insurance before you conclude the loan. Because here the costs fluctuate considerably and make the basically cheap loan considerably more expensive!

Impending loan default? Banks show willingness to talk

Impending loan default? Banks show willingness to talk

The basic rule is: in any case, the bank will always have a high interest in ensuring that the loan is properly repaid. If this is not the case, the bank would otherwise run the risk of default. A situation that banks generally shy away from. In such a situation, the bank advisors are therefore always required to signal a willingness to talk. Use this to your advantage!

Mini loan offers and how to benefit from them.

Mini loan offers and profit? Does that go together?

Mini loan offers and profit? Does that go together?

Usually the idea of ​​profit is that with a small stake you get the greatest possible profit. This is the common definition of the term “profit”. This term is undoubtedly the most common in the financial world. You invest cheaply in stocks, mutual funds and bet that you will make profits. If you have these profits paid out, you have made a profit. But professional gamers also like to use the term.

The system to achieve profit is the same: invest little, get a lot. Only the medium is different. Professional gamblers “gamble” with their stakes in games such as poker, blackjack, roulette etc. But in whatever way, the intention always remains the same: benefit from a small stake on a large scale. But not only professional gamers or investment specialists can do that. Basically everyone can do that first. How? With the use of mini loan offers in the market. Sounds absurd?

How to benefit from a mini loan

Admittedly, it sounds contradictory: benefit from a loan as a borrower? After all, you are in debt and not profit! Right, but it depends on the point of view. It is therefore possible to “benefit” indirectly from a mini loan. The profit results from the savings achieved compared to another type of loan. In plain language: Any profit is due to the comfortable framework conditions of a mini loan.

This is how mini loan offers work

Anyone who has ever used a loan in their life is familiar with the current loan model. Basically, it can also be transferred one to one to the mini loan. Only that everything takes place on a smaller scale, which results in possible, more appropriate credit terms:

  • The loan amount is lower and therefore closer to actual needs
  • The loan term is shorter, which means shorter debt times
  • Thanks to the short loan term, lower interest charges
  • Fixed credit rules compared to an overdraft facility

Customers who apply for a mini loan can also benefit from some advantages that higher-sum loans or other loan models do not offer or only offer to a limited extent:

  • The application is made online. This means that appointments with the bank advisor at unfavorable times of the day are eliminated.
  • Mini loan offers can be tailored to the acute need for money. This means that the loan amount is not inflated, which protects against unnecessary additional burdens. And before spending too much borrowed money.
  • The overview of the debts from the loan is guaranteed thanks to a fixed repayment date. This means that there is no risk of over-indebtedness or unorganized & uncontrolled deleveraging, such as with an overdraft facility.
  • Loan approval is also possible with low incomes. This means that even those who are financially a little weaker have the chance to treat themselves to a smaller purchase, to save Christmas or to pay the plumber for their work on the holiday.

Why do you hear so much negative about mini loan offers?

Why do you hear so much negative about mini loan offers?

Again and again there are of course black sheep mingling with all the reputable providers who want to get their piece of the cake from the mini loan offers. Unfortunately, all too often they find willing, good-faith victims on the Internet. Of course, the cheated customers take their breath away. The media are only too happy to take up this mood and make “blanket judgments” about an industry in which there are also good mini credit providers.

It is therefore all the more important to find those mini loan providers and thus select a reputable loan service. Reliable and honest mini credit providers usually recognize those interested quickly based on their transparency and external presentation. For this, the Internet is at least as good a tool as for trickery and attempted fraud.

If all information about the company and the loan offer can be found on the homepage in a clearly understandable manner with just a few clicks, this indicates a transparent business conduct. If this is underlined by testable seals, awards etc., most of the doubts should actually be pushed aside.

So if you inform yourself well about your loan service for a mini loan, you will be spared unsightly surprises and need not be bothered by negative (often subjective!) Reporting on mini loans.

Cheap online credit

Processing fees, withdrawal fees and a good interest rate on top of it – a loan is often an expensive pleasure. After all, the banks live on it, especially in times of crisis, their business is secured. But nobody has to come to terms with it: A cheap online loan can save a lot of money.

Direct banks offer low effective interest rates

Direct banks offer low effective interest rates

The banks obviously not only live fairly well on the income from loans, they also have to bear a lot of costs. For example, the dense network of branches with offices in small towns or advertising. In the end, the borrower also pays these bank expenses to a certain extent with its loan interest. Direct banks on the Internet have it much easier. You waive most of these costs, but usually no advice is offered.

The debtor should therefore be able to realistically assess how high the rates are that they can pay each month. But because a cheap online loan is only available with a good credit rating and without a negative credit entry, this risk of over-indebtedness is limited. Banks see their own capital at risk early on and typically only lend when the prospects for reliable repayment are very good.

Advice is not required

Advice is not required

However, the debtor is completely on his own if he is to compare the different loan terms. The effective rate is the most meaningful. This includes not only the loan interest, but also all fees. The only exception: A frequently requested residual debt insurance, which secures the payment in the event of disability or unemployment, can cause enormous additional costs. By specifying the effective interest rate, loan costs are still quite easy to compare. Nevertheless, care should be taken to ensure that the share of fees in the interest rate is not too high. Because, for example, a payment fee is charged at the beginning – then the loan starts with costs.

Credit comparison easy and fast

Credit comparison easy and fast

A cheap online loan has the advantage that many offers can be obtained very quickly on the Internet. This means that many different providers can be compared with each other in a short time. Many lenders particularly advertise creating an offer within 24 hours. Because personal data is requested to calculate the conditions, special caution is advised. Some dubious providers use this data to their advantage, frequent advertising emails are the least evil.

Black sheep can be identified by conspicuously low interest rates or the requirement to pay a fee in advance. About 6 – 8% should be taken into account for small loans around 5000 dollars. This rate can be undercut if the income is very high and the repayment is correspondingly quick within 12 months. The longer the term, the more uncertain the interest rates can be calculated by the bank – for security reasons, they are slightly higher for the debtor. Such loan amounts are usually still approved if the income is above the garnishment limit and the credit gives the green light.

On the other hand, the situation is different with higher sums: direct banks also demand countervalue in the form of security. This could be a property or a young car, for example. This security covers the risk that the debtor will no longer be able to meet his credit obligations. Because a credit risk that is secured with a house, for example, is very low, the interest rates for building money are also particularly low. A cheap online loan is a real win.

Credit agreement: you should know this before signing!

You may have just moved into a new apartment and bought furniture for a lot of money or invested in a new computer. You looted the household budget for these new purchases, but now important equipment breaks down: for example, the washing machine runs out or the car no longer starts! So what to do when there is no money left to bridge the gap? As a rule, only a loan can help here.

Even if you would prefer to take out a loan as soon as possible – it is important to first think about a few things: How much money can you repay each month? How much should the loan be and how quickly do you want to repay the loan? At best, only contact a bank if you have answers to these considerations. This enables you to search more specifically for a suitable loan and to check more precisely which framework conditions the loan contract should contain.

Be honest: First, assess yourself realistically

Before you go to the bank, you should draw up a financial plan in which you compare your household income and your monthly fixed and variable expenses. This list enables you to determine which total financial burden you can handle. How much money is actually left at the end of the month and can therefore be used to repay a loan?

The basic principle is: be realistic! As a rule, a loan is cheaper the faster it can be repaid, since a shorter term often means a lower interest charge. Nevertheless, it is of no use to either party if borrowers overestimate themselves and ultimately cannot pay the excessively high rates. If renegotiations or even a second loan are necessary, this essentially means additional costs for the borrower.

So do not calculate too tightly, so that a small change in your household income (e.g. temporary short-time work in the company) or other spontaneous cost factors do not lead to payment difficulties. With these considerations, it is also important to include cost items that are due only a few times or even only once a year, such as refilling the oil tank or car tax.

Advance information: You should know this about the loan agreement

Advance information: You should know this about the loan agreement

If you contact a bank with a loan request, you should receive all the essential information about the loan contract in a standardized form in good time before concluding the contract. The provisions and rights listed there apply across Europe and make it easier for you to compare several loan offers with one another, since you can use this form as an information basis. In any case, the following points should be listed there:

  • Exact name of the loan
  • Full amount of the loan
  • Borrowing rate
  • running time
  • Repayment options
  • Effective interest rate
  • Total costs for the borrower: accruing loan interest and interest payments
  • Possibly. accruing expenses for services, for example for the written information about current remaining debt

Regardless of whether you ultimately conclude a loan contract with the bank in question or not, the information sheet must still be provided free of charge. In addition to this, you can also have a preliminary draft contract sent to you free of charge.

Take special and repayment rights into account

As soon as a loan agreement has been signed, it is valid. As this usually means a long-term responsibility, you should read the contract terms carefully before signing and check all the information contained there for their accuracy. At best, you should also keep an eye on personal factors: In the future you may receive payment for life insurance, a building loan contract or another asset: Be sure to take such contingencies into account before the actual loan agreement. In this case, you should definitely have the right to special repayments guaranteed in writing in the loan contract, so that you could reduce the term and thus also accrued interest payments.

Lender’s Obligations

Also pay attention to the obligations of the lender: This includes, for example, a detailed explanation regarding the contractual provisions. As a loan applicant, the bank must explain to you the main features that are set out in the loan agreement and also have possible effects : What are the consequences of a possible delay in payment? Is it possible to suspend a few installments in the event of financial bottlenecks? What are the fees? Furthermore, the bank is obliged to regularly send you a repayment plan that informs you of your current payment status.

Thanks to legal changes, fees are eliminated!

The Consumer Credit Act (VkrG) came into force in Austria on June 11, 2010, which applies to all credit agreements with amounts in excess of USD 200. As a result, the credit contract fee was abolished in 2011. To date, this was a statutory fee of 0.8% and 1.5% of the loan amount, respectively, and made loans more expensive accordingly. Since this abolition, processing fees for consumer loans have also been prohibited.

Concluding a loan contract is therefore free of charge, but the loan itself always entails costs in the form of interest. These costs depend on the individual loan agreement and sometimes also on the type of loan: As a rule, banks base their loan interest on the current market economy. For example, at certain times a mortgage loan can be cheaper than one without a purpose. Since interest rates fluctuate constantly, you should get an overview of the market and compare the existing offers before taking out a loan.

You have decided: This is how the contract is concluded:

You have decided: This is how the contract is concluded:

The decision was made after carefully reviewing many loan offers and you selected a specific loan agreement. If the bank received the contract with your signature, it is valid. The lender will then send you a copy of the contract, including the general terms and conditions, incidental expenses and credit indicators.

Now it is time to wait: it is possible that the loan will reach your account after a few days. However, it can also take up to a few weeks until the bank concerned has completed the bureaucratic effort and can pay you the money. After receiving the loan, the contractually agreed installments are also due.

If something goes wrong: you can withdraw from the loan agreement

If something goes wrong: you can withdraw from the loan agreement

If money is urgently needed, it can be an ordeal to check the loan offers carefully and take the time to calculate realistically. If you have been tempted to prematurely conclude an unsuitable loan contract, you can still withdraw from the contract within 14 days. This period begins on the day the contract is signed. No reasons need to be given for the revocation of the credit agreement. The only drawback: Previously accrued interest and payments already made by the lender may be charged to the customer.

Would you like to cancel your loan contract? Are you sure?

If the 14-day period has expired and you are still unsatisfied with the terms of the contract, you can cancel the loan before the term expires. As a result, however, you have to reimburse the loan amount received within 30 days, including the loan interest accrued to date. If you have already invested the loan you have already received and have no other assets, you will not be able to terminate it accordingly.

However, if you have enough money to pay off the lender, you should definitely quit in writing. At best, send a letter of termination to the lender by registered mail and keep a copy for yourself. Depending on the contractual agreement, a prepayment fee for the lost interest payments may be due. So calculate in advance whether a termination is worthwhile for you or whether you will even end up paying.

Exclude ambiguities

Exclude ambiguities

Regardless of whether it is a large or small loan amount: take the time to study the loan contract carefully and compare the proposed terms with the help of the standard information sheet or draft loan contract. Pay particular attention to the total loan amount and the APR. If you notice any discrepancies, speak to the bank concerned.

It may be a mistake or you have misunderstood something. No matter what makes you wonder, do not conclude a contract without understanding it in detail. Only then can it be guaranteed that a loan agreement takes your interests into account.

Credit card survey: additional services are not important.

One would normally think that the more extensive credit cards are equipped, the higher the acceptance of those offers for credit cards. Unfortunately, a fallacy, as the result of a current, representative of a  survey on behalf of a consumer protection association shows. After all, around 44 percent of those surveyed stated that they were simply not interested in insurance services offered with credit cards.

But even with other special services such as discounts for flight and hotel bookings or general shopping benefits, the demand is kept within a manageable range. With a 37 percent rejection on the part of the respondents regarding these advantages, this is also a clear sign that a market interest is assumed here that in reality does not seem to exist. The question arises: What do Germans expect from a good credit card?

Transparency of credit card costs are more important

Transparency of credit card costs are more important

If the current FORSA survey is used to answer this question, it can at least be stated that any kind of additional services are obviously only being accepted to a very limited extent. What users of credit cards, on the other hand, are most interested in is the generally expected costs. The main points are:

  • Does the bank charge an annual fee for the credit card?
  • What are the domestic and international costs for paying and withdrawing cash with a credit card?
  • What is the APR on my revolving credit card?
  • Is there an installment payment option?

Quite a matter of course, which should be anything but difficult to answer. But obviously this is exactly the case. Because, according to the study, consumers are particularly unsatisfied with these questions. Around a third of the respondents from the FORSA study are dissatisfied with the available price and cost overviews from the credit card issuers. The criticism of consumers focuses on the lack of transparency and traceability of credit card fees.

Credit card comparisons do a better job of providing information

Credit card comparisons do a better job of providing information

What is interesting, however, is that credit card comparisons available on the Internet are very important to consumers. Consumer advocates also generally recommend making use of these online comparisons in advance of ordering a credit card. Thanks to these comparison portals, it is finally possible to get a comprehensive overview of the numerous credit card offers. In addition, the individual offers can be compared both individually and in total. The information generated in this way can subsequently be a valuable decision-making aid. After all, nobody wants to pay money for additional services that are ultimately not needed or desired.

Repayment of a loan: Everything about the repayment rate & repayment schedule

Almost every Austrian takes out a loan in the course of his life. In addition to bridging a financial bottleneck, many borrowers also use the borrowed money to fulfill a long-cherished dream, such as a long trip. As soon as the loan amount arrives in the account, the joy is usually great. However, with the receipt of the money, the repayment of the debt, the so-called repayment of the loan, usually begins. Exactly how this looks depends on the provisions of the concluded contract. In general, the borrower has a certain term, the so-called repayment period, in which the borrower repays the debt in installments.

Choose the right repayment for each loan

Choose the right repayment for each loan

Basically, most annuity loans are paid off by paying off monthly installments. These consist of an interest and a redemption component. The interest portion is the part of the installment that the borrower pays to the bank as a fee for borrowing the money. The repayment component, on the other hand, describes the amount with which the loan is actually repaid month after month. If the interest on the loan is high, the borrower pays correspondingly high fees to the bank every month.

The amount of the loan interest depends, among other things, on the economic situation in the country concerned. Loans are currently cheap in Austria. Therefore, it is usually advisable to repay a loan as quickly as possible. The term is recorded in the loan agreement at the beginning. The borrower becomes debt-free faster and can save a lot of interest.

But be careful: if you pay the installments for the repayment of the loan, you may lose quality of life for a long time. It is therefore important to weigh each case individually. The type of repayment also has an impact on the amount of the costs, which is why it is particularly important to compare the different types of credit.

Annuity repayment impresses with continuity

Anyone who has taken out an annuity loan always pays the bank constant credit installments over the entire repayment period. Only the interest and principal portion shift. Customers actively don’t notice any of this, since the monthly rate remains constant. At the start of loan repayment, the initial repayment component is usually lower than the interest component. However, since the customer’s loan debt decreases from rate to rate, the repayment portion will eventually be greater than the payment of the interest.

As a result, the repayment share increases over time. The big advantage of annuity repayment is the ability to plan. Borrowers can expect to pay the monthly installment right from the start and keep their budget. This also makes it particularly easy to record the terms and costs of the annuity loan at a glance with the help of a credit comparison and to filter out the suitable offer.

Pay less every month with repayment loans

Remaining debt:

The amount that the borrower has yet to repay is generally referred to as residual debt. For example, mortgage loans are rarely paid during the fixed repayment period. In order to repay the remaining debt, the bank and the customer agree on a new contract at new terms after the contract term: Follow-up financing.

Those who opt for a repayment loan are faced with a high financial burden at the beginning of the loan repayment, the rate decreases by rate: At the beginning, the interest component is at its maximum, but it decreases each month. This is because the interest is based on the amount of the current remaining debt. If the remaining debt is still large, a high amount of interest is paid, so the monthly costs are just as high.

The more the borrower repays, the less residual debt remains that can be paid interest on – the interest portion becomes increasingly smaller. The repayment share, however, remains the same every month. The contract customer repays the loan equally month after month.

This financing concept can be particularly advantageous if, for example, the borrower retires during the repayment phase and thus has less money available towards the end of the contract term. Depending on the terms of the contract, the repayment of the installment can also be cheaper than the annuity repayment – but this depends on the individual conditions and interest rates. To be sure, customers should calculate the costs as well as the planned monthly installments, which are incurred over the entire term, before the contract is signed.

Final repayment: Debt-free in one fell swoop

The name actually suggests how this type of repayment works: During the term, the borrower only pays the interest to the bank. The amount of the interest rate is calculated from the interest on the total loan amount to one rate per month. The actual loan must finally be repaid in one fell swoop at the end of the contract term.

This form of financing is usually only worthwhile if the borrower has already saved a very large amount and only needs a rather small amount for his project. In practice, a final loan is rarely used and is usually only given to business customers with good liquidity. In most cases, a final repayment pays more interest on the loan than with other forms of credit, but with particularly good conditions it can also be a cheap financing alternative.

The pitfalls of special repayment

The pitfalls of special repayment

Repayment schedule provides clarity:

The borrower usually does not have to create a repayment schedule. As a rule, he receives it free of charge from the bank in question – for credit contracts with a fixed term, the bank is even obliged to provide it free of charge. The repayment schedule shows which payments the borrower has to make at a certain point in time.

The customer also receives an overview of the interest and additional costs as well as the amount of the current repayment portion. Furthermore, he can see at any time how much remaining debt is left and thus receives a complete outlook until full repayment.

A special repayment is a payment that the borrower makes regardless of the repayment schedule. It is useful if the contract customer unexpectedly has a large sum of money at his disposal, for example through an inheritance or a gift, and he would like to use this to repay the loan. But be careful: If the borrower did not secure the right to special repayment in writing when concluding the contract, it may be that he has to pay fees for extra payments.

As a rule, it is therefore always advisable to take out a loan that contains the right to special repayment as a precaution. Whether the customer actually uses this right is entirely up to him. Special repayments can be defined differently: Many contracts contain restrictions on the amount of special payments. In most cases, these may not be performed as often as desired. Depending on the terms of the contract, for example, a maximum of once a year.

Early repayment of the loan: reason for rejoicing or cost trap?

A new job offer, an unexpected salary increase or even a lottery win: It can never be completely ruled out that credit customers will suddenly get more money than expected. If this is the case, it is only understandable that borrowers would prefer to pay their existing debt directly.

However, this is not always a favorable decision: if a loan is repaid early, banks generally charge a so-called prepayment penalty. This is a penalty fee that credit institutions charge if they lose interest payments due to early repayment of a loan. In the worst case, the prepayment penalty is so high that early loan repayments are hardly worthwhile or even cost additional money.

No money to pay credit installment: what now?

No money to pay credit installment: what now?

Anyone who has to repay a loan is exposed to an increased financial burden for a certain period of time. If unexpected payment requests are added, despite careful planning, the borrower may not be able to pay the monthly installment. In such a case, the contract customer should at best contact the lender immediately to look for a possible solution together.

Deferral is often possible. This means that the borrower can suspend one or more installments to organize his financial situation. However, these installment payments are not canceled, they are only postponed – after the deferral, the customer must make up their payment.

Emergency solution: Repay the loan longer than planned

If the borrower has simply taken over with the repayment of the loan, there is also the possibility of fundamentally reducing the monthly installment. This decision will generally relieve the contract customers considerably. Banks will usually quickly agree to this solution, as the loan is usually more expensive than originally planned due to the longer term. In general, the following rule of thumb applies to every loan: “The longer the repayment takes, the more money the loan costs”.

Banks do not lend capital out of generosity, but charge fees in the form of interest on the loan. The longer the borrower uses the borrowed money for himself, the longer he also pays interest. Due to the lower monthly repayment, in the case of installment repayment, the remaining debt that can be paid interest is higher – the costs increase. However, if the borrower cannot manage the monthly installment differently, this is a sensible alternative.