What is it and what is a debt consolidation loan?

We live in a world in constant evolution, situations can change even quickly. When these changes are economic and affect the ability to repay an individual or a household that has debts, a financial instrument is needed that allows you to regain control of the situation. This requires the loan for debt consolidation which, in these cases, is the best strategy to put in place to restore the balance between income and expenditure of your budget.

Debt consolidation

Debt consolidation

Debt Consolidation is a loan intended for the immediate extinction of debts previously contracted with banks or credit agencies.

It was introduced in 2011 with the aim of reducing the cases of over-indebtedness which are the cause of insolvency on loans and mortgages. Since then, this has proved to be an excellent tool to help Italian families balance their balance between monthly income and expenses.

In fact, Debt Consolidation allows one or more loans to be repaid with another loan.

In most cases, if managed well, it may have lower interest rates than existing loans. This if, when the new loan is activated, the cost of money is lower than before.

Not only that, thanks to the lengthening of the repayment period, the monthly installments will be lower, thus weighing less on the family budget. Moreover, those with the right economic requirements can take advantage of debt consolidation also to have new liquidity to be allocated to other projects.

Requirements

Requirements

The requirements to be able to apply for and get a loan for debt consolidation are basically the same as those for a personal loan. We must therefore be of legal age, resident in Italy, have a demonstrable income and not be reported as bad payers.

How to choose the best loan for debt consolidation

How to choose the best loan for debt consolidation

First of all, if you have all the requirements in order, to choose the best loan for debt consolidation, you need to get into the right mindset. You are the customer, you choose who to buy the money you need to make this financial transaction so important for your future.

Having said that, let’s see in detail how to choose the best the market has to offer in terms of financing.

1. Acquire as many quotes as possible

The bank or the finance company has a product to sell yours is a bargain that you need to conclude with both. So to make the most of your interests you need to collect and compare as many quotes as possible.

I recommend: whether you get the quotes online or from a bank near your home, always ask for the amortization plan and the SECCI form.

2. Check the APR (Effective Global Annual Rate)

The APR percentage value is the rate that best identifies the real cost of a loan. In the case of a comparison between several estimates, the lower this percentage value is, the more the loan is convenient.

Just compare the APR to choose the best debt consolidation between different budgets? Unfortunately not! Certainly it is an excellent indication of general cost and therefore good for a first evaluation. However, since some costs are not generally included in the APR, it is necessary to investigate further to choose the most convenient budget. Let’s see how.

3. Always read the SECCI form

Here comes the SECCI module I mentioned in point 1. But what is this module and why is it so fundamental to compare quotes? Let’s find out!

As you can see in the definition shown in the image above, the SECCI module (Standard European Consumer Credit Information) is the pre-contractual document that contains information in a simplified and understandable form, which also allows a less experienced user to independently evaluate the costs and conditions of the loan offer.

 Example of a SECCI module which shows the data relating to a loan for debt consolidation with insurance policy included.

As you can see, in the image above, you have various data, all useful for understanding the total cost of a loan for debt consolidation. In this case, the simulation made provides an insured loan of 15,000 USD repayable in 84 months (7 years). The monthly payment amounts to 232.80 and the insurance cost is 688.50 USD, which added to the various costs and interests lead to a total to be reimbursed equal to 19.751,20 USD.

Note that if you multiply the installment by $ 232.80 for the total number of 84 installments, the amount is not 19.751,20 but is 19.555,20. How come it doesn’t correspond to the total due seen before? Simple, they are additional costs not included in the installment. This is why the simple calculation of the installment x number of months is not a correct way to evaluate a quote.

4. Ask for help from a super partes financial advisor

Ask a financial adviser specializing in loans for help. This is if you think you are not able to evaluate the various estimates despite the suggestions above. Do it especially if the amount you need is high. Asking a professional for advice has costs that could exceed the benefits.

Credit Card Tips and Loans Before You Apply

Credit cards and loans are attractive to many. No doubt about it. They allow you to make purchases today and pay later. Like loans, it is important to be aware that credit cards can also lead to a negative credit history if the money used is not repaid in time.

In many ways, therefore, an application for a credit card is the same as a loan of money. So think carefully about what you need money for and how necessary this is.

When applying for a credit card

you should consider that the loan most often checks your existing and past loans and credit card usage.

What would you like to use a credit card for? Make sure you know how to use your credit card and what you want to buy before applying.

Remember that every time you use your card, it incurs a debt that you have to pay back with interest. It is important to examine several cards before deciding. Before applying for a card: See what interest rate is on the card and what credit limit you qualify for. You want to look for the best solution before committing to any particular card.

Make sure you understand the terms

Before you apply for and accept a card, make sure you understand the terms and conditions of the plan. Read it in small print. Ask yourself if you can afford the card. What are the rules for the card and what happens if any rules are broken. So you can use the cards, where it is cheapest, or where you get great value for money in the form of insurance coverage. The annual average change in value is stated, in addition to the total change in value for the period.

It is therefore important that you read the credit card agreement carefully before signing on the dotted line – there may be restrictions or conditions that are not obvious at first glance.

The Truth About Sms Loans

Fast loans come to Sweden

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As the UK banks began to tighten their own lending criteria, the fast loan market took even greater strides in its development. When ordinary residents got rejected from the banks, they took a quick loan instead.

Soon companies were investing big money on TV advertising. In the UK, the average British watched a total of 152 commercials on fast loans in 2012. At the same time, the market had spread to Australia, Canada, Finland and in 2006 to Sweden.

The purpose of this type of loan is the same today as when the loan form saw the light of day in the US. If you have unexpected expenses or you end up on a temporary minus at checkout, sms loans can make your everyday life go around financially. You borrow a smaller amount and get access to the money remotely.

From store to mobile
In Sweden, sms loans have never been offered in stores, but in the USA. To implement their application, one can now take advantage of how the Internet has grown explosively. The payment process is also done digitally, rather than before when the American borrower received either a check or cash.

Mobile, and especially smartphones, has become a natural part of people’s everyday lives and therefore the application process does not happen eye to eye. It includes application, control and credit testing, and is often carried out over the phone.

However, the company’s way of communicating via the customer is via sms – and thus the concept of sms loan has been coined. Today, sms loans also go under several names, such as micro loans, mini loans and quick loans.

The role of the Consumer Agency

If we take a closer look at the Swedish fast loan market, it is under the supervision of mainly two authorities: the Swedish Consumer Agency (KO) and Finansinspektionen (FI). KO is a state administrative authority for consumer issues and sorts under the Ministry of Finance.

Since the rise of sms loans in Sweden, KO has been critical of the market. Above all, it is believed that customers have been able to take loans too easily without even knowing exactly how much the costs are.

In 2007, KO won a legal case against a high-speed mortgage company, which had not been specific when formulating loan costs. This resulted in a fine of SEK 750,000 and this was also the starting point for a more tight regulatory framework for SMS loans.

The purpose? Customers would feel safer, get a better look and not be led by the light of both serious and rogue lenders. As the fast-loan market grew in Sweden, a new law on the right of withdrawal was introduced.

The role of the Financial Supervisory Authority

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All financial companies in Sweden are under the supervision of Finansinspektionen. This authority is responsible for supervision that both banks and credit institutions must relate to, which has become increasingly important the more terrain this market has gained in Sweden.

In the past, FI had nothing to do with the fast mortgage companies except that they were registered with them. Admittedly, the companies were not required to do so, which meant that anyone could start a business and issue sms loans to private individuals, but beyond that, the companies did not need to make credit information.

The banks, like Kronofogden, thought that quick payments generated in wrong decisions, but on the part of the counterparty it was called that the banks’ frustration was due to the opportunities of the fast loan market. SMS’s loan was a loan form whose speed the banks could never match, it was called.

The interest rate for sms loans misunderstood

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In 2006, an article was written in Metro, in which both the Crown Prosecutor’s Office and a fast-loan company were contacted to give their views on a certain form of loan, a loan that will be repaid within a month and has an effective annual interest rate of 1355 percent.

However, here we come to one of the biggest misconceptions regarding SMS loans. The effective interest rate is required by the fast loan companies to print, clearly and concisely, so that the customer can access this information.

The advantage of an effective interest rate is that the customer can compare the total cost of different types of loans, but since it is always calculated on an annual basis, it gives an unfair picture of the cost of an SMS loan. This is hardly something the media mentions in their writings.

Interest rates can be several hundred, in the Metro case a thousand, percent higher if you use the effective interest rate. More fair is to take into account the actual repayment cost. We return to this in the section on five myths about sms loans.

 

Can you go to jail for debts?

We will find a lot of information on how to get out of debt and who to turn to in situations of excessive debt. We know what banking products are offered to people whose sum of monthly installments exceeds their financial capabilities and in their current form, are unable to pay all their liabilities in a timely manner.

We focus primarily on the state of our finances and the effects of excessive debt on our home budget. We can also hear about the fact that financial problems and debts in the form of numerous credits or loans are also negative consequences for our health and well-being. However, we have never raised another very bothering issue. Namely, can you go to jail for debts?

Unpaid loan and credit installments

Of course, we raise the topic in a matter that directly relates to our field, i.e. loans, loans or payday loans. Let’s start our considerations with late payments. Do the law impose other negative consequences on us for late repayment of bank obligations, rather than interest on late repayment of installments? Can I go to jail for debts?

Whether we like it or not, there is no prison sentence for debts for unpaid installments. We do not wish anyone this situation and we hope that this question will not be a nightmare, but we can unequivocally say that imprisonment will not be imposed for unpaid installments of loans, loans or payday loans. Of course, in no case can it be a signal that everyone, regardless of the situation in which they are, can incur a liability, because apart from interest is not subject to any other penalty. This still does not absolve us from a thorough analysis of our situation, fully aware and responsible decision-making about our future financial liabilities in the bank and loan institutions.

However, unpaid installments for loans and borrowings are not enough. There are situations in which assuming a financial commitment may result in negative consequences in the form of imprisonment for debts. Can I go to jail for debts?

When is taking a loan or loan at risk of being imprisoned for debts?

When is taking a loan or loan at risk of being imprisoned for debts?

Can I go to jail for debts? We already know that we will not go to jail for unpaid obligations. However, there are also credit and loan situations that are punishable by imprisonment for debts. One of these cases is specified in Article 297 of the Penal Code, which reads: Who, in order to obtain for himself or someone else, from a bank or an organizational unit conducting similar economic activity pursuant to an Act or from a body or institution with public funds.

A loan, loan monetary, surety, guarantee, letter of credit, subsidies, subsidies, confirmation by the bank of the obligation arising from the surety or guarantee or similar cash benefit for a specific economic purpose, payment instrument or public contract, submits a counterfeit, altered, certifying untruth or unreliable document or unreliable, a written statement regarding circumstances of material significance for obtaining the said financial support, payment instrument or order, shall be punishable by imprisonment from 3 months to 5 years.

Loan without the consent of the spouse – What do you need to know?

Getting married is connected with the creation of joint property. This means that from now on we dispose of our assets together, but we are equally burdened with possible debts. All property benefits and obligations arising from the time of marriage are borne by both spouses.

Is this then synonymous with the fact that, being married, we cannot independently (often without the consent of the other spouse) incur obligations? Can I take a loan without my spouse’s consent?

Do we have a chance for a loan without the consent of the spouse?

Do we have a chance for a loan without the consent of the spouse?

We should begin our considerations with the fact that marriage is a combination of two people on various levels. We take this step for various reasons. However, life verifies everything and it quickly turns out that it has nothing to do with what we can see in the movies. Marriage is not only great love but also a life together, and therefore finances. And they are the ones that most often cause the biggest problems.

The legislature itself in the Act of February 25, 1964. The Family and Guardianship Code (hereinafter referred to as the Act) stipulates that spouses are obliged to cooperate in the management of joint property, in particular to provide each other with information on the state of joint property, on the performance of management of joint property and on obligations encumbering joint property. So this means that when we decide to live together, we should also act together in financial matters. However, how is it in practice?

Loan without the consent of the spouse and property separation

Loan without the consent of the spouse and property separation

By law, what we bring into marriage is personal property. Since the marriage, the acquired goods belong to both. If, when entering into marriage, one of the parties, for example, clearly earns better and is in a better financial situation, or simply want to secure your finances, we can decide to establish property separation. In this case, each of the spouses retains both the property acquired before the conclusion of the contract and the property acquired later. Equally important, each of the spouses manages their property independently. Therefore, due to the fact that he is also responsible for financial obligations, he can take them without the consent of the spouse and there are no restrictions in this matter, except of course his creditworthiness. A loan without your spouse’s consent is then possible, and it is normal practice. In this case, banks do not even have the right to request the consent of the other party. At this point, despite entering into marriage, a separate notarial deed establishes that the property of each of the spouses, both before and after marriage, is personal property. Hence, as a rule, only the person to whom the credit or loan relates will be responsible for all financial obligations.

When it comes to credit without the consent of your spouse, property separation gives the greatest protection. In the event of a lack of repayment by the party who took the loan, the other person is protected by art. 47 of the Act, according to which a spouse may rely on a matrimonial property contract to other persons when its conclusion and type were known to those persons.

YOU MUST REMEMBER – due to legal consequences, when taking a loan without your spouse’s consent, we must notify the lender that we have established property separation. The funding provider must be informed that despite being married, we do not have joint property. Only in this case is the intercyza effective against the creditors and thus protects the other party. If this obligation is not met and the creditor was not aware of the intercourse (if the other party does not prove that the financial institution had knowledge of the property separation of the spouses), in the event of recovery, it may reach the assets of both spouses.

Property community and credit

As a rule, however, when entering into marriage, joint property is also created. In the main, Poles do not decide to sign the intercry. Therefore, on the day of the marriage they work for good, which is their common property and also collectively responsible for all obligations. In practice, this means that no matter how much financial contribution you make during the marriage, the benefits are shared. Also in the case of liabilities, the obligation to pay is equally borne by both parties. Can I take a loan without my spouse’s consent?

One would think that a loan without the consent of the spouse is impossible to obtain. Since the legislator himself says that together we are also responsible for the obligations, as possible to receive financing alone, when the responsibility for debt rests on both sides. However, let us go even further and note that the same legislator provides that by deciding to get married, we agree to cooperate in the management of joint property, and in particular to exchange information on matters concerning him. However, as life shows, we do not always act as above. Hence the question that is constantly arising whether a loan is possible without the consent of the spouse and what are the consequences for both parties?

Loan without the consent of the spouse for joint property

Loan without the consent of the spouse for joint property

Marriage is voluntary, and the responsibilities that fall on us with this step should be clear and understandable to everyone. This is not a limitation on our “freedom” and therefore we cannot absolutely deprive someone of such rights as the possibility of contracting. Therefore, a loan without the consent of the spouse is also possible in a joint property. However, given the good of both sides, certain restrictions are introduced that are intended to protect, above all the party who did not know about the loan.

We can definitely apply for a loan without your spouse’s consent, but with certain restrictions. Banks introduce, among others limitation on the amount of credit that we can take out while married and not having the consent of the spouse. It does not mean that we can take such loans indefinitely. Not only the amount of a single loan is limited, but also the total amount of all liabilities that we can have on the account without the consent of the other party. This is a kind of protection for your spouse, but it does not give us full guarantee or complete protection.

What is also worth mentioning is the fact that neither we nor the bank have the power to check the credit history of our spouse. When applying for a loan alone, we will not find out whether our spouse had or is currently repaying any liabilities. On the other hand, when we are not aware of the fact that the spouse has applied for a loan, we can be sure that our data is properly protected.

Loan without the consent of the spouse up to what amount

Loan without the consent of the spouse up to what amount

If, being married, we decide to take out a loan without the consent of the spouse, the banks introduce maximum loan amounts to secure themselves. However, there is no single amount imposed in advance. This depends on the branch we choose and, as in all other cases, on our creditworthiness. Loan without consent of the spouse up to what amount? We can count on amounts up to several tens of thousands of zlotys (this is also the maximum sum of all loans without the consent of the spouse). What if we want to apply for larger amounts?

Mortgage without the consent of your spouse?

Higher loans are usually associated with the need to establish collateral. In the case of marriages with joint property, we can unequivocally say that we will not receive a loan secured by a jointly owned property. Pursuant to the Act, the consent of a second spouse is needed, among others to perform a legal act leading to encumbering the property or perpetual usufruct, building or premises. So if we have a loan secured by a mortgage, which is our joint property, we can be sure that the bank will require the consent of both spouses.

Loan without the consent of your spouse – who will pay any debts?

Loan without the consent of your spouse - who will pay any debts?

In the case of having joint property and an obligation, to which both spouses are a party, for any debts, the spouses are responsible for joint property and personal property.

When we have established joint property, and only one of the spouses is a party to the financial liability, but the other spouse has agreed to this, the creditor may seek payment of debts from the joint property and from the personal property of the debtor (i.e. one of the spouses who is a party to the contract). At this time, only the personal property of the other spouse who is not a party to the contract is secured.

When it comes to credit without the consent of your spouse in a joint property, the situation is as follows. If the loan agreement was concluded without the consent of the other party (the contracting party is one of the spouses and the other did not know about the contracted obligation), the creditor will be able to seek satisfaction of the debtor’s personal assets (the spouse who is a party to the loan agreement) and his remuneration, income or other financial benefits – that is, from some of the components that are part of the joint property of the spouses.

This, however, does not protect against the spouse’s debts if the money has been allocated to the normal needs of the everyday life of the marriage and thus has been allocated to joint expenses arising from the needs of the family. In this case, the spouses are jointly and severally liable, irrespective of who made the commitment. Of course, as long as the party who decided to pay back the loan regularly, we may not even know about it. The problem arises when it is in arrears and the bank starts looking for people from whom it can demand repayment.

In this case, however, some protection was provided. In accordance with art. 30 of the Act, for important reasons, the court may, at the request of one of the spouses, decide that only the spouse who incurred them is responsible for the above obligations.

On the one hand, we can think that this is at least ridiculous, however, it is us ourselves who decide on the choice of a life partner and, deciding to live together and conduct finances, it is primarily for us to control it. When entering marriage, we trust the other person in financial matters.

Tax thresholds – 2019 settlement long-term loans for those in debt

loan for debtors with a bailiff Comments

Taxes and related settlements are the bane of many of us. How to settle well so as not to cause problems? First of all, you need to know what tax thresholds apply in 2019 and how they translate into our earnings.

What are tax thresholds?

What are tax thresholds?

The tax thresholds determine the applicable interest rates for personal income tax. In other words, we are talking here about the values ​​in force for specific income obtained by taxpayers. Tax thresholds are set in advance and individuals must include them in their income tax settlements. The amount of the tax scale for each person may be different, and the range in which we are located depends on the earnings obtained in the accounted year.

However, this is not all, because also the amount of tax-free amount and whether we will be refunded a tax overpayment depends on the income received. Last year, there were two tax thresholds in our country, i.e. 18% and 32%. The 18% tax threshold was for taxpayers whose earnings did not exceed PLN 85,528. In turn, the 32% rate included taxpayers whose income was higher than PLN 85,528.

What thresholds apply in 2019?

The government talked very loudly about introducing changes in tax rates and establishing a new earnings threshold, which caused many taxpayers to have many problems determining how to settle their income tax in 2019 . As it turns out, in 2019 tax thresholds remain unchanged , which means that we are still dealing with 18% and 32%. The amount of tax payable after exceeding the first tax threshold also remains unchanged and currently amounts to PLN 15395,04.

Does this mean that we will settle income tax as in previous years? Unfortunately not! The changes occurred in a tax-free amount. Due to the provisions of the Act of 27 October 2017, the amount reducing the tax is PLN 8,000. In the case of persons who have not exceeded PLN 8,000, the tax reduction amount will be PLN 1,440.

For people who have earned from 8,000.01 to 13,000 PLN the tax will be 1440 PLN minus the value calculated from 883.89 PLN x income – 8000 PLN) ÷ 5000 PLN, and for people earning from 13000 to 85528 ​​PLN this amount is 556, 02 PLN