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Unfortunately, with the financial crisis , many companies have started to accumulate debt because they are earning less. It is a current reality in Brazil and if your company is one of them, know that you are not alone. But the good news is that banks and lenders are making efforts so that their clients can renegotiate their debts.

It is a natural movement. Financial institutions act as business drivers, providing financial resources for new plans and projects. When companies are in the red, they become debtors of these institutions. And because getting no pay is not a good deal for them, the way is to renegotiate.

But you need to be aware when it comes to debt renegotiation. See  tips for getting out of the red without future problems.

Don’t let debt grow too much

In general, your company’s financial health gives signs that it may not be as well. If you let the debt roll too long, you may be left with an unviable amount to pay in the future.

Remember: banks will agree to reduce the amount of their debt to receive, but you will still have to pay most of it. The longer the debt, the more difficult it will be to raise funds to repay it.

If you have good financial planning in your company, you will be able to know the actual amount of your debt, and the right time to renegotiate.

Make a realistic proposal

When you feel it is time to renegotiate your company’s debts, you will need to make a proposal that fits your situation and the reality of the financial institution.

If you propose a value that is far below acceptable, you may not only not get the deal, but may also close doors for future negotiations. Take your proposal and be open to negotiate with the bank or finance company.

Be Careful With Blindfold

Being in debt makes you a vulnerable customer, in the eyes of financial institutions. As a result, some of them can take advantage of renegotiation by trying to sell products that you wouldn’t need.

If your manager tries to force you to buy a product as a condition of renegotiating your debt, be aware that this is a crime and is called a sale.

You can now also choose to renegotiate debt with companies that specialize in financial solutions that offer more competitive rates and will not represent new debt in the future.

Look for debt renegotiation efforts

Because there are so many debt companies today, banks and lenders have been working together to make several renegotiations at once. At such times, institutions often offer more affordable rates and conditions to facilitate renegotiation. Find out when these joint efforts occur, and enjoy!

After you renegotiate your debts, you should redouble your attention to your company’s finances. This is a great time to review all financial planning and prevent the problem from happening again.

A number of English financial institutions have chosen an unusual method to prevent a home loan from collapsing.

About two thousand customers call every month, and the lending financial institution’s staff politely but firmly warns them that since they are heavily behind on their home loan repayments, they have checked their bank account and found that they are not distributing their money well. I’d be happy to, for example, not spend on a fitness lease and an expensive cell phone, but on an honest loan repayment.

The Protection of Individual Rights

The method is wholly unusual and is rejected by the Ombudsman for the Protection of Individual Rights. But he protests, because on the tiny pages of a home loan agreement – which many don’t read carefully – it reads that the lender has the right to examine the financial condition of the risky debtor without his knowledge and consent.

Secret bank account checks and telephone alerts

Were launched by two British financial institutions that were bailed out by the state during the banking crisis, and as they manage taxpayers’ money, they have an increased responsibility for debt recovery. A total of 616,000 mortgages are handled.

In the first half of 2011, nearly 20,000 families across England took ownership of their homes due to lending banks, due to non-repayment. The other 250,000 pay only stagnantly.

A significant number of English people prefer to buy with a credit card

Undoubtedly, a significant number of English people prefer to buy with a credit card and get into debt. They also like to live well in bad economic conditions.

On the other hand, a lot of English people find it difficult to cover their basic expenses and end up with credit card payment, neglecting home loan repayments. It would be difficult for them to be warned to save on their children’s dinner in order to repay.

f you are planning to buy a home and open a mortgage, you should know that you will need to take out home loan insurance.

Let’s find out in this guide what the home mortgage policy is and how it works.

 Home mortgage insurance: what is it?

The home mortgage insurance policy is a contract entered into between the bank (lender) and the borrower that protects both parties.

What does mortgage insurance protect?

This type of insurance policy protects the property from any damage and small and large risks, but also the borrower / underwriter of the loan agreement from events that may affect his ability to repay.

Covered events include job loss, natural disasters, permanent or temporary disability.

Home mortgage insurance policy: what are the benefits?

It is easy to understand from the events covered that the home mortgage insurance policy protects against the risk of insolvency or the inability of the borrower not to be able to fulfill the mortgage payments.

This policy is indicated above all for those who have dependent children, for single-income families and for those who want to protect their family from any unexpected event.

What happens in the event of the borrower’s death?

In the event of premature death of the borrower, who has taken out a home mortgage policy, the insurance company provides a capital necessary to pay off the loan, while still retaining ownership of the property.

Home mortgage insurance policy: how to pay the premium?

The insurance premium can be paid by the borrower in a single solution (advance payment) or you can pay the premium through convenient monthly, six-monthly or annual installments according to your needs.

How long does the home mortgage policy last?

As regards the duration of the home mortgage policy, it varies from a minimum of 5 to a maximum of 30 years and, usually, coincides with the timing provided for in the amortization plan.

I wrote about the elements of the state home loan rescue program here, and about the changes that have taken place over the past few days.

 

How many will use this opportunity?

The more accurate question is, is there anyone who wants to stay out of it?

First, briefly on the role of government and banking. Pursuant to this provision, borrowers denominated in foreign currencies may request that their exchange rates be fixed at a rate of HUF 180 for the Swiss franc and HUF 250 for the euro.

The difference between the current exchange rate and the fixed exchange rate is credited to an escrow account, where the principal remains in the debtor’s interest at the prevailing central bank base rate (currently 7%) and is to be repaid after 2017. (The terms of this have not yet been worked out, but it is not expected to be repaid in one installment.)

 

Banks and the state jointly assume the interest part of the difference.

What is the ratio of capital to interest? Almost all home loans are annuity loans, so most of the monthly repayment at the beginning of the term is still interest-bearing, but only about 30-40% of the monthly repayment is capital repayment. If someone was so lame that he took out a loan in combination with life insurance (how lousy I wrote about it), he may be happy for a while now, as he pays only interest to the bank during the term of the insurance, account.

So, on the one hand, instead of the current HUF 241, we can only cancel HUF 180, the banks and the state take on average 70-80% of the remaining HUF 61.

But what about the rest of the capital? As the central bank base rate is currently 7%, the average interest rate on foreign currency loans is at least as much, and that is not the case.

What to do with the liberating money? Nowadays, here’s another state subsidy: put it in a 4-year-old apartment savings with another 30% state subsidy, and then use the money raised to pay off the capital account at the end of the fourth year.

Since the beginning of last year, we can use the savings of each of our direct relatives’ homes for our own purposes, making sure that the guardianship issue can be included in the children’s contract.

In summary, 70% of the average loan quarter will be paid out for us, the remaining 30% will be below the average bank loan interest rate, and by collecting the money that is liberated in the home savings we will receive another 30% subsidy.

With the drop in interest rates you can start to make sense transferring your credit home to save some money on your monthly installment. In this article we will throw you some points of reflection.

 

How to Analyze the Transfer of a Mortgage?

The transfer of a housing loan will depend on two variables. The first relates to the value of the spread . The second considers the costs associated with the transfer , which depending on the cases may be significant.

 

The First Step is to Evaluate Your Financial Situation

As we usually refer to here on the Snowball portal, the starting point for any savings solution is to make a diagnosis of your financial situation. Of course the promise of spread reduction is very tempting. However, not all processes are approved, so it is important to realize if you have the conditions to change banks.

 

Interest Rates Remain Very Low

As is well known, the EU Credit interest rates are very close to zero and are expected to continue for some time. Additionally, after several years without granting credit, traditional banks desperately need to lend money (the alternative is to pay to lend money to the Central Bank). Thus, the spread of housing loans, whether transfers are new contracts, have been falling significantly. This fall could mean large tens of euros saved every month.

 

Know the Current Conditions of Your Mortgage

Before consulting the competing banks you should know what the current conditions of your housing credit. We speak not only of the spread but also of all the contracted products / services – for example, life insurance, multi-risk insurance or other products such as credit cards and the like. You may have no concept but in several cases the monthly life insurance payment is higher than some bank benefits …

In addition to these data, you should seek to understand the market value of your home and the total amount owed . Be aware that banks currently borrow 100% of the value of the property, preferring something close to 80%. This means that you have to give some initial input value. Assuming that house prices have fallen in the past and that many people have made a consolidated credit using their housing … this point is pivotal.

 

Simulate the Credit Housing Spread

To simulate the costs of your home credit you can search any bank simulator on your site. Alternatively, you can read the reviews we made of the best bank for housing credit or use the mortgage simulator housing.

It is true that we will have to do a more thorough study (without any cost or commitment) to fine-tune the simulations, but with the completion of the form you will be able to submit your application in several banks and thus obtain negotiation power throughout the process.

 

See Transfer Costs

Finally, you should analyze all the costs associated with the transfer of your housing credit. You can have a commission for early repayment (between 0.5% and 2% of the amount owed, depending on whether we are talking about variable rate or fixed rate credits), costs with new deeds, property valuation, among others.

Some of these costs can be heavy. However, you can take advantage of some ongoing campaigns where these commissions are exempted or where banks support part or all of the transfer costs (another benefit of filling out the housing loan simulator is accessing our protocols).

 

Prepare Your Case With Caution

Finally, for the purpose of reducing the housing credit spread, we suggest that you prepare your case with caution. You should be aware of your effort rate, the relationship between the loan and the collateral offered, your income stability, and so on. If you have questions do not hesitate to use our contacts for any clarification.

And ready. Changing banks can be a huge savings . And as we all want to save money without much effort … maybe it makes sense to realize if we can help you save!

Borrowing money is not free. Banks and credit companies charge an interest rate on the loan as a fee and thereafter additional administrative costs are added. Cheap loans are what everyone strives for, but what is considered a cheap loan and how do you find them?

This article will explain what cheap loans mean, what you can do to find them, as well as what guidelines you can follow to improve your chances when applying for loans.

What types of loans are the cheapest?

There are many different types of loans that suit different purposes. Private loans, SMS loans, car loans, building loans and member loans are some of these. To get the lowest interest rate on your loan, regardless of the type, the same guidelines can be followed, which we will explain a little later. First, however, let’s look at the types of loans that are the most advantageous by default.

Student loans:

With a student loan you can get help to cover the cost of living and food if you study in another place or another country, for example. At a college or university, you can at most take out a loan for 240 weeks, which means six years of study. The total amount for the loan is currently SEK 1820 per week, which corresponds to approximately SEK 7300 per month. In addition, there is also a so-called study aid, which does not have to be repaid. This is a grant given to all students.

When we talk about cheap loans it is very advantageous. At present, the interest rate is only 0.16% of the loan amount, making this the cheapest loan on the market with a good margin. Because of this, taking a student loan is very common, especially since the installment period is also very long – up to 25 years.

Mortgage:

A mortgage is another type of cheap loan where you bind your home as a collateral for the lender in case you cannot pay off the loan. Your villa can cover a maximum of 85% of the loan’s total cost. You pay the remaining part with a cash deposit. If you cannot repay the loan, you may have to sell your home, as stated in the agreement. Mortgages usually have a low interest rate and a long repayment period, but they can be difficult to take out. They have high setup fees, which means that mortgages are only suitable if the loan is of a large amount of money.

If the mortgage is 70% higher than the market value of your home, you can repay two percent a year. Private individuals who in turn take mortgages that are 4.5 times higher than their annual income may repay one percent. If you instead have a mortgage that is lower than 70% of the market value of the home, but still above 50%, one percent is repaid annually.

What loans should I avoid?

It is important to re-emphasize that a loan is always a loss transaction, given the interest rate. That said, there are obviously loans that are better than others. What are the loans you should definitely avoid?

Instant loans:

These loans can also be called sms loans and are the opposite of cheap loans. The money is transferred to your account very quickly, but you are also expected to repay the loan at short notice. Most often, the loan amounts are between SEK 500-10,000 and the interest rates on these small loans are very high. It is common for the interest rate to be between 30-40%, making these types of loans the most expensive. However, the advantages are that it is quick, easy and easy to take a quick loan. The requirements are also very low. Don’t let that tempt you though – if you want cheap loans there are better options than these.