Take up consumer loans? You need to know this

Are you considering taking out consumer loans? Then there is more than the loan amount you have to decide. Here are four questions that are important to consider when taking out such a loan.

A consumer loan can come in handy in many situations where unforeseen expenses arise. For example, you might be unlucky and get a leak in the bathroom during a time when your wallet is thin. Also, in some cases you can save money on taking out a consumer loan, but more on that later.

What sets the consumer loan apart from other loans is first and foremost that you can spend the money on exactly what you want, without the lender taking a pledge on something you own. The bank that lends you money must therefore take greater risk, and that is the explanation for why the consumer loan is more expensive than, for example, a mortgage.

 

1. How much can I pay back a month?

1. How much can I pay back a month?

The first thing to consider when applying for a consumer loan is how much you can repay per month.

Get an overview of the expenses in the online bank. Check the utility account and cards you use in everyday life. Getting to know your consumption is important, says InnerSave Bank bank manager Nolbert Perg.

Maybe you see that there is a lot of money spent on food in the canteen, that you go to the gas station a little too often to buy a soda or that you still subscribe to a power service you do not use?

Grab this, then you suddenly have a little more to mess with every month, says Perg.

 

2. How will I pay down the loan?

2. How will I pay down the loan?

The next thing you should consider is how to repay the money. Do you have to pay a fixed sum per month over several years? Or is it better to pay only a minimum amount per month for periods, and then pay extra when appropriate?

– At InnerSave Bank we offer flexible repayment. It is good for you who know that you will receive extra income in a few months. Then you only pay a minimum amount in the month until this money is in your account, explains Perg, or you can always pay more if or when you want.

Discover the benefits of a flexible loan

 

3. How do I know what is right for me?

3. How do I know what is right for me?

It may seem difficult to orientate yourself in the jungle of consumer loans, but with simple guides it is easier for you to evaluate the offers.

You have three numbers to relate to: the interest rate, the establishment fee and the termination fee. It is the sum of these that determines how good the consumer loan is, says bank manager Perg.

InnerSave Bank is concerned about the loan being adapted to you and your finances, and offers competitive conditions. With us you get loans with interest from 7.99% to 19.99%, a setup fee of $ 900 and a termination fee of $ 40.

 

4. When does it pay off to take out consumer loans?

consumer loans?

Did the washing machine strike? Then it can pay to buy new right away, even if it is three weeks to pay. Consumer loans may be the solution. With that, you don’t have to wash clothes at the laundry for several weeks, which also costs money and is a more cumbersome alternative.

If the fridge breaks, you can live on takeaway and restaurant dinners for a while, but it will probably pay off to buy the fridge right away. Then you can keep your normal food budget, says Perg.

Yes, the consumer loan can help you out of troubled situations. But it also happens that it can save you money. This is first and foremost if you come across a bargain you just can’t help but cling to.

How to Consolidate Credit Card Debt?

It is often possible to consolidate terms, interest rates and credit card debt payments. You can also try to consolidate a settlement of the amount you owe. The steps you take and the options available will depend on your situation and the credit card company with which you are dealing.

When to Consolidate Your Credit Card Debt?

When to Negotiate Your Credit Card Debt?

Your trading strategy will depend on the weather. If you are not struggling with your payment, you may get a better interest rate. If you are in financial trouble, you may be able to get better terms or payment dates, or perhaps a relief of payments.

If you are not having trouble paying your debts and you have a good credit history, you can contact your credit card companies to ask for a lower interest rate. Although the answer may initially be no, if you say you are thinking of switching to a card with a lower rate, they may be willing to consolidate with you.

Renegotiating card debt is more difficult if you have financial problems

Renegotiating card debt is more difficult if you have financial problems

While credit card companies encourage you to get in touch with them in advance if you have trouble paying off your debt, some are more likely to work with you than others, and it is almost impossible to guess how they will react until after you contact them, the

With most companies, you should contact them if you know that your payment will be delayed in a few days, or if you think a change in the regular payment date will make it easier for you to pay on time. Many companies can also provide relief if you are temporarily out of work or there is a sudden illness or a family emergency that you need to attend to.

Other companies may cut your credit if you give clues that you will have trouble making the payments. So you need to be careful when deciding to consolidate, who you decide to consolidate with, and how much you talk about your financial problems. If you start negotiating, be prepared to respond to the concerns of the credit card company.

Finally, do not let a bad experience with a lender discourage you as others may take a different approach mainly with the actual possibility of credit portability.

Do not let the debt of the card go out of control or you can get in trouble.

Settle Debt: Your Options After Trading

Settle Debt: Your Options After Trading

There are many options to explore when you are negotiating a credit card debt settlement. They may involve changing payment dates, lowering the interest rate, or even reducing the payment of the installments of the card.

If you need larger credit card company grants, the company will probably cut your credit, at least until it is paid, but usually takes longer. If you are having serious financial problems that probably will not be resolved in a few months, you can explore these possibilities with the credit card issuer:

  • Tolerance agreement (no payments) for a period of time
  • Long-term repayment plan with reduced or no interest
  • Payment of full settlement at a reduced amount

In the latter option, it may be necessary to obtain a personal loan for the payment of the credit card in full.

Who to talk to at the credit card company?

credit card

Who you talk to depends on what you want to consolidate.

Change the payment date

If you just need a change in the regular payment date (to match your payday, etc.), you can probably talk to anyone in the customer service department.

Interest Rate Reduction

Asking for a reduction in the interest rate may require a manager to get involved.

Your payment will be delayed.

Many companies have a specific department to which you will be transferred if you are calling because you anticipate that a certain payment will be a few days late. You can even cancel fines and interest if you call in advance about this.

Negotiating agreements or long-term payment plans

But if you’re asking for a more serious problem, the customer service department probably will not be able to help you, even if he says he can. You will need to talk to a supervisor or a manager in that case.

When negotiating the debt, obtain the agreement in writing

When negotiating the debt

No matter what agreement you have finally reached: make sure you get the agreement in writing and fulfill your payment plan. If you have more financial problems, contact the lender before you are late so that you can reconsolidate. If you wait until you set the settlement payments, the lender may not be willing to reconsolidate with you.

How Do You Consolidate Credit Card Debt? What other tips are important?

The right term for a mortgage loan

It’s about getting the house we’ve dreamed of, but does that mean we have to pay that mortgage for the rest of our working life? Of course not! And even to apply for this credit we must have certain considerations, in order to make sure we can enjoy our home when we are still young.

Are you sure that the house you want to buy is within your means?

money loan

Experts mention that if the term you need to pay for that home is more than fifteen years, then it is simply a bad purchase. Remember that it will always be a risk, so it is better to start small. Invest a reasonable amount that does not harm your monthly budget. If you don’t know anything about investments, you can approach the institutions that handle investments in mutual funds (which are an option) such as banks and ask what profitability is.

Again it is good to remember that in matters of credits

A longer term will always be related to higher interests, so if we talk about a 20 or 25 year loan, it is a considerable amount of higher interest to be paid. Now, it is true that when the term is reduced, the monthly fee increases, but if we compare the interest with the “extra” fee we would pay, it is worth it.

Do not be discouraged at first. If in your first investment you did not get so much money, do not be discouraged, remember that you invested only a little to see what it was. The important thing is to learn. You can search online education about investments and other recommendations.

But in the end it all depends on you and if you already thought about it and chose the term that suits you best, it is time to request the credit that you crave, but first compare them all , in order to find the one that dazzles you.