Recognize the dangers of over-indebtedness in good time

When the question arises of how to get out of the debt trap, it is usually too late. So the question of how to avoid debt is actually much more important. What do you have to do to avoid falling into the debt trap, because debt is a homemade problem.

Many people in debt can no longer sleep properly because of their debts, do not go to the mailbox and if they do, they do not open their mail. When the bailiff rings the doorbell and tries to seize it, it is actually almost too late. But how is it that more and more people fall into the debt trap and why are young people particularly at risk?

The cell phone as the number one adolescent debt

The cell phone as the number one adolescent debt

The mobile phone is the linchpin for many young people. With the new status symbol, young people quickly fall into debt because their income is not enough to pay for the expensive cell phone with all the bells and whistles it offers. Once on Malle on vacation, some photos sent and texted day and night, it is enough to have an invaluable mobile phone bill and a cycle begins that cannot be avoided again and again.

Mail order loans

Mail order loans

A debt trap that many consumers, especially those who do not have much anyway, is falling into the rate orders in the mail order business. Buy today, pay later, or take out a installment loan. Mail order is often advertised, with the result that many people become hopelessly in debt by ordering goods that they cannot pay for.

But even if everything is going well and the loans can be serviced because of a regular income, this can also change very quickly if you become unemployed or separated from your partner.

Wrong help from the credit intermediary

Wrong help from the credit intermediary

Credit brokers often promise quick and unbureaucratic help in precarious financial situations. But credit intermediaries don’t really want to help, they usually aim for the money of desperate customers. So you’d better keep your hands off it.

Avoid over-indebtedness from the outset

Avoid over-indebtedness from the outset

Protected against over-indebtedness and very sensibly act the consumers who make it a habit to keep a record of their income and expenditure. This makes it easy to see when the emergency brake has to be pulled because the expenditure is greater than the income.

However, many of the indebted who ultimately had to register for personal bankruptcy did not even know how much debt they have and how much their monthly expenses are.

The overdraft facility, for example, gives visible first signs of financial problems. Anyone who has to earn part of their livelihood from the overdraft facility every month is actually in danger. The overdraft facility is only intended for financial bottlenecks and should be balanced again after three months.

It is important that when you recognize that you are in danger, the emergency brake is pulled immediately. A professional debt counseling service, which is free of charge, can also be used if the child has not yet fallen into the well. On the contrary, many debt counselors would like consumers to find them with financial problems much earlier, because then much more can be saved.

Bank offers cheap instant loans.

Instant loans are very popular with borrowers.

Instant loans are very popular with borrowers.

Make sure that the loan can be paid out quickly and easily and that the request that goes with the loan can also be fulfilled quickly. There are many cheap instant loans.

Banks often offer them not only directly in branch operations, but also online. As a customer, you have the choice of which way you want to go for the degree. Both variants have their advantages and are designed so that the customer can get a loan quickly and without great effort. In addition, advice on cheap instant loans is possible in both cases.

When cheap instant loans are desired

When cheap instant loans are desired

Some situations in life require a quick decision. Even when it comes to financial matters. So it can happen that an urgent purchase cannot be financed from the monthly income and a loan has to be taken out. Not a big problem as there are loans for exactly this reason. And if there is sufficient creditworthiness, nothing stands in the way of admission. It is only important that the credit rates can be serviced in the long term and that they do not have a negative impact on monthly expenses.

There are many loan calculators on the Internet that can help you find an instant loan. You can recognize cheap instant loans above all by the fact that they have good conditions in addition to a low interest rate. The instant loan should go hand in hand with no upfront costs and should not require any processing fees.

However, if you do not want to use the comparison calculator, you can also find out about the various offers of the banks in specialist magazines or in daily newspapers. However, this is certainly a bit more complex to find cheap and worthwhile instant loans. The effort is significantly less online and the right loan is found faster. In addition, you can usually send a credit request to the corresponding bank and save more time.

Tip: An instant loan should only ever be used to make an important investment. If, on the other hand, the money is used to buy consumer goods or even to cover running costs, it can happen that this will come back at some point. In this way, many consumer bankruptcies have already arisen that could have been prevented by targeted money management. This should always be kept in mind when taking out an instant loan. No matter how small it may be.

Low Interest Credit – avail it now!

 

In order to be able to finance larger wishes or necessities, more and more people are using a loan. In the past, the path led directly to a house bank, nowadays, loan seekers have numerous options to borrow money. It is therefore always worth investing a little time and comparing the different offers. This is how you can find a low-interest loan for your own needs.

Fast and cheap loans from the Internet

Fast and cheap loans from the Internet

In recent years, the financial market has grown a lot thanks to the Internet. Many credit institutions use the opportunity to process loan applications electronically. Since this way, personnel costs can be blocked, the institutes can offer their loans on more favorable terms than the house bank, for example. The offer on the Internet is quite extensive these days. A low-interest loan can therefore best be found using a comparison calculator.

These can usually be found free of charge on the Internet. However, it should be ensured that this is independent, so that as many offers as possible are taken into account in the search. Now you only have to enter the desired loan amount and possibly the length of the loan and the different offers are presented. As a rule, the cheapest loan comes first. The others then follow in descending order.

How does the online credit work?

How does the online credit work?

A loan that is granted over the Internet works just like an installment loan with the bank. The loan amount must be repaid monthly for a certain period of time. The best conditions will be given to people who have never had any payment difficulties and have a good income. Because like any other bank, the credit companies that issue an online loan also collect information from Credit Bureau. If you have an entry here, you can often still get a loan, but the conditions and interest then look significantly worse.

A low-interest loan can also be granted thanks to a guarantor. If a loan seeker does not have the best prerequisites to get a cheap loan himself, a guarantor can significantly improve his chances. This guarantor must have good creditworthiness, because he undertakes to take over the payments in the event of default by the borrower. In principle, anyone can act as a guarantor, be it from the family or from a circle of friends.

Keep your eyes open when looking for a loan

Keep your eyes open when looking for a loan

As everywhere else, you should be careful when looking for a cheap loan, because not everything that looks cheap at first glance is. The contracts should be checked very carefully for any additional costs. This is important for anyone who may want to redeem the loan before the end of the term. In most online credit institutions, a low-interest loan is really expensive in this case because penalty interest has to be paid.

Credit Declined – What To Do?

 

For many consumers who the bank refuses to apply for a loan, a world collapses when they really need the money. Nothing is actually lost, because if a bank declines, it does not necessarily mean that you will not get a loan. First of all, you should find out why the application was rejected and what you can do to get a loan.

Possible reasons for a loan refusal

Possible reasons for a loan refusal

In many cases, it is the applicant’s negative credit bureau information that causes the bank to reject a loan application. If you do not know the content of your credit bureau information, you should request your own information from credit bureau in the next step. This has even been possible once a year free of charge since 2010. It often happens that entries in the credit bureau are incorrect, so that the credit bureau information can be corrected and a loan is approved for a new request.

If a negative credit bureau entry is justified, you have to inquire with the bank under which conditions it is possible to get a loan despite the negative credit bureau information. If it is a completed and / or not so serious credit bureau feature, many banks are ready to grant a loan if a solvent guarantor is included in the contract or the loan can be secured in another way.

Apply for a loan without credit bureau

Apply for a loan without credit bureau

Loan seekers who receive a regular good income from a permanent position, but have a negative credit bureau information, with which they cannot get credit from German banks, can alternatively have their loan application processed by a credit broker who also arranges loans without credit bureau. You can only get a credit bureau-free loan if you can prove attachable income from a permanent position. credit bureau-free loans are generally more expensive in terms of credit costs than loans of the same amount from German banks and are only granted via a loan amount of USD 3,500.

The income is too low

The income is too low

Another reason that often leads to loan applications being rejected is that the applicants’ income is too low. This also happens when you are fully employed, but one of the low earners. The attachable income for a single person is currently just over 1,000 USD and most banks do not grant loans to people who cannot demonstrate a attachable income. Unemployed people, Social welfare recipients or recipients of sick pay are also affected because such wage replacement benefits are not part of the attachable income.

But here, too, banks often let themselves be talked about and later grant a loan that has initially been rejected if a suitable guarantor signs the contract.

If no guarantor is found

If no guarantor is found

Those who do not have a solvent guarantor or who do not want to burden anyone else with their financial problems can use other alternatives. For example, there is also the possibility of borrowing money from good friends or relatives, of going to the pawnbroker, or of providing life insurance if you have one.

If the rejection is justified due to poor creditworthiness

If the rejection is justified due to poor creditworthiness

Of course, there are always cases where the refusal of the loan application is only a logical consequence. No guarantor will be found and even good friends or relatives are unwilling to lend their money because the person concerned is obviously already in debt. In such cases, it is better to contact a debt counseling center for professional help and support.