Archive March 2019

If you do not have your finances permanently in view, you can quickly get into a tailspin. Because especially in our time, where there are buying incentives on every corner and where the flood of goods and the infinite possibilities force us to more and more expenses, the overview of your own finances can be lost quickly. And then it usually does not take too long until the first unpaid bill lands at a collection agency, which is tasked with the recovery of outstanding liabilities.

If it has already come to this, then it means that the failed now catch up quickly and to put their own finances back on a firmer footing. In addition, the debt must be cleared quickly, otherwise it leaves its mark in the private credit and then ensures that financially speaking hardly anything. After all, whoever has a negative attitude with the private credit, for example, has no chance to take out a loan under normal circumstances. In addition, a purchase on account is no longer possible and the conclusion of a new telephone contract or the application for a credit card is no longer working.

But what to do if a debt collection company already cares about the debt and wants to quickly get the money? Where should it come from, if there are no savings? Does a loan work despite collection? Or is this not possible anymore?

Loan despite collection – that’s how it works

A collection company should always be seen as a last reminder of the big financial bang. Anyone who has not served their obligations before and has not paid any attention to the payment reminders and reminders of the creditors now has the last chance with the debt collection company to pay its debts in a normal way. The fact that the collection agency has packed a hefty premium on the debt, which now has to be paid, should be regarded as a punishment and a reminder. Because who is defaulting, must pay for it.

A loan despite debt collection can always work, if the debt is not yet in the private credit. In order for them to land there, a judicial dunning procedure must have been initiated. However, as long as the collection company still collects the debts, this dunning procedure does not yet exist. And thus there should be no negative entry in the private credit.

For all concerned, this means that now has to act quickly if a loan is to be taken despite collection. In the best case, one looks first on the Internet for suitable loan offers. A comparison calculator can help and take a lot of work. He shows the best credit offers and also links directly to the underlying banks.

The recording over the Internet can be completed within a few days. If a simple installment loan is selected, then this is not earmarked and can therefore be used individually. And a consumer loan should still work under these circumstances.

However, in this financially tense situation, we recommend that you refrain from further financial burdens such as loans that are not taken to repay the debt.

Anyone who in the already difficult situation makes further debts that are not needed can also be held liable under such circumstances. Namely, if he deliberately takes the credit, although it is known that this actually can not be operated. We therefore recommend that you only take out a loan despite collection, if the money from the loan is to be used to settle the debt and to be financially stable again.

Getting a little extra cash at a time of tightening can be useful in many people’s financial lives. It is hard to predict, for example, when the car can break, the house reform does not move, unexpected medical expenses arise, the child’s school tuition is delayed or credit card debt does not stop growing. At these times, ads like “Personal Loan Now!”, “Easy Money and No Bureaucracy!” Appear as quick and simple options to get out of the way.

However, caution should be exercised when taking out a loan, as a false step can cause a lot of headaches. The possibility of having extra cash falling on your account is tempting, but it is not worth taking a loan, for example, to buy something superfluous, like a new cell phone. Already, if you have expensive debts (credit card and overdraft), exchanging for a cheaper one, such as personal credit, is a good option.

Knowing how to identify if you really need extra credit is important so you do not wind up afterwards when it comes to paying the installments. There are situations that we can solve just by closing the spending spigot and avoid paying interest unnecessarily.

With that in mind, we’ve prepared 10 important steps for you not to get involved in a personal loan:

1) Map your spending

Evaluate your expenses and see where you can cut expenses. Even if you can not save enough to solve your situation, you will need money on the end of the month to repay the loan. See if you can not reduce the amount of trips to restaurants or buy cheaper brand products on the market, two expenses that weigh heavily on the Brazilian budget today. Doing the financial control is essential in order not to fail to pay some installments and end up getting even more indebted.

2) Evaluate the purpose of getting a loan

Identify why you need the money. It is essential to be clear about the real need for credit. Using it to buy a car, pay for travel or have more money to make purchases that are not planned can put you in an even more complicated financial situation.

In cases of renegotiation of overdraft or credit card debt, a loan may lower interest rates to less than half. It is also acceptable to use money for contingencies related to health in the family, for example, or to undertake or have it reformed in your property that has been delaying for some time. But it is critical that you make a plan to pay off the debt.

3) Analyze if the loan is the best way out

Is getting a loan really necessary or is it possible to get the desired amount saving for some time? If the answer is yes, it is advisable to add the necessary money and do not take the loan, avoiding paying interest unnecessarily. We can help you save money: read our post ” 50 tips to learn how to save money “.

Borrowing money from relatives and friends is a good way out, but one must be aware that money must be returned in the same way as for a financial institution.

4) Search for options before getting a loan

The tip is the same for when you are going to buy some good: research before you leave hiring a credit. In addition to talking with your bank manager to find out what they can offer you, also research the market, competing banks, financials and now also internet credit. Because they have leaner operations, institutions offering online loans are able to offer cheaper interest rates and still make the hiring process easier. We compared 6 credit options online, see here.

If you have any restrictions on your behalf or already have other loans, you are likely to be presented with higher interest rates. With us it is possible to consult for free the status of your CPF.

And be careful when choosing the financial institution where to take a loan, as there are many front companies that take advantage of this type of situation to apply blows. Look for referrals on the internet and between acquaintances before closing a contract.

5) Plan the payment

Before you get into a debt, keep in mind how you will get out of it. A loan can not become a debt that you can not honor. It is important to note that the amount of the installments to be paid monthly does not exceed 15% of their monthly income. Use caution when accepting soft proposals because they are usually many! It is important to always consider Total Cost Effective (CET), which includes all costs related to the loan, such as interest and taxes. Also pay attention to the contract and the charges as a fine and stay commission, in case of late payment of the installments.

Also check if other major costs will arise, such as the college of a child or the purchase of a property, for example. Do not forget that unforeseen events can also occur, so avoid accumulating debts and prioritize cash purchases so you do not compromise your budget for a period of time to lose sight of.

6) Read the agreement

Unfortunately, most people are not in the habit of reading loan agreements. However, reading the document is fundamental (and mandatory) so there are no surprises along the way, such as maintenance fees, readjustment of values, possibility of cancellation only through payment of fines, among other things.

7) Raise the necessary documents

In general, the financial companies request the following documents for the realization of the loan: CPF, RG, proof of address and proof of income. These documents may vary according to the requests of each institution, but all are relatively easy to achieve. Financial institutions that offer online credit are usually less bureaucratic and faster in the process of releasing money.

8) Deliver your documents and wait

After choosing the financial or bank that offers the best credit solution for your need, just deliver all the requested documents and wait. But attention: delivering the documents and have no restrictions in the CPF is no guarantee that the loan will be released. Each company has its approval policy, which may include payment histories, available income, economic profile and the existence of other loans. Therefore, do not make debts relying on the loan money before having a return from the financial institution.

 

There are many ways to take credit for account balance. This can be an installment loan from the house bank, another bank or a personal loan. In addition, you may seek the help of a private credit intermediary if you are looking for an account balance loan. Because of the variety of offers, it is usually not easy for laymen to keep track. For this reason, a comparison is recommended before a particular offer is considered and a loan application is made.

loan comparison

It happens very quickly that the credit line is used and the account is permanently overdrawn. Often it is then very difficult, if not impossible, to balance the account in the short or medium term. Since it is by no means advisable to keep the account permanently in the negative and constantly use the credit line, a borrowing for account settlement should be considered. This has the advantage that the account can be brought back to zero within a few days after the loan approval. 
In addition, the interest on an installment loan is usually much lower than the interest on a credit line.

It stands to reason that you should first contact your bank with your request for an account balance loan. As understandable as this wish is, they should not let it become reality too soon, but first compare different offers. In doing so, you should include not only the branch banks in your immediate vicinity but also direct banks, private credit intermediaries and private lenders in your consideration.

Bank credit for account settlement

For a bank loan you have to fulfill certain conditions. These conditions are almost identical for German banks and savings banks. So you only have a chance at a loan approval, if you have a regular income and a faultless private credit information. If the latter is not the case, you can take out a personal loan as an alternative to a bank loan, or you can turn to a private credit intermediary with your request for a bank-clearing loan. However, you should be careful that no one asks you for any advance costs or makes unrealistic promises. Otherwise you should absolutely look for alternatives.

If you have found a suitable lender, you can submit the loan application on the Internet or directly on site. The latter requires, however, that it is a branch bank. Otherwise the application on the internet is obligatory. Once the loan application has been received by the bank, it will be audited and quickly approved if all the necessary conditions are met. Once the money has been deposited into your account, you can use it the way you intended and balance your account. If you transfer the money directly to the account you want to balance, the process is very simple. The repayment is made in monthly installments that remain the same throughout the life of the loan.

Personal loan for account balance

Are you interested in a personal loan, you can go different ways. On the one hand, you can turn to a person from your own circle of friends or relatives and, on the other hand, to a stranger. The latter is most likely to be realized when you register on an Internet portal specializing in the provision of private credit. These loans can be used for a variety of purposes and serve, among other things, the account balance.

The requirements for creditworthiness are different for a personal loan than for a bank loan. However, you must have certain security and should be able to prove that you have a steady or at least sufficient income. No one has to give away money, even a private person, neither from your personal circle of acquaintances, nor a stranger. 
In addition, it is very important to comply with agreements once reached. Otherwise, a lot of trust can be lost, a fact that should never be underestimated, especially in the private sector.