The payday loans are actually short-term consumer loans (loan companies are subject to the Consumer Credit Act – just like banks).

Pursuant to the provisions, all institutions covered by the Act are obliged to inform clients (in a legible and visible way) about the APRC ratio.

It should be noted that the APRC was created to evaluate financial products with a longer duration (as the name implies – at least one year).

In the case of payday loans

(i.e. products for 30 days) – this factor is of great value and can deter many consumers.

When RSSO exceeds 100%, the customer seems to have to pay back the amount borrowed at least twice.

It’s not true.

The payday loans will always have a huge APRC – despite the fact that their total cost may be the same as for a banking product.

Imagine lending a friend PLN 10. You agree that a friend will give you back PLN 11. If a friend gives you money for a year – APRC will be 10%. If you arrange to pay you back in 30 days – APRC will be 218.87%.

In both cases, the borrower must pay back PLN 11 – and the APRC is very different. Simply – the method of calculating the APRC coefficient has been determined by law and you must calculate it the same for products with different repayment dates.

The calculation of the APRC takes into account the period of time during which the consumer may have the amount borrowed.

Therefore, it does not make much sense to analyze the price of a short-term loan based on the APRC alone. Even more so when trying to compare the cost of payday loans and bank loans.

The maximum price of consumer credit

(and therefore payday loans) was regulated by the anti-usury act . In the case of such a loan, non-interest costs may not exceed 25% of the loan value per annum. Interest may amount to a maximum of 10% per annum, and the total cost of the entire payday loan (e.g. over several years) may not exceed the value of the amount paid.

Currently – by borrowing PLN 1000 for 30 days – the lender cannot demand more than PLN 1283 from you.

Do you want to learn more? Learn the 6 basic differences between a loan and a loan.

What is important besides APRC

A high APRC does not necessarily mean that we are dealing with an expensive product. Despite the huge value of this ratio, over 3 million Poles use the services of loan companies. The bad reputation of payday loans originated in the 1990s, when many sensible regulations were missing on the market. For example – the Digital Lending industry – has been operating in Poland for 7 years, and 81% of surveyed clients are satisfied with these transactions.

When choosing a lender pay attention to:

• who is the lender
• loan price
• repayment rules

Exclude unreliable entities first. Check if the company you plan to take out a loan from is on the list of the Polish Association of Financial Institutions.

When concluding the contract, you will receive a summary of all costs and repayment schedule. Instead of complicated mathematical calculations – try to assess whether the loan amount corresponds to your financial capabilities and you will not have problems with repayment.

The redemption of credits is a financial transaction that should not be taken lightly. Its impact is significant on the management of the household’s financial budget, a new credit that is ill-adapted to meet the needs of borrowers and the situation can very quickly turn to over-indebtedness.

So, it is imperative to prepare your loan consolidation project upstream so you can make the right choices at the right time!

Why do I have to prepare a buyback transaction?

As stated in the few lines of the above-mentioned paragraph and to put it simply, a miscalculation of the new plan of Dick and Nicole Diverment that brings together all credits and the balance of your budget management turns into a nightmare!

The repurchase of credit makes it possible to gather several loans (real estate and consumption) in a single loan, and a single monthly installment easy to support for the subscriber (s). If, over time, the consolidation loan becomes unsuitable for the repayment capacity of the subscriber (s), they will then find themselves in the same indelicate financial situation as before the loan buyback operation.

It is necessary to carefully prepare an upstream credit buy-out project so that it can then obtain a sustainable buy-out solution.

How to prepare the redemption of his credits?

So how to prepare the redemption of its credits when the personal financial situation is urgent? When it comes to restructuring the monthly credit charges, usually time is running out, but you have to be careful!

To better understand the operation of a loan redemption, even to be novice about the subject, it is necessary to soak up a maximum of information if one wants to give a maximum of luck to be able to realize successfully consolidating its credits.

The help of a credit repurchase broker is recommended to obtain a repurchase of credit. Our financial advisors who are experts in loan redemption accompany you along the way of your request for loan redemption and determine a tailor-made solution that meets your expectations and your financial needs.

Discover our new range exclusively dedicated to expanded mortgage lending! A range of focused on the acquisition of real estate. An innovative and efficient product at the same time thanks to interest rates unbeatable on the market and the possibility of including in the plan the purchase of real estate loans and / or a cash envelope, but also the redemption shares of SCPI.

Real estate credit revisited!

The real estate credit revisited is a mortgage whose field of intervention is much broader than the classic mortgage loan.

The object of the credit allows:

• acquisition of real estate (principal, secondary or rental residence)
• the of real estate in the new (completed or off-plan)
• the of real estate in the old
• building (only via CCMI)
• the acquisition of shares in SCPI
• Marchmain work familyment (included in the overall amount of the transaction)
• unrestricted cash up to € 20,000

We note that some work can be financed in the case of an acquisition in the former for example. However, the works should not be the main focus of the. We also point out that SCI (real estate companies) are eligible for the only if the tax system is to income tax. No purchase of managed rental residences.

The characteristics of extended real estate credit

The extended real estate loan is intended for salaried and retired customers, but also annuitants, liberal professions and SCI for income tax purposes. This product is not eligible for tradesmen and entrepreneurs, autoentrepreneur, etc. The maximum age of loan completion is ninety-five years. Applicants must not present any bank records to the Banque de France (FICP and / or FCC).

In order to qualify for an extended mortgage offer, applicants must submit at the time of filing their application for a study, a debt ratio of less than fifty percent. The number of credits in repayment must not exceed number of ten loans. The study of the client file (s) is carried out through the analysis of the last three months of all bank account statements.

No rejection of the levy must be pointed at the account (s), otherwise your file is refused because this is unacceptable. The maximum debt ratio after the maximum allowed transaction is forty percent insurance (s) included. The minimum amount of the must be € 22,000 and the maximum € 2,500,000.

The benefits of expanded mortgage

Our expanded mortgage offer has many advantages over a real estate loan offer issued by a conventional deposit bank. As soon as you proceed to the purchase of your mortgage by an external bank, the latter always requires the domiciliation of bank accounts.

This entails the payment of income, as well as all withdrawals and transfers made to the account. In other words, the new bank becomes your default account. With the Marchmain family Marchmain family real estate loan renegotiate your real estate loan in changing banks! If your file has been previously refused to cause intervention fees charged to account during its instruction, then you will get a favorable opinion with the expanded mortgage credit because this is not crippling.

The expanded mortgage is the opportunity to obtain the best interest rate with the conditions mentioned above. Get a fixed lending rate of 1.95% over 25 years. over 35 years possible at a rate of 2.55% fixed and can reach a loan age of 95 years.

How can we check, calculate and increase creditworthiness?

In a simplified principle used by many Western banks, the maximum credit a customer can count on is one hundred times his monthly income on hand. In practice, however, hardly any bank would allow a larger commitment to be made on the basis of this principle alone. A full creditworthiness assessment depends on a very large number of factors. Can we independently assess and increase our credit standing?

What should be considered when assessing creditworthiness?

The exact assessment of creditworthiness consists of the results of two analyzes: quantitative and qualitative. In the first one, the bank takes into account strictly financial factors: monthly income, maintenance costs, savings and own contribution, as well as currently paid loans and credits. In the analysis, the bank uses the information contained in the Credit Information Bureau report. On the other hand, qualitative analysis additionally takes into account indirect factors that may affect the financial situation, e.g. marital status, seniority, job security, and property status.

How to check your credit standing yourself?

If at the moment you do not want to go to the bank for consultation with an employee, use the online credit calculators. All you have to do is fill in all the information carefully and the program will make a detailed assessment. Interestingly, banks often use similar programs to simplify and streamline their work. Thus, the result obtained is very reliable and allows you to check which credit offers we can count on at various banks.

Ways to increase creditworthiness

Are you applying for a large loan and your current creditworthiness does not allow for such a large commitment? There are ways that will allow you to quickly improve situations and increase the credit threshold by up to several tens of thousands of zlotys. First of all, keep expenses and costs of living to a minimum and pay all amounts due. Start saving your saved money against your own contribution. In this way, you can relatively quickly improve your financial situation and increase your credit rating in the eyes of the bank.

The purchase of credit is the ideal solution to lighten his family budget. Indeed, this procedure consists in compiling several financial charges in order to simplify the budgetary management of the household. It is an operation that also allows to take advantage of a cash envelope in a single plan, in other words in a single loan offer.

Get a buyback of consumer credit over 15 years

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We offer a panel of consumer credit repurchase products dedicated to individuals. A comprehensive offer to allow individual borrowers to purge their outstanding revolving loans and personal loans while preserving the proper management of their monthly budget.

While the consolidation of consumer credit was proposed for a maximum of 12 years (144 months), it is now possible to envisage a longer depreciation period over time. Indeed, the offer of our banking partners specializing in credit restructuring now allows a depreciation of the remaining capital outstanding from consumer loans over 15 years, ie 180 months.

A consumer debt consolidation solution that offers more flexibility to homeowners who want to keep their home loan while obtaining a debt ratio adapted to their ability to repay.

Get a cash buyback with cash

When buying a loan + cash, the cash envelope is used by the borrower as it sees fit. Thus, it can be useful for a project heart stroke or even to build a safe savings in case of unforeseen circumstances.

This operation is particularly aimed at homes that are experiencing financial difficulties or conversely, households eager to make new projects but no longer have the borrowing capacity to obtain cash.

The advantage of a consolidation of consumer loans over one hundred and eighty months is that the fifteen-year period allows borrowers to include in the larger cash-flow envelope than a buy-back of consumer credit. over an amortization period of one hundred and forty-four months.

No mortgage guarantee is required by the establishment, it is a fixed rate and depreciable. It is a personal loan granted by the bank which has as sole guarantee the durability of the income of the borrower (s).

One or more new projects that are important to you while getting a monthly payment adapted to the good management of your budget. A monthly payment that allows you to benefit from an increase in your monthly purchasing power, and that offers you the opportunity to build cash through the implementation of a programmed savings. At the same time, you can write off your credit with confidence.

In a context more and more conducive to debt caption debt, since credit interest rates are particularly low for 3 years, it is common to consider the purchase of debt outstanding by a new body to benefit from the decline rates.

While the average interest rate over twenty years was 3.20% in June 2013, at the end of May 2015 the average interest rate over 20 years is 2.20%, a decrease of 1 point within 2 years. This is obviously the perfect time to study the repurchase of its mortgage.

If you are more likely to get a better financial offer than your current borrowing terms, the comparison does not end there. We will try to give you the essential keys to a complete comparison of the new proposals that are made to you.

Insurance: contingency coverage and cost

In a move to buy real estate credit by competition, insure the risks of life is an essential element not to neglect.

Indeed, insurance coverage repurchase compulsory credit, no !!! But it should not be forgotten that it makes it possible to avoid difficult situations in the event of a fall in household income linked to a hazard. Care must be taken to maintain the same guarantees as for the original loan unless the borrowers’ situation has changed since the credit was put in place.

For example, in the event of a change of status of one of the two borrowers: Mr. was previously a private sector employee and is now a public servant or if the borrower is retired in the process of buying back credit. In the first case, if the borrower had a loss of employment insurance cover, then it is no longer useful given his new status. In the second case, the loss of employment cover and temporary incapacity for work (ITT) no longer have any purpose, since it is no longer active.

Apart from certain changes in circumstances, it is therefore necessary to maintain similar coverage or even strengthen it. Indeed, the purpose of the real estate loan consolidation is to reduce the cost of borrowing through better financial terms. The saving realized over the duration or the monthly payment can therefore be assigned to an increase of life accident guarantees.

Finally, before starting a loan buyout project by the competition, it is important to take stock of your state of health. If health conditions or problems have occurred since the loan was put in place, then these may have an impact on the effective gain of your credit redemption or even its feasibility. Indeed, when collecting loans, you will be submitted to a medical questionnaire that takes into account your current medical situation (at the time of loan redemption).

In case of particularity, the insurance company may refuse the assumption of responsibility or apply a surcharge (increase of the monthly insurance contribution for the insured).

In order to compare the cost of insurance, it is interesting to refer to the monthly coefficient. This insurance coefficient is expressed in relation to the borrowing monthly payment. In addition, some bank proposals include the total cost of insurance over the entire term of the loan.

Credit redemption: the cost of the new banking relationship

Indeed, the purpose of the real estate loan consolidation is to reduce the cost of borrowing through better financial terms. The saving realized over the duration or the monthly payment can therefore be assigned to an increase of life accident guarantees.

It is also very useful to compare the price of banking services. Most often, the bank that makes you a proposal for credit redemption requires the domiciliation of income as a counterpart. Which implies to become a customer as a principal.

The majority of banks offer a “package” of services with a monthly fee. This is an element to consider when comparing two proposals.

The repurchase of a loan by a new banking institution must therefore be studied in a global way. To really win on this operation, it is essential to consider the proposal in its entirety and not only through an interest rate.

More and more people who have subscribed to several credits choose to start a procedure to buy credit to clean up their budget. A credit redemption can also be made to improve monthly purchasing power by reducing repayment payments to generate more cash. Moreover, it should be known that the repurchase of credit is a relatively simple operation to put in place.

Applying to a credit broker

The repurchase of credit consists in appealing to a financial organization which will undertake to buy back your various credits to become your only creditor. With the numerous credit buy offers on the market, you can go directly to banks and / or lending institutions for more information.

Nevertheless, faced with the many bundling offers that are proposed today, it may be very appropriate for the situation to call upon the services of a broker specializing in repurchase credit to see more clearly.

The expertise of the broker allows you to find the best deals but also to negotiate the conditions of your debt consolidation by defending your file with its banking partners. Thanks to its know-how, the broker of repurchase of credit helps you to negotiate a better rate of interest and to define a refund amount perfectly adapted to your budget.

The mechanism of the repurchase of credit

The repurchase of credit is conceivable since you have contracted at least two credits. You will be able to include all types of credits in this transaction, be they mortgages, personal debts or consumer credits. Many sites on the web today allow you to simulate your credit redemption in a few clicks.

All you have to do is fill in some information such as the amount remaining to be refunded on your credits, your professional situation, the types of credits involved in the application, etc. Thanks to the simulators, you will have a fairly precise idea of ​​the monthly payments you can claim.

It is also important to compare the different offers that are available before you commit. It will then be necessary to make a request to the targeted financial organizations. Note that it is recommended to be accompanied by an expert to help you gather the necessary documents for the constitution of your file and the various supporting documents that will optimize your application. The point of view of an expert is also recommended during the negotiation phase. This increases your chances of having a favorable response and better repayment terms.

The rising cost of living, the economic crisis have resulted in many households in an almost endless cycle of debt. How to get out of this inextricable situation?

Why overindebtedness?

Unable to save, individuals or households do not hesitate to subscribe several credits to buy a car, a house, make trips, ensure the higher education of a child, etc. Over time, they fail to repay the loans they have contracted and, at the same time settle the bills of the expenses of the everyday life.

They find themselves in a situation of over-indebtedness since their financial burdens far exceed their incomes. Over-indebtedness can be caused by a decrease in income, an unforeseen event such as unemployment or illness. But it can also come from the fact that the people concerned, by contracting several credits have not properly studied their ability to repay or have not sufficiently informed on important details in the face of the risk of over-indebtedness.

What are the consequences ?

People over-indebted, in addition to the repayment of their loans with interest, will still be inflicted other evils: payment of the penalties of delay or other additional expenses like those raised by the commissions of intervention banking and discharges of levies, or still of ATD or bailiff.

To get out of this situation, they can send a request to the Bank de France for the constitution of an over-indebtedness file. If an amicable agreement can not be found between the parties, debtors and creditors will be imposed a repayment plan. People who have filed an over-indebtedness file will be listed on the Personal Credit Reimbursement Incident File or FICP, will not be able to take out new loans during the procedure of their financial situation and thus be vigilant about their expenses.

The buyout of credit to break the deadlock

In this process, all loans contracted, real estate, consumption and others, will be combined into one, with a lower interest rate. The repayment period will be adapted to the income of the borrower. The amount of monthly payments can be reduced by up to 50% compared to the monthly payments that he had to pay before.

He will not have to pay the monthly payments of several creditors but only one will be his interlocutor. The repurchase of credit, also called credit restructuring, avoids the hard procedures of the over-indebtedness file and allows the persons concerned to have a clear situation of their financial situation. Finally, it is advisable not to wait to be bogged down in debts to have recourse to them. And the best solution is to use a credit broker who has all the tricks of the trade and find the appropriate solution in each case.