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  • “The bank refused to grant me a loan because my income was low. I’ll try my luck with my uncle, he’s a rich man, he’ll certainly help me with the money. ”This idea might attack many people in financial need. Is a home loan a good idea? The family is a relatively sensitive environment for such serious issues as lending money. In order to maintain good relations, its members can overlook the many financial risks that arise from lending. “I lent my brother 50,000 USD. Although he promised to return everything in a month, it’s been over six months, and I still haven’t seen the money, my brother avoids me. I’m desperate … ”Internet discussions with similar experiences are teeming. You may say that this could not happen to you. You know your family member as your shoes, and if you ask for a loan, you can be sure of its reliability. But the opposite is true. You never know any person in the world 100% and you don’t fully understand how their brain works. You never know how to behave when it gets stressed due to insolvency and worries about its bare existence. Maybe he will try to act fairly and repay the loan. And maybe not, and he refuses to repay you. Family loan only with a written contract Although not many people may be something unnatural ( “You’re here with Franta not draw up a contract, you have known forever.”), A written contract is often the only evidence that the loan was made. In the event that you borrowed so. “On a good word, ”you cannot do anything in debt recovery because you have no way to prove it. We understand the feelings you might be thinking. You are on a relaxed family barbecue, chatting with your...
  • Quick answer: The interest deduction means that you can pay less in tax if you pay interest through certain types of loans, such as mortgages or mortgages. Interest deductions for loans and mortgages Throughout life, most Danes at some point experience a need to take out a loan. It can be loans for many different things. For example, home loans, car loans, boat loans or just a quick loan. When you take out a loan, interest is automatically included in the loan. An interest is a fee that you have to pay to be allowed to take out the loan. In other words, an interest rate is an additional expense that comes with borrowing money. What exactly is an interest deduction? An interest deduction is a type of deduction that allows you to pay less in taxes when you pay interest through, for example, housing or mortgage loans. This does not apply if you have taken out a mobile loan, a quick loan or an SMS loan fast payment. SKAT automatically calculates interest expenses in one’s annual statement, so you do not have to go in and actively register that you pay interest on a loan. What is the idea of ​​an interest deduction? The original idea of ​​the interest deduction is that it should act as a form of security for homeowners. It does so, since the interest deduction is stated in a adjusted percentage, which is to ensure that the homeowners are covered by part of their interest expenses. However, the deduction is available to others a homeowner, and you are also entitled to a deduction on loans through private financial institutions. An interest deduction is fully automatically included for example. home loans, mortgages, bank loans and consumer loans with finance companies. The subject of interest deductions is...
  • Taking out the car loan only with a fixed interest rate ensures personal serenity in future interest rate developments. At the end of 2011, interest rates were at an all-time low. Anyone who now has a loan obligation, whether as a car loan or for other purchases, should have this interest rate fixed. The likelihood that the key rate for bank interest rates will fall further is practically zero. With regard to the inflation rate and the USD crisis, a rate hike should be expected. The car loan with fixed interest rates – what effects does the key interest rate have on it? A change in the key interest rate will no longer have any effect on the car loan with fixed interest that has already been taken out. The key rate is set by the Agree Bank. The base rate is the interest rate that banks pay when they take out loans themselves. This borrowing is necessary in order to be able to grant loans yourself. The key interest rate is currently 1.5% (as of Nov. 2011). If the key interest rate rises, the interest that a borrower has to pay becomes more expensive. This applies to all loans where the interest is not fixed. When interest rates are high, it is therefore advisable to pay attention to flexible interest rates for loans. With a little luck, the interest rate will drop again and large interest savings can result. However, if the key interest rate is at a low, as is currently the case, then this good interest rate should be secured via the fixed interest rate. In the case of larger investments, such as house building, but also vehicle purchases, the fixed interest rate is always preferable to the variable interest rate. Only a fixed-rate loan creates the...
  • January 8, 2020

    How to get a Long Term Loan?

    Although many borrowers should strive to get rid of their debts quickly, in practice the opposite is rather the case. Loans with a long term are in constant demand from both banks and savings banks. Long-term credit – the advantages A loan with a term of 120 or even 180 months is particularly preferred by those who have only a relatively low income and who otherwise see no other option to take out a loan where the monthly installments are so low that they can also be used with one small income can be dealt with effortlessly. Maturities that go beyond this mean an increased risk for lending banks, which they pass on directly to their customers The rates for a long-term loan are often so low that they are barely noticeable to the borrower. In this way, you can continue to make a living and repay the loan at the same time. Long-term credit – the disadvantages Anyone wishing to take out a very long-term loan should, despite all the advantages, be aware that such a loan is always considerably more expensive than a loan with a shorter term. In most cases, an installment loan is paid off within 12 to 84 months. Maturities that go beyond this mean an increased risk for lending banks, which they pass on directly to their customers. This happens almost exclusively in the form of high-interest rates. Even if a borrower can prove that they have a permanent and unconditional employment relationship and at the time of borrowing it is absolutely certain that this employment relationship will still exist in 10 or 15 years, nobody can guarantee that this will actually be the case. The banks also know this. For this reason, they will always provide additional security and charge a high borrowing...
  •   It can be a bit of a upset when you first have to go out and borrow money. There is a lot to control, so the tongue must be held straight in the mouth. The many new foreign words and the conditions of the loan providers can seem complicated. But don’t worry. Take the time to understand it all, it will also benefit you later in life as almost no people come through life without borrowing money at some point. Here we review everything you need to know before you borrow for the first time, and give you some good advice along the way. Then you are well equipped for your first loan! What is a loan? It may seem pretty trivial to anyone, but it is still good to get defined. In life there are many types of private loans , we borrow both money and things from time to time – yes, will even borrow each other. In this post, we will review loan money, the first time you have to borrow and borrow from an official loan provider. Does it cost money to borrow money? Yes, it does as a starting point. This may sound absurd if this is your first time going out and borrowing money from family and friends. But the fact is that those who are going to lend you the money don’t know you, so why should they lend you something if they don’t get it? Fortunately, there are several loan providers that offer you to lend you money for free the first time you borrow from them. However, there are certain limitations on these loans in terms of how long you can borrow the money and how much money it is possible to borrow. Loan money for free on your first...
  • Admittedly, debts are virtually inevitable; If you want to buy a car or a house, you necessarily have to borrow. But when they are due to unemployment, unforeseen expenses, or that you simply do not have control of the money and spend more continuously, they can hang you and will not leave you alone until you pay everything you owe. If you have already borrowed and you feel that it is the end of the world, you should know that getting out of those debts is not impossible, as long as you are willing to reduce unnecessary expenses and follow some advice provided by Protect your Money: Know your debts, list them and sort them by priority If your debts exceed 30% of your net income, you could eventually go bankrupt, since it would become virtually impossible to settle them. We don’t want you to come to that. The first thing you should do to get out of debt is to know their status and list them by priority. Put first the higher balance, or those with a higher interest rate, and do everything possible to cover them before. This way it will be easier to pay the rest. Prepare a budget You must know how much you earn to define how much you can allocate to the payment of your debts. List your expenses for the month and determine what you can cut; the coffees that you buy in the morning, the cigars and this type of expenses that are not really necessary to live, you can leave them aside, at least while you solve your debts. In the same way, you can reduce expenses in your mobile phone plan and in your departures of the month. Stop paying only the minimum The more money you put into debt,...