Archive March 27, 2020

Unemployment and credit in progress, how to do it?

Many people go through the unemployment box during their career. A period that can be difficult to manage depending on future expenses. In case of job loss, you receive an income 20% to 30% lower than your employment salary. If you have an outstanding loan at this time, the situation may become difficult to sustain. What options are available?

 

With unemployment insurance

unemployment insurance

If you have taken out unemployment insurance before ending up on compulsory leave, it can compensate for the shortfall due to unemployment and allows you to continue to repay the credit. With the unemployment insurance offered by Lite Lending, you can benefit from a monthly pension ranging from 500.- to 2000.-. The premiums vary between 15.90.- and 92.20.- per month. You can be covered up to 12 months for a period of unemployment, and up to 36 months for the total duration of the contract with the insurance.

Be careful however! To receive this amount, you must wait 90 days between signing the insurance contract and the time you are unemployed. Otherwise, you receive nothing during the entire period of your leave until you return to work. For this reason, you must anticipate and take out insurance in advance. It is also important to clarify that unemployment insurance only works from the moment you are laid off. It does not apply in the event of resignation or dismissal due to a serious fault committed at work.

 

Without unemployment insurance

unemployment insurance

If you do not have unemployment insurance at the time of your leave, the situation becomes complicated. It is too late to take out unemployment insurance to cover your credit costs for the duration of your leave. However, it is important to quickly contact the financial institution concerned. He will be able to submit suitable solutions to you regarding the repayment of your credit in order to avoid a serious situation.

Responsible credit, applied by several banks since 2016, however, makes it possible to avoid untenable situations in the event of major unforeseen events. By developing a personalized risk profile that includes a sufficient margin of safety for the credit applicant, banks allow customers not to find themselves over-indebted because of a credit that is too difficult to repay.

 

All inclusive banks

All inclusive banks

Some banks plan for you and include unemployment insurance in their offer. This is the case with Good Lender Finance. This can be a possible solution for those who appreciate an all-inclusive plan when taking out a loan. Others, such as Cream Bank or Delta Link Bank offer it as an option, which must be paid in addition to the credit offer.

Home mortgage loan rates further down

Since March 2012, banks have been monitoring their credit rate scales with particular attention. Indeed, the 20-year mortgage loan rates continue to fall. They are even currently less than 4%. Does this continuing decline suggest a return to the upside? Are there any more loans? We bring you some insights on this phenomenon.

 

Cost of mortgage loans down

mortgage loans down

In some ways, borrowers can rejoice; borrowing rates continue to fall. A continuous decline that has already been observed for several months.

In February, the 20-year credit rate was 4.25% and in June it had continued to fall to 4.05%. And, in this month of August, it has just dropped below 4%, reaching 3.90% (3.25% over 10 years).

It is important to specify that these rates appear in the scales of banks before negotiation and excluding insurance. Thus, the real and final cost of the mortgage can vary downward or upward.

 

The phenomenon of falling mortgage rates

The phenomenon of falling mortgage rates

If the credit rates are still falling, it is in particular due to the drop in the key rate of the European Central Bank because this direct rate has an effect on variable credit rates and only by its competition with credit to fixed rate, it also causes the latter’s rate to fall.

However, it should also be noted that this fall in rates is accompanied by a fall in loan volumes granted. Indeed, even if the mortgage rate is falling, this does not mean that more French people can take advantage of it.

The conditions for accepting a credit are more stringent and many files deemed by the lending organizations to be unsafe enough are then refused.

Regarding the continuation of this fall in the mortgage rate, it is difficult to know what will happen as the European economic situation is uncertain.

 

Conclusion

home loan

In the end, over the whole of 2012, it is estimated that the mortgage loans granted by the banks should reach around 110 billion euros against 160 billion in 2011. The rates fall but the loans granted are not necessarily more numerous. This demonstrates the current difficulty encountered in the real estate sector, both for professionals and for individuals who are hesitant to make a real estate investment. They fear that their savings capacity will continue to decrease or they fear that their investment will be impacted by changes in taxation.

Real estate loan with current consumer credit

 

 

Several solutions are possible when a household wishes to take out a mortgage with one or more consumer loans being repaid. Explanations.

Become a homeowner with current consumer loans

Become a homeowner with current consumer loans

Buying a home is one of the important projects in the life of people and many people dream of buying their ideal house or the apartment of their dream. To make this expensive project a reality, many households start to save very early in order to provide a personal contribution when taking out a mortgage with a bank or a banking intermediary.

However, many also have purchased consumer goods with the help of a consumer loan, in particular with the aim of buying a new or used car, household equipment or specific services such as a trip or a trip. wedding. The repayment of the monthly payments of one or more consumer loans can then slow down the household’s real estate project if the debt ratio is considered too high by the lending establishments.

Indeed, it is possible for a borrower who has current consumer loans, to be able to subscribe to new financing in order to buy a house, an apartment or build his own housing. However, if the calculation of the percentage of household debts after the release of funds is above the usual threshold (33%), then the credit institution will not grant the new financing and in this specific case, the household has another solution that allows him to include a mortgage in a consumer loan: the repurchase of credits.

Loan repurchase: mortgage with consumer credit

Loan repurchase: mortgage with consumer creditLoan repurchase: mortgage with consumer credit

Conventional mortgage is not the only solution to become the owner of your home, especially if the household is paying off one or more monthly payments. It is quite possible to turn to a banking intermediary since by using a specialized organization, the household can include a home loan in the repurchase of credits.

This financial transaction will allow the borrower to assemble his consumer loan (s) and an additional sum dedicated to the purchase of housing (primary or secondary residence). By opting for loan consolidation, the new credit will have only one interest rate and will not have to repay a single reduced monthly payment. However, it is necessary to properly review the loan offer with an expert analyst since lengthening the repayment tenure can increase the overall cost of financing.

To benefit from a personalized and free feasibility study, it is recommended to make a loan repurchase simulation, by entering the amount of your current consumer loans and the desired amount to realize your home loan.

The consequences of a dismissal on your credit agreement

In this turbulent period on the job market where unfortunately many citizens lose their jobs following a corporate restructuring, a relocation of commercial activity, many of our worried customers ask us about this question thorny consequences of a job loss on their current credit agreement. We take stock of this issue with you.

News requires, here is a subject that interests our internet users. Unfortunately, the sovereign debt crisis that has spread across Europe has convinced many governments to adopt austerity measures supposed to contain public deficits within the limits set by Europe.

 

Consequences

Consequences

The consequences were not long in coming since Europe went into recession, mainly following a very significant slowdown in household consumption. The automobile industry and the steel industry display, to name just a few, disastrous results which force the leaders concerned to find solutions. Unfortunately, it is often on the employment front that the fallout is the heaviest. The year 2012 saw in Belgium the records of bankruptcy declarations and job destruction. In France, every day sees nearly… 1,500 jobs lost.

Unfortunately, it is the middle classes who are affected: the workers, the executives and to a lesser extent the executives. This is regrettable because it is this category of people who borrows and who could be faced with credit risk.

What about a layoff on your current credit? This brief analysis applies to both the installment loan and the mortgage loan.

 

The principle

The principle

The dismissal does not affect your credit agreement. In short, you must continue to pay except the risk of having your credit denounced. If you borrowed two, the entire credit weighs on the creditworthy co-borrower. The latter can absolutely not claim to reduce his load by half.

 

The displays

credit agreement

There are not many. Either you borrowed with a co-borrower who can assume the cost of the credit, until you can find a new source of income or you are the owner of a building free of charges. In this case, it is possible to grant you a new credit (mortgage) which will reimburse the current one by taking our pledges on your property.

 

Loss of employment insurance

This insurance is promised a bright future unfortunately. If you feel that your professional activity is threatened, it will even become essential to take out this type of insurance.

It is quite possible – even recommended – to take out this type of insurance during your credit agreement. This insurance can match both an installment loan and a mortgage.

Conditions?

  • Be at least 21 years old;
  • Waiting period of 6 months after taking out the credit agreement;
  • Being in the bonds of an open-ended contract;
  • Have completed your trial period of one month 3 months;
  • To be able to claim unemployment benefits.

Blanket?

Coverage is not unlimited. Certain insurances guarantee you up to 12 months of reimbursement of monthly payments after your dismissal. Of course, according to the replacement income that you can promote, a breakdown will be made as to the coverage of the insurance. It will be necessary to discuss with your insurer and carefully read your insurance contract to measure the exact scope.

How to borrow money without going through a bank?

Borrowing money is generally necessary when a household wishes to carry out a project. However, it is not compulsory to go through a bank to finance your project and alternatives exist to borrow money without the approval of a financial organization.

Borrow without going through banks

Borrow without going through banks

Financing a project generally requires financial resources commensurate with the project.

However, it is sometimes necessary to borrow money in order to make the project happen. There are several ways to do this, such as soliciting a banking organization in order to make a bank loan.

However, this type of loan requires a favorable situation for repayment but also involves an interest rate and various ancillary costs thus increasing the cost of credit.

To avoid these costs, there are other types of financing to finance a project:

  • Loan between individuals
  • Solidarity financing
  • Crowdfunding

How to borrow without a bank?

How to borrow without a bank?

Borrowing without a bank requires to be properly informed about project financing like those mentioned above.

Thus, the loan between individuals is a solution that is not favored by borrowers but remains a financing option. Its operation is modeled on that of the bank loan but leaves the two parties to agree on the terms of the loan as well as its repayment.

Can be obtained near the family, relatives or associations, it is still advisable to formalize this type of loan to avoid any incident during the repayment of the latter.

Also, the borrower can have recourse to solidarity financing. This type of financing can be managed by associations allowing individuals to use their savings to finance certain local projects. Interest rates are generally low but the project must appeal to investors, which can be difficult during a personal project.

The borrower can also use crowdfunding. Also called crowdfunding, this type of funding allows many individuals to participate within their means in one or more projects posted online on different funding platforms.

Crowdfunding can also be applied in parallel with the two other types of financing, namely the loan between individuals and solidarity financing in order to increase the chances of success of the project.