Repurchase of long-term credit

What to do before redeveloping your debts

Before starting a restructuring operation intended to lengthen the duration of current loans , we advise you to follow the following steps.

Negotiate with creditors

creditors loan

It all depends of course on the nature and size of the debts, but experience proves that it is possible in many cases to negotiate some of them out of court.

  • Tax debts : contrary to popular belief, the administration is generally conciliatory towards taxpayers in difficulty. Propose a reasonable spread of debts over 6 or 12 months for example.
  • Real estate loans : they often allow the maturities to be adjusted downwards, or to suspend them for one year.
  • Unpaid invoices : when they come from national companies (gas, electricity, water …) try to propose a repayment schedule over several months. You can also do the late rents even though it will be more difficult if you are dealing with a private landlord.
  • Bank overdrafts : try to talk to your advisor to extend the duration of the bank overdraft authorized and try to lower the rate of the agios.

Set up an over-indebtedness file at the Banque de France

debt

The support of the Banque de France’s over-indebtedness commission can prove very useful for negotiating a staggering of debts with your creditors. Even if filing a file automatically leads to registration with the FICP, you will receive valuable assistance, provided that your application is considered admissible.

Figures on sprawl over 10, 12 and 15 years

If no solution is found, it is time to consider a more radical measure. The following analyzes will show you the double impact of a long-term credit buyback.

  1. On monthly payments and purchasing power.
  2. On the final cost of renegotiated loans.

For that, we will study a concrete case and take as an example a household in situation of overindebtedness after the chain of several credits. The couple earns a living with income of € 3,000 per month (including family allowances) and has three dependent children. They have owned their homes since May 2010.

The household situation before any intervention

Before the couple plans to buy all the loans over a long period of time, their financial situation was as follows:

(1): if the household fills the overdraft authorized for a period of 24 months by paying the agios monthly to the bank.

(2): Concerning the invoices to be paid, it is assumed that the creditors do not charge interest for late payment. The charge is calculated with a spread over 12 months.

Evolution of the household situation

We note that from 2011, the household situation has continued to deteriorate, the couple chaining loans for the purchase of a vehicle first and then with two revolving credits. Despite the fact that incomes remained stable, the debt ratio is double that allowed to more than 63%, while the rest to live has been halved, from € 2038 to € 1087. Without cash, the household is forced to opt for repurchase of loans over a long period.

We imagine that they realize the operation on May 1, 2012.

We will measure the impact of the transaction on terms of 10, 12 and 15 years. The first line includes the immo loan in the operation. In the second, only consumer loans are renegotiated

(1): outstanding capital of all loans in progress + penalties on the mortgage on the basis of 3% on the KRD, ie: € 90,138 * 3% = € 2704

Analyzes

The three hypotheses show that the integration of the mortgage into a restructuring operation is not interesting. Indeed, the rates of repurchase of credit over long periods of 10 to 15 years are particularly high while in our example the difference between the remaining term (10 years) and the new is not significant.

  • The gain in purchasing power is better in the first two examples by renegotiating only consumer loans. On the third, the duration of 15 years allows a slight gain if the mortgage is reinstated but for a very significant credit cost.
  • The impact on the debt ratio is satisfactory over 15 years, although above the maximum allowed of 33%.
  • On the other hand, the total cost of borrowing literally explodes in the hypothesis where the immo loan is reinstated. Over 15 years, one can even imagine that institutions would refuse to do this grouping.

Our recommendation

A more advantageous solution is to renegotiate the terms of the mortgage loan outside of the buy-back transaction over a period of 144 months, which provides the following results:

  • Renegotiated amount, penalties included: € 92,932
  • Duration: 12 years
  • Rate of 3.36% with insurance

The new monthly payment (including 182 € renegotiated consumer loans): 797 € per month, a gain in purchasing power of 934 € and a credit cost lower than the original one is 135 936 € 

Simulate your buyout of long-term credit

long-term credit cash

If you are considering a restructuring operation, feel free to apply and compare all offers. It only takes a few minutes to complete your request.

Frequently asked questions about a Mini loan Find the Answers here

When can I expect the money in my account?

Once you have completed the application, it will be assessed as soon as possible.
Once the application has been approved, your loan will be in your account within 24 hours.

Have you borrowed before? The money can be in your account within an hour.

Pay attention. Due to the processing time of the banks, this may possibly take a little longer. For an application that is approved during the weekend, the money will be in your account on the next working day.

When do I have to pay off my mini loan?

When do I have to pay off my mini loan?

Depending on the loan amount that you have requested, the duration is between 15 and 62 days.

Can I pay off my mini loan earlier?

Yes, of course, that is possible. You must then transfer the entire agreed amount.

What should I do if I cannot pay back in time?

If, due to unexpected circumstances, you cannot pay your loan on or before the due date, we kindly request you to send an email to debiteurenbeheer@pactumcollections.com. That way we can make an arrangement. If you do not send e-mail, you may incur additional costs.

What is the maximum amount I can borrow?

What is the maximum amount I can borrow?

For the first time you can apply for a loan up to an amount of 600 euros. It is possible that this amount will be lower after a possible credit assessment. With the 2nd application you can request the maximum amount of 1500 euros.

How much interest do I pay on the loan amount?

The interest rate is 13.99% on an annual basis. This amounts to 1.17% per month. For example, you borrow € 700 and you pay it back in one month: You then pay € 700 + € 8.16 (interest) = € 708.16.

What is a guarantor?

A guarantor is someone who guarantees your state during the loan. In this way the risk is reduced for both you and the lender. You can choose from a personal guarantee (someone from your private environment), or an external guarantee (this is a separate service that is not free).

How does the personal guarantee work

  1. First enter your own application details.
  2. In the next step, the details of the guarantor must be entered.
  3. The personal guarantor must send the following 3 documents:
  • A copy of his / her ID
  • A signed version of the agreement
  • A bank statement (not older than 3 months) from the guarantor (copy or photo).
  • When the guarantee is given by your spouse, he / she must sign the guarantee for approval.

What to do in case of refusal of mortgage

The different cases of refusal

If you find yourself in such a situation, take a step back to objectively analyze what motivated the bank’s decision . The reason mentioned by the customer advisers is not always that which has been taken by the risk analyst.

On the other hand, we advise you not to try to compare your personal situation with others that might seem similar to you. It is impossible to reconcile two decisions often given by two different banking organizations on two separate files.

Finally, browsing the forums is a useful step, but do not take comments for cash. Opinions are not always objective and do not necessarily reflect the actual situation.

The lack of input

A few years ago, the banks agreed to fully finance a real estate investment, ie purchase price and ancillary costs.

Today, most lenders, including traditional banks, require the borrower to have a capital that allows them to pay at least notary and guarantee fees.

To meet this requirement, two possibilities:

  1. To have available capital or to benefit from a family help, which will be directly injected into the project.
  2. Benefit from a subsidy in the form of a subsidized loan granted by a 1% housing agency, from a housing savings transaction or a PTZ Plus. The absence of personal contribution is today a first reasons for refusal of mortgage loan.

Inadequate repayment capacity

Inadequate repayment capacity

The repayment capacity of the borrower is undoubtedly the most important criterion of banking analysis. Be aware that respecting the debt ratio does not guarantee that the file will be accepted. It is quite possible to be served a refusal of mortgage loan if the “remainder to live” is considered insufficient by the bank.

This last criterion measures the borrower’s ability to pay all household expenses once all loan installments have been paid.

Problem of holding bank accounts

The bank statements of the last three months are documents constituting the loan file. They allow the bank to check whether the monthly payments of credits taken correspond to the loans declared. But they also show how you manage your accounts.

In other words, the slightest rejection of a levy or unpaid check risks being unacceptable . Payment incidents are not the only elements that can lead to a mortgage refusal.

The banker might interpret debit balances as belonging to a household i nOutstanding Capacity to keep a budget.

Propensity to subscribe to consumer loans

Propensity to subscribe to consumer loans

The banker is a trader and his goal is to equip his customers. If consumer credit holds a prominent place among the offers that the latter is regularly proposed, the fact of presenting a file or you have cumulated many consumer loans may pose a problem and in addition to the impact on the market. debt , this situation may demonstrate a certain propensity to consume and a great fragility in the financial balance of the household.

In addition, if you have been forced to consolidate various short-term credits into one medium-term debt deleveraging, commonly referred to as a restructuring operation, you may not have a financing solution until a few months later. time.

Refusal of the surety company

When the choice of the bank guarantee is made on the mutual guarantee, the service of the engagements transmits the file to the company of guarantee which will in turn study the request. The evidence is essentially the same as that which motivates the decision of the lending agency, which does not necessarily mean that the answer will be the same. Thus, it is quite possible that the guarantor refuses to guarantee you while the bank has agreed.

FICP file

Banks systematically question the FICP (national file of incidents of repayments of loans to individuals) held by the Bank of France since the Lagarde reform of July 1, 2010 for all types of consumer loans.

In the context of real estate financing, the demand, although optional, is now a systematic approach on the part of the bank.

It should be noted that, unlike cases of bank prohibition, nothing prevents the lender to accept your request. However, a registration in the FICP returns in most cases to see his loan application refused.

Unstable job situation

Unstable job situation

This is one of the aspects on which banks have hardened their position. The economic situation has deteriorated so much that the risk linked to job insecurity has exploded. Thus, it is unlikely that your application will find a favorable response if you are on a fixed term contract or if you are acting, unless you have been acting for many years and you are able to prove that you have always worked.

Rental investment case

Rental investment case

Investing in a rental property is a different approach to the one that leads to the acquisition of a principal residence. From a tax point of view, the investor has no interest in making a contribution but on the contrary in deducing as much as possible the interest on the loan. However, many network banks require the borrower to finance notary and guarantee fees.

Another change in “banking behavior” has led these same banks to refuse any mortgage loans to borrowers who do not own their principal residence.

Network bank or specialized institution?

The question of choosing the lender is a strategy that must be taken upstream, at the time you create your file. Be aware that specialized institutions are generally a little more flexible than traditional banks but may be more expensive in the end.

The other advantage of going through a credit institution is being able to borrow for a long time, this no longer allow network banks.

What to do in case of refusal of mortgage?

As we told you at the beginning of our file, make an objective analysis and above all, look for the real reason that motivated the bank to refuse your request.

We must not be satisfied with an evasive answer. Demand clear, precise and above all, well-argued elements.

Depending on the reason (s), try to represent the file by making the necessary corrections.

Contrary to popular belief, know that it is quite possible that the bank accepts a request that it refused a few weeks ago.

Our advice to represent your file

There are many cases where you can improve your record, as long as you take advantage of the first refusal, as this experience should be used to pass your second exam.

Stop spending for three months

If the bank has refused your mortgage application on the grounds that your accounts were not well kept or worse because you had a withdrawal, the solution is to control your expenses while “cleaning up” your bank statements and present new accounts with credit balances.

It is also better to use it to make good habits because such a project will have important consequences on your lifestyle and it is necessary to know how to “hold” a budget.

Lower the debt

When the banking decision is motivated by too much debt, it is possible to play on certain levers to represent a file with a correct ratio.

Sold out a consumer loan

Sold out a consumer loan

If the problem lies in the presence of a consumer credit and if the capital to repay is low, try to find a solution with those around you. For example, you can ask a member of your family to lend you the money to pay the outstanding amount.

Present the folder again with the new elements. Your accounting situation will be the same if you offer to pay the person in your family a deadline identical to what you repay each month with the bank.

Apply for family assistance to make a minimum contribution

Apply for family assistance to make a minimum contribution

If the ancillary costs are not too high (reduced notary fees for example), it may be possible to obtain the amount necessary to pay the ancillary costs by a family loan. Nothing prevents you from proposing to your “creditor” to remunerate him by offering him an interest rate equivalent to that of a livret A. You enter a legal framework of loans between individuals which can make it possible to unblock the situation.

Opt for a long duration

If the refusal of mortgage loan occurs on the basis of a financing plan providing a loan over a period of 20 years, for example, nothing prevents you to represent the file for a longer period. Be aware in this case that traditional banks may not follow you. Long periods remain the exclusive preserve of specialized institutions .

In this respect, the planned end of the ” Crédit Immobilier de France “, a specialist in very long-term loans, is bad news for all first-time borrowers.

Choose a revisable rate

This is not the best solution, but it has the merit of existing. In the case of too much debt, choosing a variable rate – lower initially – can be financeable. If you have to choose this solution, opt for adjustable rate formulas that provide a ceiling rate in case of rise in the financial indices on which the loan is indexed.

Lift the FICP file

If the file is due to a late payment of one or more credit dates, you will first have to regularize your situation. The banking organization will then ask the Banque de France to cancel your registration. Warning: this may take several months before the de-billing is effective.

Learn more

Obtain a certificate to terminate the compromise

If the request comes after the signing of a preliminary contract, you must obtain a written certificate of refusal. Know that this document is essential to play the suspensive clause of obtaining loan. Send the document to the notary and your salesman immediately with acknowledgment of receipt.

Consult a broker

The refusal of a home equity loan when you have done all your own work demonstrates the role that brokers play. As a professional, they will advise you. They will then present your file again to other organizations that may this time accept your application.

Be careful when signing and to compete. You can choose between local brokers, often more available, who often have excellent relations with local banks and national brokers, often free (via the internet) that are likely to make you benefit from their large volume of files.

Temporarily give up the project

This is the most unfavorable outcome, but sometimes you have to give up, at least temporarily. It may be just the time needed to restore your financial health, heal your cash flow and pay off some loans.

If this is your first purchase, consider reviewing your real estate project down. It may be better to buy a home smaller or farther away from big cities than to stay as a renter.

Buying real estate abroad

The housing crisis in many European countries is attracting more and more investors, attracted by the sharp drop in housing prices.

Buying a property abroad, especially in Spain or Greece, which are traditional holiday destinations, offers great opportunities. For example, house prices fell by 25 to 30% in Spain. But if the case seems interesting from a financial point of view , it is more complex to achieve than the purchase of real estate in France.

Here are our tips to succeed in buying a property abroad and to overcome the pitfalls .

Prospect on the spot

Even though there are many online ad sites and many real estate agencies that offer foreign goods for sale, we advise you to take advantage of your vacation to go to the country where you plan to acquire the property and to prospect directly on the spot .

It will be easier for you to get an idea of market prices and appreciate the different neighborhoods of the city, what an ad site will not do and an agency only partially.

You will be able to revisit the accommodation at different times of the day and take the time to learn about the public transit system and the neighborhood.

In addition, being on site, you can visit several properties and you can negotiate the price more easily than by phone or email. Know that in some countries, “haggling” is part of the habits and customs.

Ancillary costs

Ancillary costs

Each country has its own regulations and real estate practices . You will need to make an accurate list of the charges you incur and not just at the time of purchase. For example, it is necessary to inquire at the outset of the tax consequences in case of resale (for example the transfer tax in Spain ).

In addition to the costs related to the acquisition (which correspond to the notary fees in France), also think about you to inquire about the taxes applicable to the housing like the property tax as well as the cost of a home insurance.

Another example with Spain: if you negotiate directly with the salesman, you will escape the IVA (Spanish VAT), but you will have to settle in exchange “the impuesto of patrimonial transmissions” the ITP.

Good to know : remember to learn about local real estate practices. In some countries, a down payment is required to reserve a property. Plan to have the funds to complete the transaction.

Important : Pay attention to cash payments that would not be registered by the notary. If you give up your purchase, the amounts paid will be permanently lost.

Learn about local real estate law

real estate loan,cash

Going abroad to buy real estate also allows you to learn more about the country’s legislation. Be aware that you will have to comply with local real estate law and that you will not be able to benefit from French laws that are particularly favorable to purchasers such as the possibility of retracting within seven days following the signing of the purchase.

Also ask if permissions are needed for a non-resident to become the owner.

Mandatory tax declarations in France

If you rent the property

property rent loan

If you rent the unit, you will have to add the rental income to the annual return , regardless of the country where you pay the tax. But if the declaration in France is mandatory, it will not lead to double taxation .

Taxation on resale

Here again, it will be necessary to know if the country in question is the subject of an agreement signed with France. In general, you must pay the capital gain tax in the country of residence , that is to say in France.

You benefit from the allowance provided by year of detention and will be taxable for the lump-sum levy of 19%.

Our advices

Except knowing the country where you decide to invest and speak the language perfectly, getting into debt to buy real estate abroad is a difficult operation. Proceed in stages.

  • Take the time to gather all the useful information in terms of administrative procedures and taxation as well as the real estate law in force in the country.
  • Go on site and conduct all the necessary investigations. Visit several properties and learn about the most buoyant neighborhoods.
  • Have the pre-contract re-read by a specialized lawyer.

 

Make Money at Home | Apply for a Mini Loan

You can earn money at home in all kinds of ways. Working from home has its advantages. You can earn extra money while enjoying a cup of tea or a cup of coffee! How? Read it here!

Earn money at home with these tips

Earn money at home with these tips

As explained in the intro, making money at home is easily possible. In many cases it will not make you rich. A small proportion of home earners can do this. This depends on the type of homework you do.

Working from home as a data entry typist

Working from home as a data entry typist

A data entry typist enters pure data via his / her computer. In many cases this will be texts, but also numbers.

With texts you can think of entering customer data in a database . For example, these customers have left their data on a website. This must now be processed in a database. In this case you will have to sign a declaration of secrecy. After all, it is about privacy sensitive data. But also, for example, typing interviews.

With figures you can think of entering amounts or calculations in a database . This can also be the typing of amounts or numbers on paper.

You can find a data entry typist both at the office and at home.

Make extra money with cooking

Make extra money with cooking

Do you always cook too much at home? Then this offers good possibilities. Don’t throw it away, because you can make a whole legion of people happy with it. For example, there are people who specially cook extra to earn extra money . Throwing away is a waste and costs money. Selling your food is fun and worthwhile.

You can earn money at home in a nice way. However … there were several websites on the internet where you can easily register and immediately start selling your surplus or extra made food . Unfortunately these websites are no longer available. Just like the apps.

Offering your cooking skills is not yet possible via Marktplaats. And this is not going to happen. For example, you could hang a note in the hall of your flat to offer your food for sale. Whether this will actually work well is questionable.

Make money by entering a survey

You can earn money online in different ways. And also without a website. Namely by filling in surveys . How does it work?

You register for example with Panelclix . This is a reliable party that has been active in this field for more than 15 years. Once registered you can get started right away. Once you have completed a survey online, you will earn points . You exchange these points for money.
The earnings depend on your commitment and time. To give you an idea of ​​what you deserve, follow a few examples:

  • As soon as you sign up you already earn 150 points
  • If you complete a questionnaire with fewer than 10 questions, you earn 20 points
  • When you fill in a questionnaire with between 10-15 questions, you earn 30 points
  • A questionnaire with between 16-20 questions, you earn 40 points
  • Etc …

What are the points worth?

  • 1,000 points = € 10
  • 2,000 points = € 25
  • 4,000 points = € 50
  • 5,000 points = € 70
  • Etc ..

Earn extra money as a copywriter

Many websites need copywriters , also known as bloggers. Some earn their living with it. For others it is nice included. Everything depends on your writing skills and your knowledge. If you know a lot about a certain subject and you can translate this through your hands to the online paper, then you have a great chance to get started as a copywriter. So make money at home with copywriting? Pay attention:

Sign up for example with Fiverr and / or Textbroker . Generally applies; the better your knowledge and writing skills, the more you earn.

Your own call center

You must be a talker. But if you can do this well, then your own call center might be something for you. Depending on the type of “calls” you can, for example, pick up telephones on behalf of a company. You answer simple questions or transfer them to the relevant company.

If you have more experience, then you can also do sales , for example. Sales by telephone. Not everyone is charmed by this. Depending on your contract you can earn quite a bit with this. There are different ways to make a sale.

  • Based on your sales. So for every sale you earn something.
  • You get a basic rate plus a certain amount of commission on every sale.
  • You receive a fixed amount per hour

Zakcentje as a babysitter

Zakcentje as a babysitter

If you like children, then this side job must be written on your body. It is important to make agreements with the parents. What do the parents expect, who will take care of the food etc .. Once everything has been arranged, it will be a piece of cake. Although .. babysitting children is not always easy. After all, you have a responsible task. Everything in your house must therefore be safe.

A part-time job as a babysitter seems fun, but it does entail a number of small risks. First make sure your house is safe and that you have adequate supervision of the children. And make good agreements with the parents.

Packing work

Yes, the most famous among home workers. The well-known packing work. If you don’t mind stretching your sleeves, you might think of wrapping work. This work can be anything. From wrapping Christmas gifts to packing brochures.