Is it better to save or repay your credits?

Should we mobilize all or part of their savings to serve as a contribution or reduce their debt? This dilemma which presents itself to many debtors can only be resolved by taking into account a multitude of factors: the economic and financial context but also your personal projects, your family situation.

According to the Household Credit Observatory, the proportion of households holding loans fell slightly in 2016, reaching its lowest level since 1989. This is explained in particular by the economic slowdown following the 2008 crisis, which has largely allowed households to be cautious. However, the growth outlook could well trigger a revival in demand for credit, households are more inclined to consume.

 

Compare credit rates and interest rates on your savings

Compare credit rates and interest rates on your savings

Should we therefore prefer credit in all circumstances? Not so sure. It all depends on the level of credit interest rates. If they are low, you may want to invest your savings. If they are high, using your savings can be a wise decision.

Take the example of real estate. An amount of € 100,000 placed on the euro fund of a life insurance contract with a net yield of 2% will allow you to have, after fifteen years, a capital of € 135,000. If the credit interest rate is less than 2%, it is better to invest this savings and pocket the difference. This is even more true in the case of the zero rate loan (PTZ), granted on means-tested conditions and which allows certain households to buy their main residence without paying interest.

If, conversely, credit interest rates are higher than those of your savings products, the money that you will borrow will cost you more than what you would earn the one that you could invest. Your interest would then rather be to save and to repay in priority your credit.

 

Maintain precautionary investment capacity and savings

Maintain precautionary investment capacity and savings

The arguments developed so far are based on theoretical reasoning. However, we must not forget that a loan is part of a moment of life: finance the acquisition of his main residence, invest in a second home, buy a car for his daughter, equip his son’s new apartment with household appliances. 

Likewise, don’t mortgage your future plans by unlocking all your savings to finance a single purchase. On the one hand, it is advisable to keep working capital to cover current expenses. On the other hand, it is preferable to keep a precautionary savings to absorb punctual and high loads (a repair on the car, roofing works, a trip abroad …). If there is no fixed rule in this area, it is generally considered that this precautionary savings must represent around three months’ salary.

 

An alternative in real estate: prepay your loan

An alternative in real estate: prepay your loan

If you still cannot make a decision, be aware that there are situations where it is possible to anticipate the repayment of a loan. This is particularly the case in real estate. Imagine that you had to resell your apartment or house to acquire a larger home. You then have the perfect right to repay your credit before the loan matures: this is called early repayment.

Depending on the case, your credit institution may charge you prepayment penalties, capped at 3% of the principal owed. This can have a deterrent effect, especially if you are at the start of the reimbursement. But paying off your loan early is entirely possible if you only have a few years left. Not to mention that the penalties and the period during which they apply may be part of the negotiation with your banker at the time of signing the mortgage.

There is no single answer to the question of whether it is better to save or repay your credits. It all depends on your personal situation, your plans, but also on the macroeconomic context!

How to have loans for State Teachers

 

Small Government Agency loans for state teachers

Small Government Agency loans for state teachers

State teachers who need money can take advantage of Social Institute subsidized loans. Products that, unlike what one might think, are dedicated to both civil servants and teachers and school directors. So let’s see how Government Agency state teacher loans work.

Government Agency state teacher loans allow you to face sudden or significant expenses. The maximum amount that can be financed is defined on the basis of the income received by the applicant.

As regards the requirements to be met, Government Agency loans are accessible only to teachers and school directors. Subjects who must be able to count on an open- ended employment contract.

For the purposes of access to credit, the applicant must be in service at a primary state school or kindergarten. Not only. Government Agency loans for state teachers are granted only on condition that the applicant is at least two years away from retirement.

Conditions of Government Agency teacher loans

Conditions of Government Agency teacher loans

But how much do you get with Government Agency state teacher loans? The maximum amount that can be financed is equal to two months of salary for the applicant. In this regard, reference is made to income inclusive of ongoing and fixed allowances.

The repayment takes place in 24 months. Payments are monthly and the interest rate applied is 1.50%. And the sums due as interest are withheld in advance from the gross amount of the loan. The same applies to the sums due for the Guarantee Fund and administration costs, calculated at a rate of 1%.

When it is possible to apply for Government Agency loans for tenured teachers

When it is possible to apply for Government Agency loans for tenured teachers

The application for funding must be submitted exclusively electronically using the specific online service. However, it must be remembered that Government Agency loans for state teachers are granted only for specific needs.

In fact, it is possible to apply for a loan at special conditions for teachers only to meet expenses that fall within one of the following cases.

  • birth or adoption of a child;
  • purchase of the house of residence;
  • marriage of the applicant or the child;
  • death of a family member;
  • serious illness of the applicant or a family member;
  • mortgage in progress for first home purchase;
  • extraordinary maintenance of the first house;
  • dental care of one’s own or dependent family members;
  • transfer of residence;
  • purchase of a car;
  • attendance to university courses of the applicant or a child;
  • extraordinary events involving a particular state of economic necessity.

Government Agency Scholarships credit: What are the opportunities?

Social Institute scholarships info: who can take advantage of it

Social Institute scholarships info: who can take advantage of it

The interventions in favor of former Government Agency members, currently pertaining to Social Institute Public Employee Management, are numerous and do not only concern facilitated forms of access to credit. Among the most interested contributions, which make up for some shortcomings by the State, the Government Agency scholarships stand out, now made available through the Social Institute (an institution that has joined the Government Agency since 2011). Just like the regional bodies of the right to study, Social Institute also offers members’ children a cash contribution to support their training.

Who are the Government Agency scholarships for? The official Social Institute website informs that those entitled are represented by students of whom at least one parent (living or deceased who is) is registered with Social Institute (formerly Government Agency). The structures to which students are enrolled can be:

  • state and legally recognized educational institutions and universities;
  • Italian schools abroad;
  • European schools in the EU;
  • foreign institutes, whose courses are legally recognized as equivalent to the Italian ones.

As you can see, even those who study outside Italy can take advantage of the scholarship. Furthermore, almost all levels of education are involved, from middle school to high school, up to university and postgraduate courses (masters and doctoral students).

To participate, moreover, it is necessary not to have benefited in the current year (academic, non-solar) from a scholarship provided by Social Institute or any other body. However, this limit is valid if the amount already received exceeds 50% of the amount foreseen by the Social Institute scholarship for which you intend to compete.

Scholarships Government Agency application: two calls

Scholarships Government Agency application: two calls

The calls through which scholarships are awarded are two. One for students from middle school to university, another for doctoral students and masters. They are generally published between the end of the last quarter of the year and the first quarter of the following year. They can be consulted in the “Welfare Initiatives” section of the Social Institute.it portal.

As far as the application is concerned, this can be forwarded both by the person concerned and by other people.

  • If the potential beneficiary is not 18 years old, the application must be submitted by a parent. In the case of an orphan beneficiary (as well as a minor), the tutor established by law will replace the parent.
  • If the potential beneficiary is of age, he will submit the application himself.

The application can only be sent electronically (the operations are performed entirely from a PC). To do this, it is necessary to access, with the PIN code, the Online Services area -> Services for the citizen -> Ex Government Agency services, order the items by alphabetical order and select Scholarships / Academic initiatives -> application. To consult the call, however, it is not necessary to have a PIN.

Scholarships Government Agency calls: the amount of the reimbursement

Scholarships Government Agency calls: the amount of the reimbursement

One question that surely those who intend to propose themselves as beneficiaries is: how much is the contribution? Those with whom the ranking is formed are also decisive. However, there are significant differences compared to the scholarships provided by the normal regional bodies for the right to study.

In the first place, the scholarship of the regional bodies is paid per current year, or at least it is so de jure (in fact there are often serious delays), while that of the Government Agency always reaches the end of the year, as a refund.

Secondly, the criteria for the formation of regional scholarship rankings are generally arranged hierarchically: first the Isee indicator is considered, then in the case of equality between more people, merit is considered (or vice versa). The Social Institute criteria are more complex and involve these two aspects simultaneously, through the calculation of a score.

There are no income limits, although ISEAs above 40,000 USD are awarded zero points (for indicators below 8,000 there are 15 points).

Finally, as regards the amount of the Government Agency scholarships, the two thousand USD are not usually exceeded. Specifically, we have 2,000 USD for university students, 1,000 for students attending masters and doctoral students, while for middle and high schools it goes from 750 USD to 1,000 USD.

Anti-usury Act – What awaits loan companies?

At the moment, due to numerous reservations about the legislative procedure, the draft amendments related to the anti-usury act have been suspended by the European Commission. Experts emphasize that the changes may lead to the complete liquidation of loan companies, which may be a direct cause of the growth of the so-called gray area.

Representatives argue that they have not yet said the last word and will continue to work on reducing the activities of loan companies. Either way, any changes they propose must be notified to the European Commission, which leads to longer legislative work.

Anti-usury Act – What awaits loan companies?

Anti-usury Act - What awaits loan companies?

The effects of introducing new regulations can be very severe for the loan sector. Due to the lower profitability of business operations, some companies may go bankrupt or terminate their activities, thus non-bank loan offers will disappear from the market completely. In this way, almost 3 million consumers will be cut off from external financing.

As competition on the consumer finance market decreases, prices in the banking sector will increase dramatically. It is speculated that around 40,000 will lose their jobs. persons employed in the loan sector. Moreover, the state budget income will drop by USD 2.2 billion a year.

The new law also includes high fines for usury. It provides for a prison sentence of 3 months to 5 years for anyone who requests the payment of additional costs or interest twice as high as the statutory maximum.

Loan companies will also lose the possibility of bailiffs enforcement of their housing if the debt does not exceed 5%. its values.

Loan costs and the new anti-usury act

Loan costs and the new anti-usury act

In the proposed amendment to the Anti-usury Act proposed on June 18, 2019, the provisions in the Consumer Credit Act, which specifies the maximum amount of non-interest loan costs, have been modified.

Originally, it was to be limited from 25% to 20% of the loan amount and from 30% to 25% of that amount on an annual basis. Soon after, this value was further reduced to increase the protection of borrowers against unethical practices of loan companies.

According to the latest findings, the amount of maximum non-interest loan costs cannot exceed the sum of 10% of the loan value and 10% of this amount on an annual basis.

Pawnshops and the Anti-usury Act

bank

It is suspected that the amendments to the Anti-usury Act will benefit primarily the so-called gray zone, i.e. entities that provide financial assistance unlawfully. Pawnshops are a great example of this, as they in many cases grant loans without respecting the law, yet they are not the subject of the anti-usury act.

Pawnshops should operate in the form of companies with a share capital of at least USD 200,000. USD and obtain an entry in the Register of Loan Institutions of the Polish Financial Supervision Authority. Statistics, however, show that out of over 15,000 Only pawnshops operating in Poland meet the requirements described above.

This conflict can expose financial problems to many consumers who will not receive funding from a non-bank institution, so they will look for solutions to their problems in Good Finance loans.

Arguments for and against the new anti-usury act

The new draft anti-usury act has become the main topic not only in the loan industry but also among financial experts or politicians. They indicated arguments both for and against the adoption of the amendment to the Anti-usury Act. Here are a few of them:

Depending on the point of view, the opinions of those interested in the topic may differ. However, it is difficult to disagree with the arguments presented above, both those for adopting the anti-usury act and for rejecting it. Time will tell whether the introduction of the amendment to the anti-usury act will be good for the financial market.

Find a private loan based on income requirements

 

With our comparison service it is easy to find a low-interest private loan based on your income. Lenders are automatically ranked according to customer ratings, making it easy to find a popular lender who is well-liked by customers.

If you are instead interested in ranking the options based on interest rates, you have the opportunity to sort the lenders by lowest interest rate. However, keep in mind that lenders offering private loans apply individual interest rates, which means that you have to apply for a loan to get already at your exact interest rate.

How much can I borrow with a private loan?

How much can I borrow with a private loan?

Most lenders state an income requirement of 120,000 dollars, which means that you need a declared annual income of at least 120,000 dollars in order to be granted a private loan without collateral.

Without a security, you do not have to pledge any property and you can use the money for exactly what you want. Private loans are often used for consumption, for example to finance a new car or a renovation.

How much can I borrow based on income?

Common requirements

How much money you can borrow based on a specific income is never specified by the lender. To find out how much money you can borrow, you must apply for a loan. During the application process, the lender will perform a credit check to determine your credit rating and ability to repay. During this process, the lender will also determine how much money you can borrow based on your income and financial situation.

Common requirements

Common requirements

In addition to income requirements, you must meet the lender’s other requirements. These differ between different lenders, but some general requirements are as follows:

  • You must be at least 18 alt. 20 year.
  • You must have an income from service or pension. Some lenders specify that you do not have to have a fixed income without sufficient type of employment (hour, exam, temporary).
  • You must be registered in the country.
  • You are not allowed to have an outstanding debt.
  • You may not have a payment note younger than 6 months. All loan intermediaries accept low credit ratings and payment remarks, however, not all lenders offer loans to you who have a history of payment remarks.

Conclusion

How much money you can borrow depends on your credit rating, which is determined during the application process. You must therefore apply for a loan to find out how much you can borrow. Since all lenders carry out a credit report as a basis for the credit assessment, it can be a smart idea to use a loan broker. When the lender contacts up to 30 different lenders, you can be sure that you will receive the highest loan amount based on your financial circumstances.