MonthAugust 2019

Takeover of credit: obtain a mortgage with a restructuring

If you are looking for a loan for the purchase of housing in the former, and all banking organizations have closed the doors, your broker specialized in information and studies credit repurchase files take care of it.

Want to buy but be too indebted!

Want to buy but be too indebted!

When you want to make a real estate purchase, research stage can be complicated. To obtain a mortgage by presenting a file with a debt ratio of more than 33% is impossible.

The accumulation of depreciable and renewable type of consumer credit, or self and personal, etc., weigh heavily on the management of your budget. Because you do not have enough purchasing power to release the borrowing capacity necessary for real estate purchase.

Yet a solution exists. The restructuring real estate loan financed through the repurchase of credit. A new product including a credit restructuring and a real estate.

In other words, even if you have a high debt ratio, you can buy real estate. Provided that the criteria of admissibility of the file are in the norms.

Get a home loan with the purchase of credit!

Get a home loan with the purchase of credit!

Although your debt is too high to access real estate credit, there is a solution. Our offer dedicated to individuals now offers real estate loans that also consumer loans or a cash envelope that can be used for all kinds of projects!

Whether you are a tenant or already owning one or more properties, you are concerned. If your financial situation is bad because of several consumer credits subscribed from several credit organizations, you can your real estate by encompassing consumer loans in the real estate.

It is also possible to a project other than real estate, such as a cash envelope. If you own one or more non-mortgaged real estate, get cash from the value of your property to invest in real estate, and increase your wealth.

Only the real estate in the old can be acquired through a home loan including a buyback of consumer credit.

I Have Too Big Credits

More and more, I hear from my readers that they feel they are over-indebted and that the debt burden does not allow them to spend their monthly earned money on things that are needed today, because money has to be returned to creditors for what was bought in the past. Well, then, what is the amount of credit that is good and what are bad loans?

 

Amount of credits

Amount of credits

Let’s start by trying to find out how much credit should be accepted so you can determine if your debts are too big or not. Generally accepted standards that set the amount of credit to be either a one-year income or a monthly loan payment should not exceed 20% of your income. As long-term loans are often large enough, and if the average Latvian wage is only 500 Euro, then his total credit commitment should not exceed 6000 Euro, which is the amount of salary once for twelve (500 * 12). After this calculation, if you have a salary of, for example, 1000 Euro, which is already considered a good salary in Latvia, then your total loan volume should not exceed 12 thousand Euro.

But as real estate and car prices are quite high, most people have already breached this barrier. And then the second barrier is applied, which means that your total monthly loan payments should not exceed 20% of your income. This means that if you have a salary of 500 Euros, your credit payments should not exceed 100Euro per month, but if your salary is 1000 Euro, then this payment should not be given 200 Euro. And these 20% must cover the repayment of both the principal and the credit. After that, you can easily determine if your total credit is more than 12 months’ salary and the minimum credit payments exceed 20% of your monthly income then your debt is definitely too high. And according to these criteria, I know many people whose total debt is certainly too high, which in turn means that they should start paying their debts more seriously than they did so far!

 

Good against bad credit

Good against bad credit

Many people in the financial industry say that there are good and bad credits, where good debts include long-term debts like a mortgage or a car loan, but bad loans include short-term credits that are quick loans and a credit line.

And it is often seen that financial experts are arguing about whether there are such good and bad loans or whether all the credits are bad. And I am one of those people who think that all the debt is bad and I think that short-term loans are perhaps even better, because even though their interest rates are higher, people pay off more quickly, but for long-term loans consumers are attracted to several years and often even decades, certainly not good either for their wallet size or nerves. But, as they say, getting used to everything, and when a person is accustomed to being in debt, he will borrow more and more.

 

Loan repayment

Loan repayment

We are all accustomed to paying minimum monthly payments on credit and consider this to be the best practice, but in fact, the minimum payments are designed to bring as much profit as possible to the credit institution itself, but consumers who really want to get out of credit should to spend as much money as possible on this credit repayment every month to get rid of these debts as soon as possible. The credit should be, as an extraordinary option, if there is really no way to find additional funds to pay for, for example, heating or buying food, but it should in no way be self-evident and even assumed that credit should be taken to buy something!

Consumer credit with bad credit history

Consumer credit is a type of loan issued by both banks and private creditors, and where it is possible to receive medium-term loans up to EUR 10,000.

Consumer credits are used for a variety of purposes, from buying a car to travel and other entertainment, including home improvement, medical services, and essentially everything that requires more money. Consumer credit is available at the bank, but then you need to go to the branch and fill in various paper mountains, but you can also do it with private creditors, right here on the internet. Of course, banks offer lower interest payments, but private creditors require higher interest rates, however, these percentages outweigh the fact that money is received immediately and there is no need to fill out any paper on where the money will be used or why the loan is taken. Of course, consumer credit must also be careful, as with any other type of credit, and can not take the loan out recklessly, so non-bank creditors also check the credit history of their customers before the loan is issued.

 

Bad credit history

Bad credit history

Those who do not yet know what a bad credit history means will be able to find out, and basically it means that the debtor has not paid it back on time or has not paid back at all and the creditor had to involve debtors to recover the money. Credit history can be damaged by both large and small credits, and basically, as you do not repay a loan, it is recorded in the credit register, which is a database for obtaining and recording these data. Of course, if you miss a few days, but then make a loan payment, you are unlikely to be recorded in this register, but if you do not fully repay the loan and have debtors involved, then that record will definitely appear there. Having any credit lenders before the loan is issued, checks the customer data in this credit register, where they are stored for up to 10 years, and if checking the debtor’s data reveals that his credit history has been damaged, the credit will most likely not be issued or will have much worse conditions.

 

Consumer credit with damaged credit history

Consumer credit with damaged credit history

If you want to get a consumer credit, but you have a bad credit history, then it is likely that the bank will not give you such a loan because the lender will see this information when checking the credit register. If the credit history has been spoiled recently, the credit will certainly not be issued to you, but if the infringement has been several years ago, the creditor may only make a loan with worse conditions to mitigate your risk. Speaking of non-bank creditors, they are somewhat more modest, and they also issue loans with damaged credit history, but they also look at each customer individually and look at the total value of the customer, the amount of credit, asking why credit history was damaged, and so on. etc. Essentially, if you want to get this consumer credit you will need to provide all your data and explain why you have damaged this history, and only if you can guarantee that you will be able to pay the loan or make a mortgage, only then will the loan be issued because the creditors do not want to risk their money by lending it to someone who can not repay it.

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