Legitimate Payday Loan Consolidation Companies -Colonialhomehealth.Net http://www.colonialhomehealth.net/ Tue, 01 Sep 2020 08:13:45 +0000 en-US hourly 1 https://wordpress.org/?v=5.5 Payday loan debt help -Find out more about payday loan consolidation companies http://www.colonialhomehealth.net/payday-loan-debt-help-find-out-more-about-payday-loan-consolidation-companies/ Wed, 11 Mar 2020 16:30:53 +0000 http://www.colonialhomehealth.net/2020/03/11/payday-loan-debt-help-find-out-more-about-payday-loan-consolidation-companies/ Find out more about payday loan consolidation companies

Payday loans are an increasingly popular form of borrowing money. In emergency situations, they are a great solution because we can receive them, as the name says, during one moment. In addition, the institution that provides payday loans will rarely require anything more from us than an ID card. So nothing simpler – just a few minutes, one document, and our wallet immediately becomes thicker. It’s great that such products exist because they can certainly save us in many unexpected situations and help us get out of financial trouble.

Let us remember, however, that payday loans have one significant “disadvantage”: they must be paid back. And this is usually quite fast because they are usually granted for periods from 15 to a maximum of 60 days.

Certainly, many of us have happened to forget that each subsequent loan amount is also an additional monthly installment. We spend borrowed money quickly and the costs of monthly commitments are rising. How to deal with this situation and protect yourself from serious financial problems? A payday loan consolidation from the best companies comes to the rescue.

Loan consolidation means that we take out a new loan. Yes, it sounds scary in the situation we are in. New loans while we can’t pay back the current loans? Yes, but it is a loan with slightly different rules. With its help, we pay all our obligations, in this case, payday loans, and in return, we only have one loan and only one installment. This will allow us to breathe and think more calmly about the upcoming monthly payments. In addition, we can also make sure that the installment of the new commitment is lower than the amount we have spent on repayments so far – all you need is to extend the financing period. The repayment amount will be divided into more months, thanks to which individual installments will be lower, and thus less burdensome and less stressful. The consolidation loan for payday loans has exactly the same laws.

A lighter step into the future

Problems with paying off payday loans can have a significant impact on our budget and financial health. Firstly, because they are very expensive, especially if we repay them late. This is a consequence of the fact that they can be obtained so easily and quickly. In this way, institutions compensate themselves for a much higher risk. They bear them because they grant loans to people whose financial credibility is hardly checked at all. If we stop paying installments on time, the cost of the loan is growing rapidly and it is getting harder and harder to pay it back. Secondly, we can quickly lose credibility in the eyes of banks and other financial institutions, because some payday offices cooperate with the Credit Information Bureau and the National Debt Register. If information about the fact that we got into trouble, will be forwarded there – we can forget about the possibility of obtaining a loan from other banks. And even for many years.

This is why consolidation of payday loans is worth considering and at the very beginning of financial problems. We should take a consolidation loan to pay back payday loans when there is a problem with paying even one installment. Thanks to this, we will pay off all our obligations and our credit history will remain in good shape. If in the following years there is a need to take out a loan – cash, mortgage or installment purchase of any equipment – we will be sure that no one will refuse to grant it to us. Thanks to this, we can look to the future with calmness, because we will probably need help more than once in the form of a bank loan.

What is important in consolidation?

The consolidation of payday loans is certainly one of the best solutions in the face of financial problems. However, remember to choose one that can really help us. Its installment should be lower in order to create convenient repayment options and reduce the household budget. Do not decide on a product that is too expensive – before signing the contract, we should necessarily look at the installment, repayment time, as well as the APRC, i.e. the annual real interest rate. The lower it is, the better for us. A consolidation loan to pay off payday loans is a good way to organize our budget – you just have to remember not to treat it as an ad hoc aid and a stop on the way to further uncontrolled debt.

Debt rescheduling is very flexible http://www.colonialhomehealth.net/debt-rescheduling-is-very-flexible/ Mon, 03 Feb 2020 21:33:21 +0000 http://www.colonialhomehealth.net/2020/02/03/debt-rescheduling-is-very-flexible/ The market for loans is growing steadily because more and more banks want to participate in the high demand for cheap installment loans. Unfortunately, it can happen too easily that as a layperson you lose track and choose a loan whose terms are rather mediocre. This is very annoying because it means an unnecessary additional burden that would have been avoidable.

However, once a borrower is in this situation, many think that it is too late to do anything. Fortunately, with debt restructuring there is another option to be able to reduce the financing costs even after the fact. A new loan is also taken out and the old loan is replaced with the loan amount, which of course only makes sense if the interest costs of the new loan are significantly lower.

Debt restructuring requires certain conditions

In order to be able to reschedule debt, certain conditions must be met. This includes, for example, a debt rescheduling loan that offers more favorable interest rates. Fortunately, this is very easy to find with a debt rescheduling loan comparison, so that often a large savings potential can be used. It is also very helpful if the old installment loan allows special repayments free of charge, because otherwise the savings effect of debt restructuring will be reduced by a possible early repayment penalty. Although this is now legally limited for normal installment loans, it still creates additional costs that require a very precise calculation.

In the case of debt restructuring, it can also be very interesting to keep the new loan flexible, which means that it will also be provided with free special repayments. In this way, it will be possible in the future to undertake debt restructuring if the interest rate level should drop significantly. In addition, it makes sense to pay attention to certain advantages in rescheduling for certain professional groups, because as a civil servant or temporary soldier it is possible, for example, to take advantage of particularly attractive special loans and thus save money.

A debt rescheduling loan provides great savings potential

The bottom line is that a debt rescheduling loan can really help contain its financing costs. You just have to find a much cheaper loan and replace it with the new loan. If free special repayments are permitted, rescheduling is particularly attractive because in such a case there are hardly any additional costs. It is precisely for this reason that it is worthwhile to take out a debt rescheduling loan comparison before a corresponding financing project, in order to find cheap offers and thus ultimately lower the interest costs to a significantly lower level.

Debt Loan – How to Find a Debt Consolidation Loan http://www.colonialhomehealth.net/debt-loan-how-to-find-a-debt-consolidation-loan/ Wed, 15 Jan 2020 21:55:04 +0000 http://www.colonialhomehealth.net/2020/01/15/debt-loan-how-to-find-a-debt-consolidation-loan/ However, with an average temperature of only 16 degrees Fahrenheit it is better to have a warm jacket and a pot of hot chocolate ready for the winter months! Although winter can be rough at times, everything will be worth it when the sun comes out in spring. It’s just a perfect average 73 degrees all summer long; it is never an uncomfortable temperature!

A debt consolidation loan pays off for most other loans or lines of credit. If you find yourself swimming in debt, this could be a good option. Debt consolidation loan is the best option when you have reached your credit cards and you are still paying for your car and home.

Low cost loans can be used in various markets through the Internet

Services like these offer customers benefits that they find very attractive – the convenience of shopping for their home equity loans as well as the ability to review and review a variety of offers all at once. When you are looking for a cheap loan online, try to evaluate each loan package individually and not simply a payment or interest rate for the way you would be through mail-in orders.

Of course, you will need to do your homework well if you wish to participate in this gold rush. Many people lost their home loans a couple of years ago due to poor planning, and did not fully understand the terms of their home loans.
However, a tenant who has no choice but to go for unsecured loans (unsecured) can also find the cheapest loans.Within unsecured loans category of the competition has grown. Unsecured loans are cheaper options when it comes to increasing small amounts. To get cheaper loans you will have to compare the loans and then make up your mind.

When delving deeper into the history of debt consolidation

It becomes clear that this option has become popular with home equity loan. That was the time when people started taking out loans against their home to pay off their other debts. That was also a form of consolidation as a loan was taken to pay off many. This was the beginning of this concept. But, it was not possible to pay a smaller amount of money to several lenders. All they could do was take the money from one lender to pay the others, keeping the original amount in touch.

What happens next is far from clear. The huge raw materials stocks could continue to grow at a breathtaking rate – after all, Beijing has a lot of green tickets to work through – and the dragon’s data points could continue to amaze, or at least not scare.

Hereditary Debts – What they are and when to pay http://www.colonialhomehealth.net/hereditary-debts-what-they-are-and-when-to-pay/ Sun, 22 Dec 2019 21:59:26 +0000 http://www.colonialhomehealth.net/2019/12/22/hereditary-debts-what-they-are-and-when-to-pay/ Hereditary debts must be kept separate from hereditary burdens. The former are in fact related to obligations that the deceased has contracted in life or, better to say, by the date of death. The hereditary burdens, on the other hand, are debts or obligations that arise precisely because of the death of the deceased (such as, for example, inheritance costs, funeral expenses, etc.).

What are the debts that are not inherited?

The law on succession provides that the bonds, which also include debts, are transmitted by inheritance, with some exceptions. In particular, they do not inherit:

  • debts of a strictly personal nature, or those obligations that can only be paid by the person of the deceased. These never include pecuniary debts (those whose payment must be made against a cash outlay);
  • sanctions: these must be kept separate from the taxes that led to their accrual. So if a debt is not prescribed (including a PushQual role), the heirs who accepted the inheritance will be required to pay the tax but not the relative sanction;
  • fines for traffic offenses: these must be contested by showing the death certificate of the holder of the fine.

When do you not pay your debts?

An heir may not pay hereditary debts only if the inheritance is not accepted. In this way, by not taking over the hereditary axis, it does not take on any debt. This is a possibility to be followed logically when the debts exceed the assets that can be inherited.

Then there is the acceptance with the benefit of inventory which offers the heir the possibility of not confusing his own patrimony with that of the deceased. In fact, when assets are inherited, they enter the personal estate of the heir and the same happens for debts. To keep credits and debts separate, responding to debts only with the value that has been inherited, then acceptance with the benefit of the inventory is the only way forward.

When deciding to accept or not accept the inheritance, however, it must be borne in mind that if you have children, you will pass on the share inherited to the latter. In this case it is necessary to inquire at qualified structures (or competent professionals), proceed with caution and possibly contact the juvenile court to ask that their children are also excluded from this possibility.

To avoid this situation, one can accept with the benefit of the inventory, knowing, as mentioned, that the balance between debt and inheritance assets will be reduced to zero.

How to make acceptance with inventory benefit

The request must logically be made by the heir who wishes to make use of it directly to the clerk of the competent court who will have the task of drawing up an ‘ad hoc’ report to formalize the will of the applicant himself. The latter, on the other hand, must submit the application for the preparation of the inventory thanks to which the debts / credits balance sheet will be calculated.

Who pays?

Another issue that can sometimes be unclear is who pays hereditary debts and to what extent. In fact, the issue of “joint and several” payment or referring to a “pro quota” contribution may remain alive.

In case of absence of will

If the deceased has not left a testament, then by law the heirs take over the debts for the same share with which they take over the property of the deceased. So if your quota is 50% you will have to pay 50% of your hereditary debts and hereditary weights.

For example, do you have to pay the mortgage payment, the waste tax and repay a de cuius loan? Only 50% of each debt will have to be paid. If the other heir does not pay his 50% share, the creditors will not be able to contact the fulfilling heir, because there is no solidarity between the various heirs.

The only exception is for mortgages for which passive solidarity exists. In this case, the creditor can also contact the heirs or start the attachment procedure, etc.

With a properly drafted will

Instead, it may happen that the deceased left the will stating that:

  • the debts are repaid by a single heir (which must however be justified in view of the division of assets carried out in the will which must take into account the legitimate share);
  • there is passive solidarity in the event of default: in this case the heirs will be co-obligated.

However, the law provides for the possibility that the heirs may derogate from the participation of hereditary debts pro quota with personal agreements, which however must be accepted unanimously. This possibility occurs both in the case of division of the voluntary quota and in case of judicial division.

Debts prescribed

In the case of logically prescribed hereditary debts, the heir is not obliged to pay them. Like other debt situations subject to possible prescription, however, it is necessary to check whether the deceased has received official communications (primarily recommended, formal notice, etc.) that may have interrupted the terms.

 Loan with guarantor | What needs to be considered? http://www.colonialhomehealth.net/loan-with-guarantor-what-needs-to-be-considered/ Sun, 22 Dec 2019 21:39:47 +0000 http://www.colonialhomehealth.net/2019/12/22/loan-with-guarantor-what-needs-to-be-considered/ What is a guarantee?

If a prospective customer cannot provide sufficient collateral, the alternative can be that a suitable person guarantees the repayment of the loan. The latter signs the surety agreement and can therefore be used by the bank or the borrower if the actual borrower can no longer or does not want to meet his payment obligations.

This usually requires a joint and several guaranty with no objection. In contrast to the default guarantee, the joint and several guarantee goes much further: the bank can not only approach the guarantor in the last instance after lengthy and costly processing and enforcement against the borrower, but can use it on an equal footing to repay the loan. The waiver of objections means that the guarantor cannot rely on the usual objections (such as limitation) that are available to the borrower.

According to § 766 BGB, three key form features must be included in the guarantee contract or form:

  • exact name of the creditor
  • concrete naming of the principal debt (maximum amount guarantee, plus interest and ancillary credit costs)
  • a written and unequivocal statement from the guarantor

Furthermore, fees (so-called guarantee fees ) are generally due for the guarantee. This is intended to compensate for the increased administrative expenses for assuming the credit risk. The guarantee fees vary from bank to bank and are usually based on the principal debt. In practice, an order of magnitude of 1 percent (i.e. around 10 USD per 1,000 USD) is common.

It should not be forgotten that the guarantor is not a main debtor and should only be available in an emergency. This means that the borrower must be able to service the loan from their own resources. As a result, unemployed people or Hartz IV recipients, for example, have no chance of obtaining a loan despite potential bank guarantees. On the other hand, many banks grant a loan to employees during the probationary period if they have a suitable guarantor.

What do I need to guarantee a loan?

A suitable guarantor must generally be creditworthy himself. In addition to the age of majority, this means above all a very good credit rating, for which three important requirements must be met:

  • perfect Credit Bureau information
  • fixed attachable income
  • regulated financial situation

What if the guarantor is already a borrower?
The guarantor can already pay off one or more loans himself – if his bottom line disposable income and collateral are sufficient to settle the principal borrower’s debt if the guarantor uses the guarantor. The rule by which banks judge this is that the guarantor could pay off at least a quarter of the loan within five years.

Apart from the pure numbers, a guarantee and its possible consequences should be carefully considered. Is the loan and its repayment understandable by the borrower or are there already doubts? What happens if the principal is unable to service the loan due to unforeseeable events? Do you assess them so responsibly that they do not take advantage of their guarantors, but can and will help themselves if necessary? Ultimately, it’s also about trust.

Which guarantees are ineffective or immoral and prohibited?

In order to protect the guarantor and the borrower from over-indebtedness, there are some legal requirements for taking out a loan with a guarantor:

  • Particularly extensive agreements in the loan agreement are not permitted. This applies above all to global guarantees for unspecified or unknown and future claims.
  • If the consequences of liability are downplayed towards the guarantor or the contract is reduced to a formal form, the guarantee is ineffective. In particular, unsecured guarantors should be protected from deception. Unfortunately, the burden of proof lies with the guarantor himself.
  • In principle, spouses or close relatives can be used as guarantors – but they must not be financially overwhelmed by the guarantee and must have sufficient income and assets to be able to pay off at least a quarter of the loan with their own funds in five years. In addition, no emotional dependencies may be exploited.

In any case, a so-called guarantee on first request is also not advisable. A single default of payment by the main debtor is sufficient to be able to demand the installment immediately from the guarantor.

When does a guarantee expire?

A guarantee for a loan expires in the following cases:

  • if the main claim has been paid in accordance with the contract or the guarantee has been used.
  • for a temporary guarantee: when the period has expired
  • in the event of waiver by the creditor
  • after giving up a security interest (further security associated with the main claim) without the knowledge or consent of the guarantor (eg if a mortgage is assigned by the creditor); This is to prevent the guarantor from being disadvantaged. The BGH decided this on June 4, 2013 and released a guarantor from his obligation to pay.
  • in the event of termination in accordance with the contract by the guarantor – this is practically impossible until the loan has been paid in full

On the other hand, the guarantee does not end when the guarantor dies, but is inherited.

Advantages and disadvantages of a guarantee loan


  • Despite the lack of collateral, the borrower can receive an important loan.
  • The bank can adequately hedge a loan transaction that is worthwhile for it.


  • For the bank, tangible collateral is generally better, since the “value” of a guarantor can also deteriorate after a loan has been taken out.
  • For the guarantor, the guarantee means a high financial and personal risk: If the main debtor cannot or does not want to service his loan, the guarantor is fully responsible in the worst case. This usually also affects the best personal relationship between borrower and guarantor to date.

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If the borrower dies: Who continues to pay the loan in the event of death? http://www.colonialhomehealth.net/if-the-borrower-dies-who-continues-to-pay-the-loan-in-the-event-of-death/ Sun, 15 Dec 2019 21:41:54 +0000 http://www.colonialhomehealth.net/2019/12/15/if-the-borrower-dies-who-continues-to-pay-the-loan-in-the-event-of-death/ 9+ tips debtors, heirs, creditors and guarantors need to know about what happens to debt after death

  • What happens to debt in the event of death?
  • Alternative: estate administration
  • Peculiarity guarantee
  • Risk life insurance not tied to the legacy
  • Special feature: mortgage on real estate loans

Most borrowers exclude deaths when taking out a loan. Especially with long-term loans such as real estate loans, which are paid off over decades, the risk increases that the borrower dies early during the repayment phase. Most of these are not age-related deaths (e.g. accidents, serious illnesses).

The bank does raise this risk – especially in the case of large amounts of credit – and would like to hedge as much as possible, but there is no obligation to take out residual debt insurance that covers the installments in the event of death. In the case of pensioners, there is even a different age limit for the granting of loans from bank to bank. But if you want to protect your family so that they don’t have to move out of their own home if you die, you can take out preventive life insurance.

What happens to debt in the event of death?

In principle, debts – for example from loan liabilities – continue to exist after death. These, like any assets, are passed on to the legal heirs – or, if a will has been made, to the beneficiaries specified therein, taking into account statutory mandatory parts. If there are several heirs, a community of heirs is formed, which is then jointly and severally liable for any liabilities of the testator.

Since the financial situation is not always immediately clear, the legislature has therefore given the heirs a period of 6 weeks from becoming aware of the time within which they can refuse the inheritance. This must be done by means of a waiver at the competent probate court or, alternatively, through an intermediary notary.

If an heir rejects the inheritance, it automatically falls to the next heir. This can also turn down the inheritance within the period.

If the time limit has passed, the heir no longer has the option to withdraw from the inheritance. In the case of a negative asset, this is then owed to the creditor or creditors. In this case, the loan agreement continues and the contract partner is now the heir. He can now continue to use this loan or arrange a settlement with the lender (usually the bank) (eg special repayments taking into account any prepayment penalties). If the thing purchased by credit is still available (e.g. a car), this can be sold to reduce the debt. By the way, an overdraft facility is also a loan agreement that must be paid in the event of death.

Alternative: estate administration

Especially in the case of very unclear financial circumstances or a balance of assets and liabilities that is not generally recognizable, it is advisable to apply for estate administration. This takes over the power of disposal and the heir is no longer liable with his private assets, but at most with the value of the estate. Similar to an insolvency administrator, the estate administrator takes care of paying off existing debts from the available debt.

Peculiarity guarantee

In the event that a guarantor has given a loan to the main borrower, who has since died, he will have to stand in for the proper repayment of the loan.

Risk life insurance is not linked to the legacy

If the deceased borrower has taken out life insurance and has also specified his heirs as beneficiaries, an interesting constellation arises: the heir can deduct the inheritance based on the debt, but still collect the sum insured. Legally, this is not considered an inheritance, but a gift.

In the case of a real estate loan, this would mean that the bank would now have to take care of the liquidation of the property secured by the mortgage.

Special feature: mortgage on real estate loans

By default, a declaration of personal liability is noted in the mortgage forms used in mortgage loans. If this was signed by both spouses, this means that the bank may enforce the entire property of the surviving spouse via the amount of the land charge in order to meet their claims. Even then and especially if he has turned down the legacy with the debt.

If no personal liability has been declared, the bank will use the deed of land charge to enforce and auction the property.

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Credit repurchase for the unemployed http://www.colonialhomehealth.net/credit-repurchase-for-the-unemployed/ Sat, 23 Nov 2019 22:34:31 +0000 http://www.colonialhomehealth.net/2019/11/23/credit-repurchase-for-the-unemployed/ The fact is that an unemployed person offers absolutely no guarantee of the sustainability of income from time-limited unemployment benefits.

So the only way for an unemployed person to get his credits back is to find among a member of his close family who would agree to take out in his own name a personal loan of the necessary amount, at his own risk and obviously provided that he has the corresponding borrowing capacity.

It is therefore exclusively a matter of family and trust. On the side of banks and credit institutions, there is nothing to hope for, unless …

There is a case where you can be unemployed and a borrower

It is when you live in a couple, that you are married, civil partnership or common-law, and that the other has sufficient income, therefore a debt capacity allowing him to obtain alone the grouping of credits, unimportant besides by which of the two these were subscribed. In this case, one of the two who is unemployed may nevertheless be a co-borrower.

Please note: the debt ratio will, therefore, be determined by the regular and perennial income of the only borrower who is inactivity, but the charges, whether for joint housing or alimony paid by the unemployed. , will be charged in full. Thus, even in common-law relationships, one of the two who works cannot claim to be accommodated by the one who is unemployed to benefit from the practice of “notional rent” when its amount is less than that of the real rent of the couple’s accommodation.

Can a joint and several guarantees be envisaged?

The bank of the unemployed person, depending on the history of their relationship, in particular, could perhaps accept a joint and several guarantees, provided that it is a close family member (relative or child). For the latter, this solution is more satisfactory than taking out the restructuring loan itself since it will not be a borrower and the bank will be able to sue the latter when it becomes solvent again.

On the other hand, no specialized credit institution accepts joint and several guarantees for the repurchase of credit. There are (very few) who accept a mortgage guarantee, but it is not at all the same thing because if the latter can see his property pledged sold in the event of default by the borrower, it is not a substitute for him in front of the lender who must first prosecute him.

The mortgage bond serves as a financial guarantee for the restructuring loan, but the latter will only be granted on the basis of the borrower’s debt capacity, which must, therefore, have sufficient regular and long-term income, in other words not being in the unemployment.

Prevention is better than cure

The only way for an unemployed person to benefit from a loan repurchase is to have obtained it before losing his job and, more precisely, before he is subject to a dismissal procedure.

Obviously, it is not a question of acting in the manner of an “insider trading”, ie of acting when one learns sufficiently in advance that one is going to do the subject to an individual or collective dismissal procedure.

Even without this “complicity” and without a crystal ball, one can feel such a risk. However, if the company that employs you is experiencing proven economic difficulties, it is to be feared that the credit institution that you will request for your credit consolidation will be informed during its research.

Before these difficulties arise, if you work in an industry which is likely to be impacted by the economic crisis or a development of the markets which is unfavorable to it, it may be prudent to consider buying back credit for anticipate a possible drop in income following a job loss or a reduction in working time, for example and adapt your credit repayment charge to this new situation.

If the feared risk does not materialize or that having materialized, you find a job thereafter, you can always make a quote for grouping your loans or even make partial repayments.

Finally, if you want to have a solution for investing, know that gold is something that you can favor.

The bank canceled my loan. What now? http://www.colonialhomehealth.net/the-bank-canceled-my-loan-what-now/ Mon, 18 Nov 2019 21:45:01 +0000 http://www.colonialhomehealth.net/2019/11/18/the-bank-canceled-my-loan-what-now/ If the bank has canceled the loan and now demands the full amount back, the child has already fallen into the well. Now it is important to keep a cool head in order to save yourself from the situation and not to make it worse.

What is the usual procedure?

Anyone who is unable to service one or more current installment loans – i.e. cannot pay the monthly installments due to a financial imbalance or other reasons – is first given a more or less friendly warning from the lending bank to pay the outstanding amount. As a rule, fees are also due for an uncovered direct debit. Therefore, it is not recommended to simply cancel or debit a charged credit installment.

If – in the event of the arrears in arrears – you fail to comply with the first and possibly a second reminder and do not settle the outstanding claims from the loan agreement, the bank will usually terminate this by registered letter and the so-called debt balance is due for immediate repayment. Usually with a notice period of two weeks.

This right of termination is based on § 498 BGB (total due date for installment loans), according to which the lender is entitled to terminate if the borrower is in arrears with two successive installments and at least 10% (with a term of more than 3 years of 5%) of the nominal loan amount is (paragraph 1). Before that, however, the written reminder with a two-week deadline must have been fruitless (Paragraph 2). At the latest when the deadline is set, the borrower should also be offered an offer to discuss the situation in an agreed manner.

Prepayment penalty is not legal
If the bank cancels a loan on its own accord, according to the BGH rulings from 2016, it is not entitled to the so-called prepayment penalty, i.e. compensation for lost interest. This can quickly be high five-digit amounts, especially for real estate loans. If you have already paid these, you can try to claim them retrospectively. However, you should bring a lawyer who is specialized in this on board.

It has also happened that the bank terminates a loan due to a significantly changed financial situation (Section 490 BGB). This can happen particularly in the case of unemployment or the repayment of student loans. Even if liabilities to third parties cannot be serviced, the bank can – with otherwise faultless payment in installments – terminate the loan with reference to its terms and conditions.

Incorrect information when applying for a loan or the financial situation can also lead to termination. There is also a legal requirement if the security provided suffers a substantial loss in value.

In any case, an attempt should first be made to seek a conversation with the personal bank advisor or a responsible employee of the lender and to signal willingness to solve the problem.

On the other hand, if an overdraft facility is canceled , the bank is usually of the firm opinion that the debtor cannot free himself from the so-called permanent overdraft – the monthly income is therefore foreseeably not sufficient to adequately debt the account. Although the bank earns very good money from the mostly double-digit overdraft interest, it is also obliged to counteract the debt of its customers. A Credit Bureau entry is not made if the payment is made on time (usually six weeks).

How should the full amount be paid if the last installments could not be paid? Here are some solutions:

rate agreement

If the defaulting installments are not caused by financial problems, but rather, for example, by accounting or personal problems, or if you convince the bank of a good financial situation, there is a chance that you can reach an installment agreement on the total loan amount due. This is set for up to twelve months and therefore means higher monthly rates than before, but also the chance to meet the often four or five-digit sums without reserves.

debt counseling

Most of the time, the loan termination is a situation that has not been mastered before. If you want to accept professional and experienced help, you should contact a debt counseling service in your area.

This help should be accepted especially when it comes to substantial sums – such as home loans. Here borrowers easily take on the monthly installments and then face high five- or even six-digit claims.

When the bank has canceled the car loan

In the case of vehicle financing, the bank usually withheld the vehicle registration document (today registration certificate part II). If you are now in arrears with one installment, the bank will send a message to the borrower stating that the open installment must be settled immediately and, from the second open installment, issue a termination of the contract without further notice. The case is then gladly handed over to a collection company, which is supposed to collect the amount and tow the vehicle as security (attached).
If it is not too late, the installments should be paid in full or at least a conversation with the bank sought to arrange a deferral or extension of the repayment if necessary.
All in all, non-payment of the installments is always associated with higher costs (collection, appraiser, recovery) and should be avoided under all circumstances and with all possibilities.

If the bank has canceled the house loan – what to do?

In the case of existential loans such as real estate financing, the involvement of an experienced lawyer can pay off. This checks the loan agreement and the termination and can determine whether the termination has been effectively pronounced and whether the necessary requirements have been met.

However, if the termination is effective, there are several options depending on the prevailing situation:

  • Find a conversation with your personal bank advisor. Tell him the situation honestly and try to convince him that your situation has improved. The prospect of repayment of higher one-off amounts (e.g. 10 percent of the canceled loan amount) can also work wonders.
  • If there is no solution in sight at the previous bank, you can try to get a real estate loan from another bank – which is not impossible when the creditworthiness is now solid again. In most cases, the previous bank’s prepayment penalty is added to the remaining debt.
  • In addition to the debt counseling mentioned above, which helps you to assess your situation, the
  • direct sale of the property can be an option, which in many cases is more lucrative than the threat of foreclosure

What happens if the canceled loan cannot be paid?

Debt restructuring and take out additional credit?
Hopefully, anyone who wants to pay a canceled loan with another loan has understood the warning shot. If there is really a potential lender, in this case, due to the negative Credit Bureau entry from the previous credit obligations, a deterioration in the credit conditions can be expected. However, if you can negotiate better terms (lower rates, better interest rates) with another bank, this option of rescheduling can make sense.

Caution must be exercised with potentially dubious providers who like to take advantage of the difficult situation of the borrower (“loans upon cancellation”, “loans without Credit Bureau”, “loans in difficult cases”). These can further worsen the situation and cause the customer new difficulties.

It should be checked, however, whether you can borrow money privately and ideally without interest. In any case, your own financial situation must be strictly analyzed in order to save and improve the situation sustainably.

wage assignment

Those who are unable to raise the required amount and are in employment must confront their employer with the issue of garnishment. In most cases, there is a wage assignment clause in the loan agreement, which authorizes the bank to disclose the wage assignment to the employer. If the garnishment of wages has already been excluded by the employment contract or the employer does not agree to it, the next stage of the claims manager comes into play.


If, with the best will in the world, you cannot repay the entire loan amount, comparison offers have also led to success in the past. The bank waives part of its claim and thus avoids the risk of not receiving anything from the outstanding loan amount.

Legal dunning

If all of the previous options are not possible, the bank will first have a judicial reminder sent to you. This can simply be applied for and will only be checked formally and not in terms of content by the dunning court. The further steps in the event of non-payment and without lodging an objection are the enforcement notice and the enforcement.

personal bankruptcy

If the bailiff is also unable to collect or pledge anything, there has also been the possibility of private bankruptcy for some years. However, this should be the very last resort due to the problems and inconvenience that this entails.

Limitation of termination

The possibility of a statute of limitations three years from January 1 after the termination is very very low, since the bank knows this period and will not let it pass without further measures.

Can I repay my credit early? Stay calm, here are all the answers. http://www.colonialhomehealth.net/can-i-repay-my-credit-early-stay-calm-here-are-all-the-answers/ Thu, 14 Nov 2019 22:02:51 +0000 http://www.colonialhomehealth.net/2019/11/14/can-i-repay-my-credit-early-stay-calm-here-are-all-the-answers/ Whatever the progress of the repayment of your loan, you can pay it off early and at any time. But how to do it? Follow the guide. An additional cash inflow? A salary increase?

There are many reasons that can help you settle your credit in advance. The steps to achieve this may seem complex, so here are some clarifications that may help you.

What are the rules for prepaying a loan?

It is always possible to prepay a loan in full at any time. If you wish to reimburse only part of the amount, this is also possible. Generally, you must make your request by registered mail to the attention of the lender.

How much does the prepayment of a loan cost?

Repaying a loan before the balance is over may result in compensation, more commonly known as re-use fees, which you will have to pay.

The law is different if your contract was concluded before or after 2010.

For a contract concluded before 2010, it is the amount borrowed which will determine your indemnity to be paid. If the contract is less than $ 7,500, the compensation may not exceed two months of the total cost of the credit. If it is greater than or equal to $ 7,500, it will increase to three months maximum.

For a contract concluded after 2010, it is the period between the early repayment and the date of termination of the contract which will determine the compensation to be paid. With a delay of more than 1 year, the compensation may not exceed 1% of the amount reimbursed in the capital. If the period is less than 1 year, it will then amount to a maximum of 0.5%.

This applies if you prepay all of your credit. When you only reimburse a part, the re-employment allowance is calculated on the capital you pay.

What documents should I get?

In order for you to repay your loan, the credit agency must provide you with the amount of the re-use fee. Depending on your choice to fully or partially settle this loan, the lender will provide you with a new amortization schedule and the precise duration of the repayment. You will be informed of the new monthly payment due, as well as the evolution of the remaining balance.

In the event of total repayment of your credit, you can ask the lending organization for the closing document of your credit, which allows you to obtain written proof. The lending organization communicates the closing information to the Central Credits to Individuals within two working days of the total repayment of your credit.

What are the real advantages of paying off a loan early?

During a full refund, you will no longer have to pay interest on future monthly payments, since these will no longer be necessary.

If it is a partial refund, you have several options. You can either ask to pay the same monthly payment and the duration of the credit will be reduced, or pay a reduced monthly payment for a duration equivalent to the initial credit request. This is how you will get a new depreciation schedule.

Can I lose my tax benefits?

It is important to remember that by repaying your loan early, you will lose the tax benefits that may be linked to it. We, therefore, advise you to inform yourself well before making your decision.

Conclusion: in order to make an early repayment of your credit, your credit organization will be able to support you in all serenity in this approach. Do not hesitate to contact him to ask any questions.