Is it advisable to apply for debt consolidation?

It is very easy to end up enrolled in a file of defaults such as ASNEF, RAI or EXPERIAN, since a bill for services that we do not pay or a telephone bill without paying small amounts are sufficient reasons. In these situations, it is best to use Debt Consolidation For Bad Credit as soon as possible to avoid future problems. Therefore, if an unexpected financial crisis arises, when we are delinquent and need liquidity, our options to obtain financing will be greatly reduced, although we can request loans with ASNEF of up to € 750.

Make sure you meet the conditions, before asking for credits

If we are registered in a file of defaults and we decide to request loans with ASNEF to settle the debt, there are two fundamental aspects that we must take into account. Otherwise, the solution could become the problem :

  1. We must ensure that we are able to comply with the conditions established in the contract.
  2. It is important that we bear in mind that the following month we will have to return the loaned capital along with the generated interest and, all this, without affecting our economic situation.

If we have these clear points and decided to apply for a loan with ASNEF to make our debt effective, one of the best options we can turn to is the mini-credit offered by Kredito24. With this mini loan with ASNEF, we can get up to € 750 in a matter of minutes, with a 100% online application process and with a return period of up to 30 days. The price of this quick credit is € 35 for every € 100 requested.

The great advantages of this loan are that we do not have to justify the purpose for which we want the money, which allows us to reimburse the capital in advance at no cost and, also, that we can request an extension in the event that we are unable to reimburse the money on the agreed date. Lastly, the requirements that we will have to meet to access the Kredito24 mini-credit are being of legal age, residing in Spain permanently, having regular, sufficient and justifiable income and having an account open in a Spanish entity.

And, what do I have to do to get out of the defaults file?

As we have already mentioned, if we want to leave any file of defaults, we must make the debt effective. Otherwise, we will remain registered for 6 years, by law. However, we will have the right to access the list and know if we are part of it for free and at any time.

In the event that we have doubts about this issue such as those mentioned previously, how to oppose entry, who is authorized to consult if we are inside, how long it will take to delete us, etc., we can download the free guide prepared by our experts “What Do you have rights if you are in ASNEF? ” With this useful tool we can clarify any doubt about it and get it, all we have to do is enter our email address and we will receive it instantly in our inbox.

3 Amazing Ways For Payday Loan Consolidation

3 ways auto pay helps pay student debt faster 640x300 

What are automatic student loan payments?

If you’re looking into payday loan or debt consolidation, you should know there are bill consolidation programs to do it.

The three main ways of using automating payments are:

  • Monthly withdrawals by your loan servicer
  • Sending funds through your bank’s online bill pay tool
  • Paying student loans with a credit card

Each automatic payment method has its potential benefits and drawbacks which are listed below. Make sure you consider all of them before deciding on an option that’s the best fit for you.

1. Automatic withdrawals by the lender

With this method of automatic payments, you give the details of your bank account to your loan servicer. By doing so, you authorize the lender to withdraw your student loan payment from your account each month.

By setting up payments with this method, you ensure your payments are always on time and you’ll never miss one.

What’s more, lenders often grant a discount on your student loan interest rate for setting up automatic payments. With a lower interest rate, you’ll accrue and pay less interest, plus save money. Talk about a win-win.

There are a few downsides to this method, however. Since you aren’t controlling the payments, you have less flexibility and control over them.

And once you’ve signed up for automatic payments, it can be a bit of a hassle to stop them. If you decide to end them, expect it to take about a month for this change to go into effect in your lender’s payment system.

If you’re interested in saving on interest and can keep your bank account well-funded to cover payments, enrolling in automatic student loan payments could be the best way to go.

2. Online bill pay from your bank

Another common method of paying student loans is setting up automatic payments from a bank account through online bill pay.

Banks typically offer this feature to customers who log in to their accounts online or through a mobile app. From there, you can enter your lender as a payee and set up a monthly, automatic payment to the lender.

The benefit to this method is that it gives you more control over your money. You won’t have to give the lender access to your bank account and you’ll have the ability to update or change your payment settings at any time.

Additionally, you could set-up alerts to get a text or email reminding you when your student loan payment is due, according to Money Girl Laura Adams.

A potential downside is that these types of payments might take a little longer to process. Usually, your bank will print an authorized check and send it to your payee by mail. To avoid late payments, set your online bill payment a few days before your lender’s due date.

Online bill pay can be the right choice for you if you’re more comfortable staying in control of your payments. It’s also the easiest method to use if you want to pay more than your minimum amount on your student loans each month.

3. Credit card bill pay

While most federal student loan servicers don’t accept payments via credit card, some private lenders or refinance servicers do.

If your student loan servicer does accept credit card payments, these will likely be set up through automatic withdrawals. You can also check if your credit card issuer offers a bill pay feature if you prefer that method.

There are some potential benefits to paying student loans with a credit card. For instance, if you pay with a rewards card, you might earn points or miles for your student loan payments.

It can also provide a little more flexibility for repayment. Since the payment is made against your line of credit, it won’t come due for another payment cycle. This could give you some wiggle room if you have a month where other expenses come up.

There are some major downsides to paying with a credit card, however. Credit card companies charge a processing fee to payees, which is why many lenders won’t accept this type of payment. These fees often offset any rewards you’re earning with your credit card in the first place.

Credit cards are also high-interest debt. So if you fail to pay the balance off in full each month, you’ll get hit with a big interest charge.

And if you’re using credit cards to cover student loan payments because you can’t afford them, it can quickly turn a bad debt situation much, much worse.

Should I use auto-pay for my student loans?

Overall, setting up automatic payments can help you keep up with payments and free up some mental energy for other financial tasks.

But the method you choose can either help or hurt your student loan repayment goals. Be sure to consider each auto-pay method and take the time to understand how they could affect your loans before signing up for one.

Interested in refinancing student loans?

Here are the top 6 lenders of 2018!

Pension plan: operation, taxation and alternative

Plan de pensiones The end of working life in Spain is something that worries many workers because they fear reaching retirement without a good pension or without enough to provide them with the quality of life they deserve. For this reason, investment products that are increasing their volumes are pension plans.

To facilitate your understanding, in this post we will try to shed the aspects considered most important as is its operation, taxation …

In addition, we will finally explain a star alternative, crowdlending , to take advantage of your money from now and be able to benefit from your monthly profits.

 

Pension plans

Image result for pension planPension plans are financial products intended for savings or private social security instruments aimed at the retirement of workers . The purpose is that the investor makes periodic contributions to dispose, later and in addition to certain pensions, of a capital or an income.

It is the ideal way to save with a view to retirement because of the advantages that investors find there (tax advantages …).

This product is supervised and inspected by the General Directorate of Insurance and Pension Funds that reports to the Ministry of Economy .

Operation of the pension plan

The operation of the pension plan is simple, when an investor decides to contract a pension plan begins with periodic contributions. The contributions are flexible with regard to three factors:

  • Amount (within limits)
  • Periodicity (monthly, quarterly, semi-annual …)
  • Mode (interrupted or uninterrupted)

The flexibility in them makes it easier for individuals to design their “own plan” . These contributions are invested by the plan’s managers based on previously established requirements.

To rescue the money from the pension plan, a series of circumstances must be met:

  1. Retirement of the plan holder, Social Security.
  2. Death during the period of realization of contributions as when charged.
  3. Prolonged detention more than 12 months subject to requirements.
  4. Total work disability , permanent for all work or usual.
  5. Great disability
  6. And other special causes (serious illness, home eviction …)

If any of these situations occur, the owner can decide to redeem the pension plan and with it the way to recover it :

  • Income: periodically receives an amount.
  • Sole capital: It is charged only once.
  • Mixed: Part in the form of income and part in the form of capital.
  • At disposal: Receive the funds in the form of income but without a regular periodicity (subject to requirements).

 

Taxation of pension plans

Taxation of pension plans

Taxation is one of the issues that most attracts investors when they decide to hire a pension plan as it is a strong advantage over other savings products.

The taxation of the contributions to the plan reduces the tax payment or the IRPF base and with this the amount to be returned by the Treasury can be increased.

The fiscal outlook was changed in 2015, with the changes taking effect in 2016, incorporating new developments focused mainly on contribution rates. Let’s see below what they are.

Limits of contributions to the pension plan:

The reduction for contributions is limited to deduct the lower of the following amounts: 8,000 euros or 30% of income from work and economic activities regardless of the age of the contractor. In the previous law differentiated age and quantities.

If you obtain income of less than 8,000 euros per year, there is a limit of 2,500 euros for the contribution limit in favor of the spouse.

 

Rescue of the pension plan

The taxation of the ransom is a process contrary to that of the contributions. Whatever the reason why you are willing to redeem the plan and regardless of the form chosen for it, the benefits are taxed as Earnings from Work .

If in the contributions the tax payment was reduced, at the time of receiving the benefit from the rescue, the general tax base rises as taxes are paid for everything saved and not only for the benefits.

 

In the taxable base of savings, the sections of the IRPF are:

Depending on the manner chosen to rescue the plan and if contributions have been made before December 31, 2006, the tax rates are reduced, leaving:

  1. Rescue in the form of income: the tax rates are reduced to be in the range of 20 – 47% in 2015 and 19 – 45% from 2016; depending on the autonomous community, it will be a percentage or another.
  2. Rescue in the form of capital: Contributions until December 31, 2006, are taxed 60% if they meet pre-established requirements.

The transitional regime by which a reduction of 40% in the rescue is applied in the form of capital contributions prior to 12/31/2006, remains after the reform.

The rest, as of January 1, 2007, do not have any fiscal benefit when it is rescued independently of the form chosen for it.

If you want to know more information, you will find it in the Law of Pension Plans and Funds.

 

Crowdlending as an alternative to the pension plan

Image result for crowdlendingCrowdlending is a financial activity that directly connects investment and financing and that can report those extra or complementary income to your salary, pension in a comfortable way and from now on!

The taxation of crowdlending is simpler than that of a pension plan. The benefits will be taxed as income from movable capital and the retention will be a single percentage.

In addition, the benefits of the investments you make in crowdlending platforms are acquired every month without the need to wait years to rescue the money invested, as is the case with pension plans.

If you want to know more about crowdlending and its investments, download this Crowdlending Investment Guide that will solve any doubt.

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Does your house impoverish you?

Image result for house financesTo be impoverished by our house is not pleasant. This means that you can not afford the house in which you live and probably rely on credit to stay afloat, therefore, that you accumulate even more debts that you can not repay. You see what it means to be impoverished by his house is not a good thing. There is, however, light at the end of the tunnel: you have full control of your finances and you can change your situation. We want you to own a big house, but do not want you to borrow more than you can pay back. So let’s take a look at what being impoverished by his house really means and how to prevent or fix such a situation.

How do you know if your house is depleting you?

 

As mentioned above, being impoverished by one’s house means that you can not pay for the house in which you live. This may have a different meaning for everyone, but if one or more of the following points to your current situation, it may be time to re-evaluate your living conditions.

  • Do you have large amounts due on multiple credit cards?
  • Do you rely heavily on your credit cards to pay for necessities like groceries?
  • Have you given up family vacations or other travel opportunities because you have to make a mortgage payment?
  • Do you have to restrict and save for months to make payments for your property or school tax?
  • Do you spend more than 30-35% of your income on housing?
  • Are you constantly concerned about the cost of the house in which you live?

Once again, everyone’s financial situation is different, so it’s important to evaluate yours according to your problems and where you want to go.

Main reasons to be impoverished by his house

Main reasons to be impoverished by his house

 

Buying a house that is too expensive is certainly the most common reason people get poorer, but there are many other reasons as well. Let’s look at some of these reasons and how they can be solved or avoided.

Let your lender decide how much mortgage you can have

This goes hand in hand with buying a house that is too expensive, but it’s important to remember it. When you apply for a mortgage, you are approved for a certain amount of money, but there is no rule that says you have to buy a home that uses all of your mortgage. If you have a stable job with a high income or are a two-income family, the chances of being approved for a high mortgage are great. Receiving an amount from the bank does not mean that you have to spend it all. Decide on a budget that you can afford and then look for a house that fits that budget. Buying a $ 500,000 home simply because you’ve been approved for a $ 500,000 loan is not a good idea.

Loss of employment or income reduction

Nobody wants to lose their job but it happens. So, when deciding to buy a house, you should take into consideration whether or not you would be able to live there if you lost your job. Unfortunately, we can not predict the future, but we can prepare for it. Make sure you have enough savings to survive for at least a few months, allowing you to continue making your mortgage payments while looking for a new job.

No emergency or savings fund

Living in a house is expensive, no matter how you go about it. Apart from your mortgage payments, there are many other expenses that you should consider. Having an emergency fund will help you deal with unforeseen expenses.

Too much consumer debt

If you already have a significant amount of consumer debt before taking a mortgage, you are lining up for a seriously unstable financial future. Unfortunately, you would become considerably poorer if all your disposable income went towards the repayment of these debts. To solve the problem, you must consider paying your debts before buying a house. Maybe that would change your goals, but buying a house when the rest of the finances are in order is a much better option.

How to avoid getting poor with your house

How to avoid getting poor with your house

 

The logical answer to this question would obviously be not to buy a house. We understand that it’s easier said than done, and often you can not even know how much you can afford for a home. Here are some important tips to avoid getting poorer when you buy a house:

  • The Government of Canada suggests that you should not spend more than 30% of your salary on housing. The first thing is to understand what represents 30% of your income actually. (PS 30% is good, but aiming lower to start is even better)
  • Then understand what your housing costs will really be. Indeed, as an index, these are always higher than your mortgage payment. Think about property taxes and school taxes, public services, lawn care, emergencies, repairs and of course, your mortgage payments.
  • Then you need to know how much you can afford to add to your monthly budget. Let’s say you have decided that you can afford to allocate $ 3,000 of your monthly budget to your housing costs. This means that everything mentioned in the list above must arrive at $ 3000 or less every month. Do not even think of homes that would be outside your price range.
  • You will also need to save for one-time costs related to the move. This may include a down payment, closing costs, moving expenses and possibly repairs that must be made before moving in.
  • It would also be nice to consider all other costs that might not fall into the housing category. Car payments or public transit fees, gas, auto insurance, groceries, health care, cellular bills etc.
  • Try living with your new budget before buying a house. This will allow you to get used to living on a tighter budget but will give you time to adjust as needed. The most important thing to remember is that budgets, revenues and debts are all different. While the government suggests 30% of your income for housing and ensuring you always have a good financial situation, we are not all able to follow this advice. Owning a house is expensive and if you want to stay afloat, you need to adjust your budget and savings to suit your situation.

 

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What health insurance do I choose, with or without a copayment?

Image result for health insuranceMedical insurance is undoubtedly one of the most important coverage products to be hired to cover present and future needs, not only our own, but also those of our entire family. A “universal” product but offering a long series of possibilities for benefits and hiring.

The analysis of all of them is fundamental, it is not a question of paying too much, nor of falling short of coverage, but of adapting our needs to the most appropriate product. This “study” we must do from the beginning, from the moment we are going to hire our health insurance, because then we will decide variables that will influence not only the coverage of the product as in the cost of it, one of these is If we opt for copayment or no copayment.

Factors to consider

The copayment consists of a small price, which the insured pays at the time of receiving medical assistance. In some cases this amount is variable and is related to the medical service provided. For example, they charge less for assistance to a general medicine or pediatrician than a specialist. The same usually happens with diagnostic tests with clear differences between the cost of the “simplest” such as analysis or radiographs to more complex ones such as an MRI. This co-payment modality makes it very difficult to control the expense that we would incur if we go to the doctor or perform a test. Therefore, the modalities of linear co-payment like those offered by Aegon (we pay the same for each medical assistance regardless of the doctor we visit or prove that we perform) makes it easier for us to know month after month what our total expenditure will be.

In exchange for making these small payments for medical assistance we will get a savings in the periodic disbursement we made for our insurance premium, that is, we will have a “fixed” part that we will pay for, whether we use the service and another variable that will depend on the assistance we have over time (usually monthly).

Calculate the best economic option

Image result for calculate mind

This is the most important point, we a priori get a savings with the co-payment option, but we would only achieve it if we did not visit the doctor frequently. A priori, we do not know if we are going to have a long illness that forces us to do so, but if we have circumstances that can give us some clue. For example, if we have young children, emergencies or regular visits to the pediatrician are usually important. For example, if we think about having children, we know that there are many frequent visits on the horizon with a large number of medical tests and the co-payment is not so important.

The three possibilities of co-payment that Aegon offers us (without co-payment, linear co-payment of 5 euros or linear co-payment of 10 euros) allow us to have a full range of possibilities to adapt them to our personal circumstances. If we go – or rather, we hope – continuous medical assistance or prefer to always know what we are going to pay, without surprises, the best option in the medium term would be without a copayment. For a medium assistance, discontinuous in time the best choice would be the co-payment of 5 euros. Finally, if we believe that we are going to go to the doctor very little and we choose to contract a health insurance exclusively for the support and security we get, we will choose the highest copay of 10 euros, which guarantees a lower fixed premium. But in all cases, the same security and protection.

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