Monthly Archive: April 2019

What is Cash Loans?

Our cash loan statement presents only currently available loans – all data are updated and updated on a regular basis. The current offer of cash loans in one place is a good opportunity to compare cash loans, taking into account all relevant parameters: interest, interest, costs, minimum and maximum loan amount, APRC, cash withdrawal form, promotions and bargains. see http://hypnosemontreal.net/bankruptcy-facts-and-faqs/ for further notes

Definition of cash loan

Definition of cash loan

A cash loan is a financial service provided on the basis of a written contract concluded between a financial institution authorized to grant a loan and a borrower. In the contract, the lender undertakes to transfer a specified sum of money to the borrower’s disposal, and the borrower undertakes to use the loan in accordance with its purpose and return the borrowed amount increased by the lender’s remuneration, i.e. commission and interest.

In Poland, the right to grant loans is limited to banks, branches of foreign banks, branches of credit institutions, cooperative savings and credit unions or other institutions, which have been specified in the Banking Law. Although the terms loan and loan are commonly used interchangeably, however, these are different terms in the light of law – only entities defined in banking law can grant credit. Granting loans by unauthorized institutions is against the law. The situation is different when granting loans to which many non-bank companies and institutions are entitled.

The loan agreement contains detailed arrangements relating to all aspects of the loan. These include: date and place of signing the contract, specification of parties to the loan agreement, amount and currency of the loan, terms of loan activation, purpose of the loan and repayment period, commission and interest rate and terms of interest rate change, type of loan security, defining the method and time of making the funds available financial statements, information about the consequences of the breach of the contract and the possibility of withdrawal from the contract, as well as any individual arrangements that occurred between the parties to the loan agreement.

The decisive opinion on the possibility of granting the loan belongs to the entity that grants the loan, which is also entitled to control the use of the loan. The creditor is not obliged to grant a loan and may refuse to grant credit, even if the applicant for credit possesses a positive credit rating.

Forms of cash loan security

Forms of cash loan security

In order to ensure maximum certainty regarding the recovery of the funds made available, the lender may establish collateral for the cash loan. A popular form of security is a surety, which consists in a third party’s obligation to repay the borrower’s liabilities in the event that the borrower does not meet the terms of the loan agreement. Other forms of collateral are: blank promissory note, bank guarantee, loan insurance or property pledge (transfer of title, mortgage).

Interest on a cash loan

Interest on a cash loan

The interest rate on a cash loan is the factor that generates the highest costs that must be incurred in connection with taking out a loan. In the case of long-term loans, even the digits located in the second decimal place in the value of interest even have a bearing on the total amount to be paid. Although there are loans with zero interest, it is usually a promotional offer, and standard interest rates range from 5% to 20% on an annual basis.

When calculating the general cost of a loan, it is worth reviewing the so-called APR (Annual Actual Interest Rate), which includes the total cost of the loan, including all commissions, additional fees and more.

The amount of the loan installment

The amount of the loan installment

It is obvious that the amount of the loan installment depends on the amount of the loan and the repayment period. In the case of a loan with zero commission and zero interest, the monthly installment is the sum of borrowed money divided by the period (counted in months) in which we will give back the money. We must add commission and interest to this basic amount. As a rule, the bank offers two options for how to add these fees: fixed installments or decreasing installments. In the case of fixed installments, the total amount of interest accrued over the entire loan period is divided by the number of months and so we receive a monthly additional amount (interest), which should be added to the basic repayment amount (principal). If we choose decreasing installments, then each month the bank will calculate interest on the amount to be repaid, and thus in the initial period higher interest will have to be added to the repaid principal, which will gradually decrease to zero at the last installment.

Financial Problems – How to Deal with Debt?

Financial problems can get us all. Continuous expenditure means that borrowing will be unavoidable and you should remember the consequences of unpaid debts.  It’s only half the month and your bank account is running out of money. You have not yet had to pay for the bills. In this situation, it is worth considering your expenses and start working. Borrowing is not always a good option, so it’s a good idea to plan your budget in advance. More of this story: http://oryxoman.com

What are financial problems?

What are financial problems?

In recent years, we are increasingly faced with the problem of debt in Poland. Such a difficulty can affect every one of us, which is why it is worth considering earlier on maintaining financial liquidity. There may be many reasons for problems with the lack of cash – all we need is unexpected expenses or we will lose our job and suddenly we will find ourselves in a financial hole. It is best to think about such crisis situations in advance and to prepare a financial cushion.

Home budget planning brings many benefits. Thanks to this, we know how much money we have to spend on bills and the most necessary things, and how much will be left for our own pleasure. In a good situation, there are people who can save money and put off the previously planned amount every month. However, the first signal to reflect on your financial condition should be the fact that before payment we have to tighten the belt and give up putting off savings.

Usually, when we lack money, we seek help from our family or friends. If we can not count on them, we are indebted in financial institutions. We are taking out quick loans online and we are struggling with debt relief for many months. We are not talking about financial problems when we have one loan on our account, which we repay in a timely manner. The worst situation is people who do not have enough money to pay their debts again. This leads to a vicious circle from which it is very difficult to leave.

How to get out of financial problems?

How to get out of financial problems?

When we have induced debt, we usually think about how to get out of a difficult situation. As we wrote earlier, the worst possible solution to the problem is to take another loan to repay the previous one. In this way, we fall into a spiral of debt, and the costs associated with interest on loans are constantly increasing.

The first step to debt, in addition to reducing expenditure, is to stop using credit cards and repay the debt as soon as possible. We spend the money from the card with a lighter hand than it is in the case of cash payments that we have in our wallet. Usually, we do not know exactly what budget we have on the card, so we unknowingly exceed the limit. They work insidiously if we spend too much. Each subsequent payment is intended to pay off the debt, and we are again left without a livelihood and use the card again.

It is also a bad idea to use the overdraft account when our financial situation is not the best. Debit arises when we pay more money than we have on account. We can compare it to a quick loan with interest accrued. It is one of the more expensive debts, which is why it is not worth using.

If all this is not enough and we are unable to get out of financial problems, we must increase our income and minimize our expenses. In this case, the simplest solution will be to sell unneeded items. We can make a list of equipment that we do not use and put it on the website with ads. Another option is to find additional, odd jobs.

The most serious consequences of non-payment of debts

The most serious consequences of non-payment of debts

Each commitment incurred must be repaid on time, but wondering what will happen when we run out of cash to settle the debt? What consequences do we have to bear?

First of all, additional interest is charged for each day of delay. Debt is growing more and it is harder to pay off. If he goes to court then the court costs are still added to the whole of the debt.

A loan company with whom we are liable to repay the loan may enter us in the register of debtors. This reduces the creditworthiness and is an obstacle when you take out another loan.

The most serious and final consequence is the bailiff’s execution. At this stage, the debt is sold to a debt collection company. The debtor is informed about it, so he can negotiate repayment terms. We no longer have an influence on your situation when the bailiff deals with the problem. It enforces property in such a way that the debt is completely settled.