The loan is equal to the installments Taking a loan is not only a chance to quickly obtain the necessary cash. It is also a long-term commitment for us. So before we decide to take a loan it is worth considering whether […]
Credit cards are a really useful invention. We know these small practical plastic cards since 1958 in the form valid until today. However, the concept of credit card was first created in 1887, when the novelist E. Bellamor created the idea […]
Credit cards are a really useful invention. We know these small practical plastic cards since 1958 in the form valid until today.
However, the concept of credit card was first created in 1887, when the novelist E. Bellamor created the idea of a credit card that was still made of cardboard. With each use a piece was separated. In the 1950s, credit cards were then established by the financial world as a cashless means of payment with flexible repayment option. Initially recognized by wealthy individuals at selected restaurants within an elite club, the credit card quickly became a seemingly straightforward means of payment for everyone. Meanwhile, more than 30 percent of all Germans own one or more credit cards, with an upward trend.
“Keep an eye on your expenses!” , One would call many credit card holders, because the careless handling of the real credit cards has already driven many people into the debt trap.
Thus the credit card does not become the debt trap – basic knowledge appropriate
As before, four major providers are sharing the market:
– American Express
China and Japan have established their own credit card companies, but these are not significant globally and especially in Germany.
The credit cards of Mastercard and VISA are issued by the banks, even if many large retailers or service providers advertise their own credit cards. The credit cards of the online giant Amazon from VISA. The issuing of the American Express or the Diners Club card is carried out directly via the respective credit card companies.
Every credit card user should accept that a so-called debit note of the cardholder, ie the cash-free purchase or the online cash transaction, legally equates to a guilty promise: Only then will the credit card not become a debt trap. With a credit card, you can pay today in virtually all businesses, businesses, restaurants, hotels, airlines and online. VISA and Mastercard are very present and enjoy a high level of acceptance. You can use a credit card to shop for goods and services that you have to pay for later because of your creditworthiness. There are now a variety of credit card issuing companies. These cards are called co-branded credit cards, travel or entertainment credit cards. These co-branded cards offer various extras, such as bonuses, loyalty points, insurance or discounts on goods and services.
Generally, there are three different types of credit cards:
This is the usual giro card, with which you can buy cashless and which grants you a short-term credit with appropriate creditworthiness. The sales made with it are immediately deducted from your account: This way, you always have an overview, because no payments are collected and only debited after weeks.
Here, all sales are summed up and charged to the cardholder once a month. It is the most common type of real credit card. A distinction is made between the pure charge card and the daily-charge card, which is a combination of a charge card and a standard debit card.
This is a credit card with a so-called revolving credit. That is, the credit limit granted on the credit card can be repaid in flexible installments or special repayments. Regardless of the repayment of the loan, the card can also be recharged at any time, as long as repayments are made.
The correct handling of credit cards must be learned in order to avoid a debt trap
Credit cards are extremely helpful and practical in many situations, whether abroad, on assembly, on vacation or in case of unforeseen emergencies. However, the right treatment wants to be learned. Young people in particular are relatively often in debt due to an existing credit card. Most of the time, there is still no negative private credit entry, so that young people without adequate life experience can not resist the temptations and not only get one, but often several credit cards. With them acquisitions are made; last but not least, in order to keep up with friends and acquaintances in terms of status symbols. The overview of monthly expenses is quickly lost; the debt trap threatens. Young, inexperienced people lack stability and a sense of thrift, which is more pronounced in older generations.
But even business people and individuals who engage in extensive activities, sometimes lose the perspective of their transactions made by credit card sales; especially if you own more than one credit card. You can easily forget about upcoming debits or you can use several services at the same time. Enter your transactions quickly into a kind of organizer. This way, you avoid getting into the debt trap by paying via credit card. Did you know that you can cancel any expensive purchase or service in good time before the direct debit is debited?
Beware of hidden costs
Credit institutions are particularly interested in retaining customers with regular income or assets for a long time, so that if there is a threat of indebtedness, the ’emergency brake’ is not immediately drawn. So it happens that many insolvent customers slip without negative private credit entry through the system and continue to go into debt. The creditworthiness of the customer is checked by the banks when purchasing a credit card, but this type of proof is on very shaky legs. You are free to obtain any number of credit cards; Often then with the purchase of the new credit card the previous credit on the old card is replaced. As a result, the debt spiral is spiraling ever higher.
Nevertheless, they fall through the so-called scoring system of the private credit, because you have no bank has terminated the credit card account, although you have already accumulated high debts, which you then have to pay back painstakingly. If the generously offered loan is not repaid on time, up to 20 percent of borrowing costs accrue, which, depending on the loan amount, can grow to a considerable sum. But even the free credit card can become a debt trap if high fees are to be paid abroad or the partner card is chargeable. Especially the loss of the credit card abroad can cost a lot. Credit cards with annual fee offer partly much better conditions. In credit card comparison, you can always inform yourself quickly and without obligation.
Prevent debt trap: Cancel credit card account on time and re-debit
An option to not let the credit card become a debt trap is a debt restructuring into a installment loan. A comparison of the offers also helps to save money, since the interest rates for a installment loan are well below the high overdraft interest of the credit card. However, it is important to apply for the installment loan for rescheduling in good time before a negative private credit entry can be made.
Best Alternative: Prepaid Cards – How to avoid the debt trap via credit card
An alternative to the classic credit cards are the prepaid credit cards. Basically, they are not real credit cards, but prepaid cards, which can be charged as often as you like and are a convenient, cashless form of payment. Especially for teenagers, for online shopping, for stays abroad or for people who do not want to lose track of their finances, prepaid credit cards are a good alternative. You have the full cost control at all times. Your credit card can not become a debt trap.
Are you worried about unpaid bills or dream of holidays abroad? Unfortunately, your financial situation does not look good because you have recently lost your job, but this is no reason to worry. that offer us their help. Are you worried about […]
Are you worried about unpaid bills or dream of holidays abroad? Unfortunately, your financial situation does not look good because you have recently lost your job, but this is no reason to worry. that offer us their help.
Are you worried about your financial situation and you can not find a job for a long time? Or maybe your income is not well documented, because you work on the basis of the so-called junk agreement. You realize that banks are reluctant to provide loans to people who are not financially credible. That is why it is worth checking what the offer of financial institutions is characterized by.
The creditworthiness of an unemployed person
The Central Statistical Office recently recorded a record low unemployment – 7.0% – especially in the provinces, where this problem was the most serious. However, the situation on the labor market is still unsatisfactory.
Many people in the country work on a contract of mandate or work, which means they have little chance of getting a loan. The consumer with such a contract has a lower salary and bears the higher costs of the loan taken.
If you want to apply for a loan, it is best to have various documents confirming our income, the history of transfers or a message from the employer who certifies our employment in the future. Before accepting the application, banks need to know our creditworthiness to be sure that the installments of debt will be repaid within a specified period.
Do non-bank institutions provide loans to the unemployed
The unemployed have to look for different ways to get cash urgently. When it turns out that banks are unable to provide credit, more than one person wonders what to do. Unfortunately, we do not always have the opportunity to find a job again in a short time.
Loan companies provide loans for the unemployed. Their requirements are not as strict as in the case of banks, which is why they are popular. Non-bank loans are characterized by speed, simple rules, flexibility and minimal paperwork. The innovative idea is online loans, where money can be obtained even within 15 minutes.
However, it is worth considering the choice of a loan when you lost your job and we do not have large savings. The consumer should remember that the installments should be repaid within the set deadline. When paying for debt, no institution will take into account the fact that we do not have a fixed income. It is therefore necessary to realistically assess your financial capabilities.
A loan pledged or a loan with a guarantee for the unemployed
For financial institutions, an unemployed person is not a beneficial customer. They are aware that such a person will not be able to pay a larger loan than the one he borrowed. Loan companies want to have any certifications that in the future the borrower will be able to pay off the debt. One of the solutions is a loan with a guarantee for the unemployed or for pledge.
With a secured loan, the borrower must set up a valuable asset. It is a guarantee for the lender that the person will be able to pay the debt. However, if the obligation is not changed, the given thing becomes the property of the institution.
Another form of security, if there is no repayment of debt, is a loan with a surety. It is based on the fact that the guarantor is obliged to pay installments in the event that the debtor fails to comply with the contract.
Provident loan for all occasions. Provident is one of the well-known companies involved in lending money. It has been operating for 18 years and is an international institution. It has a rich offer for its clients. The amount we want to borrow […]
Provident loan for all occasions.
Provident is one of the well-known companies involved in lending money. It has been operating for 18 years and is an international institution. It has a rich offer for its clients. The amount we want to borrow is from PLN 300 to 15,000. Provident self-service loan is an option fully online. We can borrow a loan in our own home, with many options to choose from. We decide for ourselves how much money we will borrow. And for what period. Repayment during the month does not involve fees. Customers who fail to meet their obligations within this period. They may choose to repay between 3 and 24 months. Provident allows its clients to postpone the repayment date. When they are unable to pay them back on time. However, you must first communicate with the lender. And let him know about our problems.
A person who applies for a loan in this company should:
- be over 18 years old;
- to have Polish citizenship;
- have a current telephone number and e-mail address;
- have a personal bank account and ID card;
- steady income.
Provident self-service loan requires a constant source of income. Unlike a bank, it does not expect to provide a target. What the customer wants to spend the amount received. It is important to repay the loan in a timely manner. Compliance with the conditions will allow the client to maintain financial liquidity. It will avoid debt and preserve a positive credit history.
Provident self-service loan and its form.
The form in which the company enables us to borrow is completely online. We decide for ourselves how much money we need. And what period of time should be enough for us to pay off the debt. We set all this with the help of the slider. Located on the website of the lender. All the information we need is also included on the website. In case of ambiguity, we can always call a representative and ask questions. For which we do not know the answer. All this makes Provident a self-service loan. The whole process runs in our home or in a place where we have constant access to the Internet. The application is submitted online. We receive cash in the form of a transfer to our bank account without having to leave our own home. It allows us to make a loan decision. In calm and discreet conditions.