Credit despite receiving sickness benefits.

 

Loans can be applied for a wide variety of purposes. In most cases, a loan is used to buy consumer goods, vacation trips, renovations, to buy a car or to reschedule. But in many cases a loan is refused. The reasons do not necessarily have to be creditworthiness, because primarily the employment relationship and the corresponding income are decisive for a loan approval or loan cancellation.

It is particularly difficult for bank customers who only have a temporary job. In these cases, the loan request is often rejected, even if the money is still urgently needed, such as for the purchase of a car. But even in the case of receiving sickness benefits, it can be difficult with the loan approval. But what does a sickness benefit actually mean?

Credit despite receiving sickness benefits – is that possible?

Credit despite receiving sickness benefits - is that possible?

Banks have guidelines for lending that they strictly adhere to. If a bank customer comes and wants to have a loan, a rejection is preprogrammed if he does not meet the guidelines. Even a positive Credit Bureau information is of no use. The best example is receiving sickness benefit. In the event of illness, an employee receives continued wages from his employer for at least six weeks. In some cases, this can even be as long as six months. But if the illness lasts longer, then the health insurance companies step in. This also means a reduced income, because sickness benefit is lower than income.

Now it is not only the amount of sickness benefit that is important, but also whether the employee can return to his professional life and to the old employer after his illness. The problem is also that some employers quit their employment if the illness lasts too long. In order for a loan to be approved despite receiving sickness benefits, it must be certain in advance that the employment relationship will continue. Under normal circumstances, this is also the case.

Public service worker

Public service worker

Not only civil servants enjoy special status, but also civil servants and workers. It is not only the case that the public employer continues to pay wages for longer, but that such an employment relationship is also secured.

If an employee really gets sick pay from his health insurance company, then it is no problem for the bank to take a positive decision despite receiving sick pay. Termination due to illness that is too long is almost unlikely in the public service. However, this can become a major problem for employees in the private sector.

What to do if there is no employment in the public service?

What to do if there is no employment in the public service?

Those who work in the free economy and receive sick pay should look for another alternative. In these cases, the bank is guaranteed to refuse a loan despite receiving sickness benefits. One possibility is to sell life insurance policies. However, this is only worthwhile if the said life insurance has been running for several years and there is a corresponding surrender value. Friends or family members can also help under these circumstances.

In any case, the justified question arises whether a loan is necessary at all in this uncertain economic situation. If it is foreseeable that the person concerned will no longer be able to pursue his or her job, then he will certainly have other concerns. In the worst case, a disability pension must be applied for and in such a case, a rejection for a loan is almost inevitable despite receiving sickness benefits.

Countless loan from Switzerland.

 

For many consumers, a loan from Switzerland is the last chance to take out a loan despite having already accumulated debts. After all, it is the Across Lender who have no access to Credit Bureau and therefore cannot make a specific query regarding payment behavior and previous financial life.

But what sounds so simple and safe requires a little thought and preparation, because even the Swiss do not handle their money lightly and look closely to whom they approve a loan despite debts from Switzerland and who does not.

There are many loans – but no loans for debt

There are many loans - but no loans for debt

Countless loans are applied for from Cream banks every day. Not all inquiries are of interest to the banks and therefore lead to a conclusion. Many of them are rejected because the applicant already has debts and these have a negative impact on Credit Bureau. It is often the Swiss loan that can still help here and provide the money needed.

To do this, you first need to contact a suitable bank in Switzerland. In addition, it must be ensured that the necessary requirements for such a loan can be met. Because in order to be able to obtain a loan from Switzerland despite debt, at least regular work must be demonstrated that does not function on an independent basis and generates a high income.

This is how it works with a loan despite debts from Switzerland

This is how it works with a loan despite debts from Switzerland

You can apply for a loan from Switzerland either directly with a Infra bank or through an intermediary. The cheapest way is to contact the bank directly, as this saves the costs for the intermediary. Almost all banks have a website where you can look up the conditions for a loan.

In addition, there are often corresponding online forms for the application. If you have chosen a bank that wants personal contact with the borrower, then a trip to Switzerland must be planned. This is certainly not a problem for places close to the border. Everyone else might want to make sure that they find a bank that can process the loan application in other ways as well.

The money is usually paid when the signed contract is with the bank. The banks are happy to transfer to a checking account. A cash payment is also possible on request.

Tip: Cream banks only grant loans to consumers from abroad up to an amount of USD 3,500.

A loan despite the attachment of an account.

 

An account attachment is a foreclosure measure. Anyone who has debts and does not pay them will receive a judgment or an enforcement order against the debtor, which will result in foreclosure. For example, a creditor can have the account seized by order of the enforcement court. If the debt is paid, the account seizure is canceled. If this is not the case, all credit balances on the account will be transferred to the creditor in the future if the debtor does not intervene in time. 

The bankruptcy – what does that mean for a loan seeker?

The bankruptcy - what does that mean for a loan seeker?

 

In general, a lender will query Credit Bureau before approving a loan. In this process, the bank is informed of the account seizure and in most cases rejects the loan. An account attachment is one of the hard features that are in Credit Bureau. It is not uncommon for the account attachment to also be used to terminate the current account.

Since 2010, the debtor has been able to convert his checking account into a garnishment protection account – P account. Nevertheless, the P account will also be in the Credit Bureau, which ultimately leads to the loan refusal. In order to seize the account, the loan seeker should know that the bank freezes the current account if the order is attached. That means the account is blocked. By law, the bank is not allowed to pay out money to the customer or make transfers.

However, there is a 14-day protection period during which the bank does not transfer any remaining credit to the creditor. If the customer does not intervene at this point, all credit is gone, but is not yet transferred to the creditor. The legislature has set up this time window for debtors so that they can act. If the money has been transferred to the creditor because the customer has not acted, there is no garnishment protection amount. Anyone who does not apply for garnishment protection will have his money transferred to the creditor, leaving the customer with nothing.

The bank is not allowed to charge fees for an account attachment, which is a legal requirement. Most banks react to an account attachment by canceling the overdraft facility. Other loans that are still running can also be terminated, right up to the termination of the account. If the customer uses a real estate loan, it can also be canceled. If the bank is still in the land register, then it can pledge the property, the home is gone.

Legislators have introduced the so-called P-account since 2010. P account is a garnishment-safe account. The P-account is a checking account that is set up for normal payments, a creditor has no access to it, and that for credit from 1,073.88 USD. If there is more on the P account, this can possibly be released. If the customer receives social benefits, these are protected on the account.

However, banks are obliged to set up a credit account for the customer. The account must not be overdrawn. There is also no credit card.

Nevertheless, the customer can still act. So it has often proven to be positive if the debtor negotiates with the creditor. For example, he can offer him a larger installment. It is also important to explain how the remaining balance can be paid. The wish to suspend the account attachment should also be expressed.

However, he may not expect the enforcement to be withdrawn in full since the creditor must always be served before any other creditors. Those who do not have a greater need for money can offer larger payments. The whole matter can also be done through a lawyer, but the debtor must then accept a partial payment amount that the creditor and the lawyer have negotiated.

Is there actually a lender with an account attachment?

Is there actually a lender with an account attachment?

 

But what about a loan despite the attachment of an account? The bank generally refuses a loan request in this situation. The account is attached, there are other creditors in front of her. Should there be a default, the bank would not be able to match the customer’s income, since it is already attached. The overdraft facility that many customers use for short-term use is also eliminated, since the bank deletes the overdraft facility immediately after the account is seized or wants to have it back.

Before banks grant a loan despite the attachment of an account, they also check the Credit Bureau in addition to the sufficiently high income, but the account attachment is noted in it, which leads to a no credit at the house bank. There is help on the Internet. At least that’s how it is offered there. Many promise to find a way through private credit intermediaries to find a loan despite the attachment of the account.

Private credit brokers or other private financial service providers offer customers in such a desperate situation a loan despite the attachment of an account. It is promised even in the most difficult cases and that is an attachment of the account yes, but still to find a lender. To what extent these mediations can be trusted, the customer should first check before using them.

It is advertised that these loans also have different terms. It is recommended to check these terms and conditions and also the terms of the lender using a credit comparison. The interest rate and other fees are very important.

It is pointed out that in advance of the search it is pointed out that a loan is being sought despite the attachment of the account. Online loans from an online bank are also offered here. The statement that a new loan despite attachment of the account is very important. The loan application can also be made online and a promise is made promptly. In one case or another, it is written, other collateral must then be presented, such as a guarantee or a person with high income and a positive Credit Bureau.

The loan seeker has to decide for himself

The loan seeker has to decide for himself

 

Should there actually be a lender who still pledges a loan despite the attachment of the account, he should look more than closely at the conditions. When looking for a loan despite the attachment of an account, the debtor should be careful not to get a loan shark. His situation may get worse. If this loan cannot be paid properly, the situation is even worse than before.

An account attachment says that the customer is no longer solvent. All income above the garnishment-free limit flows to the creditor. What is left is a greatly reduced income that does not allow a serious loan. In addition, the creditor will ask if the loan should come to light despite the attachment of the account, where the debtor got the money from – after all, it comes first in the attachment.

But ultimately the customer has to decide for himself, it would be better to go to debt counseling and have a debt settlement plan drawn up.