Payday Loans

Dedicated Agreement – THE PAYDAY LOAN

The payday loan is a form of financing that is not tied to the purchase of a particular asset, but is recognized regardless of the reasons. for more.

We are used to financing on cars and household appliances where rates are imposed without the possibility of negotiation and the reason for financing is tied to the good we are buying.

In the case of payday loans, on the other hand, a sum of money is always financed through a bank or a finance company, but the clauses and conditions that make up this loan are different.

This method of lending in technical jargon is called “consumer credit”.

The repayment plan of this investment is managed in monthly installments within a period of time specified in the contract. In practically all cases, a fixed rate is agreed for the duration of the repayment plan.


Differences between loan and credit

loan and credit

As we have seen, payday loan is a simplified version of a loan, as it is not bound by the purchase of a specific asset.

Mortgages, even though they are payday loans, differ from these in the methods of guarantees that must be left to the bank or to the financial company that must grant the loan.

Specifically, a substantial guarantee is required for the loan to obtain the loan and the applicant leaves the purchased house as a guarantee, which will be subject to foreclosure in the event of insolvency.


The payday loan differs from the mortgage for the collateral required. Personal guarantees are often required in payday loans, such as the signature of a guarantor, precisely because of the high risk that financial companies and banks expose themselves with this type of loan.


Examples of payday loans

personal loans

There are as many payday loans as there are market needs, but the main ones are the following:

  • Transfer of the fifth (If you want to know more read here)

Form of loan granted to public, private and retired employees with direct retention in the pay packet

  • Loan delegation of payment
  • Loan Trust
  • Mortgage loan


Who can get a loan?

money loan

payday loans can be obtained on the basis of requirements that vary from institution to institution, but must in any case be subject to the regulations established by the Italia MoneyQuest Bank.

The selection criterion is quite simple in words, but in fact it gets complicated in different ways, you must be between 18 and 70 years old and to obtain financing you must be able to demonstrate your financial credibility.

All employees will be required to present their paychecks, freelancers will be required to file the tax return for the previous year, while pensioners will be asked for the pension slip.

The conditions vary according to the applicant’s financial situation, therefore the commitments already in place, the family income, the history of previous loans, etc.

In the event that a person is unable to demonstrate his economic solidity, he can still apply for a loan using a third person as guarantor in the event of default.


Amortizaton schedule

Amortizaton schedule

The amortization plan is a document that contains information relating to the loan repayment plan including the due dates, the total number of installments and the final totals.

This repayment plan is created by calculating on two installments: the interest portion, or how many interests we will pay for the loan we have obtained, the main portion, or the sum that exactly corresponds to the principal we have received. This division allows you to repay the interest first and then the capital received.

Simplifying, it is very easy that in the first months we will be subjected to higher installments to pay off interest as soon as possible and going forward over time we will see this quota decrease until we have a lower installment which only includes the capital quota that is missing.


Skip an installment, what to do?

installment loan

It can happen to everyone to have an economic problem in a month and find themselves forced to skip an installment, or even just for forgetfulness or slight delay. In these cases, it is always advisable to contact the bank promptly and together with this find the best way to immediately return for non-payment.

Otherwise, certain procedures will be initiated that will bring our name to Criff reporting, going to set a precedent that will affect our economic credibility in the eyes of credit institutions.


Early termination of the loan

loan termination

The early repayment of the loan is often not recommended because, as we have seen in the previous paragraphs, according to the repayment plan, we will pay the interest already in the first installments, and consequently it is better to keep the loan open and keep the liquidity in your account.

In any case, if someone wants to close the debt, it is always possible to do so by paying a penalty that is included in the loan agreement, which by law cannot exceed 1% of the capital still to be repaid.


Withdrawal of the loan agreement

\loan agreement

The withdrawal of the loan agreement is only possible if you withdraw within 14 days of signing. The communication must reach the bank or finance company with which the loan was approved and this does not involve costs.

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.


You can still get credit in hopeless cases.

With a regular income and a good credit rating, it is relatively easy to get a loan from the bank in Germany. The maturities can be freely selected within a certain framework, and the choice of banks has also grown due to the Internet.

Nevertheless, there are unfortunately also cases in which a loan is rejected. This is due to insufficient income or a negative balance of payments by the customer. If invoices or loans have not been paid on time or not at all in the past, this will be noted in the Credit Bureau. From this point on, it is almost hopeless to get a loan in Germany.

Financial service providers can help

Financial service providers can help

In many cases, financial service providers could make a loan possible in hopeless cases. However, this presupposes that no affidavits have been made or that the customer is not in a personal bankruptcy procedure. These financial service providers specialize in brokering a loan in such cases, which they are able to do in most cases due to their decades of work.

Of course there are hopeless cases here too, but in principle everyone can turn to such a financial service provider. A request for a loan is always free. After a loan agreement has been concluded, there is only a commission for the intermediary, which is payable by the borrower. In most cases, it is included in the loan amount.

Warning of dubious traders

Warning of dubious traders

Unfortunately, there are also intermediaries in this industry who do not act for the benefit of the customer. For a loan in hopeless cases, you first require a prepayment for dubious services. A credit contract never comes about. Therefore, caution is advised if a credit in hopeless cases involves prepayment by cash on delivery, a visit to a representative or the conclusion of insurance. If these features appear in such an offer, then it is strongly discouraged. The past has shown that no loan was signed at all and that the victims never saw their money again.


Yes there is an available credit from the armed forces

A mystical aura precedes a loan from the armed forces. Many consumers are of the opinion that there is no loan from the armed forces. However, these consumers are wrong, because the armed forces does make a loan available to its soldiers. It is a special credit for soldiers, but it has some requirements and restrictions. Therefore, the soldier should find out about details before applying for a loan. Further illustration at

The armed forces loan – the situation

The Bundeswehr loan - the situation

Anyone interested in a loan from their armed forces employer will be somewhat disappointed. The loan is earmarked for no interest, but still interesting. Generally, this loan cannot be compared to a classic bank loan. You can actually see the armed forces loan as an advance. The loan amount is limited to a maximum of 2,500 USD. The loan is often used to set up an apartment at the stationing location. Others want to get married and use the loan to do so.

The social aspect of this loan should be mentioned, because the loan from the armed forces is also approved if a person close to the soldier has a serious illness, and the loan should then be considered a supportive measure. Even if damage is caused by fire or the like and the insurance does not cover the damage, the soldier can count on the help of the armed forces.

With a dedicated loan, many consumers don’t tell the truth and disguise that they want to buy something completely different with the loan. However, this should not happen with a loan from the armed forces, because a superior can always appear unannounced at home to look at the purchase that the soldier has bought from the loan. In addition, the purchase must be documented with the financing of the loan.

The loan from the bank

The loan from the bank

If you are a soldier interested in a loan from a conventional bank, you will find that the bank sees this benevolently. The soldier as a civil servant is viewed by banks like any other public servant or civil servant. However, the soldier does not receive the remuneration, such as an official. A soldier does not normally have to expect a salary increase because there are strictly tightened salary tables, which are used to orient the pay.

However, unlike employees on the free market, the soldier is under special protection. Officials, including soldiers, are practically non-resignable as soon as they hold the certificate of appointment “for life”. The risk of unemployment is thus gone. If a close relative of a soldier falls seriously ill during his service, the state supports him comprehensively. The soldier thus provides a certain level of credit security solely through his professional status, so that no other security is provided.

In general, a soldier can assume that he will receive a loan with particularly favorable terms. All banks and financial service providers advertise this professional group and provide special credit. Anyone who thinks that the armed forces loan is the cheapest is wrong. In many cases it is always worth checking other banks with a loan comparison. Experience has shown, however, that it rarely happens that a loan from the free financial market is cheaper than a loan from the armed forces.

Loans provided by banks do not have to be earmarked. The loan amount is also not limited to 2,500 USD. Larger loan amounts can also be approved. However, it must be noted that the soldier will only receive these discounted loans as long as the soldier is with the armed forces. Many banks then limit the term of the loans to the length of their employment.

The conditions

The conditions

Anyone who has committed as a time soldier for four years will only be offered a cheap loan by banks if the loan is paid within this time. If a large loan amount has to be taken out with a long term, things look different. If the soldier goes into permanent employment after his time in the armed forces, the armed forces will approve the loan. However, only if the soldier’s creditworthiness is correct. When the loan is taken out at the end of the service, the bank will request an employment contract for the period thereafter. There are no special loan offers for normal military service providers, since this term would then be too short.

As a professional soldier, of course, all cheap civil servants’ loans are available to him. If the soldier has an impeccable Credit Bureau, he can get a loan with a term of 20 years. Most of the time, the loan agreement is concluded with life insurance. Within the term of the loan, the borrower pays the interest on the loan and at the same time the premiums for life insurance.

The amount saved will be used to repay the loan later. Surplus surpluses are credited to the soldier.
The soldier also benefits from a flexible loan term, and the rates can either be lowered or suspended. The customer is advised when deciding on a civil service loan to replace other existing liabilities and incorporate them into the new loan.

A soldier should also make a loan comparison. He will find cheap loan offers with this comparison and can look at the different interest rates that banks provide for a soldier or an official.

The bad Credit Bureau

The bad Credit Bureau

A soldier’s credit rating must be good, otherwise he will not receive a loan from the armed forces. Even if the professional status offers him cheap loans, the bank will also check the Credit Bureau with him. If negative entries are noted, a soldier will also not receive a loan from a bank. The negative Credit Bureau then offers him a loan from the armed forces in the amount of 2,500 USD if the intended use fits.

The soldier with bad Credit Bureau receives a little more financial resources from foreign banks. Above all by a Lite bank that specializes in clients with poor credit rating, in most cases 3,500 USD and 5,000 USD are approved. The soldier has the prerequisites for a permanent and secure job. A simple private corporation receives gross 1,954.30 USD per month. A sergeant-in-chief has a gross salary of 3,192.03 USD. With regard to these salaries, a Credit Bureau-free loan is likely to come about.

Take out a loan in Switzerland.

Switzerland has always been the financial market par excellence. Germans who in this country no longer get a loan because of their burdened Credit Bureau often see the Swiss Confederation as the last way to get a loan.

This type of loan is called Swiss credit and has been on the market for several years. The loans came mainly from Switzerland until 2009, hence the name. As far as is known, only Litebank from Liechtenstein has been granting these loans since 2010. Taking out a loan in Switzerland is no longer uncommon. However, there are a few things to consider.

Taking out the loan in Switzerland – the outlook

If you want a loan in Germany, you have to meet three approval criteria. That is the sufficiently high income, the impeccable Credit Bureau that must not show any negative characteristics and the permanent employment that should not be limited. If a loan seeker can meet these conditions, it also works with a loan.

But there are consumers who have negative entries in their Credit Bureau. That doesn’t have to be anything earth-shattering, since it is enough to have irregularities when paying in installments or an invoice has been forgotten to be paid and the entry is already in the Credit Bureau.

But what does the Credit Bureau mean for a loan approval? Credit Bureau is an economic information agency that collects data from consumers, namely when they take out loans, conclude mobile phone contracts, open an account, all financial transactions. Usually these entries are ignored. Every consumer has such entries in his Credit Bureau. Only when there are payment defaults, loan cancellations, judicial reminders does the previously positive entry become a negative entry.

Credit Bureau’s contractual partners, such as banks, use this information to assess a customer’s creditworthiness. If the above-mentioned payment defaults or irregularities occurred, this signals to the bank that the customer has no faultless payment behavior. As a result, she refuses the loan because she fears a loan default.

Not every loan seeker knows about his entries in the Credit Bureau and falls out of the clouds if the loan is rejected. For this reason, Credit Bureau should provide self-disclosure before each loan. This is the only way to see whether the entries were legally effective or have long since been completed. The advantage with completed entries, the creditworthiness of the customer increases again.

How to get Swiss loan?

How to get Swiss loan?

But as was also found, most entries are rightly in the Credit Bureau, but how does the loan seeker get a Swiss loan? Here he has two options. On the one hand, he can submit the loan application directly to the bank or he can commission a credit intermediary to take over the entire credit process. The customer only has to provide the credit documents.

If you look at the advertising that is highlighting this form of credit on the Internet, almost all of the advertising slogans can be deleted. There is no credit without a credit check, and there is no credit in the account within 24 hours. Reell looks to take out a loan in Switzerland like this: It has a duration of approximately seven working days from the loan application to the loan approval and payment of the money, depending on how quickly the customer can provide the necessary documents.

Many credit agencies also promise customers that there are loan amounts up to 100,000 USD and other unsustainable promises. Taking out a loan in Switzerland only provides three loan amounts. Once 3,500 USD, which is the most common permit, then 5,000 USD and since July this year, depending on the credit rating, 7,500 USD. The bank does not deviate from these standard rates either.

Nevertheless, these loans have an advantage because they are not entered in the customer’s Credit Bureau. So the house bank learns nothing about a loan and other financial service providers. The bank does not inspect the Credit Bureau either, but if you have serious entries that are also in the official list of debtors, consider a garnishment, foreclosure, insolvency or an affidavit, these customers will also not take out the loan in Switzerland.

The bank does not see the Credit Bureau, but it does see the official list of debtors.

Meet the certain conditions

Meet the certain conditions

If you want to take out a loan in Switzerland, you have to meet certain conditions. If the Credit Bureau is not queried, the bank checks the income in detail. It must have a garnishable share and be above the garnishment exemption limit. An example: A single needs a net income of 1,160 USD to get a 3,500 USD loan. The four-person household is already 2,500 USD. Anything less earned does not receive the loan.

Not only is income important, but also permanent employment. For example, the employment contract must not be limited in time and have no trial period. The contract should exist for at least one year. Unemployed, self-employed, freelancers or recipients of social assistance will not receive this loan in Switzerland. On the one hand, the unemployed and the welfare recipient receive state benefits that cannot be seized. The self-employed and freelancer have a stable income, although some of them have a very good income.

For this clientele, a second borrower could join the contract. However, he must be solvent and have a permanent position. Care must be taken when lending to the unemployed. He can then quickly find a dubious provider who does not provide credit but empties his wallet.

If a credit broker is commissioned, it must be ensured that the credit broker works seriously. No prepayment or prepayment may be requested before the loan approval. Signing insurance contracts is also not serious. The commission due to an agent may only be calculated after the loan approval. The customer should also know that not the loan broker approves the loan, but only a bank. A reputable credit broker can be found by paying attention to whether the strong braand is certified, has been checked by the German Company and how long he has been active in the financial market.

The loan in Switzerland has a term of 40 months, the interest rate is in the double-digit range. Salary statements and bank statements are requested as proof of creditworthiness, as well as a copy of the employment contract.


Its possible to have a credit despite of debt.

A loan in spite of debt is always possible if the customer meets the conditions of the bank that are necessary when granting a loan. If you have a sufficiently high income and an impeccable Credit Bureau, you are predestined to receive a loan. In the past, all other liabilities were paid correctly. so nothing stands in the way of a loan. However, there are still a few things to consider.

Find the right loan

Find the right loan

Nowadays, loan seekers find it easy to find the right loan. Banks advertise their loan offers with often excessive advertising promises, which often unsettles the customer. Not so few customers then took out a loan that was far too expensive. Most loan seekers go to the house bank if a loan should be approved despite debt. The bank knows the customer’s finances and can advise him well about the loan in a personal meeting.

However, the customer should not immediately accept the house bank’s loan offer. He only has comparison options if he uses a credit comparison to search for the individual cheap providers. Experience has shown that online banks offer better loans. The customer can also submit his loan application directly via the loan comparison.

It should be noted that, despite the debt, the interest rate is moderate and does not include any processing fees. The interest rate that some providers state is not relevant for all customers. Interest is calculated depending on the creditworthiness, ie if the creditworthiness is good, he will also receive a good interest rate and vice versa. The loan seeker only gets to know his interest rate when he has a personal loan offer.

If the loan is to be rescheduled despite debt, the notice periods of the contracts must be observed. Free special payments or early loan repayments are not always noted in loan contracts. If this happens, the bank can calculate a prepayment penalty. The amount changed in 2010, the bank may only calculate up to 1% of the remaining loan amount. Loan applications before 2010 still have the old provisions.

The compensation was often so high that debt restructuring no longer paid off. Think of a large loan amount with a long term. A cheap loan despite debt not only has to have an acceptable effective interest rate, but also free special repayments.

Anyone looking for a loan despite debt will probably not be able to avoid debt restructuring. The individual loans are combined and combined into one. However, this only pays off if the bottom line is savings. All liabilities should really be counted, including possible installment payments at the mail order company or an overdrafted checking account.

Incidentally, this is often the reason for a loan despite debt, because the overdraft facility can be a debt trap. If it is only ever used and nothing is returned, there is a nice sum of interest that the customer can often no longer look beyond. It is then good to reschedule the overdraft facility into an installment loan or into a loan despite debt, before the bank terminates the overdraft facility, because the finances may have changed negatively.

A possible increase is also often discussed. Only a new loan amount is added to the old one. The loan can then become more expensive and get a longer term. Incidentally, the rates should always be set in terms of income.

The conditions

The conditions

After the customer has found a good provider and wants to change his house bank, he should consider that another comprehensive credit check is pending. To do this, he must have a sufficiently high income, which is above the attachment limit and should have an attachable share of at least 100 USD. To do this, the Credit Bureau must be impeccable and contain no negative entries, and a permanent job is also required.

The Credit Bureau is the tip of the scales when lending. It shows the payment behavior of the customer in the past. If there are negative entries in the Credit Bureau, the bank assumes that the customer may not meet his payment obligations. The loan could then be rejected.

The bad Credit Bureau loan

The bad Credit Bureau loan

If the customer has a bad Credit Bureau but urgently needs financial means, he can apply for a Credit Bureau-free loan. This can be done with a credit broker. Almost all of these loans process loan brokers that the relevant banks are familiar with. But experience has shown that with Credit Bureau-free credit, it is only a bank and it comes from Liechtenstein.

Litebank has been the monopoly for these loans since 2010. The terms and conditions are the same as the Swiss loan that came primarily from Switzerland. However, these loans are limited in their loan amounts. The Credit Bureau does not matter, the credit is not entered.

To do this, the customer should know for himself that he can use another loan in addition to his loan despite the debt. It is worth paying an additional installment of USD 150.00 for a loan of USD 5,000. Can he do that at all? An income / exception plan should be drawn up here. All liabilities and income should be compared. If at least 300.00 USD remain, the loan of 5,000 USD could be applied for.

Many will ask why 300.00 USD the rate is only 150.00 USD. According to experts, only 1/3 of the remaining amount from the budget should be used for a rate. 300.00 USD are still well calculated, namely 1/2. Experts also advise that the customer should always put something aside. If there is a financial bottleneck, the customer could fall back on it and would not have to take out a new loan, which becomes more and more difficult the more loans are serviced.

Conclusion: In general, a loan is always approved despite debt if the customer’s creditworthiness allows it. Otherwise, debt restructuring would have to be sought in order to reduce the rate to be paid.