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How to Reduce your Debts? – Loan Consolidation

People who have several loans like to hear this advice. Can I consolidate my debt debt? So, what does that mean? Well, simply, debt consolidation means debt consolidation in different companies into a single debt from a single company. card).

How to reduce your debts?

So what should you do when trying to consolidate your debts? The key thing you are looking for is the annual average percentage rate or the annual percentage rate. Whatever method you accept to consolidate loans, it will always be the key to the APRC. In fact, we can say that this is the only criterion that needs to be sought in the offers. So if you use a bank loan to consolidate your credit card debt or other debts, the bank loan interest rate should be lower than the RPSN credit cards whose debts you consolidate. Similarly, if you move to a different credit card, you need to make sure that the APR of a new credit card is lower than the credit cards you consolidate. However, there is a mistake you need to know when drawing up a credit card or credit consolidation plan.

Pay attention to 0% APR

The APR rate advertised by most payment card vendors is short-term rates that are designed to lure you into debt consolidation. Typically, APR rates are used that apply only for an initial period of, for example, 12 months or for some other period after which rate rates increase. You should check the rate after the first year. Your decision to consolidate debts from other providers will only be meaningful if the new APR is lower or equal to the APR on your current credit card. You can check with your current provider to see if they can reduce your APR. Last but not least, the advantage of consolidating your debt to one provider that you only pay one interest. This will reduce your monthly borrowing costs.

Before you start debt consolidation, you should realize that debt consolidation from your loans will only be beneficial if you commit to accept and follow a disciplined approach and regularly repay your liabilities.

Improving My Score | Increase your chances to apply for personal loans

A low credit score can prevent you from being able to get a credit card until you finance a vehicle or property and ask for personal loans. That’s why it’s so important to have a good score. The secret no one tells is that it is possible to increase the score with simple actions. As well? OK, let’s go:

Never be denied

This is simple. Every time you are denied, your credit score goes down a lot and can even zero. That is, it drops from 999 to 0 depending on the time you spend being negatived. Avoid this at all costs.

Always pay your bills on time

A paid payment history can help you a lot with your score.

Just borrow what you can afford

When you acquire a healthy credit habit, it is also recorded in the databases of financial institutions. So if you apply for personal loans in the amount of R $ 1,000 and release R $ 3,000, keep only what you requested, it is probably the amount you can afford.

Use only a portion of the amount of credit the bank approves for you

The same as in Item 3, just “accept” what is within your possible payment plans.

Start with only 1 credit card

Accumulating a very large number of cards can mean a large amount of debts. So be careful not to make that mistake.

Pay the full invoice of your credit card

Spend only what you are able to afford financially, so you will have no problem paying your full bill at the end of the month. Paying everything up – to – date shows that you are a good payer, something that lenders cherish a lot.

Remove your bills before expiration

Not all of your monthly payments will be listed on your credit report, so they do not directly affect your score, as long as you’re paying them on time, of course. But any account can potentially influence your credit if you become defaulter. So anticipating would be a good margin of safety.

Keep old bank accounts active

Leave your old accounts open as they help increase your creditworthiness and build a good credit reputation. In fact, wrapping up a credit card can affect your score in the market.

The tax consequences of a loan

Sometimes taking out a loan has consequences for your tax assessment. So it may happen that you have to pay less tax in box three; a loan is a debt and debts reduce the value of your equity. If you have a lot of equity (savings, investments, shares) then you have to pay tax if you exceed a certain limit. If you have more equity than € 21,000 (or € 42,000 together with your partner), you have to pay tax on the part of your assets that exceeds the threshold: the so-called wealth tax. However, you may deduct any debt from your assets, which means that a loan can ensure that you end up below the tax threshold or that you have less than the limit.

Calculation example: You have shares worth € 30,000 and a debt ( personal loan or revolving credit ) of 8,000, which you did not spend on the sale, improvement or maintenance of your home, but for example on a car or a holiday. This debt exceeds the so-called debt threshold. This is € 3,000 for single people and € 6,000 for tax partners. Only when the (joint) debt exceeds this threshold can you deduct them from the tax. In box three you would have to pay € 9,000 tax: your capital of € 30,000 – € 21,000 exemption. But you still have a debt of € 8,000. First you have to deduct another debt threshold of € 3,000. Then you still have € 5,000 left. You may deduct this amount from your assets: € 30,000 – € 5,000 is € 25,000. If you deduct the exemption of € 21,000 from this, then you still only have to pay € 4,000 tax instead of € 9,000 if you had no debt.

Subtract interest in box one

Sometimes you can deduct the interest from a personal loan via the mortgage interest deduction scheme. That is not always possible, only if you have taken out the loan for the purchase, maintenance or improvement of your home. In addition, the loan must be repaid annuity in a maximum of thirty years (ie with a monthly fixed repayment amount). So if you have taken out a personal loan that meets the conditions, the loan does not fall in box three, but in box one. This is the box for taxable income from work and home. You can then deduct the interest from that loan from your taxable income. Before you take out a personal loan, it is wise to find out whether that is the most advantageous for you. Perhaps it is more sensible to raise the mortgage because that interest is often lower. On the other hand, when raising a mortgage, there are many extra costs, so you will have to calculate to see what ultimately costs you the least.

Is It Possible to Get a Loan of 500 Rubles

It is possible to get a loan of 500 rubles and for this purpose do not apply to banks. Small loans, these are products of microfinance organizations and these companies are ready to help out in such cases. Get money quickly, and for this you don’t even have to leave the house.

Issuance amounts in MFIs

500 rubles is a tiny amount even for microfinance organizations, therefore not every company will be ready to provide a loan of such a limit. When choosing an MFI, review the information on minimum disbursement limits.

More often, these limits start from 1000 rubles, but sometimes MFIs do not set minimum limits on lending limits.

Getting a loan of 500 rubles is not a problem. Thousands of microfinance organizations operate on the market. A significant number of companies specialize in online loans, which are issued even for tiny amounts.

Credit 500 rubles – conditions

To obtain a microcredit, you need a passport and Internet access. The loan is issued remotely and does not require evidence of income. But since the citizen wants to take out a loan of 500 rubles, a small income is required. Pensions, benefits and other payments are taken into account.

Programs are valid for citizens of the Russian Federation, a permanent registration is required. And so the applicant has the right to live and work anywhere. MFIs provide loans for small amounts remotely, so you can get money even in a remote part of the country.

Citizens are required to comply with the age limits set by the MFI. There are offers on the market for young citizens from 18 years of age and for citizens over 60-65 years old.

Characteristics of a loan of 500 rubles

The amount is small and is issued for a short time. When applying, the MFI will offer the citizen to choose the amount and the return period. After immediately indicated how much will be needed in the end to return.

The main features of the loan:

Money is issued for up to a month;
For each day of the use of borrowed funds, the MFI will charge interest – 1.2-2% per day. If you take 500 rubles at 2% daily for a week, then 570 rubles will be relied upon to return;
Debt is returned in one payment;
MFIs offer a service to extend the term of issuing a microcredit at the request of a citizen.

How to get a loan of 500 rubles per card

Comfortably get a microloan directly to your personal bank card. Only on the name, which is served by international payment platforms Visa or Mastercard. In the application for a microloan, provide information about your own card, which are located on the surface of the card.

This is an expedited option for obtaining a loan from an MFI. After approval of the application, the money instantly goes to the card account. Such a microloan can be quickly obtained even at night. The application time does not matter, since the questionnaires are analyzed automatically.

So, if you have a passport, a card and access to the Internet, start registration and look for an MFI that gives 500 rubles in credit. After finding the right product, complete the proposed application and wait for the loan approval. As a rule, positive responses are received, and then the card balance is replenished by the amount of approved microcredit.

Alternative methods

Also, instantly receive money transfer to a personal e-wallet. But this method is relevant when the funds are not needed in cash. You can withdraw 500 rubles from the card without any problems, but withdrawing a small amount from an electronic wallet is simply inappropriate.

You can choose loans to e-wallets if you need a payment of 500 rubles, for example, a mobile operator.

Receive money and transfer to a bank account, but approved funds arrive at it within three days. MFIs also send loans to citizens through remittance platforms that instantly deliver funds.

How to repay a loan

When applying for a microcredit, registration is carried out on the website of the credit institution. Once logged in, make a payment transaction from your own bank card or e-wallet. Also use the standard methods: pay at the bank’s cash desks, via terminals, personal online bank and other methods. These options are reflected on the MFI website.

When making a microcredit, the borrower agrees with the loan agreement, according to which he is obliged to return the money in the appointed time. If payment is not received, the microfinance organization applies penalties and may attract collectors.

If you have problems with payment, find out if the MFI offers a prolongation. This is an extension of the term of the microcredit indefinitely. Prolongation will help to avoid accrual of interest and keep the credit biography in a pure form.