Repayment of Credit with Tax


One of the most unpopular tasks in the year is the delivery of the so-called tax declaration, which is obligatory for every German citizen in the employment relationship. The filling of numerous documents, the copying of documents and then the often long wait for the tax assessment – things that the German often postpones until the last minute. Actually incomprehensible, because the annual tax bill often promises a refund and thus an unexpected cash injection. Taxpayers who receive money back from the tax office actually have every reason to enjoy it. However, if you get a refund you should think twice about how to use this amount as well as possible. Especially if you have ongoing credit . Because the tax refund is skillfully used, you can get as a borrower some additional savings in the cost of borrowing.

Special repayment on credit with tax refund

 Special repayment on credit with tax refund

Assuming that you receive money from the Treasury as a result of your tax return, this money can and should be used primarily for the repayment of a loan . Who has paid too much, according to the Federal Statistical Office receives an average of 875 euros in taxes. With the use of such a sum, a few hundred euros less interest on a loan is quickly due. So if you use the money from the Treasury for a special repayment in a loan in progress, earned the tax repayment at best even three-digit amounts to. Debt reduction should therefore be given clear priority to consumption. How the use of the average tax refund of € 875 by a special repayment with a credit effect shows the following calculation example (by way of example):

According to SCHUFA Kreditkompass 2016, the average amount borrowed was 10,039 euros. The repayment of this loan amount requires an average of 47.3 months. Including interest at the rate of 4.93 percent RMS. pa, as determined by the Deutsche Bundesbank, the loan costs around € 233.47 per month. Assuming that the loan is exactly one year old, there are currently 35.3 monthly installments totaling € 7,669.53 open. The interest costs for the remaining term amount to 572.29 euros. As far as the actual state. If the already mentioned € 875 from the tax refund is used for a special repayment, this reduces the residual debt and the term of the loan. In addition, thanks to this special repayment, a total of € 127 less interest will be due.

Keyword prepayment penalty for the loan

 Keyword prepayment penalty for the loan


One thing in advance: A special repayment on a loan is always possible, because then borrowers have a legal claim. However, banks can decide on their own whether and under what conditions they will charge a fee for special repayment. While one financial institution completely waives that, special repayments by other banks are only free of charge up to a certain amount or number. Still other banks charge in each case a so-called prepayment penalty. However, here: The amount of this fee for a special loan repayment is regulated by law. For example, banks are allowed to charge their customers a maximum of one percent of the special repayment. For installment loans with a remaining term of less than one year, the maximum rate is 0.5 percent.


The Existing Collateral in a Loan } Creditworthiness



Anyone who finds himself in the admittedly far from happy and not easy-to-act situation of the Hartz IV relation sees himself above all in society as marginal figure stamped with more or less barely existing rights. This is especially true when it comes to being classified as a recipient of just that state support as creditworthy. Anyone who needs a loan as a Hartz IV recipient, for whatever reason, usually sees himself faced with the same rejection as described above.

After all, the bank’s standardized question about existing loan collateral usually has to be answered with a very clear “no”. How should this security be offered, because it is not without reason that the Hartz IV rate defines itself as a ” basic security ” or ” subsistence minimum “. Which does not mean that you can and should get by with the money from this standard rate. Making reserves or using the cover as collateral? Not inside! Finally, the standard rate is so small that sums could be seized as part of a loan default. As good as any bank pays attention when lending, especially one thing: on the security and certainty that they receive the money plus interest from a loan business in the agreed period. A feature that is not granted to Hartz IV recipients of banks in general.

Collateral for Hart IV recipients: no !?


Basically, this is correct, because a Hartz IV receiver should have no collateral (more). Because the state support is defined to the effect that only the one who receives money, which does not have enough income or reserves, from which the necessary livelihood can be secured. So what must lead to the conclusion that a Hartz IV recipient is not creditworthy solely because of non-existent collateral and low financial resources. Stop – is that really the case? So are Hartz IV recipients basically excluded from the possibilities of borrowing? The reality is that this question can not be answered flatly with a “no” and may!

The fine difference: innocent, financial distress

 The fine difference: innocent, financial distress

But what happens if the Hartz IV recipient gets into financial distress without being guilty? For example, if the washing machine or refrigerator breaks down and needs to be repaired or even replaced? From where should the necessary financial means for a repair or replacement come in such a case? The answer to this is simple: The job center responsible for the Hartz IV beneficiary is the number one point of contact. This is where Hartz IV loans are granted and these are even interest-free. Known problem, however, is that hardly anyone has knowledge of this. Because this performance is hidden by the job centers, unfortunately, behind closed doors. Nevertheless, the following applies: It is the right of a Hartz IV recipient to apply for and receive it, should this be justified. In accordance with § 23 (1) SGB II (Social Security Code), needy applicants receive an appropriate loan from the job center in the event of an emergency. Such a loan from the Jobcenter is granted either as a cash payment in the amount of the acquisition costs or in kind.

What will happen when applying for a loan from the job center and which pitfalls may occur, you will learn shortly in Part 2 of our article on ” Credit for Hartz IV recipients” .


Tips To Get The Best Payday Loans

Would you like to take out a loan? The payment of paydays attracts many consumers, but does it fit with your situation? Payday loans offer a quick way to get money for those who have less than perfect credit. The following article will help you better understand how payday loans work and decide whether or not to procure one is the best option for you.

No matter what, you only get one payday loan at a time. Never visit multiple companies at the same time. You could paint yourself in a corner, unable to repay the money, regardless of your income.

The standard time to repay a payday loan is about two weeks. If you can not withdraw your loan by the due date, you will not necessarily go to the default state. Many companies have the ability to override or extend payments, but it could cost you.

Although payday loan companies do not do credit checks, you must have an active checking account. Lenders want to make sure that they are automatically paid on their due date. The repayment amount will be redeemed on the same day your paycheck is to be deposited.

If you are looking for payday loans, you only do business with those who approve loans immediately. Immediate loan approval is possible due to the internet and instant access to information.

Be careful with your personal information when you apply for a payday loan. Since you may be required to share personal information, you realize that some scams exist. Always make sure that the company you use is legitimate and known.

Try to get a payday loan only in case of crisis. These loans almost always create a vicious circle that is hard to escape. Interest charges and late fees Penalties will increase dramatically if your loan is not repaid on time.

If you do not have a big loan

If you do not have a big loan, you can still qualify for a payday loan. There are a lot of people who can use a payday loan and what it has to offer. Many payday lenders will give you a loan if you have a job.

Always remember all the ways to get a loan before you choose a payday loan. Credit card cash advances carry lower interest rates than payday loans. Ask family and friends for help to see if you can avoid getting a payday loan.

If you apply for payday loans again and again, then it is probably best that you get some sort of money management help from a credit counseling firm. Payday loans, which are not paid on time, add up quickly, and lending to cash has bankrupted many people. You can avoid that this never takes something.

If you have made an informed decision

If you have made an informed decision, you will feel better when you receive a payment loan. If you have decided that a payday loan is the right answer for you, keep that information handy as you go through the loan process. After examining your situation and options, you are now ready to make a solid financial decision.


Low Income Earner take Loans Wisely

There are jobs that are extremely well paid and, unfortunately, a not insignificant number of jobs and occupations whose pay is almost shameful. Sadly, so far the legal regulation on the minimum wage has not changed anything so far. For the number of those who are classified as so-called “working poor”, so low-wage earners, has been steadily rising for years. Currently, about 5.5 percent of the workforce is considered poor and more than eight percent of the self-employed. Anyone who is low-income earners faces the constant danger that they will not make ends meet month after month. In addition, it is impossible to build up any reserves due to low-paid work or to achieve the status of a solvent client at the bank – as hard as it sounds. And yet, each one of us can come into the situation that a much-needed purchase must be made, which can not be lifted from the liquid funds. So you have to get a loan and that goes for low income people as well.

Low-wage earners are considered problematic in the case of a loan

 Low-wage earners are considered problematic in the case of a loan

The fact is that as a low-income banker, you are seen as a potential lender more critically, if not generally rejected. But one should not be satisfied with that, because everyone has the right to be regarded as a potential lending customer fair and, above all, objectively. To achieve this as a low earner with the plan to take out a loan, a lot can be done by yourself. So there are a few things to consider when borrowing to positively influence the bank’s decision. The fact is that if a regular income from which the loan can be repaid, is present, in principle, a loan is possible. So the key questions are: How high must a regular income be in order to get funding? So what must low earners pay attention to, so that they can take out a loan despite low incomes?

Credit as a low-income earner: It is important to pay attention to these points!

 Credit as a low-income earner: It is important to pay attention to these points!

Above all, it is a low-income earner with a credit wish to be aware that there is a fixed minimum income, from which banks basically give a loan, NOT. As a result, each bank individually decides whether a person gets a loan or not. The level of income is only one aspect of many that banks consider when deciding on lending. Other significant factors of credit are:

Creditworthiness of the applicant

The creditworthiness of a potential credit customer is the number one decision criterion for classic banks. From the bank’s point of view, the creditworthiness of a customer is a clear indication of a customer’s willingness to repay in the past. This is measured by the so-called credit score. The higher this value, the better from the perspective of the bank. It follows that even low earners with a positive credit rating can significantly increase the chances of a loan.

Length of employment

The second decisive criterion in lending is the issue of income and duration of employment . In this way, banks can assess whether the applicant has a regular income even during the repayment period. If, however, you are still applying for a loan or are still in the probationary period or on a fixed-term contract, the likelihood of a loan is only given if the desired loan is repaid before the end of the time limit.

Existing loan commitments

If there are already several loans that make up a significant part of the monthly financial burden in the budget, most banks will hardly approve another loan. However, it is possible to combine all current loans for a cheaper loan, to extend the term and, if necessary, to top it up with a small amount. Here, however, it is important to plan the financial situation of the borrower ahead of time.

Reasonable loan amount

In fact, it goes without saying that the desired amount of credit will fail in a context that reflects your own financial capacity as a borrower. Which means that the desired loan is in proportion to the income.

Conclusion on the subject of “Low-income loans”

 Conclusion on the subject of "Low-income loans" As points now show, it is not an impossibility to get a loan with a low monthly income. Of course, it is hard to get high loan amounts with very long maturities with a low financial capacity, but when it comes to getting smaller amounts with a manageable repayment term, the chances are not so bad under the mentioned aspects.

Editor: Markus Gildemeister

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Payday loan on the Internet: Experiences and Tips

We have collected and analyzed online Payday loan experience to provide guidance on how to properly handle Payday loan online .

We have collected and analyzed online loan experience to provide guidance on how to properly handle loan online .

The Payday loan on the Internet at the click of a mouse has been common practice in the USA for many years, and this business has also grown massively in Germany. Nevertheless, one is still very conservative in this country in terms of financial transactions – it can save a lot of time and money .

Online Payday loan experiences: what to look for?

According to our online Payday loan experience, if you are a bit attentive and mindful of a few things, you can easily rule out duping providers. Our notes come from a long experience in Payday loan and financial transactions .

The statistics below show that as recently as 2013, only 14% of consumers applied for their Payday loan s online, but today these numbers look very different. According in 2016, 42% of consumers made their Payday loan inquiries mobile , ie via smartphone or tablet.

1. Orient yourself to comparison pages

One of the most important steps to getting a good and reputable Payday loan online is, according to our online Payday loan experience, orientation on a good comparison page. Above all, it is the well established providers who compare Payday loan s on the Internet .

As an article by Wallstreet Online describes it: “Before deciding to apply for a quick Payday loan , you should get detailed information about the bank. Again, the internet can be very helpful. There are a large number of portals on which to read experience and test reports. “

On our site you will find extensively researched articles and tests on the various providers, which are a good way to orientate yourself.

2. Beware of Facebook advertising for lenders

You should be cautious with lenders who advertise on Facebook . Although this is not a problem in itself, our online Payday loan experience has shown that the controls here are deficient. For example, we have often found extremely questionable providers via Facebook advertising.
Find out more in our article unserious Payday loan providers on Facebook .

3. Pay attention to non-bindingness and make no advance payments

But how do you recognize these questionable providers? One of the most important features of dubious lenders is the requirement for a prepayment before there is any real offer for a Payday loan .

So you should never have to pay anything unless you have a Payday loan offer from a bank on the table that meets the desired conditions.

4. The big banks are performing well

From the customer experiences ago are the offerers, which act either as a subsidiary of a large branch bank or the branch banks themselves the most reliable and offer the best advice .

It does not matter whether you take out the Payday loan from these banks online or directly in the store, but in the branch often additional processing fees incurred. For example, applying for Payday loan on the internet can often mean savings .

Dangers of Payday loan s in the network

Reading through online Payday loan experiences on the net to find out where potential threats to the consumer lurk, one first comes across the following points:

1. Hidden fees

One of the really big issues that you can read about again and again is that somewhere in the documents in front of the customer, there are hidden fees that are kept below processing fees . Often these amount to more than 50 € and therefore make the conditions much worse, especially for smaller amounts, than initially promised.

So it’s very important to read through contracts sent to you before signing them. And should such hidden charges actually occur, it is advisable to look for another provider in general .

Again, it should be noted that one has to worry less about larger institutions and well-known providers than, for example, with small private intermediaries of Payday loan s.

2. Poor care

What is also criticized by many providers, is a bad customer support . Especially the email traffic often leaves something to be desired, either there are no or only generally held, unsatisfactory answers.

But most major providers, , also offer free telephone advice , which you can turn to in case of need.

In our list of different providers that provide serious Payday loan you can easily find out about many providers.

Conclusion about online Payday loan experiences

Online Payday loan s are becoming more and more common and are increasingly replacing the classic branch Payday loan . Partly you can save a lot of money and, for example, use our online Payday loan comparison , can definitely be worthwhile .

As with all halfway new business fields, there are always a few black sheep – that’s why we also founded our site . If you use a few good consulting and comparison offers on the net, you do not have to worry about getting to the wrong provider.