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
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
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.