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Jun 4,2019

Comfort of the Smart Home Taking Out a Loan | Personal Loan

For some, it’s the technical bells and whistles that no one really needs, for others it’s just the logical evolution of modern living. We are talking about the so-called smart home equipment. But what is Smart Home? Time for a brief explanation. Basically, Smart Home serves as a general term for technical processes and systems in living spaces and houses, which focus on increasing living and quality of life, security and efficient energy use based on networked and remotely controllable devices and installations as well as automatable processes. In plain language: This term covers both the networking of home technology and household appliances (for example, lamps, blinds, heating, but also stove, refrigerator and washing machine), as well as the networking of components of consumer electronics (such as the central storage and home use of Video and audio content). An equally well-known and easier to understand term for Smart Home is also intelligent living. This is exactly what many German would be willing to take out a loan.

High acceptance for a credit for intelligent living

Above all, the Germans seem to be hard to impress on the possibilities of intelligent living. Of course, it would be “cool” to own a refrigerator that tells you when the food shelf life expired. Or to use a hob that not only provides the necessary heat, but also the right recipe and shopping list for dinner. In addition, if the stove communicates with the refrigerator to match up, if needed ingredients are not already in the house – the aha effect with visitors is guaranteed. Exactly this seems to have its charm for many Germans and if necessary exactly this “intelligent living” is financed by credit . Thus, more than one third of Germans justify the supposed comfort of the smart home taking out a loan. This finding is based on the representative study of a major German bank in which 1,800 Germans aged 18 and over were surveyed on the subject of credit for smart homes.

Simple smart home products are often purchased on credit

In detail, the study found that a solid 39 percent of Germans can imagine financing an intelligent conversion of their home with the help of a loan on installments. There is quite a clear idea as to what is desired in the house or not with regard to the desired smart home products. For example, 15% prefer a Wi-Fi doorbell and 13% prefer a smart fridge. A sound system integrated into the living room wall would also acquire 13% and the already mentioned interactive hob would be for ever 10% of the German citizens still in question. But also very trivial things are in the Smart Home Focus of the Germans: the alarm clock, which imitates the sunrise, 8%, 7% want a Bluetooth scale that communicates with fitness bracelet or smartphone or an oven that can be operated on the go. As already mentioned, all this, of course, with the help of a fast and affordable

by Sherry Ellerbe

May 27,2019

Personal Loans are advantageous If Payed with Precision

Often here is this well-meant advice also a corresponding self-experience, which would like to spare parents as a son or daughter by just that advice. And yet, reality shows that the willingness to help friends and relatives in financial emergencies is very high. After all, no one wants to “suffer” any person who is close to Him in any way. Especially not if you as a friend in the position just that familiar people by a supposed “small gesture” to be able to help the financial support. What is there to help friends, good friends and family members with a personal loan? In the reason, of course, nothing to object. Provided you secure yourself as a private lender.

The personal loan offers advantages, but also dangers

Anyone who asks friends and / or relatives for a personal loan usually has good reasons for doing so. On the one hand, friends do not conduct a Schufa interrogation, on the other hand you are more generous in repayments and, in addition, in the very rare cases demand any interest, let alone loan collateral . In this respect, the topic “borrow cheap money” from friends from the point of view of the borrower is the optimal solution dar. Quite different situation for the donor of the personal loan. In the worst case assuming that the personal loan is not repaid as agreed, this is synonymous with the loss of money AND the perhaps very close friendship so far. What then degenerates mostly in an intensely conducted dispute and often lands in front of the judge. With the result that the judge decides for the borrower, if not by the creditor any written and thus legally binding agreements with the debtor can be presented.

A personal loan contract prevents any disputes

Which makes it clear that certain rules should apply when granting a personal loan. First and foremost, even with a loan among friends , written agreements in the form of a credit agreement should apply here. Simple model credit agreements between private individuals, which can be downloaded for free from the internet, are also sufficient here. A walk to the lawyer or notary is not absolutely necessary. Especially not when it comes to a manageable loan amount and a shorter repayment term. It is important that a credit agreement between private individuals the main points of a loan transaction are recorded. Of course, this includes the amount of the loaned sum, the payment and repayment deadline and the interest rate (if agreed). If you want to protect yourself as a private lender , because, for example, the amount of the loan amount is considerable, you should also in the contract collateral from the borrower can transfer – such as the car. This can be done by handing over the vehicle registration document to the lender. This ensures that the car can not be sold and is really available as collateral should the debtor not be able to repay the loan.

Never pay out personal loans in cash, but transfer them

Further protection should be provided to always transfer the personal loan granted and not to disburse it in cash. Even if it is said that this is only real money, it also carries risks for the lender. For example, lawyers advocate this procedure for the following reason: Anyone who states in the referral “loan” as the intended purpose can indisputably prove in the dispute that the recipient of the amount owes that money – and that it was not a donation.

by Sherry Ellerbe

Apr 9,2019

Consumer Protection Is an “Institution” That Has Its Justification

No question that consumer protection is an “institution” that has its justification. Thanks to various institutions in this area, many consumers have been warned in the past of dubious companies along with their offer and so serious financial damage prevented. In addition, under the umbrella of consumer protection in the form of corresponding laws have significantly more rights in complaints, reimbursements, etc. granted. Good thing? But consumer protection also has a downside, which is because the concept of consumer protection can be interpreted quite broadly. After all, the question behind the activity of consumer protection is always: to whom and what does it make sense to protect consumers? It usually gets problematic with consumer protection, especially when legislative institutions are committed to this topic. One of those projects from the ranks of the EU is the so-called ” Residential Property Credit Directive “, which was implemented in Germany on March 21, 2016. The core of this guideline is to protect consumers from over-indebtedness through loans. So far so good! Or not, because, as the practice now shows, this “Residential Property Credit Directive” has certain disadvantages for certain target groups when taking out a loan.

Real estate property no longer counts for lending

The reason for the extreme disadvantage lies in the guideline itself, because it states that banks and savings banks must pay particular attention to the income when checking the creditworthiness. So far, the rule was that, for example, a weak income was upgraded by a corresponding real estate in the application for a loan, this procedure may no longer apply. This means in plain language, who owns a property, but has only a low income, which has the European Union Directive in fact at the banks in the context of borrowing significantly worse opportunities. If you now look at the target group to which such a constellation applies, these are primarily pensioners and young families, in which only one family member has a corresponding income.

Renovation of your own property with a loan? It’s getting harder!

Renovation of your own property with a loan? It's getting harder!

Was until recently still propagated by the banks, which represents the possession of their own property a corresponding value, which serves as a security for any necessary borrowing, the sheet has now turned completely. In this respect, the practice that has been in place since March of this year shows that the topic of consumer protection is certainly a difficult one. What is often well-intentioned, unfortunately proves to be a stumbling block and a handicap in everyday life. In the current case, this not only affects real estate owners with lower incomes, but also the banks, which are virtually taken by law to renew their lending business.

by Sherry Ellerbe

Apr 8,2019

The Loss on the Sale of Private Loan Receivables.

“A good friend is the best in the world!” – that is the refrain of a song deeply anchored in the German cultural heritage. So it is not surprising that, if there is such a, it helps this best friend in a difficult situation without reservations – if necessary, with a more or less large injection of funds in the form of a private loan. After all, it helps a good friend and he will certainly repay the borrowed money as soon as possible.

No question that this would be the so-called optimal case, but the practice often shows a different reality. Because even this sentence is not a coincidence: “The friendship ends with money!”

And unfortunately this is more and more literal. Unfortunately, when repaying private loans to a friend, relative and acquaintance, it becomes increasingly clear that the payment behavior is not the best among these groups of people. As agreed payment dates are not respected, invented excuses, agreed rates without collusion simply reduced to the fact that the person does not hear anything more. In the end, the situation turns out to be that the lent money is gone for the time being and you as a private lender on the financial damage remains. Or?

Loss of credit to the tax office claim?

After all, one could assert the resulting financial loss as part of the withholding tax in the annual tax return as a loss. So perhaps the unanimous opinion of a large number of Germans. Unfortunately that is not the case and this is confirmed in the form of a court ruling from 2015 by the Finanzgericht Düsseldorf (7 K 3661/14 E). In addition to the financial and possibly even interpersonal damage, one has as a donor of a private loan no possibility to assert the loss to the tax office.

The Düsseldorf Finance Court justified its decision by stating that the total default of the private loan is not a sale transaction within the meaning of section 20 (2) of the Income Tax Act. The loss of a personal loan can therefore not be taken into account in income from capital assets.

The background

Almost every income from an investment has been reported to the tax office since the introduction of the final withholding tax in 2009. This includes the profit and hence the loss on the sale of private loan receivables. To date, it was disputed whether the default of a claim is equivalent to a sale. The Finanzgericht Düsseldorf denied this. The total loss as a result of a bankruptcy is not mentioned in the law as a case of sale, inasmuch as in the opinion of the Dusseldorf Finance Court, the regulation of section 20 (2) no. 7 EStG does not apply. The full verdict can be found here.

by Sherry Ellerbe

Feb 28,2019

What are the Best Banks to Make a Payday Loan?

Payroll loans require care when hiring. There are big differences in the service that banks offer. In particular, there are large differences in the interest rate charged by the institutions.

In this guide we separate the main information so that you are sure that you are making the right decision when hiring your loan.

Since payroll loans do not require the borrower to have a bank account or receive salary from the bank they are hiring, it is important to do a lot of research to find the best condition.

Compare bank rates at the Bank

Compare bank rates at the Central Bank

The Bank has a complete list with the fees of all banks for the payroll loan. We publish a listing periodically.

An important observation about ranking is that it has nominal reference rates. Therefore, it is necessary to check if the bank chosen meets your employer’s agreement and what rate is applied.

View the reputation of the banks

In addition to a good interest rate, it is important that the bank you have chosen is recognized for having a good service.

In this way, you will avoid problems like delayed payment of credit, request of unnecessary documents or badly explained rates.

An excellent source of information is the Reclame Aqui website. Recognized for being benchmark in consumer ratings, the site has a specific category for bank evaluation.

Note whether the bank on which you plan to hire the payroll loan has a record of claims related to payroll. In particular, assess whether, in response to complaints, the bank was quick, solicitous and effectively resolved the problem.

Check if there are no hidden fees

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When looking for information on payroll, observe if there are no hidden fees on hiring. In general, the banks disclose the nominal interest rate and the CET (Total Effective Cost), which already includes fees related to hiring.

We explain in this article what is CET and how to make sure that you are not being deceived.

The rates that can be taken out most commonly are registration fees and optional insurance, such as insurance lender . Note whether or not your proposal includes these rates.

Simulate

The exists just to help you in the task of finding out the best bank to hire a payroll loan.

We have a rigorous process of selecting partner banks. That way, by hiring at bxblue, you are sure to be finding the best interest rate on the market, in a reliable bank.

Our simulator will show you the offers of the banks that fulfill your agreement, simulate now!

by Sherry Ellerbe