The Mustard Seed

Attention, Trap: Zero-Percent Financing Bears Risks For Consumers

There are many offers for zero percent financing: Buy now, pay conveniently in installments and without interest. More and more dealers are enticing customers with interest-free loans for their new car or TV. However, financing without interest can be expensive. A zero percent loan is often not as cheap as it seems at first glance.

What is behind a zero-percent loan?

Advertising promises with a zero percent financing are omnipresent today: furniture stores, car dealers and electronic markets offer the purchase of many products with an uncomplicated financing without interest.

More precisely, the buyer takes out a loan with a bank with which the dealer cooperates. The bank then reimburses the dealer directly for the agreed loan amount. The buyer therefore pays the bank back the sum in monthly instalments. Basically, this is a classic instalment loan. With zero percent financing, two contracts are concluded in principle: the purchase contract with the dealer and the loan contract with the bank. (more…)

Tips On Loans For The Unemployed

It is undoubtedly one of the most difficult life situations: Unemployment! Especially in financial terms, unemployment does not only mean a general restriction, but also in terms of the possibility of further, even if only temporary, financial bottlenecks to take out a loan. As a rule, banks do not grant loans to the unemployed – or do they?

It is often very difficult for the unemployed to get a loan. As a rule, the unemployed have no reserves or possessions that would serve as collateral for the lender. The fact that they therefore often grant loans to the unemployed at particularly high interest rates is therefore understandable from their perspective on the one hand, and on the other hand the cat bites its tail a little bit. Because higher interest rates can additionally weaken the repayment power of an unemployed borrower. (more…)

Proof Of Income – Important Basis For Your Loan Application

Anyone who wants to take out a loan and is concerned with the conditions for granting a loan usually comes across the proof of income. But apart from the normal payroll accounting, what is actually regarded as such a proof of income? And why is it so important for the bank granting the loan?

Anyone who takes out a loan and reads through the generally applicable conditions for granting a loan before applying for it will come across the point of “proof of regular income” or a corresponding proof of income. But what does this mean exactly? What does proof of income actually mean for banks and financial institutions? This is a question that can be answered in just as many different ways due to the different types of credit. (more…)

Why You Should Start Saving Money Early

Most people do not think about retirement provisions at a young age. But it is not difficult to put money aside even as a young professional – for example through a personal financial plan or stock portfolios. How to save or invest money effectively is simply explained. Parents should start saving for their children at baby age.

Surveys show that currently around 85 percent of 14- to 25-year-olds save around £140 a month. Mostly, however, savings are made on a specific occasion such as a driving licence or a trip. Only about 13 percent think about their retirement provisions when saving. Furthermore, the proportion of men saving for old age is 17 percent, which is significantly higher than that of women (nine percent). (more…)

5 Reasons To Invest In Peer-To-Peer Loans

Peer-to-peer loans have become increasingly popular in recent years. There are good reasons for this. However, as an investor, you should not ignore the potential risks. Peer-to-peer loans are becoming increasingly popular with investors.

Many investors are taking advantage of the opportunity to lend money to other individuals via the Internet. But there are also many people who are sceptical about peer-to-peer loans. They see private lending as too high a risk and prefer to invest their money safely. We will therefore discuss below why it can make sense to invest in peer-to-peer loans in the current climate. We also point out possible risks. (more…)

Loan As A Debt Trap? What Are The Dangers Of Borrowing

50 % discount on the washing machine, 20 % on car purchases, Black Friday – the consumer world beckons with new bargains almost daily and thus fuels consumption. And those who are short of money and still want to take advantage of such bargains can take advantage of one of the numerous credit offers at supposedly “top” conditions. Everything really that simple? No – warn the consumer protectors.

No money, but seen a great offer? Urgent repair of the car, unexpectedly high service charges, but no money in the till? All these are situations where credit is the number one choice to bridge the financial bottleneck. Mostly by using an overdraft facility, no matter how expensive it is, or by means of a classic instalment credit or consumer credit. And why not? The loans are inexpensive, can be called up at any time, regardless of opening hours, and all of this from the sofa at home. There is actually no better way! (more…)

Five Ways To Borrow Money In The Short Term

For a variety of reasons, it can happen that you need a short-term loan. We present five different ways of borrowing money in the short term and show you what you need to consider. How you can borrow money instantly.

A recent study by the UK credit investigation agency showed that Britains have their finances under control. Nevertheless, private consumers are repeatedly confronted with situations in which short-term liquid funds are required. A due bill can no longer be postponed or the threat of a bank account seizure can only be avoided by making a quick down payment. Bargains are much more often the reason for a sudden need for money, as they are only available for a short time and the consumer does not want to miss them at all. If there is a lack of the necessary change in the bank account, he can borrow money at short notice. (more…)

Loan Fraud The Modern Way

When it comes to the topic of “fast money”, common sense often falls behind. This is particularly true of the numerous credit offers on the Internet. Especially with those loan offers which are offered without agency and without proof of income. A new scam shows the dangers of such offers.

Financial bottleneck, urgent purchase, unexpectedly high bill – the reasons for taking out a loan are manifold. As a rule, the overdraft facility, if available, is then drawn down or the loan is taken to the house bank. If you want to get a loan very quickly, the Internet with its seemingly endless number of online credit offers is often the first choice. But what happens if the urgently needed credit is rejected? Because, for example, the information system signals a possible credit default? Or because your own income is not sufficiently high in relation to the desired credit amount? (more…)