Cash, bill card or credit card – what should I pay abroad?

This is connected with the necessity of counting with every penny – and this is not a vacation to worry about how much money we have in our wallet and whether we will have enough for the rest of the holiday. Secondly, if you steal your wallet, you will lose all our money. We have no chance to recover them, unlike the situation when we use a card that we can quickly reserve.

A debit card attached to the invoice – is it worth paying with it abroad?

A debit card attached to the invoice - is it worth paying with it abroad?

Paying abroad using a debit card issued to our account kept in USD is a very easy and pleasant solution. The same as in the country we pay by entering the card and entering the PIN. The problem, however, is much higher costs.

When using a debit card in USD and paying for products in a country where the currency is e.g. dollar, we have to take into account the costs of currency conversion. Bank exchange rates are usually slightly higher than those found in exchange offices. However, this is not the worst part.

If we decide to use an ATM, we must not only remember about currency conversion but also about the commission for withdrawals from an ATM abroad. It is usually a fee of around USD 10, but it can often be more if there is a record that the commission is e.g. 5%, but not less than USD 10. Fortunately, there are several offers on the market for which we will not incur fees for withdrawals from ATMs abroad.

When it comes to currency conversion, you need to know that there may be a double currency effect during the trip. We will meet with him if we remain in a country whose currency our bank does not settle. Then, after the transaction, the bank will first convert its value at the exchange rate of the card issuer (MasterCard, Visa) into dollars or dollars (settlement currency), and only then into dollars.

Another downside when paying by card abroad is the issue of booking transactions. Virtually no bank posts or settle transactions on the same day. This may involve an additional burden if the settlement occurs on the day the currency has a worse exchange rate for us. The result will be a smaller amount on our account.

A definite plus of using the card abroad is the security of this agent. If you lose your card, you can quickly and easily report your loss. The Act on electronic payment instruments guarantees that in the event of unauthorized transactions we will be liable only for losses up to USD 150. If you have insurance, you won’t pay even 150 dollars.

Unfortunately, the express issuance of a new card abroad is not always possible. If such an option already exists, then it is expensive. This also applies to credit cards.

Credit card and foreign payments

Credit card and foreign payments

The credit card has almost the same disadvantages as the debit card attached to the invoice. What makes it different in this respect are the higher fees for using an ATM.

However, there are many advantages to a credit card. First of all, it is not our money, from the account, but from the bank – we can treat it as emergency cash or spread the cost of travel over time.

Secondly, thanks to the credit card we can pay for many services, such as ticket booking or car rental. Thirdly, if we have in our portfolio a credit card from a supplier other than our debit card, then we will protect ourselves against potential problems related to not supporting a given payment organization. Despite progress and globalization, this still happens sometimes.

What is the best way to pay abroad?

What is the best way to pay abroad?

The answer to this question is simple – all. By diversifying our payment methods and using each of them skillfully at the right time, we will reduce additional costs to a minimum. When traveling to a foreign country, we can not be afraid of using debit and credit cards, but we can not say a strong no to traditional cash, it simply does not pay off.

Who can borrow money in Poland?

The first institution that we associate with borrowing money is the bank. If we listen to the emotional reactions of the media to what they do, parabanks, we can come to the conclusion that only banks can legally grant loans. This is the wrong conclusion. Who else can lend money to others in Poland?

This may be a big surprise for some, but anyone can give loans to Poland. As long as he owns the cash borrowed. It doesn’t have to be a bank, it doesn’t even have to be a company – loans can also be granted to private individuals.

It is worth looking at how lending is regulated by law. Well, the basis of this activity is four short articles in the Civil Code. In addition, there are several other legal acts that regulate lending activity in its various manifestations.

The most important of them is the Consumer Credit Act of 2011, which refers to loans granted as part of business activities and includes, among other banks, cooperative credit and savings banks and the so-called parabanks and banking law.

Who can grant a loan?

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Everyone can make loans, but not everyone does. A market has emerged around this service, which has been dominated by several types of institutions:

  • commercial banks,
  • cooperative banks,
  • cooperative savings and credit unions,
  • loan companies (so-called parabanks, e.g. Provident but also much smaller, local players),
  • employee loan unions in larger companies and institutions (especially state-owned),
  • social lending portals

In addition, loans can be granted by private individuals who do not run a business. We can borrow from family, friends, and strangers. It also works the other way – we have the right to grant loans to others or to set up a business that specializes in lending cash to others.

Granting a loan – what to remember?

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However, it is worth remembering several important issues:

1. A loan agreement of up to USD 500 may be concluded orally, above this amount a written or electronic contract is recommended,

2. Polish law limits the amount of interest that may be charged to the borrower – for all types of loans and credits it is four times the Lombard rate set by the Good Finance (currently 18% per annum),

3. While there is a very precisely defined concept of maximum interest, the law leaves much more room for maneuver when it comes to other fees related to e.g. granting a loan or extending its repayment date – it is worth remembering this, regardless of which side of the contract we are found

4. If the loan is granted as part of a business, it is subject to the Consumer Credit Act, which imposes a number of obligations on the company, e.g. the need to inform the borrower of all costs of the loan, including the actual annual interest rate,

From the client’s point of view, the lender’s security and credibility are also very important.

Banks and credit unions are under closer state supervision than other lending companies – they are more stable, they are less likely to abuse and it is easier to collect any liabilities from them.

Their disadvantage for some customers may be very rigid procedures (e.g. related to the assessment of creditworthiness).

Social loans – is it worth it?

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An interesting phenomenon in this market is definitely social loans (e.g. Coconut) – it is an offer for those who need cash as well as for those who have excess cash and are looking for an unusual way to invest surpluses.

Technical and legal matters are taken over by the intermediary portal in granting social loans.

Either way, if we want to borrow money, we are not condemned to offer banks. He is certainly a large and important player on this market, but apart from him, there are several other institutions and many private individuals ready to lend us cash in exchange for fees and interest.

Lifetime annuity and reverse mortgage loan – a good alternative to saving for retirement?

To put it mildly, the Polish pension system does not sketch promising prospects for those who end their careers. Many of them also don’t have any savings.

What to do in that case? Perhaps the solution would be an inverted mortgage or annuity offer. The more that any day both will gain their legal form.

The idea of ​​both products is simple. A person reaching the age of 65 enters into a transaction in which, in exchange for the renunciation of ownership of an apartment or house, he receives a cyclical (usually monthly) pension in this respect until the end of his life.

Annuity distinguishes from a mortgage

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Annuity distinguishes from a mortgage is distinguished by the fact that in the case of the former, the buyer of the apartment (bank, fund, insurance company) becomes the owner of the property as soon as the contract is signed.

On the other hand, an inverted mortgage gives the heirs greater room for maneuver – the transfer of ownership takes place only after the death of the rentier. So they can decide to pay off the mortgage and keep the apartment.

Both solutions seem to be interesting propositions for retirees who do not have savings in old age (according to Good Finance, as many as three-quarters of Poles do not have them), allowing them to cash their only capital – a flat or a house.

So much in theory. How does it look in practice? What should you remember when signing the contract? Are we entitled to legal protection? We invite you to read.

A few years of pensions in practice – under the microscope of GFIC

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Lifetime annuities have been in Poland since 2009. At present, they are offered by 7 entities. Despite the potential of this financial product, the scale of the phenomenon is rather marginal so far (until April About 400 contracts were concluded).

This may be largely due to the non-regulation of this form of financing in the law, which, unlike standardized financial products, allows companies to fortify contracts for survival with numerous, sometimes dangerous conditions for the pensioner.

This state of affairs has recently been criticized by the Good Finance Investment Corporation (GFIC), accusing mortgage funds of numerous irregularities in the design of contracts and misleading advertising folders.

According to GFIC, entities offering annuities have deceived potential clients in advertisements, including by the fact that they will pay rent for them, or emphasized the possibility of the property returning to the borrower when the company failed to pay the pension on time. However, none of these promises were legitimate.

The Office also warned that the current legal status, or rather the lack of it, results in the lack of sufficient security of the client in the event of the company’s bankruptcy – which may even result in the loss of a roof over his head.

There were also peculiar provisions in the agreements, for example prohibiting the residence of other people, e.g. family. In total, GFIC found irregularities in the offers of as many as 5 out of 7 funds operating on the market and appealed for quick changes in this respect.

Luckily, the report coincided with the adoption by the government of provisions for two laws: opening the way to the market for reverse mortgage offers and just introducing regulations on life annuities.

What will the new legal regulations bring?

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As we mentioned earlier, an inverted mortgage postpones the acquisition of the mortgaged property until the client’s death. The government draft specifies that heirs will have up to 12 months to repay the loan and retain ownership of the apartment.

Despite the fact that it is by nature a product addressed mainly to older people, the Act does not provide for age restrictions.

Therefore, the reverse mortgage will be available to people of all ages, which is to have a positive impact on its popularization. Skeptics may also be encouraged by the fact that it will be a banking product, which is under the tutelage of the Good Finance Investment Corporation.

Banks will have to value the mortgage at market rates and the condition of the premises. The amount of the benefit will depend on this. However, it is difficult to give even an estimate of it, as the amount of the benefit also depends on the length of life.

However, you can not count on the benefit of 100% of the mortgage value – real estimates say about 50% of the price of the apartment. It is also important that the borrower retains the option of premature repayment until the end, and his benefits will not be subject to income tax.

However, we should remember that after the conclusion of the contract, we will continue to have the cost of maintaining the premises, i.e. rent, renovation or insurance against random events.

New old annuities

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The second law seeks to improve the rules governing endowment contracts criticized by GFIC. Customers are to gain special legal protection in the event of the bankruptcy of the benefit paying company.

The mortgage will first go under the gavel, and when the bidder is not ready to buy it for the required amount, the premises will be returned to the renter (let us remind you that in the case of annuities, the customer relinquishes the ownership of the apartment or house).

Even if a buyer appears, the act will guarantee the rentier an absolute right to live in the apartment until his death, without the possibility of eviction.

It is worth mentioning that although the transfer of property rights is irreversible, under certain conditions, the recipient will have the right to terminate the contract – although the property will not be returned, the company will be required to pay the whole benefit once, with deductions set out in the Act.

Such a condition may be, for example, a situation when a company fails to pay payments to a pensioner on a continuous basis. The project also introduces strict information requirements to counteract ‘colored’ advertisements.

Credit for the repair of apartments, cars, houses, housing

 

The house is a small fortress where you can hide from problems, where they always love and wait. This is a place where you can feel protected. That is why the house should be special and bring joy. This is facilitated by the appearance of the housing, namely, high-quality internal and external decoration. But the cost of materials is so high that most often either we buy lower-quality materials or refuse to repair at all.

With us you can get a loan for repairs

With us you can get a loan for repairs

The best solution to this problem is to take a loan for repairs. But traditional banks have their own procedure for issuing credit funds, it will take a long time, it will require a waste of energy, and it’s far from the fact that in the end you will generally receive a loan. Therefore we offer online lending services on convenient and loyal terms.

  • your apartment
  • private house, cottage
  • cottages
  • housing
  • short-term auto repair loan

We give loans for repairs to individuals

We give loans for repairs to individuals

 

All you need to apply for a loan is Internet access and twenty minutes of free time. Making loans for repairs has never been so affordable as with us. You can get a loan in the required amount and for the period that is convenient for you.

  • with bad credit
  • without income statement
  • over 18 years old
  • seniors

It doesn’t matter how much you get or how old you are. This is not key in obtaining a loan for repairs from us. The main thing is that money should be available to everyone and immediately when it is needed.

Conditions for taking and repaying a loan for repairs

Conditions for taking and repaying a loan for repairs

After deciding to take out a loan to repair the apartment, you do not have to stand in lines and carry folders of documents for verification. Simply fill out a short form, and then very quickly see the replenishment of your card for the full amount of the loan. To obtain this type of loan as a consumer loan for repairs, you will need:

  • Set the amount you need
  • Determine the length of time that suits you to pay the loan
  • Fill out an application for a loan
  • Check your credit card
  • Within 20 minutes to get a loan for home renovation on your bank card

After the expiration of the specified period, you need to repay the loan. This can be done in any way convenient for you. You don’t even have to go to the bank specifically for payment. You can go online and pay off debt directly through your personal account. Repayment of a loan is also possible at any bank or terminal. Getting loans for home repairs is now much easier and more affordable.

How to get personal credit: 6 tips

With the growth of unemployment, inflation and, consequently, the purchasing power of the population, investors, financiers, companies and banking institutions are naturally more afraid to lend money because the risk of default increases at times like the one we are experiencing. If you are in need of credit, either to pay off more expensive debts, open a business of your own or for an emergency, here are some tips on smart attitudes that will help you:

 

Use the positive registration

Use the positive registration

Institutions usually scan the person’s past before granting a loan or not. For this reason, having a name considered favorable can make all the difference and the positive registration will help a lot in this regard. This program is for banks and finance companies to find out who has their accounts up to date. In it, your payment information is available and if you can keep it up to date, you can negotiate loans at lower rates, because lenders understand that there is little risk in giving credit to you.

 

Have a clean name to get personal credit

Have a clean name to get personal credit

In the same way that the positive registration can help you, being negative can get in the way a lot. Your data will be searched in the debtors’ records, such as the famous and feared Serasa and SPC. The results of this investigation service to decide whether the credit will be accepted or not.

 

Use your properties

Use your properties

The type of housing or the properties you own also come into the equation. Anyone who owns a large property in the front, after all, it is a guarantee that the customer will be able to obtain large amounts of money in an emergency. But if you live on rent, things do not become impossible: your history can be taken into account and, if you are a long-term tenant who does not delay payments, this can also be used in your favor.

 

Declare your income

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One of the main criteria for releasing credit is income. It must be compatible with the amount you are requesting, otherwise the institutions will certainly not release the loan. Also, don’t lie: banks and finance companies will try to check if the income reported in the proposal is true. If you are an account holder at that bank, even better: it will be easier to provide reliable information, especially through account movements. Your job stability, your profession and your position will also be taken into account.

 

Provide good personal references

Provide good personal loans

Finally, personal references are still used, although less frequently than before. Good recommendations from suitable people, with professional stability and with good purchasing power always help at this time. Bosses, directors and relatives can provide that essential strength to get personal credit.

 

Be careful

Be careful

There are some precautions that you must take to avoid getting into debt or falling into scams. First, you should check the amount of the installment that you can pay without compromising your family budget planning. For this, it is necessary to take into account the interest rate of the loan, which interferes in this amount and which is often overlooked by the client in this type of operation. Make loan simulations to choose the most suitable for your situation and your profile. It is also necessary to check the suitability of the finance company or bank.

Especially when personal credit goes online, you need to watch out. Observe if the site has quality and if it is well structured and if the project has an address and landlines. Check the CNPJ and search the internet for information about complaints and processes. Finally, never make deposits or anticipate cash fees before receiving personal credit. So, did you see how getting personal credit can be a lot easier? 

Take a microloan with open current arrears on the card

 

It is well known that it is difficult for people with damaged CI and active debts to get a microloan without failure with delays, because organizations are afraid of potentially problematic customers. The second point – whether the borrower has enough money to repay a new loan – depends solely on the level of income.

In this article we will figure out where to get a microloan with bad credit history and open arrears in the country.

Where they give a microloan without failure with delays?

Where they give a microloan without failure with delays

You can get a loan with delays:

  • In banks, in the online lending section. But you need to be prepared for high interest rates, requirements to provide certificates of employment income;
  • Microfinance organizations give a microloan on a card with arrears, but the amounts usually do not exceed 10 thousand. This method is chosen by those who decide not to waste time on endless failures and paper running around;
  • Private lenders. The main thing here is not to run into scammers and illegal immigrants. Therefore, it is necessary to check the availability of a license, real reviews and draw up a legal contract with clear conditions.

What documents are needed to receive money

What documents are needed to receive money

To take a microloan with arrears online to the card urgently, you need to provide the data:

  • Civil passport;
  • Identification code.

Usually this list is enough for most of the current online MFIs. Some of them ask for high-quality scanned copies, the second half is satisfied with the information entered, because the information provided is thoroughly checked through the BKI and other information databases.

In large financial and credit institutions require in addition:

  • About employment;
  • About salary;
  • About the presence of property in the property.

Why lender gives a microloan with bad credit history and open arrears?

Lender gives a microloan with open current arrears on the card to all vulnerable categories of people (students, pensioners, unemployed, debtors) for a number of reasons:

  • Simple requirements that are easy for borrowers to follow;
  • An adequate interest rate that allows you to make payments painlessly;
  • The first loan at 0.01%;
  • Three-day period without imposing fines;
  • Affordable extension.

Lender provides assistance to people in cases where others refuse and become a reliable financial aid at the very moment when it is most needed.

Types of debt collection – what are the options?

What should an effective debt collection consist of? See how to legally carry it out step by step to get your money back!

If the debtor does not contact you and does not use traditional methods of fighting debt, you should start debt recovery. What is meant by this term? It is a set of legal and procedural actions aimed at motivating the debtor to pay the obligation, which he contracted with the creditor. How exactly does this process work? You will find the explanation later in the article!

Types of debt collection – what are the options?

Types of debt collection - what are the options?

Taking into account the manner of dealing with the debtor, there are two basic types of debt recovery:

  • soft debt collection – the very name indicates that this group of activities is considered to be the mildest form of debt collection, although, in the long run, it can be quite insistent. Most often it involves calling the debtor, sending him an SMS with a reminder to pay the debts and requests for payment – for more information on the latter form, see our article.
  • hard debt collection – it starts when the soft debt recovery did not bring the desired results. In this situation, it is already known that the debtor is not willing to cooperate, or does not have the funds to repay debts. The process begins with entering it on the list of debtors and ends with court proceedings. The exact course of such debt recovery is presented later in the article.

Debt collection in 5 steps – see how it looks!

Debt collection in 5 steps - see how it looks!

1. The incurrence of an obligation – it is a situation in which the debtor is late with paying the debts to the creditor. The first debt collection steps are taken 60 days after the repayment deadline has expired.

2. Arbitration – this is the first stage of applying for debt repayment. What’s more, this is a stage that cannot be missed. To file an application in court, you need to document your attempt to reach an amicable resolution of the conflict with the debtor – otherwise, the judge will reject it. As part of it, you can send payment requests or even create a new repayment schedule – as long as the debtor contacts you.

Amicable debt collection is the most advantageous solution for both parties because:

  • avoids lengthy court proceedings,
  • is the best way to slowly and effectively exit the spiral of debt – of course, if the creditor understands the debtor’s difficult situation,
  • does not expose both sides of the conflict to unnecessary costs of debt collection and court proceedings. This should especially be avoided by the debtor, for whom it will be another commitment to repay,
  • will allow the debtor to avoid entering into the National Register of Debtors, which could be difficult to obtain a loan in the future.

3. Court proceedings – if the debtor refuses to resolve the matter amicably, you have nothing else to do but to bring it to court. Importantly, if you prove to the court that the debtor is avoiding contact with you, it will work against him.

4. Clause proceedings – its purpose is considered to be an enforcement clause, i.e. a court order for payment, which is needed to commence bailiff proceedings.

5. Enforcement proceeding – begins when the bailiff receives an application to start enforcement along with a detailed description of the actions that should be taken.

Effective debt collection – with the company or alone?

Effective debt collection - with the company or alone?

If despite your efforts, the debtor still ignores prompts and does not make a contact attempt, you can use the services of a debt collection company. Such an institution has quite broad powers. This means that it can use all of the previously mentioned methods – from sending requests for payment to entering on the list of debtors.

Warning!

A debt collection company may also be independently interested in your debtors’ obligations and buy them on the debt exchange. In this way, you will receive money in principle, although usually in a slightly lower amount. Negotiations with the debtor, however, take over the company, and you will not have to worry about anything. So if you care about time more than recovering the full amount, this is a good way out of the situation.

As you can see, effective debt collection is a process that can take a while. That is why it is worth starting it as soon as possible – thanks to this you will also avoid any possible time-barring of the debt. What should you know about this? More details on this topic can be found here: “Do the debts expire” – check it out!

Loans – on what terms is it granted?

 

 

According to data from the Central Statistical Office, at the end of 2018, there were 10,000 emigrants. A thriving labor market giving the opportunity to negotiate employment conditions, lower unemployment rates and higher median wages are just a few reasons why persons are emigrating to the country.

For those who have recently earned in crowns, the place of debt is becoming unknown. Can you take a loan? Where is the best way to apply for a cash loan – in the country of residence or in the country of origin?

Can a person who lives and works get a mortgage there to buy an apartment or build a house? There is also a question mark that you can get a loan. Let’s find out whether credit for persons is a reality or just a pipe dream.

Loan – who can apply for it?

Loan - who can apply for it?

Every person applying for a loan for working must meet the following requirements:

  • be at least 18 years old (this age may vary depending on the bank),
  • have permanent registration,
  • have an indefinite employment contract (some banks respect the work contract / mandate contract),
  • have a positive credit history at the – Banking Credit Bureau – the equivalent of the (Credit Information Bureau),
  • have an account with a bank,
  • have an active telephone number.

Sometimes a loan for a person can be difficult to obtain due to the fact that some banks only serve clients with citizenship.

What are the loan costs?

What are the loan costs?

The requirements for loans are very similar to those in force on the market, at least when it comes to mortgage loans. The minimum own contribution in mortgage loans is 20 percent., some banks, however, go hand in hand and, like those in the country, lower it to 10 percent.

In addition, the ratio of the monthly installment to the income of the household taking a loan cannot be greater than 45% Moreover, the maximum amount of mortgage cannot exceed 9 times the borrower’s annual income.

As for the cost of the loan, as already mentioned, it consists of the cost of repaying the liability and additional charges. The basic costs of a loan are:

  • preparation fee,
  • commission for granting a loan,
  • interest,
  • insurance.

However, when you take a loan, you can count on various promotions. Some banks have attractive offers for new customers in their offers, while in others regular customers can count on more favorable credit terms.

How to apply for a loan?

How to apply for a loan?

A loan from a non-bank company is an alternative to a loan. To get a loan from a bank, you need to show a really good creditworthiness and credit history, while meeting a number of institutions depending on the institution, more or less excessive requirements.

All this means that some simply do not have a chance for a loan in the bank. Loans come to the rescue.