Good Finance rates have begun to rise, which may also increase the repayment installment on home loans, so ultimately you have to pay more for the home you buy.

A 20-year floating rate mortgage loan of $ 10 million may cost up to $ 0.5 to 3.5 million more than a fixed-rate facility in the event of a significant increase in interest rates. The total amount spent on the purchased property may increase even by HUF 7.2-10 million even years after the sale due to the increase in interest rates.

On the other hand, mortgage loans with a fixed installment until the end of the term provide protection against interest rate risks.

In the case of floating rate mortgages

the installment may increase following the increase of the 3-12 month Good Finance interest rate, BUBOR. And rising mortgage rates and installments also affect the housing market, as more than 40 percent of home purchases are accompanied by borrowing.

A possible further increase in the interest rates on floating rate mortgages may lead to an increase in the total amount paid on the home, but mortgage loans with fixed installments until the end of the term provide protection against interest rate increases, according to the latest analysis by real estate.com and BankRáció.hu 

Floating rate loans can become very expensive

A 20-year $ 10 million loan to buy a $ 30 million real estate property is currently available at a floating rate of 2.1 percent interest rate . If the interest rate remained unchanged, a total of HUF 12.2 million would have to be repaid. However, the interest rates on these loans are almost certain to change and the current low level is expected to increase . For example, if the interest rate of the loan rises to 7 or 8 per cent over the entire term, the amount repayable may be as high as HUF 17.2-20 million.

However, interest rate risk is protected by predictable home loans that guarantee a fixed installment until the end of the term. In the above example, the most favorable ones can be claimed with interest below 6 percent, and the total repayment is guaranteed at HUF 16.6 million.

An increase in interest of $ 10 million may also result

A leading financial expert at real estate.com, also pointed out that rising interest rates could significantly increase the price of homes even years after the sale. “Many people are still calculating that for the $ 30 million real estate for sale in this example, they will pay a total of $ 32.2 million over 20 years if they buy a $ 10 million floating rate loan.

If, on the other hand, rising from 2.1 percent today to 7-8 percent, it also means that total spending on real estate can increase from $ 32.2 million to $ 37.2-40 million, but those who fix their current interest rates over the entire term and installments, the same property is guaranteed to be paid only $ 36.6 million over 20 years.

If the end of the month is usually complicated, the difficulty increases when we have unpaid balances. The fact of being owed money is not just a burden, but it complicates the strategy of organizing the monthly economy and saving. However, not all debts are the same, some weigh more than others.

Accounts pending with the Treasury?

These four words may not be more than a bad memory, or that they are currently taking your sleep away, or you are simply a cautious citizen who has not yet had problems with the Tax Agency but you may be interested in knowing how we can postpone or divide outstanding debts with the Spanish treasury.

Stages to follow to settle accounts with the Treasury

First of all, you should know that now you can carry out most of the procedures of the Treasury through its website, an especially significant advantage for those who work as freelancers and for those who have trouble traveling due to time or physical reasons. When you enter its web portal, you will have to go to the “Featured procedures” section and then click on the “Debt deferrals and subdivisions” option. There you will have the option of accessing the forms with which you can request these services, see postponing the payment of a debt with the Treasury or requesting payment of the sum of money in installments.

If you have outstanding accounts with the Treasury, the Treasury puts at your disposal certain mechanisms to soften the impact of these payments on your personal economy. Almost all the taxes of the Treasury, from the payment of the IRPF to the annual VAT of your small business, can be postponed and divided into a series of terms that vary depending on what is being paid. You can request this deferral both at the time of tax settlement and in the “executive” period (the phase in which you are expected to return them).

Useful information about payments with the Treasury

The Treasury does not set a money limit for debts that can be deferred. However, if your obligation with the treasury is greater than 18,000 euros, you will have to present a guarantee or guarantee to get the payment deferred. If it is a smaller amount, no guarantees are needed.

In the case that you request the postponement of the return of one of the debts that you maintain with the Tax Agency, you will have to make it clear what amount you want to defer and from what date you can start to return it. Hacienda reserves the right to accept or reject your proposal, you can also modify it by offering different payment conditions to those that you requested or directly may not consider it valid. In any case, you will be earning a small margin of time that can come in handy on certain occasions to look for alternatives to get the money.

If the Treasury allows you to defer payment of a debt

We are sorry to tell you that it will not be free. Each year the General State Budgets determine the interest you will have to pay on the total amount that the treasury allows you to pay back in installments. You should know that the interest rate will be around 5% and will be higher if your money is not guaranteed.

We hope that this information has been of your use and we remind you that if at any time you need to obtain extra money to face some unforeseen event, such as a debt with the Treasury, you can request personal microcredit quickly through from Internet.

Requesting money by unregulated indicates may be an attractive option in some instances, but it involves risks that individuals will explain today.

What is a particular lender?

Individuals or institutions that will lend money without being the regulated financial entity these are known as private or private loan companies, that is, they are not banks or even loan funds.

A private lender in South america City can be, for example , an individual who has collected an gift of money and wants to do business simply by lending money in the brief and / or medium term.

While this is not unlawful (as long as particular requirements are met), you can find reasons why you should avoid likely to these types of lenders.

Why should you avoid private lenders

As we mentioned earlier, a personal lender is not considered as a bad deal.

However , it could be so in some cases; and because they are not completely regularized, it really is difficult to realize.

Robin offers you some reasons why you need to avoid private lenders:

The main reason is because they are very costly

The personal lender knows that those who reach him are people who really feel they have no alternative. Because of not having a steady job, working with a bad credit history or just for needing money urgently.

This is why private loan companies take advantage and charge quite high interest rates, sometimes they could actually be considered a crime (usury).

You can lose much more compared to what you receive

Private lenders know that their particular applicants may not pay your debt. That is why they are protected using a guarantee that can be a property, an automobile or a person with set and high income (guarantor).

Which means that in case you fall behind with the financial debt, you can lose even your house.

No backup or even regulation

In several countries there is no regulation or even law that properly manages private lenders.

That is, in many cases the clauses that you will find in the contracts with this particular type of lender are unjust.

However , since there is no regulation, after putting your signature on you will not be able to easily attractiveness or denounce usury within the contract.

For any this, Robin always suggests you to look for other funding options and not go to personal lenders even in exceptional circumstances.

Alternatives to casual loans

There are always options that offer more security which you can get with a little help.

Robin suggests that you think about some options before going to some private lender:

Ask for a loan from a family member or even friend

Even though this can be very uncomfortable for many people, this is a much safer and less expensive option than going to a specific lender.

Once you learn a family member or friend that has enough capital, you may not actually charge an interest rate. It all depends upon your relationship with that individual and the trust you create.

Go to a microcredit middle

In South america there are financial and cost savings banks that are regulated plus allocate loans to people along with low resources or with no credit history.

Microcredits usually have high interest rates to get small amounts, but they are a wise decision for those who have just entered the particular financial system.

Robin the boy wonder can be an important help if you want a quick loan, since Robin the boy wonder evaluates your needs and your user profile to compare the best lenders which could accept your application.

Your credit card can become a good business or a bad business. It is a matter of the handling you give it. Are you sure you do well? How to use a credit card well?

I still remember the day my first credit card was delivered. I felt adult and millionaire. I bought clothes, jewelry and bags, invited friends to dinner, filled the tank with gasoline, gave gifts. When he opened the wallet, the card was the first thing he saw. It was great. It was as if my money was never going to run out. Sometimes, he indicated that the term should be six months, others three, others 12, others 48, others one. I said it without thinking, just for the pleasure of giving the order. The feeling lasted several days. In fact, until the first account arrived. That day I hated the card.

Then, of course, I understood that I had created the problem. I had accepted the conditions. I had spent too much. I had not understood how to use a credit card well. It was time to assume the consequences and pay the money. Basic calculation error.

Benefits of a credit card

Credit cards are one of the most interesting products of financial institutions in the world. The cards move millions of millions. Department stores move sales and are very profitable.

Of course, the cards have very attractive benefits: points to redeem on purchases, miles to travel, special discounts or returns. They allow you to buy high-value merchandise in installments, like when you don’t have cash and take advantage of special offers . Who doesn’t want that?

In addition, the cards are very useful, especially for unforeseen moments. Medical expenses, repairs and even gifts that we had not taken into account. Also, they are safe, rather, relatively safe. On a trip, for example, it is more comfortable to have a thin plastic than many bills. In addition, credit cards include some insurance that can be useful in emergencies.

And they are great for shopping online.

Yes, credit cards provide very good experiences. How can it be, then, that we turn them into nightmares?

The subject really interested me. I watched, asked and learned. Now, I apply these three rules to use a credit card well.

How to use a credit card well?

Rule # 1: The term

The credit card, as the name implies, is a credit. Some give you up to 48 months to pay what you buy. And as with every loan, there are interests. The card pays for you, accepts that you defer payment of the debt, and in return you apply the financial formula in which they take into account the value of capital, the interest rate and the term.

That is, in the longer term, you pay more and more and more interest. You will see it in each installment.

On the other hand, if you apply this rule, you will see a big difference: when you pay, the cashier asks you “how many fees” and you will answer “one, please” . Because deferring the value of purchases by one month (some cards give two months of grace) is equivalent to:

• Get the benefit of points, miles or returns;
• Do not pay interest on your purchases; 
• Have a secure payment method.

The best rule you can apply is: choose to pay as soon as possible, one month, to pay zero interest.

If you want to change your habit of paying 12, 18 installments to pay a fee (and you owe a lot on the card), do it in stages. Thus, the debt will not torment you.

Rule # 2: The interest rates of some banks

The high interest rates of credit cards in Colombia are high rates. Depending on what you buy (for example, a mattress), you can apply a rate of up to 28.7% annual cash. If your card is from a department store and you use it in other establishments, the interest applied may be the highest. If you use the credit card to withdraw cash, you are buying money at very high prices.

The golden rule is: use the cards only to purchase products or services and always prefer a short, very short term. Thus, you will lower your accounts.

Check the rates that your credit card applies and avoid the higher charges. And, please, always pay on time. Late fees are even more burdensome.

Rule # 3: The quota and consumption

When they approve a credit card, they approve you a debt quota. The idea, of course, is that you use it. But with financial wisdom.

Plan your purchases. The cards are great for buying appliances, furniture, travel, tuition to study. Use the quota and release it as soon as possible . Thus, you will earn many points or miles and pay few interest.

Rule # 4: The purchase date

The cards have a cutoff date. That is the day they verify what you bought during the period and proceed to invoice r. If you shop the next day, you will have earned a few more days to pay.

For example, the cut-off date is the 26th of each month, the bill comes to you the first days of each month and you must pay on 15. Purchases on the 27th or the 28th (before the end of the month, to receive and spend your salary), will be billed until the end of the following month. It is as if you pay 45 days.

Rule # 5: Security

Fraud abounds. You already know that there are many sites on the internet that are not safe and you must learn to recognize them. If you shop on those sites, you may have problems later. Someone can copy your card and continue shopping in the rest of the world.

Don’t lose sight of your card either. Making a transaction takes seconds.

In the case of detecting something suspicious, report immediately and suspend the card.

The management of your card is essential for your financial well-being. It is estimated that, in debts, including mortgage debt, you should not spend more than 40% of your income. Making a budget, helps to have control.

There are many who have more than one, and while this is not a crime or something negative, borrowing from it, spending more than they have or dividing everything into installments, it does become a problem.

Something that is worrisome in the country is the way people handle their credit cards

The world of credit cards can be very seductive and the key to mastering and using them to your advantage is to have the right information. So, what is the step by step to get the plastic that suits you best and handle it correctly? If you want to know, you’ve arrived at the right place!

First, do you understand what a credit card is?

It may sound mocking, but the truth is that many people associate their card with extra money; they usually see it as a salary increase when it has nothing to do with it. Having a plastic does not mean you have more money or freeway to spend more. You can simply acquire certain goods and services without the need to pay immediately for them; that is, they “lend” you the money.

Know the payments you must make

Not only will you pay for what you buy, but, if the expense is deferred to several installments, you will also have to pay interest and these will depend on the rate granted by the bank or the financial institution with which you are looking for the card.

Now, these are not the only costs associated with plastic. There are insurances that are charged monthly, as well as the handling fee, but in some cases, you can exonerate the latter. For example, they ask you to have a minimum amount of consumption every month, and if you comply, you can exonerate some of these payments. Another additional payment has to do with cash advances. In most cases, commissions are charged upon completion, depending on the cashier or means by which it is made.

Find a card with additional benefits

Did you know that when you buy a plastic, the financial institution offers you different benefits? So is. They can be miles, discounts in establishments, return of purchases, access to VIP soles in airports, among others. Ideally, choose those that you can really enjoy, depending on your profile. This makes having a credit card twice as convenient.

Do not marry any option
The worst decision is to choose the first. Do not marry a bank if you have not reviewed before what are the proposals of other entities, as you could miss something interesting or that suits you more. Rather than being guided by advertisements, look for real opinions from people and use web tools that give you the information you need, such as the Eugene Onegin.com.cl credit card comparator. By using this type of tools, you will be able to know what the interest rate offered by each bank is, what benefits you get, additional charges, among others.

Don’t be afraid to ask and ask again
When in doubt, do not make any decision. Remember that it is the duty of the financial advisor to answer all your questions, until there are no more doubts and you are calm with the decision you will make. Do not forget, information is the best weapon to succeed financially.

About the use of your card:

Should you withdraw cash?

Seeing your card as a source of cash is not convenient. It is normal for financial institutions to have a higher interest rate for these cases and to charge you additional fees, which means that the money you withdraw ends up costing you much more expensive than you think. If you need cash, a consumer credit is better for you.

Financial experts recommend that you do not use your plastic for this purpose, unless it is an emergency; Even so, it seeks to return it in the shortest possible time.

Being a total zero means paying your consumption in a single installment. What is the immediate consequence of this? That you will not pay interest and also, you will learn to differentiate when to use your card and when not, as well as when you should stop, because you will not be able to face the expense at the end of the month. Being a total zero is something very well valued by banks; This way you earn points for your credit history.

That does not mean you cannot use installment financing at any time. The fees are recommended when the expense is very large and can destabilize your budget. In that case, finance your purchases for a maximum of three or six months.