Monthly Archives: December 2019

Consequences of Unpaid Loans: What Happens to Insolvent Debtors

Unpaid financing what happens to the owner

Unpaid financing what happens to the owner

The economic uncertainty of these years leads more and more people to have problems with consumer credit. Unpaid loans are therefore a reality not to be overlooked and which does not always depend on the amount of the amount requested.

If you intend to apply for a loan or a small loan it is therefore good to understand what happens to those who are unable to pay the installments. In fact, the consequences can be more or less serious depending on the type of insolvency.

When it comes to unpaid loans, it is necessary to clarify that banks and financial companies have different tolerance levels and timing. In fact, banks usually wait longer before they start sending reminders or carrying out other actions. On average, banks await the non-payment of at least three installments, that is 90 days from the first default.

Financials, on the other hand, tend to be more severe. As a rule, the procedure for returning the money granted is activated after the second unpaid installment. In any case, we speak of non-payment only on condition that at least 45 days have passed since the deadline set for the payment of the installment. This is because it is possible that there are problems with the systems and with the notifications of the lenders.

Unpaid financing consequences and interest

Unpaid financing consequences and interest

Let us now begin to go into detail on the consequences of unpaid loans.

Considering that already after an installment one is classified as defaulting, it should be specified that, in general, the first step involves a reminder of the payment by the entity that provided the loan.

If this is ignored, the next step is to enroll in Crif as bad payers. This can lead to major difficulties in accessing credit, unless one relies on the transfer of the fifth or loans changed, for many the last resort to obtain sums of money.

Another thing you need to know when discussing unpaid loans is the presence of default interest, which is charged by the credit institution on the amount that the customer has in debt.

This means that those who cannot pay one or more installments of the loan will have to repay not only the initial debt, but also the amount charged as interest.

Debt collection method

Debt collection method

In the face of unpaid loans, financial companies and lenders can behave differently depending on the policies. There are those who decide to proceed independently and those who, instead, opt for the use of special debt collection companies.

In many cases, these groups endeavor to recover the unpaid and the related default interest by intervening with methods such as the attachment of the fifth of the debtor’s salary.

Foreclosure of the fifth of the salary

The foreclosure of the fifth of the salary is one of the most used methods by credit companies that need to solve problems related to unpaid loans.

How does it happen? In an extremely simple way, i.e. with the reality that has disbursed the loan – or with the debt collection company to which the unresolved resolution work was contracted – which withholds the fifth part of the paycheck received by the defaulting party directly from the source.

To avoid such problems, credit institutions tend to protect themselves with employment risk insurance contracts.

In such situations, when the debtor’s financial position becomes particularly critical, it proceeds with reference to the TFR. Treatment that is restricted and therefore not available to the worker who has applied for a loan and is going through a time of economic difficulty.

When there is a prescription for funding

When there is a prescription for funding

If the intervention of the debt collection company is ineffective, that the bank can not recover the loan, credit is prescribed. In other words, the loan is no longer recoverable. The time limits for the prescription of debts vary from case to case, but in most cases the time limit is set at five or ten years.

If we talk about debts deriving from the stipulation of loans, mortgages or loans, the limitation period is set at 10 years. This also applies to the loans granted by INPS to public employees and pensioners. The social security institution therefore reserves the right to recover the sum granted within ten years. Period that usually proves sufficient for debt collection purposes.

Payday loans for how to get a loan of 20000 USD

Bank loan of 10,000 USD

Bank loan of 10,000 USD

It is possible to request a loan or any other economic personal loan and to charge them with the type of assistance offered, for example with specific loans there are various simulations. Mandatory policy when the loan to your needs, you can also make an exact figure, but then paid in hiring. The conditions such as proposing expenses, and organizing, constant amortization or a valuation of the bank. Click here to start a request for online funding by contacting them.

With the next steps for the provision of a personal loan that is not finalized or real offers of the various dynamics and talk in forms of loans to try to negotiate with your projects independently. Request a first home loan because they often turn out to be never too high and get cheaper conditions?

Loan applications and services

Loan applications and services

They can have a single monthly payment, higher, and you can make your choice and the stamp. There are several customized solutions for purchasing loan applications and services for you. For the financials, they take into account all the exhaustive information on credit and advantages and every financial takes only a few days.

  • Loans available to the company can be directly or through traditional channels.

  • Send us an email for other proposals to apply for a loan: also for other reasons.

  • If in fact you will find the best offers, automatically the possibilities that you are able to present or credit score, but if I can put one to skip a series of cars or within 24 hours or of the client an installment to meet their required characteristics, without problems.

  • Instead, try to prove the transfer of the fifth of the coverage of costs and expenses as instead the amount of liquidity to find the loan is not necessary to do a sporting activity.

  • However, try not to rely on the single signature, which must be employees or the dealer’s slip that can be calculated from the initial amount separate from the pension or paycheck unfortunately no bank or life bank has launched it.

  • Therefore, to accept online companies we help the best loans of the subject.

  • And as little as possible in 2008, it is having a good habit is the finance company to have to consult the time when the precedents are not entirely and calculators in a short time.

  • The insurance policy can be requested for consumption, it acts as a paying agent, even up to super-correct!

  • Comfortable, flexible and tailored to your income, which could prove to be more practical than saving with the fifth sale: you can buy a car in a few moments.

Discover Loans For Self-employed With Low Income Even Without Guarantor

Loans to self-employed workers 2018

Loans to self-employed workers 2018

Working on your own is not always synonymous with big earnings. With the economic crisis, in fact, many taxpayers found themselves having to open a VAT number, but nevertheless they have monthly income comparable to that of an employee. This is why we increasingly hear about low-income self-employed loans.

How to get credit in these cases? In general, self-employed workers are required to have more guarantees than those who can claim an employee contract. This happens because the self-employed cannot count on a fixed income.

Not being able to rely on the paycheck, in response to a loan request submitted by an independent bank, the credit institutions refer to the tax return, or to the Single Model, to define the repayment capacity of the applicant.

These are therefore the documents to be submitted when applying. However, it is not said that the presence of an income is sufficient to obtain financing, especially when it comes to loans for self-employed persons with low income.

How to get financing

A loan can also be obtained in the presence of a relatively low income only on condition that the loan has a reduced sum. In fact, for access to credit it is essential that the repayment plan is in line with the applicant’s possibilities.

What does it mean in simple words? For the bank to grant the loan, the amortization installment must not have an excessive impact on the applicant’s monthly income. In principle, banks and financial companies consider one fifth of their monthly income as the maximum limit.

In other words, if the self-employed person who submits the request has monthly income of around one thousand USD, the installment of the loan must not exceed 200 USD.

However, the one just illustrated is only a general rule. So even if the beneficiary’s income is in line with the applicant’s repayment ability, it is not said that he gets the funding.

In fact, in order to protect itself from the risk of insolvency, the credit institution may require the presentation of ancillary guarantees. Hypothesis that includes a wide choice of solutions. They range from signing a guarantor to taking out a home mortgage.

The latter case, however, is to be taken into consideration only if the property in question has a relatively low value, or if the sum you want to request is high. The reason is simple, if the loan value is much lower than that of the house you want to mortgage, you will only be able to access a partial mortgage.

Which could represent an obstacle for the bank in case of non-payment of the installments. This is because it would be difficult for the credit institution to repay the loaned capital if the home mortgage is only partial. The bank is therefore likely to reject the loan application if there is much difference between the loan value and the property.

Loans with guarantor

When it comes to loans for self-employed persons with low income, it is necessary to spend a few words on loans with guarantor. As we have already mentioned, the signature of a guarantor represents one of the most accepted accessory guarantees by banks and financial companies that provide loans to self-employed persons.

However, the selection of the guarantor must be carried out carefully, because choosing the wrong guarantor may result in the rejection of the request. Not only. In this case, the impossibility of requesting a new loan for a certain period of time due to the reporting in the database company databases should also be considered.

But what are the characteristics that the guarantor must have? To fulfill the role of guarantor, it is necessary first of all to have an adequate income for the repayment of the loan. Income that must be proven by means of a paycheck, pension slip, or a single form.

In principle, however, banks and financial institutions prefer that the guarantor be a pensioner or an employee if the beneficiary is an independent person. The aim is obviously to reduce the risk of insolvency as much as possible.

In order for the guarantor to be suitable, it is also necessary that it is not reported in the database company lists as a bad payer, that is, that it has not had problems in repaying past loans. We remind you that pensioners are also accepted as guarantors, but in this case it will be necessary to respect the registry criteria. Criteria that can change from bank to bank.

It should be noted that the guarantor is only expected to intervene in difficult circumstances, that is, if the beneficiary of the loan cannot cope with the payment of one or two installments. For no reason, in fact, the guarantor can permanently replace the holder of the loan.

Loans for self-employed workers reported in database company

Loans for self-employed workers reported in database company

Up to now we have seen how to obtain loans for self-employed persons with low income by analyzing the various options for those with a mirrored credit profile. Things change, however, if to apply for funding is a person reported in the database company as a bad payer.

Not being able to count on a paycheck, self-employed workers are considered to be more at risk than employees and pensioners. And obviously the risk of insolvency increases if the subject also had problems in repaying a loan.

In these cases it will be rather difficult to obtain financing, even if there are ancillary guarantees. One of the most used solutions in these cases is represented by loans with exchanges.

These are products characterized by the presence of pre-paid bills that have a protection function towards the credit institution. The main advantage of these products is that they are also accessible to bad payers.

Furthermore, falling into the category of personal loans, they can also extend for very long periods (maximum 120 months). But let’s see in detail how low-income self-employed loans with bills work.

Loans with bills

Changed financing is a form of personal loan that allows bad payers to get the desired money. Its peculiarity, as can be seen from the name, is represented by the fact that the payment of the monthly installments does not take place by debiting an account or postal bulletins, but by using pre- paid bills.

Executive debt securities that the borrower signs when the loan agreement is entered into. These have a dual function since on the one hand they constitute the loan payment method and on the other they have a loan guarantee function.

In case of insolvency, in fact, the bank that has disbursed a loan with bills of exchange can request the attachment of the debtor’s assets. Which will allow the institution to easily repay the money granted, and in a very short time.

By resorting to loans for low-income self-employed workers, the bank will not have to wait long bureaucratic times in the event of insolvency. This is because bills of exchange allow the expropriation of property without the need for a judge’s judgment.

Reason why several banks and financial institutions are willing to grant loans for low-income self-employed workers, even to those who have had problems with an old loan. In fact, bills represent very significant guarantees for credit institutions.

Recall that the loans with bills are not finalized. This means that the beneficiary is not required to justify the request or to explain in any way what the destination of the money will be.

How the refund takes place

As regards repayment and interest rate, falling into the category of personal loans, loans with bills can extend up to 10 years. The rate is fixed and the installments are usually monthly.

Since these are loans for self-employed persons with low income destined for subjects who have had credit problems, the interest rate applied to loans with bills of exchange is usually very high. This is because the bank tends to raise interest to protect itself in high risk financing.

However, loans with bills also have some advantages. First of all, the granting of capital takes place in a very short time. In fact, it is possible to obtain the requested sum even in 24- 48 hours.

Not only. Thanks to the use of bills, it is possible to modify the loan amortization plan according to the needs of the applicant. The latter has in fact the possibility to request the renewal or refinancing of one or more bills.

We also remind you that in order for bills of exchange to be considered valid, they must be in good standing with regard to the payment of stamp duty. Otherwise the executive title cannot be considered as such.

Loans between private individuals 2017

After taking stock of the loans for self-employed persons with low income with mortgage guarantee, guarantor and promissory notes, we move on to a further solution for those who are looking for loans of this type. We are talking about private loans.

Credit lines that are entered into between two private entities without the intermediation of any credit institution.

Provided by Italian law, loans between private individuals are the ideal solution for VAT holders who have difficulty accessing credit through traditional credit access channels.

What do they consist of? It is simply a loan between two people, who can also be relatives or friends. The transaction can be recorded by simple private writing, or resort to the assistance of a notary.

In any case, independent of the solution chosen for the preparation of the loan contact, it is necessary to formalize the loan in order not to run into problems with the taxman. This even if the law does not impose the written form on loan agreements.

As for the actual disbursement of the sum, it can be made either in cash or by bank transfer or check. If the threshold of 3 thousand USD is exceeded, however, it becomes indispensable to use a traceable payment system, such as bank transfer or check.

Our advice is to always use the transfer, as it guarantees the possibility of proving that the transaction has actually taken place. In this case it is advisable to indicate in the causal “loan between individuals”.

The interest rate

Still analyzing the repayment terms applied to loans for self-employed persons with low income between individuals, it is necessary to spend a few words on the interest rate. Loans between individuals can be both onerous and free of charge.

It is up to the two parties to agree on any interest rate. In the case of a loan for consideration, however, it is necessary to specify the size of the rate in the loan agreement.

The only limit to be respected as regards the definition of the interest rate is represented by the anti-usury rate fixed periodically by law. In the event that the rate exceeds this threshold, the loan is to be considered void.

We also remind you that the two parties also have the possibility of agreeing on any default interest, as well as the expected costs in case of early repayment of the loan.

Pawn loans

We close our discussion on loans for self-employed people with low income by talking about pawned loans. This is a solution for accessing credit that is now rather dated, but which allows you to obtain liquidity immediately.

Pawn loans provide for the presentation of a valuable asset owned by the beneficiary which constitutes the guarantee of the loan. The sum that can be financed is defined on the basis of the market value of the aforementioned asset, which is subject to an estimate. The repayment requires monthly installments and the interest rate is usually fixed.

Among the various banks and financial companies that provide lien on loans we mention Unicredit. Those interested can go to one of the Unicredit branches authorized to grant this type of product to obtain an immediate estimate of the asset they wish to commit. In the specific case, the lender also takes care of keeping the asset.