Paying Debts: Sustainable Alternatives

Paying Debts: Sustainable Alternatives

When it is no longer possible to repay a loan or a loan, the most recurrent fear concerns the possibility of being called to answer before a judge.

However, if the relationship between creditor and debtor is ethical, transparent and honest, it is possible to identify together the most congenial solution for both, perhaps with a repayment plan that allows the debtor to pay the debt without upsetting his financial balance. In this situation there are two fundamental factors to be taken into account:

  • Sustainability of the installment;
  • time.

Sustainability of the installment

Sustainability of the installment

If the creditor performs an effective advisory function towards the debtor, verifying what his real financial resources are, he can:

  • plan and obtain the return of the sum loaned;
  • allow the debtor to pay the due balance on a regular basis without weighing down on the family budget.

Example: Carlo has a dependent family consisting of a wife and two children, a monthly income of 1,500 euros and a debt that fails to repay because his expenses amount to 1,200 euros a month, including rent (500 euros). Since the residual income is low, ie € 300, the average payment that Carlo should pay to repay his debt should not exceed one third of that amount (€ 100).TimeAs is logical, the debtor will pay off his debt as quickly as possible, the higher the amount of the monthly payment he will pay. However, it is important that the creditor is able to estimate the real sustainability of the debtor to pay a certain monthly amount. If you try to contract installments of too high a sum, it will only deteriorate an already precarious situation. For this reason it is important to evaluate the financial situation of the debtor in the long term and carefully, also foreseeing possible variations over time. Example: Carlo may have greater financial resources in some months of the year in which, for example, he does not incur school-related expenses for children.Only by paying your debts you can access any new credit lines and plan investments to improve the quality of life of everyone.

Consolidate loan despite Dispo


Contrary to the expectation of many bank customers, it is not difficult to take out a loan despite a posting. Whether the borrower uses the availability of his current account is irrelevant for the acceptance of a installment loan, since there is no fixed repayment obligation. For this reason, the credit banks do not include a fully or partially utilized discretionary credit in their budget accounts. For the customer, however, the question arises whether he should not increase the loan amount by the sum of the negative balance and balance his checking account.

A major difference is between easy borrowing when using the granted credit line and difficult loan application in the case of an overdraft in the narrower sense. As such, only the exceeding of the credit line granted by the leading bank account applies.

Use the loan for account settlement at the same time

Use the loan for account settlement at the same time

Due to the high interest rate they pay to exhaust the discretionary framework, it makes good sense for credit applicants to use a loan to clear their current account, despite the availability of the current account. From this basic rule a few exceptions are conceivable, so calculate individual online banks for the short-term partial use of Dispos up to a maximum of 500.00 euros no interest.

The loan applicant thus decides on a loan amount that is sufficient to finance the planned purchase and at the same time to balance the current account. The account balance is possible at any time with a disposition credit, the interest calculation takes place exactly on the basis of the days on which the account holder has availed of the disposition frame.

As soon as the account holder applies for a loan despite being overdrafted and uses part of the money to clear the current account, it is subject to fixed terms of repayment. So that the monthly loan installments are not too high, he chooses a sufficiently long running time, so that he can settle unscheduled expenditure from his current information. He avoids in any case, just for the settlement of a due loan installment again to use the repayment credit. In the future, this will ideally only be used for the occasional bridging of a few days until the next salary payment.

In the case of a credit despite a disposition, which the bank customer also uses for the account settlement, a partially flexible repayment is desirable. Appropriate bids are increasingly being offered to credit banks by granting their borrowers the right to suspend payments once a year or over a two-calendar year period. It makes sense to look for a corresponding clause in the loan agreement for a credit comparison, except for a favorable effective annual interest rate. The second component of a flexible repayment option is the bank’s waiver of the calculation of prepayment interest on the provision of additional repayments.

Borrowing on a covered checking account

Borrowing on a covered checking account

Much more difficult than the application for money is the application for a loan despite the overdraft. In this case, the financial institutions assess the excess of the discretionary limit as an indication of improper account management and classify this behavior as a negative credit rating, which usually leads to a rejection of the proposed loan application.

Credit banks are aware of the overdraft of the credit line through the bank statement and, in rare cases, through bank information. Most of these are only used for the long-term granting of a credit line, such as the issuing of a credit card or the request for a discretionary credit independent of the current account. In the case of installment loan applications, it is usually not necessary to apply for bank information, as it is only of limited use for private individuals and complicated due to legal formalities.

If bank customers want to take out a loan despite a posting-overdraft, they make sure in their credit comparison which banks refrain from submitting bank statements. This applies to a few credit institutions and can be identified by the list of available credit documents. These financial institutions are not aware of the overdraft and therefore can not classify them as a negative credit rating.

An organized personal loan despite the exploitation of dispositions

The fact that banks without difficulty grant a loan despite a dispensation, applies to applicants with good private credit and regular income from work. However, some consumers are using their discretionary credit just because banks are reluctant to give them an installment loan. This applies, inter alia, to borrowers with fluctuating or low incomes, as the availability of current account balances on most banks is sufficient for regular payments. In addition, many financial institutions do not reduce their discretionary credit even if their monthly payments are not reduced, unless the account holder oversees the existing discretionary framework.

Without any difficulty, the agreed payment in installments as earmarked credit despite disposition. In this case, the submission of a bank card and the ID card is usually sufficient for installment purchase, while virtually no dealer asks for a current account statement. Even the submission of the pay slip is only usual with high purchase amounts. Before concluding the installment purchase agreement, the buyer checks whether he can reliably pay the monthly interest without additional use of the disposition credit.

For bank customers who have a discretionary credit but are unable to borrow from traditional banks despite being charged, it is advisable to apply for an organized private loan. Members registered as lenders on the relevant platforms accept a significantly lower credit rating than commercial banks to subscribe to an inquiry. Many of them rely on lending to personally support the intended use. The most accurate and open description of the loan event, as experience shows, leads to an accelerated subscription of the requested sum.

Student consolidated loan – who can get it and how much is it?

Kredyt studencki – kto może go dostać i ile wynosi?

Deciding for a student loan allows students to obtain additional financial resources that can be spent on studying and staying in the course of studying.

At the same time, subsidizing interest by the state means that student loans can be obtained on very advantageous financial terms in relation to standard consolidated loans available in banks. In addition, the loan can be used for any purpose, which means that many students decide to take out a loan for investment purposes or to set aside funds for the future.

Interest on student consolidated loans is only half of the promissory note rediscount rate, which is set by the NBP. In this way, interest on student loans is very beneficial. Both students of public and non-public universities can apply for student loan, regardless of the mode of study.

The only limitation in obtaining student loan is income per person in the student’s family. An additional limitation is age. Student loans can be obtained by people who are under 25 years of age. Loans are also directed to people continuing their education at doctoral studies.

Family income and credit for the student

Student loans are directed to students from less affluent families. In individual years, a maximum amount per one person is determined in the student’s family, which entitles to obtain a student loan. For the current academic year, such maximum monthly income per capita in the student’s family has been set at PLN 2,500 net.

How can you apply for a student loan?

Obtaining student loan requires meeting certain formalities. First of all, it is necessary to submit an appropriate application to the bank that grants student loans. In the application, it is necessary to indicate the student’s family income and documents that confirm such income. Such documents allow to provide information necessary to assess creditworthiness. The student must also obtain a certificate from a university that confirms the student’s status.

Security for student consolidated loan

Student consolidated loans require collateral, where banks require a loan guarantee. Depending on the creditworthiness of the guarantor, it may be necessary to present one or more guarantors. If the parents do not have adequate creditworthiness, the student may apply for a surety from Bank or the Agency for Restructuring and Modernization of Agriculture in the case of students from rural areas.

The guarantee from BGK applies to students who have been deprived of parental care and have no income of one hundred percent of the loan amount. In the case of students whose income per capita in the family exceeds PLN 1,500, they can also count on a guarantee of one hundred percent of the consolidated loan amount.

On the other hand, ninety percent of the student loan can be counted on by students whose families do not exceed income per person in the amount of PLN 2,000.