Loan with loss note.

 

Especially in the crisis phase, insolvency continues to spread both in the private and business sectors. Many people are over-indebted, cannot pay bills and live almost at the subsistence level. Anyone who is insolvent must leave a loss slip with their creditors.

Loss note – what is it anyway?

Loss note - what is it anyway?

A loss note will be issued if you are over-indebted. You are insolvent and can no longer pay even the smallest bills. Creditors receive loss certificates, which assure you that if the debtor gets money again, be it through wages, sales or otherwise, the creditor will have to pay this money, provided that the debtor does not fall below the subsistence level. The loss certificates exist for up to 20 years. If after this time no payment settlement has taken place, the loss slip expires and the debtor no longer has to pay the amount.

Can I apply for a loan despite the loss note?

Can I apply for a loan despite the loss note?

All kinds of credit providers are bustling on the German market and especially on the Internet. Many of them also offer a loan with a loss note. Reputable providers usually do not offer a loan with a loss note. Those who do allow this should be thoroughly checked for seriousness before graduation.

Otherwise, you can quickly fall into an even deeper grave of debt than you can imagine. Even if the provider is reputable, a loan with a loss note is not recommended. Someone who already lives on a subsistence level and has no money, but wants to afford something quickly, be it to improve the psyche of the individual or simply to do something good for himself quickly, should never take out a loan.

Anyone who has not previously managed to meet payment targets will not be able to do this even with a loan with a loss note. The new debt to be expected in the future will not only harm the creditor but also the debtor, because new loss certificates can be issued, which in turn entail a term of 20 years. Nobody should live on the minimum subsistence level, especially not more than 20 years. You should therefore look for other options beforehand and not take out a loan with a loss note.

Credit for kitchen.

A loan for the kitchen can be obtained from numerous banks and other credit institutions. But the suppliers of kitchens also grant a loan if the financial situation is currently insufficient. As with other loans, there are a few things to consider. Kitchen finance is initially considered a consumer loan because, like a car loan or other acquisition through debt, as is the case with household and electronic devices, it is a financial purchase. At least this is the case if you want to take out a kitchen loan directly from the dealer.

Consumer credit for the kitchen has advantages and disadvantages

Consumer credit for the kitchen has advantages and disadvantages

Those who want to take out a kitchen loan directly from the retailer have the advantage that the hurdles to granting them are significantly lower than at the bank. However, since less security is provided on the part of the consumer, the conditions that such a credit agreement brings with it are clearly more disadvantageous. This is shown by the effective interest charges per year, which usually start at eight to nine percent. Another disadvantage of a consumer loan is that there is hardly any flexibility in repayment, for example due to earlier repayments than agreed.

The bank benefits from favorable conditions

The bank benefits from favorable conditions

Banks can expect far more favorable conditions for a kitchen loan. In this context, this usually grants an installment loan, which is subject to effective interest charges that start at four percent. There are also some advantages over consumer credit in terms of term, loan amount and repayment. This primarily concerns flexibility and the fact that the loan is not earmarked. The hurdles that the bank places on the potential borrower are disadvantageous. If you do not have a regular or minimal income, you usually need a guarantor or other collateral in the form of life insurance or valuable private property.

Alternatively, ask friends and acquaintances

Alternatively, ask friends and acquaintances

With a little luck, you can also find a loan for the kitchen in the vicinity. Family members are often happy to help out when it comes to furnishing another member’s home. This also applies to friends and acquaintances who are financially better off. Of course, the relationship of trust must be right. It is usually advantageous that there is hardly any interest from friends and that there is more flexibility when it comes to repayment. If you cannot find someone who is willing to provide loan capital for a new kitchen, you can still ask for a guarantor or second applicant for the loan. So you can usually take advantage of the installment loan and not the consumer loan.