/ Fri, 20 Mar 2020 04:05:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.3 Getting out of debt when you have money problems – Loan Consolidation /getting-out-of-debt-when-you-have-money-problems-loan-consolidation/ Fri, 20 Mar 2020 04:05:30 +0000 http://www.nicepaintingsbynise.com/getting-out-of-debt-when-you-have-money-problems-loan-consolidation/

 Nowadays, it has become so easy to take out a loan from a bank, which is not without drawbacks. Indeed, this freedom of access to the loan inevitably leads to over-indebtedness. When you have too much debt, it is essential to adopt the right approach and have good contacts to get out of it. What to do ? Who to contact? We provide you with as much information as possible to help you get through this financial crisis.

Understanding over-indebtedness

Understanding over-indebtedness

Over-indebted people may find it difficult to realize or accept that they are in a precarious situation. However, without awareness, it is impossible to envisage a solution to the problem. This is why it is important to understand what over-indebtedness is.

When are we in debt?

In recent years, over-indebtedness has affected many people of all social classes. It is said that a person is over-indebted when his non-professional debts accumulate and that he is no longer able to repay them. We can also say that a person is over-indebted if he has difficulty making payment on his credit cards, if he has delays in repaying his loans or that he uses a loan to finance his expenses. based.

What are the causes of over-indebtedness?

There are two types of over-indebtedness: active over-indebtedness which is the result of an accumulation of debts and passive over-indebtedness which results from a reduction in income following accidents in life. Everyone can be in this situation overnight, but the main causes are life accidents: loss of a spouse, loss of a job, divorce, illness and serious accidents.

If the situation is not quickly restored, the physical, psychological and financial consequences can be devastating: destruction of family life, stress, illness, eviction from housing.  As you can see, this is a problem that should not be taken lightly and one should not be afraid to take the necessary measures: for great evils the great remedies!

How to get out of debt?

Do you have money problems or do you know someone who is in this situation? To improve your financial health and get yourself out of debt, you will need to start by making lifestyle changes.


Most of the time, people are ashamed to talk about it with others. However, this ostrich policy is not the ideal solution. If you want help, you will need to start by accepting your situation and talking about it with family and friends. Even if they are not experts in the financial field, they will still be able to advise or help you financially.

Ask for help

Dealing with a financial problem can be very stressful and difficult to deal with on your own. If your loved ones are not really effective, there are many associations from which you can ask for help. Some will be able to advise you, while others will even help you file your files with the debt commission.

Stop borrowing!

Loans are designed to help you out when you are having financial problems. However, if you find yourself in a situation of over-indebtedness, it is because you have abused your credits. As soon as you become aware of your situation, stop borrowing because it will not help matters. This is obvious advice, but we want to remind you.

Take stock of the situation

Taking stock is essential to determine what situation you really find yourself in. So make a list of all the credits you have taken out and indicate each rate and repayment period. This will allow you to prioritize payments. On the other hand, list your ordinary and exceptional resources.

Changing lifestyle

To get out of debt, you have to start by changing your lifestyle. You will have to eliminate unnecessary expenses such as TV cables and maximize your resources. If certain essential expenses such as insurance seem too high, you can negotiate for a lower price or change supplier. From the day you decide to solve your financial problems, you will have to change your habits. Also pay attention to online shopping.

To negotiate

Whatever your problem, don’t forget to inform your creditors. You will also need to contact them to extend your payment terms or to obtain a lower rate. A favorable response is not guaranteed, but you will have to try to win a few USD or a few days. You can take the matter to the judge if your creditors refuse to grant you a delay in payment. However, it is not possible to obtain a deadline for certain types of debts. These are alimony, debts to the Public Treasury and amounts due for a criminal conviction.

Use insurance

With the already difficult end of the month, accidents in life do not help matters. To limit your financial problems, do not hesitate to take out insurance to cover job loss, illness, car accidents. This will save you from having to spend the money out of your pocket or having to take out a loan to pay it.

Who to contact in case of over-indebtedness?

Who to contact in case of over-indebtedness?

If the debts are not a large sum, you may be able to solve the problem on your own. On the other hand, with many credits and a limited or nonexistent resource, it is necessary to call on an expert to get out of it. If you are in debt for the first time, here are some good addresses.

The debt commission

The over-indebtedness commission is the first agency to contact in the event of over-indebtedness. Indeed, over-indebted people who are not able to establish a realistic recovery plan or who cannot obtain a reasonable time for payment from creditors can request assistance from the commission.

What is the debt commission?

The debt commission is a public body insured by a secretary of the Banque de France. It is responsible for finding amicable solutions between creditors and over-indebted people when the latter can no longer pay their debts.

How to enter the commission?

To go to the debt commission, you can’t go about it anyhow. There are conditions to be met and procedures to be followed.


To be able to file a file with the debt commission, you must:

  • Be an individual
  • Be French or foreign resident in France
  • French residing abroad and having contracted a credit with a creditor established in France
  • Not be creditworthy
  • To act in good faith
  • Unpaid debts are not of professional origin
The necessary documents

The file must be composed of:

  • A signed letter explaining your situation
  • An over-indebtedness declaration form to download and complete
  • A photocopy of your identity card
  • Various supporting documents according to your situation: family book, divorce decree, salary slip, notifications of right to unemployment benefits, tax notice, unpaid invoices, …

If you meet the conditions listed above, you can submit your application by post or by hand to the Banque de France branch closest to your home. You will then receive a notice of deposit of the file within 2 working days. You will then have to wait for a special commission to study your file. If it is admissible, the commission will contact all your creditors to establish a recovery plan and to negotiate the payment terms and rates. If the request is not validated, the requester can contest this decision within 15 days.

What are the consequences ?

The seizure of the over-indebtedness commission has for the first consequence the recording in the National Incident File of repayment of loans to individuals or FICP. All banks have an obligation to consult this file before granting a loan. Thus, if the applicant is registered with the FICP, he will have difficulty obtaining new credit. If your file is admissible, the commission will establish a personal recovery plan which includes measures to be applied. However, the attachment of the commission also makes it possible to suspend the attachments that have been made to the debtor’s assets. Sometimes, the individual may no longer pay their rent arrears or monthly payments and the overdraft fees no longer apply. It is also possible to obtain a rescheduling of the payment, a reduction or elimination of the interest rate. Finally, the applicant can benefit from a total or partial cancellation of his debts.

The Lite Lender

The solutions proposed by the debt commission are quite severe. However, in some cases, it only takes a few good tips to get by. It is therefore not necessary to contact the over-indebtedness committee directly. Other associations like Lite Lender can support you.

What is Lite Lender?

Lite Lender or Regional Chamber of Social Over-indebtedness is a network made up of 18 associations which are spread across France. Its main mission is to help individuals get out of a difficult financial situation. For this, volunteers who are experts in the financial field are put at your service permanently. Lite Lender should not be confused with the debt commission. Lite Lender confines itself to advising individuals on the problems they encounter and to guiding them until the filing of a file with the Debt Commission. The association also offers training and workshops to fight against financial problems: learn budget management, learn to reduce expenses and increase resources, understand banking and credit.

How to contact the association?

It should be noted that the filing of the application is completely free. Although it is easy to find an agency in your department, you will have to meet certain conditions to benefit from Lite Lender assistance.


To be able to benefit from Lite Lender assistance, you must:

  • Be a French or foreign individual living in France
  • Being over-indebted
  • To act in good faith
  • No longer take out new loans

Please note that Lite Lender can receive you and advise you even if you do not meet these conditions. These conditions are only compulsory for people wishing to benefit from the association’s assistance in setting up an over-indebtedness file with the Banque de France commission.

The necessary documents

The documents required by Lite Lender are the same as those requested by the Debt Commission. Those are :

  • A declaration of over-indebtedness: the form is to be downloaded and completed
  • A signed letter explaining your situation
  • A photocopy of the identity document
  • Various supporting documents depending on your situation

To contact Lite Lender, the easiest way is to make an appointment with the office closest to your home. Then, you will be taken care of by a volunteer who will assess your situation and the extent of your problems, and will propose suitable solutions. If the problem cannot be resolved by Lite Lender, you can file your file with the Over-indebtedness Commission and the association will guide you throughout the process. However, it should be noted that the association does not decide the fate of your file and cannot intervene in your favor with the commission. Its mission stops at the council and the deposit of the files.

How to repay debts?

How to repay debts?

If it is not possible to negotiate payment terms or interest rates, there are many financial means to repay your credits.


Microcredit is a very attractive solution for all those who have not been able to obtain a new loan from a bank because of a FICP filing or a lack of collateral. If you do not have enough resources to pay your debts and you have a professional project requiring financing, you can take out a microcredit. It will indirectly repay your debts since if the project works, you will earn money which you can then use to repay your loans.

Adie microcredit

Adie is the first thing that comes to mind when it comes to microcredit. It is a recognized association of public utility created in 1989 and which offers aid to finance and support the professional projects of people excluded from the banking system. Adie funding, which can be used to start or extend a professional project, is up to 10,000 USD, payable over 48 months and with an interest rate of around 7%.

Lite Lender personal microcredit

Lite Lender is also a good address if you need a personal microcredit. The association offers a loan of 300 to 5,000 USD with an interest rate of 4%. As for the repayment period, it can be spread over 6 to 48 months. Although you can allocate the microcredit to the payment of your rents or the payment of your health costs, it can also be used to pay the costs of a training or to set up a small professional project.

The repurchase of credit for the over-indebted

While buying credit should only be considered as a last resort, it may very well be a way out of debt.

What is credit repurchase?

The repurchase of credit or grouping of credit is a banking practice come from the Anglo-Saxon countries and which is used in France since the years 2000. It consists in substituting a single loan for several previous debts. A single rate, often lower, is then applied to all the credits collected and the chosen institution reimburses the loans from the various banks. In general, the buy-back can be applied to all types of loans: mortgage, consumer.

The Benefits of Credit Consolidation

Credit consolidation allows you to take advantage of many advantages including ease of exchange since the applicant will have only one contact. In addition, the buy-back allows you to benefit from a lower single rate and an extension of the payment period.

The steps to buy back credit

To get started, check with different banks to find the one that works best for you. Once it’s done, file a request with the establishment of your choice. For some agencies, you have to go there, while others allow you to file an application online or by phone. When your request is received, you will be taken care of by an adviser who will assess you and put together your file: supporting documents (account statements, salary slip, etc.). Once the file is completed, it is sent and studied by an advisor specializing in the study of credit buyback projects.

Your file will be evaluated on certain important points such as the debt ratio, the mortgage ratio or even the rest to live. Then a response is issued. If it is positive, the applicant receives a credit contract offer which he must sign and return after a period of reflection. After validation of the contract by the two parties, the funds are released and each creditor is reimbursed. The applicant will have only one credit to reimburse.

As you can see, getting out of an over-indebtedness situation is not child’s play. To avoid this ordeal, it is necessary to take precautions. So always make sure you take out insurance for your loans and save whenever you have the opportunity. Also, when you have financial problems, talk to your bank advisor.

Commercial car loan – where can you get it? /commercial-car-loan-where-can-you-get-it/ Thu, 20 Feb 2020 02:31:15 +0000 http://www.nicepaintingsbynise.com/commercial-car-loan-where-can-you-get-it/

It happens again and again that freelancers, self-employed or small businesses need a car loan commercially. However, applying for such a loan is often far more difficult than a personal installment loan, as many financial institutions do not offer a car loan commercially at all because they consider the risk of a loan default to be too great. Especially young companies or traders with fluctuating incomes often have great problems getting such a loan.

Where can you get a commercial car loan?

Where can you get a commercial car loan?

First of all, you should contact your house bank. after all, they know you and your financial situation best. If you are not over-indebted and have so far fully met your financial obligations, chances are good that your loan application will be approved. Nevertheless, you should definitely use the Internet to compare different providers.

Especially when it comes to a larger loan amount commercially with the car loan, you can save considerable sums under more favorable conditions. For example, you can get car loans from the banks of the major car manufacturers at particularly favorable terms. This is because the car companies are naturally interested in selling as many of their vehicles as possible. But there are also other financial institutions that give car loans to traders.

What should you pay attention to?

What should you pay attention to?

So that your loan application has the greatest possible chance of success, you should carefully prepare for it. For example, it is advisable to obtain information from the Credit Bureau beforehand. This means you kill 2 birds with one stone. On the one hand, you can see your creditworthiness assessment with your own eyes. Second, you can check the entries of the Credit Bureau. These are often incorrect. For example, the current address is often not included or liabilities are listed that have long been settled but have not yet been deleted for some reason.

If you apply for a car loan commercially, you must bring your income tax return from the past two years as proof of income. The loan is easier if you can provide collateral. With a commercial car loan, the vehicle to be financed is an option. In practice, this means that the vehicle letter will be deposited with the bank and will only be handed over to you when the loan has been repaid.

What is better, financing or leasing?

What is better, financing or leasing?

It all depends on the circumstances. For many freelancers or the self-employed, a commercial car loan is the better solution, since the borrower has free disposal of the financed vehicle. It can be used for both commercial and private purposes without limiting the mileage and becomes commercial property after the car loan has been repaid. In contrast, when leasing, the vehicle remains in the possession of the lessor. The installments can be deducted from the operating costs for tax purposes. However, there is a strict limitation on annual mileage, which is expensive to exceed.

Fast loan for cheap financing /fast-loan-for-cheap-financing/ Mon, 17 Feb 2020 02:10:49 +0000 http://www.nicepaintingsbynise.com/fast-loan-for-cheap-financing/



The trend towards online credit is evident in the credit sector and can also be seen as the future when it comes to borrowing. Hand in hand, the number of loans taken out online is increasing. Credit calculators are available on the Internet, a welcome tool for finding the best loan for yourself.

As simple as the online comparison calculator is, you should still pay attention to a few things. In the following you will learn what is important.

With lucrative offers to attract new customers, both branch banks and an ever increasing number of direct banks are vying. Nevertheless, the large number of credit providers, eg B. in the terms of the contract, terms, processing fees or interest payments, sometimes too big differences.

For this reason, an online comparison of the various offers always pays off for the borrower.

Before you start looking for a loan, some preparatory measures are necessary.

There are a few things to look out for before you compare your loan

There are a few things to look out for before you compare your loan

No matter what type of loan it is, before taking out a loan, a solid and factual comparison of the receipts with the monthly expected loan costs in the form of a household account is essential. This is the only way to protect yourself from nasty surprises and find out how high the loan rates can be.

Because after all, too

  • rent payments
  • current loans
  • Insurance
  • food
  • Car and
  • various other household costs (electricity, gas, water)

Quite apart from the fact that such statements are usually required by reputable lenders to check customer creditworthiness and to minimize their own risk anyway.

An important point in the overall calculation is the availability of short-term cash reserves in order to be able to pay for unpredictable repairs (car, washing machine, etc.) and essential purchases.

The way to the dream loan

The way to the dream loan

Once the money available for the repayment of the loan has been calculated, you can use this financial basis to search for a suitable loan with the help of a loan calculator.

In addition to the obligatory budget bill, borrowing requires a number of other preparatory measures. This saves both the borrower and the credit intermediary time and nerves.

It does not matter whether the loan is requested online or at the branch.

Depending on the terms and conditions of the credit institution and the type of loan, the following documents may be requested and should therefore be readily available:

  • Photo ID
  • usually at least the last three salary slips or an annual wage slip
  • Collateralization in the form of life insurance, savings books, building society contracts, land register excerpt etc.
  • Documents or applications for possible funding

Although some direct banks grant loans even with poor creditworthiness, you are sometimes sometimes well advised if you can still look forward to a guarantor or provide other collateral.

The advantages of an online loan comparison

The advantages of an online loan comparison

A great advantage of using an online loan calculator is that it is available at all times. The customer is therefore not tied to opening times and also saves the way from one bank to another.

In comparison to personal and lengthy consultations on site, the results of an online loan comparison are also available in a matter of seconds and can be compared in peace.

To get a serious overview of eligible loans, you should compare at least five different offers with a loan calculator.

An offer that appears to be cheap at first glance does not always have to be the best. Since there can be large differences in the processing times for loan applications from the various providers and many loans are usually required at short notice, the time of application also plays an important role.

Once the decision for an offer has been made and the loan application has been made, there is no need to wait long for a response from the financier.


Students – apply for an instant loan /students-apply-for-an-instant-loan/ Wed, 12 Feb 2020 02:19:40 +0000 http://www.nicepaintingsbynise.com/students-apply-for-an-instant-loan/

The need for financial means is often particularly high during your studies: not only the tuition fees have to be paid, but also the rent, electricity, additional costs, learning materials, food and drink have to be taken care of. But where to take it from and not steal it? Parents cannot always help financially, and not every student is entitled to a student loan. There are also no part-time jobs for students like sand at sea – especially if you are looking for a part-time job from which your studies do not suffer.

The solution could be a student loan that helps overcome the financial constraints. But do students also get instant credit?

Student credit without Credit Bureau

Student credit without Credit Bureau

Loans without Credit Bureau, the so-called Swiss loans, can be found on many sites on the Internet, especially at German loan agencies that work with special Swiss banks. Caution: a Swiss loan is not the same as a loan that you take out in Switzerland, because Swiss loans were created specifically for the German market. Credit Bureau information is not obtained from Swiss loans on the Internet, which makes them so popular with many people, and basically this would also apply to students if they were not excluded from such loans in principle.

With a Swiss loan, the banks require the applicant to have a fixed and regular income that stems from an employment relationship or a civil service relationship, unfortunately the Bafög, like the unemployment benefit, cannot be classified as income.

Education loan for students

Education loan for students

While students are not lucky with Swiss loans, there are so-called educational loans that are specifically designed for school and university students. Banks that grant an educational loan are, for example, the Lite Lender and also some savings banks, although of course creditworthiness is always a prerequisite, so Credit Bureau information is also obtained. Education loans are paid out in monthly installments and later, after graduation, as soon as the former student has a corresponding income, is paid back to the bank with interest.

There is also the so-called Best Bank education loan: here the requirements are quite strict, and the loan amount is limited to a maximum of 7200 USD, which is paid out to the applicant in at least three and at most 24 monthly installments.

Saving interest by comparing credit /saving-interest-by-comparing-credit/ Thu, 06 Feb 2020 02:21:36 +0000 http://www.nicepaintingsbynise.com/saving-interest-by-comparing-credit/

As is well known, borrowers not only have to repay the money borrowed from the bank themselves when they take out a loan, but also the ancillary loan costs: the main factors here are, of course, interest, but also commissions that arise when using a credit brokerage or account management fees, if it is a real estate loan. Borrowers would do well to compare the loan beforehand to save interest.

Of course, it is more convenient to take out the loan from the house bank or to take advantage of the dealer financing offered – this is perfectly fine even if the borrower does not really need to save as much as possible.

However, this does not apply to most borrowers – in addition, especially with large amounts of credit, such as those arising from mortgage loans or real estate loans, interest rates that are only slightly higher than those of the competition can enormously affect the debtor’s overall financial burden impact.

Credit comparison on the Internet 

Credit comparison on the Internet 

A credit comparison on the Internet is of course particularly convenient – but please make sure that the data is up-to-date and that it is an independent and reputable provider – unfortunately it happens too often that providers of credit comparisons work for a certain client and receive a commission for every successful completion.

Of course, it is also possible to make a loan comparison with the help of financial magazines such as “Astro Financet” in order to save interest – however, it must be noted that these magazines are usually only published once a month and the conditions of the banks can change quite quickly.

Who offer best financing

Who offer best financing

As a rule, the following procedure is recommended in order to save as much interest and other ancillary loan costs as possible: go to your house bank and have a non-binding offer for financing according to your ideas, i.e. in terms of term, repayment rate, loan amount, etc. Compare the conditions offered by your savings bank or bank with the conditions of the competition by means of an online loan comparison, and then decide on the variant that is cheapest for you.

Take out a quick loan /take-out-a-quick-loan/ Tue, 14 Jan 2020 02:26:59 +0000 http://www.nicepaintingsbynise.com/take-out-a-quick-loan/

You can’t always wait long for money – there are simply moments in life when you need a certain amount quickly, preferably overnight. It is bad for those who do not have sufficient financial reserves to manage the amount X on their own: external financing is necessary.

How quickly can I get money?

How quickly can I get money?

Even if certain advertising suggests otherwise: from one day to the next, you won’t get any money anywhere, especially not on the Internet. This also applies, or in particular, to loans that are referred to as instant loans, 24-hour loans or urgent loans. In principle, these terms refer to the loan approval, which is usually provisionally granted after completing the online loan application.

What does “provisional” mean?

What does "provisional" mean?

For the time being, this means that it is not a firm loan commitment, because the bank still has to check the information you provided online. For this review, you will be asked to disclose your income or your financial circumstances – this works by post for online loans. As a rule, you must send in (including the completed and signed loan application) bank statements that show your regular and other expenses, pay slips to prove your income and finally a copy of your employment contract so that you can see to what extent you have been employed on a trial or temporary basis,

Is a conventional loan faster?

Is a conventional loan faster?

Sometimes yes! The advantage is that you can present the necessary documents directly on site without having to dispute the annoying post, there are several working days through personal contact with the bank advisor. The house bank has another advantage: Your credit rating no longer has to be checked because you are known to the bank. To get an overview of your income and expenses, the bank advisor can simply look into your account on site and all questions will be answered.

Either way, applicants should expect a week or several working days before it is theoretically possible that money can flow into their account. On the other hand, the so-called “tolerated overdraft” is granted more quickly – that is, the short-term violation of the disposition framework that has already been granted.

 Self-employed credit Рoffered by the bank /self-employed-credit-offered-by-the-bank/ Sat, 04 Jan 2020 02:09:16 +0000 http://www.nicepaintingsbynise.com/self-employed-credit-offered-by-the-bank/



It is very difficult for the self-employed, freelancers and commercial operators to get a normal loan. Banks always prefer to give a loan to people who have a permanent job and can therefore prove a regular work income. Loans have been made more difficult due to the introduction of guidelines on customer ratings, which German banks must adhere to when granting loans.

The default risk for the loan repayment is determined here based on income and personal circumstances. Despite existing income, the banks describe the default risk as much higher, because according to the banks it is not secured. If banks grant a normal loan, this can only be obtained with a very high interest rate or only if certain collateral can be offered to the bank.

Remedial measures can be taken with special loans for the self-employed.

Remedial measures can be taken with special loans for the self-employed.


Advantages of a loan for the self-employed Special offers are aimed at the self-employed and freelancers, the loans for the self-employed. However, this product is only offered by a few banks and service providers. Here, borrowers can benefit from the advantages of getting a loan that has a comparatively low interest rate and that does not require the banks to be given high collateral.

Offers from the individual providers can be found in a credit comparison. Here, customers should pay particular attention to the providers who advertise self-employed with labeled loans.

These banks or providers partially circumvent the rating requirements because they cooperate with foreign banks where other requirements apply. But German banks that specialize in lending to the self-employed can also grant good loans at low interest rates. A loan for the self-employed is always subject to lower interest rates, since a loan offer has only been developed for the self-employed and freelancers. Services provided by the loans for the self-employed When choosing the right provider for a loan for the self-employed, a lot should be borne in mind so that it is not too expensive.

Other types of credit

The interest should be given in a framework that can also be found with the other types of credit. Depending on the amount of the loan, the desired term and also on the individual circumstances, the loan costs are made very different at the providers.

If some providers with comparatively low interest rates can emerge from a comparison of providers, it is only possible with another bank to get a loan with twice as high interest rates. Depending on the creditworthiness of the borrowers, the interest rates at many providers will be adjusted.

In addition, there are always additional costs for loans for the self-employed. Extra costs are payable, especially for offers that foreign banks pass on to borrowers. In addition to the processing fees or the closing fees, credit intermediaries will still incur commissions that make the loan for the self-employed more expensive than other loans.

A comparison of providers, in which all services and costs can be viewed down to the smallest detail, should therefore be used by all self-employed and freelancers. A loan can also be found for these groups of people, which need not be overpriced.

Car loan with down payment and final installment /car-loan-with-down-payment-and-final-installment/ Tue, 26 Nov 2019 02:19:02 +0000 http://www.nicepaintingsbynise.com/car-loan-with-down-payment-and-final-installment/

When it comes to purchasing a new car, many car buyers are concerned with financing the vehicle. Either the necessary financial means for the vehicle purchase are not available or one simply does not want to attack existing savings for the purchase of a vehicle. The car loan with down payment and final installment is a special type of car financing that keeps the current burden of loans very low.

How does this funding work?

How does this funding work?

The car loan with down payment and final installment provides that car financing is basically split into three parts. On the one hand, you make a down payment with this form of financing, which can reduce the subsequent loan amount individually. The remaining loan amount is then divided into monthly installments and a final installment.

This loan is particularly recommended if, on the one hand, sufficient funds are available for the down payment and, on the other hand, the current installments should be low.

Due to the down payment and the payment of a final installment, the loan amount, and thus the installments, are significantly reduced compared to full financing. The monthly charges for the installments are relatively low for car loans with down payments and final installments.

How is the final installment financing going?

How is the final installment financing going?

If the car loan has been concluded with a down payment and a final installment regarding the installment payments, the car buyer has various options for financing the final installment. One variant is to pay the final installment in one sum, for example if savings contracts expire or other special payments of a larger size are due. The vehicle can also be sold in order to pay the final installment with the sales proceeds.

However, one should plan for possible losses in value due to signs of use or possible accidents as early as in the course of the financing. A used vehicle does not always achieve the desired sales price. Ultimately, the final installment can also be paid through follow-up financing. In this case, you should pay attention to favorable credit terms.

Who is this type of financing suitable for?

Who is this type of financing suitable for?

Whenever sufficient funds are available for a down payment of a vehicle, but these are not sufficient for the purchase of a used car or simply a higher-value vehicle is to be purchased, the car loan with down payment and final installment is well suited. The down payment and final installment also keep the cost of the financing loan low, because the lower the loan requirement, the cheaper the price. The final installment remains flexible and if the financial means for the final installment are not sufficient in one sum, there are still alternatives of the sale or follow-up financing.

However, with this form of financing it is important to have a good comparison of the conditions of different providers. The dealership or the cooperating financing bank of the dealership should not be considered as the only contractual partner. An optimal loan can only be achieved with a good comparison.