Anyone who needs additional liquidity in the short term to bridge a financial bottleneck, for example, caused by an urgently needed repair to their own vehicle, usually falls back on overdraft facilities. However, overdraft facilities in particular are considered very expensive and also a potential debt trap. But more and more people are turning to so-called mini-credit offers – for good reason.
For some time now, financing has no longer been based exclusively on the classic standard loans granted by banks, such as instalment loans or overdraft facilities. In addition, the range of offers has increased and it is no longer only the classic credit institutions that grant loans. One example is the loans from private individuals, which are made available by private individuals via appropriate intermediary platforms. Another type of credit that has become increasingly popular in recent years is the so-called mini-loans.
Three classic standard loans from banks
If you take a look around the banking landscape and inquire about loans, you will quickly notice that most banks offer three standard types of loans:
- Instalment loan
Of course, there are often some other types of loans offered, but in more than 80 per cent of the cases, the loan taken out is one of the three previously mentioned loans. Although the banks can usually cover over 80 per cent of their customers’ financing needs with these three types of loans, the respective solution is not always the optimal one. This is one of the reasons why some specialist providers now offer so-called payday loans, which certainly fill a gap in the market that has existed until now.
What is a payday loan
The essential characteristic of the payday loan or short-term loan can already be deduced from the name. This loan is made available for a short period of time for very small loan amounts, which usually start at 100 GBP. In addition, there is a limit, because with most payday loans providers the loan amount may not exceed 1,500 GBP.
Another feature of payday loans is that this form of lending is not offered by ordinary banks. Another typical feature of payday loans is that the maturities are very short. They usually range from one to three months.
In the overview, the following are the main characteristics that make payday loans stand out and distinguish them from other types of loans:
- Small loan amounts between mostly 100 and 1,500 GBP
- Specialist provider as a lender
- Short maturities of one to three months (in exceptional cases even longer)
Who offers payday loans?
As mentioned before, it is not the usual banks that offer payday loans. Instead, there are special providers, whose business is mostly even exclusively cash advances, as payday loans are also called.
Currently, the following active providers specialising in payday loans are on the market:
Before you decide on a payday loan provider, it is definitely a good idea to compare the offers. Therefore you should, of course, pay attention to the loan interest, but also to available additional services such as
- Multiple rate option
- Express bank transfers
- Costs of late repayment
- New customer campaigns
With some lenders, additional costs must be incurred for certain services. This has become a typical feature of payday loans, especially if you are not satisfied with the standard offers. Nevertheless, there are considerable differences in the costs of the so-called additional options between the lenders.
The loan interest rate: What do payday loans cost?
The main cost factor for a payday loan does not necessarily have to be the loan interest rate, although it is, of course, payable by every borrower. The average interest rates for payday loans are about the same as for overdraft facilities, so that you as a customer usually pay between 7.95% and 145% interest. Because the terms are usually between one and three months, the interest sum is relatively low despite the high interest rates. If, for example, you take out a mini loan of 1,000 GBP with a term of two months, you only pay a total of around 18 GBP in interest at an interest rate of 11%. From this point of view, the payday loan would be favourable, if the additional options with costs were not added.
Chargeable additional options are not uncommon with payday loans
As already mentioned, there are additional options for many payday loans, apart from the loan interest rates, which are subject to costs. Of course, the borrower does not have to make use of these, but in some cases, the additional offers are an interesting and attractive solution. As a rule, these are more flexible and improved services, if you compare the options with the standard offer of the respective lender.
Depending on which lender is involved, the following fee-based additional options, in particular, can be found:
- Instant payout
- Multi-rate option
- Higher loan amounts
- Faster execution time
In order to make these additional options more attractive for the customer, some lenders may have deliberately designed their standard conditions not to be very customer-friendly.
For example, some lenders offer a processing time that is usually between 3 and 10 working days. If the customer wants to receive his money much faster, which would not be surprising given this standard processing time, he can choose one of the additional options mentioned. However, it is not uncommon for between 50 and 100 GBP in additional costs to be put on the table.
The situation is quite similar with other additional offers with costs, such as the multi-rate option. The borrower has the option of repaying the loan within four or five months, for example. If you need a slightly larger amount, you can also find a chargeable additional option with some providers.
Benefit from the bonus programs of health insurance companies and stay healthy with regular check-ups.
When the practice fee disappeared again in 2012, it became obvious: the health insurance companies are swimming in money. As the contribution to be paid is based on the patient’s own gross income, it is not possible to determine the amount to be paid. But you don’t have to get sick first to benefit from the services of the health insurance companies. In this blog article we will show you which preventive medical checkups and bonus programs can be used.
Currently, 96% of the health budget is spent on treatments – that means that only 4% of the money is spent on preventive measures. Generally known are the preventive medical checkups in childhood. Anna’s parents also received the examination booklet after her birth, which currently contains nine appointments. As a teenager, Anna then went for her tenth early detection examination, the J1 for teenagers between 12 and 14 years of age.
With the coming of age came responsibilities that Anna had never dealt with before. She was already proud when she made it to the dentist once a year. Now, in her early 30s, she rarely went to the doctor, but over the years she has paid a tidy sum into the fund. The system is supported by the solidarity of all insured persons. Anna likes that. However, she is annoyed that in times of negative interest rates the insurers sometimes even make a mess of their cash reserves. Preventive medical checkups are one way of getting the most out of your health insurance membership.
What are the most important preventive examinations for adults?
In fact, only half of women over 20 go for regular cancer screening. Among eligible men aged 45 and over, only one in five and the general health check-up from the age of 35 is used by only 17 percent of all women and men. The checkup every two years offers the opportunity to detect diseases at an early stage, which can then be effectively treated. Although the additional services offered by the statutory health insurance companies differ, there are some examinations that are all offered equally.
Additional services offered by the statutory health insurance companies
Early detection of cancer:
- Genital examination (women over 20, annually)
- Breast cancer examination (women over 30, annually)
- Mammography screening (women from 50-70, every two years)
- Prostate examination & genital examination (men over 45, annually)
- Skin cancer screening (women & men over 35, every two years)
- Colon and rectal examination (women & men over 50, annually)
Health check-up (women & men over 35)
Preventive dental check-ups (women & men from 6, semi-annual)
- Regular vaccinations for infants, children and adolescents
- Refresher vaccinations such as diphtheria and tetanus
- Indication vaccinations such as flu vaccinations or travel vaccinations
Chalmydial screening (women up to 25, annually)
Bonus programs for pensioners, sports and social
With these preventive medical checkups, however, there is not only certainty free of charge. Those who take preventive action can also be financially rewarded by the health insurance companies. How this looks in detail is different for each health insurance company. Anna’s health insurance company offers to register either for a bonus booklet, the app or the online branch. There, she can enter analog or digital measures such as blood donation, check-up, skin screening or cancer prevention. Social commitment such as a first-aid course is also recognized. If Anna also links the health data on her smartphone or fitness watch to the health insurance app, she will receive 100 bonus points for each day she has taken 10,000 steps. From just 500 points, attractive premiums are available, which can amount to up to 200 GBP for some health insurance companies.
Those who prefer to reinvest the bonus in their own health can look forward to subsidies for fitness trackers, the assumption of starting and participation fees for sporting events or private supplementary insurance from some providers. Since Anna is expecting a child, she will use the points she has collected for a birth preparation course.
And even though Anna has hardly had to make use of medical services so far, she is a little annoyed that she is only now learning about some additional services. For example, health insurance companies are offering to have her teeth professionally cleaned once a year, either through the bonus or through co-payments. Treatments such as osteopathy and acupuncture are often covered up to half of the costs and subsidised preventive cures are also included in almost every offer.
The health courses would be particularly interesting for Anna. She finds out that courses that are recognised by health insurance companies and relate to exercise, stress management, nutrition or addiction prevention can be subsidised by up to 80% by health insurance companies. Thus, subsidies for the contribution to a sports club or fitness studio can also be expected. It’s good that Anna is already seeing what she can do differently. Because not only can she save from now on, but her child will also be considered through bonus programs and special offers for families.
When co-payments become excessive
The larger Anna’s family becomes, the more costs are likely to be incurred. This could be prescription fees for medication, personal contributions for physiotherapy, massages and orthopaedic insoles or co-payments for hospital stays. In order not to overburden the family budget, it is worth calculating your own limits. This limit determines how high co-payments may be per year. Anything that was paid above this limit can be reclaimed from the health insurance fund by presenting the receipts. Anna uses an online co-payment calculator and finds out that, as a married woman and with a family gross income of 40,000 GBP, she has to pay a maximum of 687.86 GBP in co-payments. When her son is born, the contribution drops to 535.56 GBP. Proper bookkeeping can therefore be worthwhile! However, the contribution limit is intended to relieve the burden on chronically ill people and/or welfare recipients in particular.
Of course, there are of course always measures that the statutory health insurance companies do not cover. A particularly explosive case in Anna’s circle of friends is the disease lipedema. Anna’s best friend suffers from the fat distribution disorder, which causes pain and cannot be cured. Unfortunately, those affected still have to pay for liposuction themselves. As the disease is progressive, Anna’s friend has now decided not to waste any more time. The Credit company installment loan, which can also be easily taken out online, supports her in this process quickly and easily.
The Credit company instalment credit
- Credit amount from 1,000 GBP to 75,000 GBP.
- Term 12 to 84 months
- Short term = higher rates
- High maturity = lower rates
Tip: If you apply for the loan together with a partner, the interest burden may decrease.
A used car is the cheap alternative to a new car. The market for used cars is huge and confusing. Bargain hunters usually find what they are looking for with private sellers. Dealers are more expensive, but offer more security when buying. Find out what you should definitely consider when buying a used car.
Make, year of construction and maximum mileage: Thorsten has concrete ideas about his “new” used car. Private seller or dealer? Thorsten is unsure who is the better choice. The offers from private sellers are usually cheaper. However, Thorsten is no car expert. What if the vehicle has defects? Who is liable for obvious and hidden defects in a private sale?
Buying a car from a private seller: Disclaimer & description of condition
- The seller does not have to point out all defects. This applies in particular to obvious defects such as scratches in the paint or minor dents.
- If the prospective buyer discovers a presumed defect during the test drive, the seller must inform him/her about it.
- In the case of a private car purchase contract, the seller must state in the description of condition whether the car has accidental damage or known defects. It should be stated which damages have been repaired or not repaired.
- The seller can exclude liability for any undetected defects.
- The seller can exclude liability for material defects in the purchase contract for defects unknown to him/her. It is subsequently difficult for the buyer to prove to the seller that he or she knew about the defect.
- However, a general exclusion of liability is excluded: According to the BGH, clauses in which the warranty is completely excluded are invalid. This is because a complete exclusion would also exclude liability for physical injury and damage to health, which would constitute an unreasonable disadvantage for the buyer.
- Excluded from all liability are basically defects resulting from age-appropriate wear and tear of parts of the vehicle.
There he is with the dealer but on the safe side, says Thorsten. After all, the commercial seller is legally liable for two years for material defects. For faults that existed before the sale. For used cars, this period can be contractually reduced to one year. In the first six months, the burden of proof lies with the seller: He must prove that the defect did not exist at the time of delivery. Commercial car dealers therefore check their cars very carefully before the sale.
Often a used car warranty is already included in the purchase price – or it is offered for an additional charge. In this case, the dealer must also repair any damage that occurs after the car is handed over. Sometimes the warranty also includes the replacement of wearing parts.
Thorsten does not want to take any risk and decides to buy from the dealer. Even if, according to ADAC, used cars from private individuals are about eight percent cheaper than those from the dealer.
How to find a cheap used car
Used cars can be found in regional newspapers or local advertising papers. Prospective buyers can get a good overview of what is on offer at car markets.
The largest selection at the best price can usually be found online. Used car portals such as mobile.de or Autoscout24 are not only marketplaces, but also offer information on vehicle valuation, the sales contract and lots of checklists. Meta search engines like Autouncle search the sites of the individual providers and summarize their offers. Autouncle also displays the prices of the vehicle in relation to comparable offers using a five-stage traffic light – from “expensive” to “super price”.
Both private providers and dealers are represented on all platforms.
When buying a used car, make sure you pay attention to the following
Thorsten visits a car dealer near his home, who primarily sells his favourite car brand. He plans a visit in daylight and accompanied by a car expert friend. He advises him not to be deceived by appearances. In advance, both have informed themselves about the known defects of the model. This is possible, for example, via the DEKRA Used Car Report.
Checklist used cars
- exterior bodywork: paint, colour differences, underbody protection, headlights, windscreen, tyre profiles
- Engine compartment: oil and cooling water loss, corrosion, abnormal engine noise
- Trunk: corrosion, moisture, spare wheel and jack
- Bodywork downstairs: corrosion, oil loss, exhaust, wheel suspension, brake system
- Bodywork inside: windscreen wiper, heater, blower, mirror adjustment, window lifter, seat adjustment, seat belt
Whoever buys privately and wants to be on the safe side, has a third party make a value appraisal or a condition report. This service is offered by independent appraisers, automobile clubs, authorised dealers and independent garages.
Optimum financing for used cars
The traders often advertise with low interest rates. But you should keep an eye on the total costs. The effective interest rate can be higher for an installment loan from a bank than for a dealer offer. However, the cost of the car plus the cost of the loan can be lower here.
Four financing options for a used car
- Leasing: Here you acquire a right of use for a certain period of time. The car remains in the possession of the dealer. The rates are usually higher than for comparable credit rates.
- The balloon loan is a mixture of leasing and instalment credit. Sometimes a down payment has to be made. The monthly installments are initially quite low, but in the end a high final payment (“balloon”) must be made.
- Three-way loan: A balloon loan with down payment. The higher the down payment and the final payment, the cheaper the credit costs – but also the higher the charge. The “three ways”:
- At the end of the term the undamaged car can be returned. The car can be taken over with payment of the final installment or the final payment is stalled in installments.
- Instalment credit: A car loan without final payment, such as offered by Credit company. Advantage: You can pay the seller in cash. The dealer will then offer you an attractive discount, which is often higher than the costs associated with the car loan. More on the topic: Buying a car from the dealer: Paying cash or financing?
The dealer offers Thorsten a high discount for cash payment. He therefore decides to finance the purchase with an instalment credit. He can conclude the car loan from Credit company online very quickly and easily and drive his “new old one” home soon.
Starting off into a happy life together is not only romantic – it can also pay off financially.
First the great love, then the expensive wedding and afterwards many duties. To all wedding skeptics: A wedding can be organized beautifully and at the same time inexpensively. And through the wedding the couple can also save a lot of money. We show how both works.
Marriage is back in fashion, also because marriage offers financial advantages. Since 2007, the number of marriages has been rising steadily: Meanwhile, more than 400,000 couples annually say yes to each other again. Of course, most marry primarily for love. But if you can also save money through marriage, this is a good additional argument for marriage.
The Basic Law protects marriage and family in a special way. Married couples and, to a large extent, registered life partners enjoy special legal privileges. This is evident, for example, in the annual income tax return or in the obligation of mutual maintenance. And even if one of the spouses dies, the other is protected: married couples have a legal right to inherit, while unmarried couples without a will or inheritance contract are left empty-handed.
From free choice of tax class to spousal splitting: as a married couple, the state grants you special privileges. For example, you can choose your tax class according to your income. Here it makes sense to calculate exactly. If your annual income – whether from self-employment or permanent employment – is approximately the same, tax class 4 makes sense. If one partner earns significantly more, he or she should choose tax class 3 – tax class 5 is then intended for the partner earning less. You also benefit from spouse splitting, especially if you have different incomes. In this case, both incomes are added together to calculate income tax and divided equally between the two partners.
10 reasons why marriage is worthwhile:
1. Splitting of spouses
Married couples and registered partnerships are treated equally in terms of income tax law. It is particularly worthwhile if one of the partners earns considerably more. This is because the total income of both partners is added together to determine the tax rate and then divided equally between the two – at least mathematically. From this half amount the income tax is calculated, which is then doubled again. This means that a lower tax rate must be paid than in the case of sole assessment. However, this advantage shrinks the closer the two salaries are to each other.
2. Choice of tax class
Unlike singles, married couples can choose their own tax class. If both couples earn about the same amount, tax class 4 is the best option for both. If one of the partners brings home about 60 percent or more of the total income, he should choose tax class 3 – the other partner would then automatically be assigned tax class 5.
3. Double the lump sum for savers
Investment income in the amount of the lump-sum savings amount is tax-free. For UK single taxpayers this is 801 GBP. Married couples profit from the doubling: Their saver lump sum is with 1.602 GBP – all the same whether one of the partners receives 1,500 GBP from shares and funds and the other one only 100 or whether both receive equally much money.
4. Free health insurance
If one spouse has no income or is doing a mini-job, he or she can legally co-insure with his or her partner – this also applies to the children of this marriage.
5. Household contents, liability & Co.
A wedding can be considered a premature reason for terminating current insurance contracts. Thus, married couples can reduce duplicate existing insurance policies to one – and save money.
6. Father by law
If a couple marries and then has a child, the husband is considered the father by law – even if he is not biologically a father. Non-married couples must first have paternity recognised in order to have father and mother treated equally and then apply for custody of the father. If they do not do this, the mother alone has custody.
7. Salary supplements for civil servants
The monthly income of civil servants can increase when they marry – and also when they have children. According to the rules on civil servants’ pay, a family allowance is added to their basic salary. Whether this is available depends on the federal state where the civil servant is employed.
Gift tax is levied when assets are transferred from one person to another without consideration. Married persons who give or bequeath something to each other have the highest possible tax-free allowance of 500,000 GBP. This means that inheritance and gift tax is only due if this amount is exceeded. The applicable tax rates are also lower than those for unmarried persons: Depending on the amount of the inheritance or gift, it is between 7 and 30 percent for married couples and 30 to 50 percent for couples without a marriage certificate.
9. Pension allowance
In the event of the death of a spouse, the surviving partner is entitled not only to the personal allowance of 500,000 GBP, but also to a pension allowance of 256,000 GBP. This ensures that a possible inheritance does not become a financial burden.
10. Survivor protection
If one of the spouses dies, the other may receive a widow’s or widower’s pension. Such a claim may exist if the deceased partner paid contributions to the statutory pension insurance scheme. The survivor’s pension depends on the duration and amount of the contributions made and is usually not too high. But at least there is a claim which is denied to unmarried couples.
But despite all the formal advantages, the very beginning of a marriage – i.e. the wedding celebration – is usually a major financial burden. And it often costs as much as a middle-class car. On the most beautiful day of your life, you just have to make a lot of money and not spill it.
This is how much a wedding costs
As portal24.uk found out in a survey, UKs spend on average about 12,000 GBP for the most beautiful day of their lives. Thereby 30 percent of the interviewees stayed under 10.000 GBP, 64 percent however their wedding was worth up to 20.000 GBP. The fact that the calculation varies is due to the enormous range of possibilities: Do you celebrate with your closest relatives in tens over coffee and cake? Do you also invite friends and rent accommodation for a whole weekend? Or do you get married on a grand scale with 150 people in a hip wedding location with bar staff and chef? You alone determine the financial framework of your wedding. So now you and your partner have to decide how you want to celebrate the wedding together.
From dance lessons to wedding planner – that’s what a wedding costs on average
- Stationery (invitation cards, menu cards, place cards etc.) – approx. 600 GBP
- Wedding car approx. 300-800 GBP
- Rings approx. 500-2.000
- dance course approx. 100-200 GBP
- for the bride about 1.000-5.000 GBP
- for the groom about 500-1.000 GBP
- civil marriage ceremony approx. 60 GBP
- free marriage ceremony approx. 500-1.000 GBP
- Documents approx. 100-150 GBP
- Champagne reception about 3 GBP per person
Location and catering:
- location 250-2.000 GBP
- Catering: 2.800-3.500 GBP
- wedding cake approx. 150-550 GBP
- Drinks, coffee and cake approx. 80 GBP per person
- Flower decoration ca. 800 GBP
- DJ about 600 GBP
- volume approx. 1.200 GBP
- photographer approx. 900-2.500 GBP
- one-week trip about 2.000 GBP
Advice and support:
- wedding planner approx. 1.000-1.500 GBP
How the dream wedding stays financially within budget
Your personal dream wedding need not be prohibitively expensive. Start planning in time! If you are pressed for time, you pay an express surcharge on everything – that doesn’t have to be. If you are also open to creative alternatives and take enough time for research and organisation, many things can often be implemented more economically. Start planning in good time!
Research prices early on. This will give you an idea of the market and strengthen your negotiating basis. In addition, you then have the full range of choices and don’t have to accept a second choice, which in the worst case can be expensive. The golden rule in wedding planning is: Organize the most cost-intensive things first. These include the wedding dress, the wedding location, the catering, the photographer or the videographer.
10 wedding savings tips
- Get married in the off-season Popular wedding dates drive up the cost of the wedding, because service providers often charge double on these days. On the other hand, in the low season, appointments are often still free and it becomes cheaper.
- Celebrate later in the day. The longer the wedding day, the bigger the bill. If you only start the wedding ceremony in the afternoon, the coffee and cake session can be omitted. A small wedding cake could then be served as a midnight snack.
- Design your own invitation cards. You no longer have to write by hand, because online printing houses now have unbeatably low prices. If you also ask for money gifts on the invitation cards, you will avoid unwanted gifts in kind.
- Organise a bachelor party. If you have to keep your wedding with an extravagant location and a chic buffet rather small for financial reasons, you can celebrate a large, relaxed hen party in advance. So you can celebrate your wedding with friends and acquaintances who are not invited to the actual wedding celebration.
- Serve appetizers at the champagne reception This will bridge the gap and save a full meal. Instead of hiring an expensive caterer, you can also ask guests to prepare a few appetizers. For example, if you are an active member of a sports club, you can ask other club members to serve the drinks.
- Choose favorable food variations. It does not always have to be the expensive fillet. Surprisingly, sometimes fish is cheaper than meat – it is worth asking. More vegetables will also lower the price.
- Use seasonal flowers. Whether bridal bouquet, decoration or car decoration – if you only use flowers of the season, you can save a lot of money. It becomes even cheaper if you design the flower decoration yourself.
- Limit alcoholic beverages. Beer, sparkling wine and wine – that is quite enough. If you like, you can still offer two cocktails: with and without alcohol. Also ask the service staff not to refill the glasses without being asked, so that half-full glasses are not left everywhere.
- Place your bets on Sales. Percentage campaigns should be in mind before your wedding. Here, for example, the date of purchase may be of help: Romantic decorations are often reduced after Valentine’s Day.
- Allow yourself to be sensibly presented with gifts. Whether wedding coverage, DJ or fire show – let the family or friends give you certain items on your wish list as a wedding gift.
Especially the wedding dress is an expensive investment. Many women dream of their perfect model already as girls – which makes the search all the more difficult. Those who are not open to alternatives here not only lose the overview, but also quickly dig too deep into their pockets. Ask for specific offers in a specialist shop. Meanwhile, many well-known clothing chains and online retailers also offer great wedding dresses at low prices. It’s worth browsing!
Bargains can also be made on second-hand portals. If the dress does not fit, you can have it altered. This is still cheaper than buying a new one. If that’s not for you, you can also have your wedding dress custom-made. Sounds expensive? Not necessarily. Some small start-ups specialise in this: you visit the shop, a designer takes your measurements, discusses your ideas and, in the best case, shows you examples – and after the first ten days you get a rough draft of your dress. Then the design is adapted so that in the end the wedding dress is exactly what you want.
How to get your dream dress at the price of your dreams
Second-hand tulle: Vintage shops are absolutely trendy. So why not get your wedding dress second hand? Usually the wedding dresses are completely intact – and if not, they can be brought back to life thanks to professional cleaning and alteration tailoring. The disadvantage: You have only a limited choice of sizes in second-hand shops.
Last (Wedding) Season: Outlets and Sales advertise brand new dresses at sometimes drastically reduced prices. So if it is not important to you to wear a current model, you can get real bargains here.
Autumn Shopping: As May is the peak season for weddings, many brides and grooms will be hunting for clothes in winter. Hurry ahead of them! In autumn, not only are the shops emptier, you can also find cheaper models.
Well rented is half bought: If you’re sure your potential bride’s dress won’t be a disaster, you can borrow one. The rental fee corresponds to the value of the dress – so a high-quality dress on loan can cost less than a cheap dress you bought. On the other hand, you can also afford real highlights as a wedding dress on loan.
First mine, now yours: Get a part of the purchase price back by selling your wedding dress. You can offer it online on your own or ask in second-hand shops whether you accept your dress on commission. Designer wedding dresses are especially popular. They usually find buyers quickly. However, the sale can drag on.
Installment credit and wedding – it fits!
Savings here, costs there: the romantic aspect of a wedding should still set the tone. The promise to take care of each other – even if the rose-colored glasses become clearer – is something that is not only legally obligatory. That is why you should celebrate this festivity in a way that is appropriate for this special day and for your love. You know best how this looks exactly.
And should the necessary small change for the dream wedding be missing in the end, we will be at your side as a fair and responsible partner. With an Credit company you can arrange your special day in the way that seems perfect for you. Complete your Credit company online with just a few clicks or get advice at a partner bank near you.
Accidental damage to the financed vehicle. What next?
You were innocently involved in an accident? Then you can sit back for now:
The insurance company of the person who caused the accident must pay all costs incurred. It pays for repairs, loss of use, a rental car or the lawyer. However, the depreciation in value is problematic – your car will suffer this in any case. This plays a role in leasing at the latest when you have to return the car to the dealer.
What do I have to bear in mind if I have an accident with my leased car?
A problematic special case is depreciation. It becomes important if you have to return the leased car to the dealer – and the car no longer reaches the calculated residual value after the accident.
This is different with a newly leased car: the insurance of the person who caused the accident also covers the depreciation in value.
Prerequisite: The car is not older than five years and has run less than 100,000 kilometers.
The insurance then compensates the difference to the value the car had before the accident. It is not unusual for the loss in value to exceed the repair costs.
What happens to my uncommitted car loan?
In the event of a self-inflicted accident, you must inform your insurance company and your lending bank. Exception: If you finance your car with Credit company via an uncommitted car loan, for example, you do not need to inform the bank of the accident. In this case, non-earmarked means: Credit company has granted you a loan that is not linked to the vehicle. You are the owner of your car, as you did not have to hand over the vehicle title to Credit company when you took out the instalment credit. In the event of a claim, the monthly credit instalments simply continue to run.
Total loss for a earmarked car loan? What do I have to do?
Things become more complicated if you have financed the vehicle with an earmarked car loan: With this loan, the owner transfers the vehicle to the bank as collateral. The vehicle title is deposited permanently with the bank. If the vehicle suffers a total loss in an accident, the owner must deregister it. This is precisely why he needs the vehicle title from the bank. The bank will only issue the registration document against other credit security. But because the car has defaulted as collateral, the bank will cancel the loan and demand the money back within a period of time.
A good possibility is to negotiate with the bank about the rescheduling of the remaining debt into an instalment loan. In this way, you simply pay off the existing car loan and do not get bogged down in different loans.
Well secured with fully comprehensive insurance
With a fully comprehensive insurance, you will still get away well even in the event of a self-inflicted accident. The much cheaper partial coverage insurance is available for damage caused by theft, fire, glass breakage or forces of nature. But that is not enough. The fully comprehensive insurance regulates all damages of self-inflicted accidents, even those caused by vandalism. 12 to 18 months after the first registration, the fully comprehensive insurance even pays the complete new car price. If you have acted with gross negligence, insurers will refuse to pay. And the insurance company is also not responsible for the credit costs. This risk is borne by the owner of the vehicle.
What does a car accident mean for my 3-way financing?
If you bought your vehicle from a car dealer using 3-Way Financing, you must report the claim. This is especially true if you have contractually agreed to return the vehicle after the credit period has expired. Depending on the extent of the damage, the lending banks reserve the right to approve repair orders. If the vehicle is a total economic loss, the bank will refuse this. In the case of an accident vehicle, a significant difference to the calculated residual value is to be expected. As a borrower, you must take responsibility for this.
The car owner can reduce his loss by selling the car himself. Often he will get a better price than the dealer has calculated. Unfortunately, this does not work with every loan agreement. Even in the case of a total loss, this solution sometimes does not work. If the vehicle still has a high residual value, the sale of the vehicle is worthwhile for the owner. Often, however, the bank decides what should happen to the accident car.
What do I do if the bank terminates my loan?
As a rule, banks are interested in the continued existence of the loan agreements. However, if you have had an accident, you should inform your bank immediately. Untied instalment loans, such as those offered by Credit company, are exempt from the obligation to report.
If you still have a notice of termination in your hands, you should visit the bank together with your lawyer. Avoid a legal dispute – usually an amicable solution can be found in a discussion.
Here a car loan, since zero percent financing, overdrawing the dispo and making purchases on credit card and before you know it, the realization that you are facing a mountain of debt that is getting harder and harder to pay off. What to do? One solution may be the so-called “snowball method”. But what is the point of this method?
Financing, credit cards, instalment loans, real estate loans: There are many ways to get into debt. And the way into the so-called negative debt spiral is creeping but steady. Once caught in the debt trap, good advice is expensive. However, it is precisely in such a situation that one must keep a cool head and face the situation with determination. For as varied as the way into the debt trap can be, the more diverse the ways out of the debt can be.
The combination of different individual loans into one loan and the corresponding rescheduling of the debt would be a possible alternative. Another is to go to a debt counselling service. Another is the so-called snowball method. But no solution will work without first taking a few important steps.
The preparation to repay loans
In the beginning there is always the realization that we are in debt. For those who do not want to admit debts to themselves or have no overview of the amount of their debts will not successfully pay them off, no matter how they are paid off. Therefore, the most important step is to face up to your financial problems and look ahead – in other words, to start reducing the accumulated debts.
The basic prerequisite is an honest, well-founded assessment of your own financial situation – without any whitewashing! The bare figures from bank statements, bills and credit card statements are moved into a clear list or table: How much is outstanding with which creditor at which interest rate for how long?
Budgeting is also part of the preparation. After the listing of debits and credits, the bottom line is to make clear how much is left each month that you can invest in the repayment of your loans.
With the sum that comes out of this calculation, one must now budget and see to it that the most urgent repayment instalments are increased. This may mean reducing or even deferring others – preferably those with the lowest interest rates – until more urgent loans are paid off. It is of course important not to do this on your own. Agreements and negotiations with creditors are the be-all and end-all.
This is how the snowball method works:
If you have managed to realign your budget and service your loans with more than the minimum installments, you can accelerate this process even further with the snowball method. This method of loan repayment involves initially listing the debts in ascending order from the lowest to the highest liability amount. For comparable loans and credits, the effective annual interest rate should be the decisive criterion. In such a case, the loans should be sorted from higher to lower interest rates in descending order. Then the budget is allocated.
In fact, the rate of the lowest loans is increased as much as possible, while the larger outstanding debts continue to be serviced at the minimum rate or are deferred. In this way, the repayment of the smallest loan is pushed forward, the liability is paid off more quickly. If the debts of the first, smallest loan are completely paid off, the budget plus goes into the next larger loan.
This means that the repayment rate of the second smallest loan is increased by the increased rate of the just redeemed, smallest loan. This accelerates the repayment of these debts as well. As soon as this loan is paid off, the rate of the third is increased by the previously spent fixed rate, and so on until one reaches the most expensive and highest loan. When all the small loans have been paid off, one has more budget available to concentrate on paying off the “biggest chunk”.
And while the bank account and the credit investigation company are happy that the much-quoted small animals, which also make dung, are gradually disappearing, this snowball method also has a psychological effect. With every credit paid off, the reward centre is addressed. This gives you a good feeling and you have more incentive to consistently complete this personal repayment plan.
Turn on the washing machine while cooking or play your favourite playlist? Smart speakers literally listen to the word. iStock.com/Daisy-Daisy
Isabel was not sure: Is a language assistant useful? Will I be overheard by him? But curiosity prevailed. Now she shares her personal experiences with us. Isabel tested Siri, Alexa & Co. for us.
We have been operating light switches for about 135 years. Nobody – not even Isabel – has ever got tired of them. Nevertheless, she was tempted by the idea of using a speech assistant to control her light sources. This is now possible from the comfort of the sofa, but also, for example, on cold winter days without having to get out of bed. And it’s not just the lights that can now be controlled smartly: coffee machines, suction robots and heaters now also respond to calls. If you like, you can even lock your electric door lock by voice. Even though Isabel initially had reservations about data protection, she dared to take the step into the age of the smart speaker. But first the question had to be clarified: Which voice assistant is right for her?
Which language assistant is right for me?
Isabel has been an Apple user from the very beginning. She has trusted the tech-aesthet from Cupertino with her laptop for more than ten years. When she held her first iPhone in her hand in 2011, at that time the iPhone 4s, Siri became an integral part of the Apple cosmos for the first time. Since then, Isabel has followed the development of the language assistants with great interest – Google and Amazon now also offer their own language assistants. Microsoft with Cortana and Samsung with Bixby also offer voice assistants. However, Isabel quickly realised that Cortana and Bixby cannot keep up with the three big top dogs.
Her best friend Daniel, on the other hand, is on fire for his Alexa. He bought the Smart Speaker Amazon Echo Dot 3 a year ago and since then has been controlling many everyday situations with his voice. “It sounds funny, I know, but it’s actually reassuring when I can still talk to someone in the evening when I fall asleep,” he confesses somewhat embarrassed. But in fact, he appreciates Alexas humor the most – Amazon’s language assistant can learn to tell jokes through a skill selection. Daniel also likes the wake-up function, likes to have an overview of the daily news while brushing his teeth in the morning and asks Alexa to play his pasta playlist while cooking. He may have called his last crush by mistake once, but at least that led to a spontaneous date.
If you already live digitally in the Google universe, then logically the best way is to use its assistants. The software accesses the search engine giant’s comprehensive database and is therefore ideally informed about the life of its user. With the Google Home speaker, you can plan your daily routine, select a movie via streaming service or operate the intercom. To control the vacuum cleaner robot or a cooking thermometer all you need is an “Okay, Google”. According to a report by the US investment company Loup Ventures, the Google Assistant scored best among its competitors: 88 percent of all questions and commands were correctly answered and executed by the Internet company’s assistant.
The Google Assistant moves into your home with Google Home Mini from 50 GBP.
Apple’s language assistant works similarly to those of the competition, but has a unique selling point. As Siri has been deeply integrated into the IOS operating systems, it enables flawless operation of the corresponding Apple HomeKit devices. It is also possible to create so-called scenes with Siri. For this purpose, certain actions are linked together and assigned to a higher-level voice command. When called “Siri, movie night”, Siri can, for example, dim the lamps, bring the thermostats to a comfortable temperature and, thanks to smart sockets, activate the kettle for a cup of tea or the popcorn machine. The more up-to-date the operating system of your Apple device, the more Siri can do for you.
Siri already found its way into the everyday life of all Apple fans in 2011 with the iPhone 4s. Apple HomeKit can be used with iOS 8.1 or newer operating systems. The smart speaker counterpart Apple HomePod is available from 329 GBP.
In factory condition Alexa only answers simple questions: When is sunset? How will the weather be tomorrow? However, if you connect Amazon’s language assistant with your contacts, music accounts, a calendar or even the smart microwave, the virtual assistant unfolds its full capabilities – from shopping lists to waking up in the morning with your favorite song bin to warmed lasagna in time for lunch. With the so-called Alexa Skills, apps for the speech software, you can also create a function package tailored to your needs. You choose from more than 50,000 skills that Alexa should be able to master: whether telling jokes, checking the pollen count or reciting the recipe for a pina colada. In addition, there are currently over 20,000 devices that can be controlled via Alexa’s smart speaker series Echo Dot.
The Amazon Echo Dot 3 is available from 50 GBP.
Siri provides party atmosphere and a warm apartment
But Isabel demands Siri more than Daniel demands his Alexa. Practically speaking, she doesn’t need to buy a Smart Speaker because everything works on her iPhone and MacBook – both are up to date and therefore meet the standards for Apple HomeKit products. “At the moment I’m making love with the HomePod because I don’t have a sound system. The many positive reviews on the sound and the Apple HomeKit compatibility have made me want to use the speaker. It would also allow me to control my HomeKit products remotely,” says Isabel.
But Isabel mainly uses Siri for everyday tasks. She equipped her home with a control unit for lighting elements. “With it, I can adjust my lamps individually, design lighting groups and control everything conveniently by voice,” reports Isabel enthusiastically. Isabel Siri is also responsible for switching lights on and off, dimming and changing from warm to cold light. She becomes her own light choreographer: “When I come home, I call: ‘Hey Siri, I’m home’. Then the indirect lighting switches on. So when I come home, I have exactly the brightness I want.” With a “Hey Siri, good night” all the lights in her apartment turn off again. And when Isabel says “Hey Siri, activate the scene ‘party'”, her disco ball also turns.
Isabel now also controls her heating with Siri. The smart radiator thermostats recognise when Isabel is at home and then switch themselves on. Isabel is also considering buying an Apple HomePod: “It would be even more comfortable. I could use it to preheat the apartment on the way home from work. Then I’d have a warm place to stay and save on heating costs during the day.
Language assistants as practical household helpers?
When Isabel’s washing machine gives up the ghost, she also checks appliances with smart functions. Apple doesn’t offer HomeKit partners yet, but her eye falls on a washing machine that can be controlled with Amazon’s Alexa – just like an oven and a dishwasher. Here you could activate the program selection and start time with just one announcement. But does this really save her time? She still has to put the laundry into the drum herself. And the cake must also be mixed and put into a mould before it can be baked in the oven. Isabel talks to a friend Martina, who lives with her partner and two children in a two-storey apartment building. “Then I wouldn’t always have to climb all the stairs down to the cellar when the last member of the family has finally put his clothes in the washing machine. I imagine it would be practical if I could comfortably ask Alexa from the study to start the 90-degree cotton wash cycle,” says Martina.
Siris product categories
- Air conditioning
- Air purifier
- Security Systems
- Garage doors
- Lawn sprinklers
Alexas Product Categories
- Lighting and sockets
- Heating and cooling
- kitchen and household appliances
Google Assistants Product Categories
- Lamps, lights and light switches
- Home appliances
- WLAN thermostats and room air conditioners
- Smart locks and doorbells
- Security camera
- Security systems and alarm systems
- WLAN sockets
- Streaming services
But despite the relief in the household Martina is sceptical. “I believe I would feel constantly eavesdropped. Who can guarantee me that there won’t be constant recording?”
Security: Are Siri, Alexa & Co. really listening in?
Isabel also had concerns at first that Siri was listening in. “There was even a phase when I had consistently disabled Siri on all my Apple devices.” She informed herself and came to a conclusion she can live with: “The speech assistants’ microphones listen all the time, but they don’t record anything, they only listen to my cue. Then the recording of voice commands begins.” With Daniels Alexa, for example, you can see this from the shining blue ring. If Alexa sometimes thinks it’s too strange, he switches off all the microphones in the Echo Dot 3 – via voice command or manually by pressing a button. “Siri knows nothing more about me than my payback card. Especially when shopping and surfing the net, we leave behind many digital traces that clever corporations can exploit by analyzing our data. For me, the advantages of smart speakers outweigh the disadvantages, but this is my personal opinion. But I do understand the scepticism and I also understand friends who don’t bring smart helpers into the house for data protection reasons,” Isabel sums up.
Google Assistant privacy
- Stores all data that is generated when you interact with Google services
- Additionally accesses the Web History (Google search history, locations, YouTube videos etc.)
- com: View Web History (including interactions with Google Assistant)
- Recording of usage data from third-party services and connected devices
- Recorded data must be removed independently
- Data is added to the Google profile
Privacy at Alexa
- From codeword “Alexa”: Storage of voice entries in Amazon Cloud
- Additional content storage (music, to-do and shopping lists)
- Recording of usage data from third-party services and connected devices (e.g. surveillance cameras or intelligent sockets)
- No limitation on data retention
- Data is added to the Amazon customer profile
Privacy at Siri
- From code word “Hey Siri”: Send the voice data and location information to
- Voice recognition by “Hey, Siri” not in the cloud, but locally (subsequent recording and sending to Apple servers)
- No linking of Siri data with the Apple ID
- No recording of usage data from third-party services and connected devices
- When Siri is addressed, the data is stored next to There
- Up to two years of data storage (partial deletion afterwards)
What do I have to consider when buying?
If, like Isabel, you decide on a language assistant, you should first consider which provider is right for you. Do you already use many Apple products like Isabel? Are you a long-time Google user? Or maybe you already have a smart item at home (fridge, washing machine, lamp)? Then you can orientate yourself on it and build the smart home world around it.
You don’t have smart technology in your home? Then Alexa, Siri and Google Assistant are equally available to you. All three offer you the possibility to connect to devices and services via third parties. And the manufacturers are giants in the digital industry. There’s no sign of any of them discontinuing their services in the foreseeable future. In their application, they are all very user-friendly and intuitive. The Smart Speakers that go with them differ mainly in the purchase price.
Isabel can no longer imagine operating the light switch as in her time before Apple Home. “It seems almost antiquated. After all, we’ve been doing this for over a century now.”
Whether you just have a few questions or need advice – we are here for you.
Negative interest rates, exclusive terms or loans without checks: the credit market is highly competitive. Many providers often advertise vociferously with conditions and offers that at first glance appear very favourable. These advertising promises sound tempting when it comes to realising one’s own wishes and achieving set goals. And yet it is advisable not only to pay attention to the interest rates when choosing a lender. In addition to fair conditions, our Credit company offers excellent service, on-site and online advice and other attractive features. Find out more now.
MORE PERSONALLY – The range of advisory services for Credit company
It all starts with a fair consultation. No matter whether you just have a few questions or would like some advice – we are there for you. As individual as your credit wishes are, we would like to tailor our advice to you. Therefore, in addition to our customer hotline, we also offer online chat, video advice or e-mail communication. Our service hours are Monday to Friday from 8 to 19 o’clock and Saturday from 10 to 18 o’clock. If you prefer a local contact person, you can find one at one of our 10,000 partner bank branches. Regardless of the channel, our advice is always free of charge. Benefit from our excellent service.
If you would first like to compare different credit options yourself, our free credit calculator is just what you need. Here you can immediately find and compare the optimal rate for your installment credit online, simply and transparently, based on your desired amount and term – of course, without any obligation.
MORE FAST – The Credit company with account view
The Credit company with account view offers a credit conclusion when things have to go particularly fast. Within only 10 minutes you can complete your credit completely online, without any paperwork or postal delivery. With a single glance at your current account, your credit is decided immediately. Thanks to the instant decision, the money is usually in your account on the next working day, if you wish to borrow up to 25,000 GBP. The contract is concluded completely online via video legitimation and digital contract signature.
Do you need more than 25,000 GBP? We also offer you Credit company up to 75,000 GBP, online or on site at one of our partner banks. The following applies to both options: Credit company is not earmarked for a specific purpose.
For more information about the Credit company with account view, please read our blog article on this topic.
Common credit reasons of our customers
- Car & Motorcycle: A mobile set of wheels can be an expensive undertaking. That’s why Credit company customers are happy to take out loans to afford the car or motorcycle of their dreams. Advantage in contrast to the classic car loan: You receive the vehicle title directly, it does not have to be deposited as loan collateral.
- (Further) education: Your education is worth an investment. That’s why Credit company helps you if, for example, you have to pay for further training out of your own pocket.
- Health: You shouldn’t save on your health. If your health insurance does not cover a desired service for your well-being, we can help you.
- Celebrations & Family: Invest in what is dear to you. Whether family or graduation parties, gifts for weddings or round birthdays – for celebrations you sometimes have to dig deep into your pockets. A loan from Credit company is always a way to support you.
- Travel: Maybe you shouldn’t finance every holiday, but the one big dream trip you’ve been wanting for so long? With effective protection against over-indebtedness, we make you a responsible globetrotter.
- Funeral: But even for less pleasant credit occasions, such as financing funeral expenses, we at Credit company are there for you and can help you in these difficult times.
MORE FAIR – The Credit company Financial Compass
Transparency and fairness are not only our motto, they are actively lived. In the event of a credit rejection, you will receive your personal Credit company financial compass. This contains a detailed overview of your financial situation. We describe your individual reasons for refusing a loan and explain in a transparent and comprehensible manner the data on which we base our calculations. You will receive the Credit company Financial Compass by post if you make an online inquiry or by your advisor if you make an inquiry via one of our partner banks. In this way, we offer you partnership-based support in all financial situations.
MORE BEQUEM – Your personal customer portal
After completing your Credit company, you will already receive the access data for the customer portal, a fair companion always and everywhere. Here you will receive a personal account overview of your Credit company products and a customer mailbox with archive function around the clock, 7 days a week. You can also easily make changes to the instalment plan, make a special repayment or increase the instalment. In addition to free account statements, interest certificates and redemption schedules, you can also request information on the redemption amount. As a special service, the customer portal gives you an overview of your personal situation and individual options at a glance, as well as further offers for your financial freedom.
MORE EASY – The Credit company financial reserve
The Credit company financial reserve offers you a clever extension to your credit. If the planned investments exceed your credit amount, you can borrow up to an additional 15,000 GBP, depending on your credit rating, with the financial reserve activated. Quickly and unbureaucratically you will receive the desired amount on your account immediately after calling up the financial reserve.
A further credit decision is just as unnecessary as a visit to the bank. Because you can call up the financial reserve at any time and from anywhere – by telephone or with just one click on the customer portal. Of course, you can also have your customer advisor take care of the direct retrieval. You decide whether you want to call up the financial reserve in partial amounts or in one piece.
With immediate effect, Credit company offers SEPA real-time transfers for the financial reserve. If your bank also supports instant payment, you can now transfer your financial reserve to your own current account in seconds. This service is of course free of charge.
Additionally, the Financial Reserve can be combined with your credit card at participating Volksbanken Raiffeisenbanken. This requires no borrowing and you can conveniently pay and withdraw money worldwide without cash. Furthermore, purchases can be financed flexibly at any time in fixed monthly instalments.
Detailed information on the Credit company financial reserve is available in our blog article “The Credit company financial reserve at a glance”.
Better safe than sorry – The Credit company protection certificate
An important piece of security without hidden costs and small print: By taking out an Credit company protection certificate, you prevent the consequences of unforeseeable events in your life. Incapacity to work, unemployment, short-time work, divorce or even death can endanger the repayment of a current loan. We recommend that you take out residual credit insurance – the Credit company protection certificate – to prevent this. Whether and to what extent you insure yourself with the residual credit insurance of our partner R+V Versicherung is of course up to you. You can flexibly select the risks you want to prevent with our four service packages.
By taking out an Credit company protection certificate, you also remain flexible. This can be revoked within the first 30 days. It can also be cancelled at any time. Whether you decide for or against a cover letter has no effect on the actual credit decision.
Credit company – Power financing as relaxed as never before
Credit company does not define itself through attention-grabbing minus interest policies, exclusive promises or the cheapest conditions on the market. For us, the focus is on secure performance in order to offer our customers security and financial flexibility. In doing so, we want to accompany you not only before and during the conclusion of the contract, but also during the repayment phase as a reliable partner at your side and make financing as convenient as possible for you.
For us, fairness means giving you the necessary attention. Whether on the telephone, in video consultation or in our in-house Customer Service Centre, together with over 10,000 branches of our partners, we are always attentive and helpful contact partners.
Being fair means keeping up with the times. Our digital solutions are designed to make both the loan agreement and the subsequent administration as easy as possible for you. That’s why we offer you two excellent digital companions: the customer portal and the Credit company app.
But being fair also means communicating with each other at eye level. When making a credit decision, for example, we make sure that you can repay your instalments without any problems. As a matter of principle, transparency is our top priority. That’s why we also show you in our customer portal how much interest you could save if you could repay your loan more quickly.
Anyone who has to repay a large number of smaller loans quickly loses the overview and runs the risk of falling into a debt spiral, from which it is usually quite difficult to escape. Especially if the loans differ significantly in their conditions. In such a case it can make sense to combine all the old loans and redeem them with a new loan. But what are the advantages of such a procedure?
Anyone who is toying with the idea of taking out an instalment loan to pay off outstanding debts is basically doing nothing more than rescheduling. Whether this is worthwhile depends on the individual case. It can certainly make sense if you have to pay lower interest on the new loan than on the outstanding debt to be repaid. So in order to pay off possible credit card debts or an overdraft facility, an instalment or personal loan is often the better choice. It is true that taking out a further loan can also have negative effects on your creditworthiness. However, it can also be advantageous to pay off existing debts with an instalment loan.
Why it can make sense to take out a loan to pay off debts
If you have difficulty paying your installments regularly or if full repayment is unlikely due to high fees and interest rates, a personal loan with a lower interest rate can be a good solution to pay off credit card outstanding debts in full, for example. A loan with lower interest rates could reduce the monthly instalments and thus the financial burden.
This is an important factor for many consumers who have problems paying on time. After all, smaller sums can make it easier for them to meet payment deadlines. At the same time, they have more money left with which to service the new loan and thus pay it off faster.
What you should bear in mind when seeking debt restructuring
Before deciding on a debt rescheduling or a debt settlement by new debts, one should take a close look at the contractual terms. Not only the annual percentage rate of charge should be considered. Also the term of the new loan. Although the payments may be lower than with the initial loan, it could take longer to pay off the new debt, depending on the contract details at maturity. Lower interest rates with a longer term can be more expensive for the borrower in the long run, but at the same time it can keep the Schufa score and creditworthiness in check because the smaller loan instalments are paid regularly.
Private or instalment loans can be a helpful instrument to improve one’s creditworthiness and the Schufa, which has at least suffered until the debt restructuring. In the same way, they can provide some relief in the event of unexpected bottlenecks or major purchases. But because nothing is free in the world, one should know the costs and risks that such a loan involves in case of doubt. Pro and contra lists can make decision-making quick, clear and above all more rational. Anyone who is thinking of redeeming open liabilities with another or different one should first consider their own behaviour in financial matters. Only then does an installment credit for debt reduction really fulfil its purpose.