Remediation loan comparison – debt rescheduling online

Apply for debt rescheduling online

Why not reschedule, if you can save interest with it? A debt rescheduling loan is available in all credit areas. The balancing of the expensive Sitcosable is an option, the replacement of a more expensive installment loan or the bundling of several contracts in one or the rescheduling of mortgage lending the others. When does the rescheduling make sense and what should be considered?

The Sitco: Formless loan against credit agreement

A bank usually provides the account holder with a discretionary credit without a contract and without collateral. The Sitcosition will be based purely on the creditworthiness of the account holder. However, if the financial development of its client no longer seems fair to it, the bank has the option to reduce the credit line or to make it completely due. This means that the account holder must pay back the outstanding balance within a certain period of time.

A Sitco is a convenient facility. If at the end of the month, the cover is missing in the account to get hold of a bargain, the overdraft makes the purchase possible anyway. However, the overdraft also carries a risk. If the account holder is not careful, he slips with his account more and more in the target, lives practically only from the credit line and comes out of this credit spiral only with difficulty. Above all, it costs the dispatcher really money. Two-digit interest rates are still not uncommon.

However, before it comes to the point where the financial scope is completely limited, the countermeasure is recommended by a debt rescheduling loan. Well, this requires a credit agreement and the provision of collateral, but both should not be a problem. The salary assignment usually takes as security. For the self-employed, however, the number of providers for debt rescheduling is somewhat limited, as they have to resort to a bank that also accepts other collateral.

What is the advantage of a debt rescheduling over the permanent Sitco?

Over time, the account usage evolves into a mountain, which the account holder pushes ahead of him. Since there is no installment agreement, there may be a little bit of discipline in the end to get some credit every month. The debt rescheduling is forcing the monthly installment to be returned to the bank on a continuous basis. The borrower knows exactly how high the repayment will be each month, how long it will take for it to become debt-free and, in addition, saves a lot of money for the more favorable interest rates. Here’s an example of the benefits of the debt rescheduling loan:

Sitcosable installment loan
credit 2,000 euros credit 2,000 euros
interest rate 10% pa interest rate 3.9% effective pa
Cost for two years 400 euros Cost for two years 80.81 euros
Residual debt after two years 2,000 euros Residual debt after two years 0 euros

 

Rescheduling the installment loan

The interest rate changes. Some borrowers find that they would actually have to pay less interest if they use a debt rescheduling loan to repay a higher-interest loan. Especially when multiple loans are serviced, this consideration may well apply. Before a debt rescheduling comes to fruition, but some points should be clarified:

  • What is the residual debt at the time of the planned debt restructuring?
  • Is a prepayment penalty payable or are full or partial special repayments possible (a rescheduling is nothing but a special repayment)?
  • Has the credit rating changed adversely? This would nevertheless lead to an increase in the loan despite generally favorable interest rates.

Once these questions have been clarified, all that remains is to find the cheapest debt rescheduling loan. It is important that the borrower selects “debt rescheduling” in the loan comparison because the application routine may be different for one bank or another. The loans are requested, the rescheduling is planned.

With regard to the early repayment penalty, this is one percent of the remaining debt for a remaining term of the loan of more than one year, and 0.5 percent for a remaining term of less than twelve months.

Here is a sample calculation. The remaining debt amounts to 5,000 euros, 10 per cent per annum special repayment on the remaining debt is possible free of charge. The remaining term of the loan is three years. A prepayment penalty amounts to one percent to 4,500 euros, 45 euros.

At the end of the day, it is a rhetoric as to whether the debt repayment loan is actually the cheaper solution. In the selection, borrowers should ask multiple banks. The final individual interest rate is set by the banks only after the credit check has been completed. An impact on the Private credit do not have the different requests, because they are neutral condition requests.

The rescheduling of mortgage lending

This topic had hit quite high waves, as it was possible until recently, due to form errors in the revocation of the construction loan to replace this without prepayment penalty. In the case of mortgage lending, with one exception, an early repayment penalty is always payable if the loan is to be repaid during the fixed interest period. Annoyingly, this is about amounts in the four- or five-digit range.

The prepayment penalty will only be canceled if the fixed interest has been agreed for more than ten years. In this case, the borrower may terminate the financing with six months’ notice to the end of the tenth year.

While the cost of rescheduling a classic installment loan is absolutely transparent, the banks are brilliant at mortgage lending with total opacity. The Consumer Center recommends always having the calculation of the banks checked by a specialist.

The rescheduling loan for mortgage lending, however, entails something else. Mortgage lending is secured by a land charge order in favor of the financing bank. Anyone who remembers the purchase of their property knows that this process was associated with costs. The notary sent his cost note, the district court the fee notice. The same game would theoretically come to the borrower in a debt restructuring in duplicate. On the one hand, the existing mortgage would have to be canceled for a fee, and on the other hand it would have to be re-registered in favor of the new bank.

Fortunately, this process is completely superfluous in the case of a debt rescheduling loan for mortgage lending. Banks accept a notarised declaration of assignment for the provision of collateral. The cost of doing so is only a fraction of the cost of cancellation and re-ordering.

It is important that the borrower obtains all relevant data, residual debt, prepayment penalty and the possible percentage of a free special repayment in advance of the planned rescheduling. In addition there is the amount of the costs for the declaration of assignment. If these data are available, it is possible to calculate exactly whether a debt rescheduling loan is worthwhile in the case of mortgage lending or not.

The loan tax in the family 2019 – what is worth knowing?

The Polish state, like most countries in the world, to secure its influence, blames citizens with various types of fiscal burdens. In addition to all known taxes: income, VAT, excise or tax on winnings, there are many taxes that the average person has not heard of and does not know that she should pay them. One such non-obvious tax is family loan tax. Below is everything you need to know about this tax. We invite you to the article.

Family loan tax – what is it?

Family loan tax - what is it?

According to the Act of 9 September 2000 on tax on civil law transactions, each private loan is subject to PCC tax in the amount of 2% of the base (in this case, the loan amount is the basis). In other words, by concluding a loan agreement with someone, we are obliged to give the tax office 2% of the amount borrowed. Fortunately, the legislator has provided for several exceptions in which we are not obliged to pay this tax.

According to art. 9 par. 10 of the Act on tax on civil law transactions are exempt from taxation:

  • loans from credit unions or company funds, trade union funds, employee relief and loan funds;
  • cooperative savings and credit unions;
  • loans received from one person in the amount not exceeding PLN 5,000 or PLN 25,000 from many people – received within 3 consecutive calendar years, starting from January 1, 2009;
  • loans granted by entrepreneurs who do not have their registered office or management in Poland, who conduct activities in the field of loans and lending.

In addition, we will avoid taxation if you borrow money from your immediate family, specifically from people who belong to the first tax group. According to the act, they are:

  • spouse,
  • descendants,
  • ascendant,
  • stepson,
  • son in law,
  • daughter in law,
  • siblings,
  • stepfather,
  • stepmother,
  • in-laws.

The limit amount, for which we do not have to report a loan to the tax office, is PLN 9,637 per one person within 5 years. If the amount borrowed by us exceeds this sum, we are forced to report it to the appropriate tax office and meet two conditions:

  1. Submit a document certifying the transfer of the loan to a bank account or postal order.
  2. Submit a PCC3 declaration on tax on civil law transactions to the competent tax authority within 14 days from the date of the act.

The fulfillment of the above conditions exempts us from the obligation to pay 2% tax for the amount above PLN 9,637. It should be remembered that this rule does not apply to loans between parents-in-law, son-in-law and daughter-in-law. These persons are required to pay the tax if the loan amount is exceeded.

What are the consequences of not complying with the conditions for dismissal?

What are the consequences of not complying with the conditions for dismissal?

The Act clearly and legally defines the obligations to be met in order to receive tax exemption and penalties for failure to do so. If the loan is not reported within the statutory period of 14 days, the taxpayer is forced to pay a tax of 2%. If, however, taxpayers refer to the fact of concluding a loan agreement during the tax inspectorate’s inspections and the taxpayer fails to submit relevant documents confirming the transfer of money to a bank account, money order or the account of Spółdzielcza Kasa Oszczędnościowo Kredytowe, he will be charged a 20% tax the basic amount. That is why it is very important to ensure that all formalities are within the deadline set by law, because otherwise you may have to pay additional costs.

How to draw up a loan agreement?

Everyone knows that all contracts, even those made with relatives, should be in writing. For this reason, it is worth ensuring that the loan agreement in the family contains all the necessary information, such as:

  • who – means the person providing the loan;
  • what – the amount of the loan granted;
  • commu- nity of the person accepting the loan;
  • a possible percentage of the amount borrowed;
  • loan repayment date;
  • the degree of kinship of the persons concluding the contract.

Such a contract does not have to be confirmed by a notary. Issues related to loan taxes lie with the borrower and he must settle them.

It is worth remembering that in the title of a transfer with a loan, enter that it is a loan in the family. We will then have a credible proof of transfer in the event of a US inspection or subsequent enforcement of your claims.

Loan and donation? Differences in taxes

Loan and donation? Differences in taxes

In the case of donations, as in the case of a loan, persons from the first tax group are exempt from the tax if the donation does not exceed PLN 9,737. A further family also has a chance to avoid taxation, but in their case the tax-free amount is respectively:

  • PLN 7,276 for the second group (descendants of siblings, siblings of parents, descendants and spouses of stepchildren, spouses of siblings and siblings of spouses, spouses of siblings of spouses, spouses of other descendants);
  • PLN 4,902 for the third group (other buyers).

It is worth mentioning that within the first group, the group 0 is distinguished, which includes:

  • spouse;
  • descendants (eg son, daughter, grandchildren, great-grandchildren);
  • introductory (eg mother, father, grandparents);
  • siblings;
  • stepfather;
  • stepmother.

This group is exempt from tax for an amount exceeding the limit amount, provided that they meet the following conditions:

  1. They will report it to the relevant tax office.
  2. They adequately document the donation (similar to a loan).

These persons are required to meet these conditions within 6 months of receiving the donation.

In other cases, you must submit a declaration to the appropriate tax office, within 1 month of receiving the donation and pay the tax, which is:

  • 3% – up to PLN 10278;
  • 308 PLN 30 PLN and 5% surplus over 10,288 PLN – for the amount from 10278 PLN to 20556 PLN;
  • PLN 822 PLN 20 and 7% surplus over PLN 20,556 – for an amount over PLN 20556.

As you can see, tax regulations in Poland may seem a bit complicated and do not bypass even the closest family. However, the fulfillment of the conditions for dismissal on time will mean that we will not have to bear additional costs related to a loan or donation from the immediate family.