Daily Archive: June 30, 2019

Pay off your overpriced loan

Almost everyone knows that borrowing money costs money. In return for lending money, the bank asks for interest. In addition to paying off the loan, you also pay interest every month. This means you always pay back to the bank more than you borrowed. So paying off your loan pays off. After all, you no longer have to pay interest to the bank.

Easy to say, but how do I do that?

Easy to say, but how do I do that?

Postal credit is happy to help you pay off your too expensive loan (s). We have listed a number of useful tips for this:

1. Use your savings. For years, inflation in the Netherlands has been higher than the standard savings interest that you get on your savings. If you have saved money in recent years, then this is probably worth less. On the other hand, you do pay interest to the bank for the money that you have borrowed. With (part of) your savings repaying (part of) your loan, you ensure that you pay less interest. Note: keep a safe buffer in savings for unforeseen expenses.

2. Interest rate reduction Borrowing money costs money. But borrowing money can often be cheaper. Therefore, look critically at your existing loan or credit. View how much interest you pay on an annual basis and then see if this can be taken out elsewhere at a lower interest rate. The less interest you pay, the more money you have left to further repay your loan.

Did you know that with: being red at the bank, using a credit card or shopping online for credit (the so-called shipping house credit), high interest rates are charged? Up to 15%!

3. Prevention is better than cure As we indicated above, when standing at the bank in red, using a credit card or shopping online for credit, interest rates of up to 15% are charged. If, in 2015, you can prevent yourself from turning red or pay for online orders directly, then you will also prevent money from being charged by these high interest rates. Prevention is always better than cure.

Tips for transferring your loan

Tips for transferring your loan

Tip1. Compare the interest rate. Of course you don’t want to pay higher interest.

Tip 2. With loans there are also differences in type of loan, term and monthly term. Make sure you do not compare apples with pears.

Tip 3. With a personal loan, a penalty for early transfer is often charged. Bear in mind that your interest saving must be greater than the amount that you have to pay as a fine.

Tip 4. Are advice and closing costs charged? You can choose to pay this but it is not necessary. There are also intermediaries who do not charge these costs.

Such as postal credit

Such as postal credit

We always offer you the lowest possible interest! No hidden costs. If you want to borrow money, you can request a quote from us free of charge and without obligation. We will then let you know as soon as possible, usually within 24 hours, at what interest you can borrow. Request a free quote today.

A residual debt and now?

It’s time. Your property has been sold! For many people that is a big deal. The average home is soon for sale for more than a year. But with the sale of your home, you are usually not completely rid of your mortgage. In many cases, a residual debt remains.

A residual debt is the debt that remains when a house yields less after the sale than the mortgage debt that exists. So if, for example, you sell a house with a mortgage of € 250,000 at a price of € 200,000. Then the remaining debt is € 50,000; the difference between the proceeds and the mortgage debt.

Because not everyone has the option to pay off the residual debt with their own resources, I will discuss the possibilities that you have to finance a residual debt in this blog.

Option 1: You make a (residual debt) arrangement with your mortgage bank

Option 1: You make a (residual debt) arrangement with your mortgage bank

In consultation with the bank where the residual debt remains, you will find an arrangement whereby you will repay the debt in installments. Often at a considerably higher interest rate than the interest you paid for your mortgage. Your mortgage bank is not obliged to cooperate with a residual debt scheme.

Option 2: You take the remaining debt with you in a new mortgage

Option 2: You take the remaining debt with you in a new mortgage

When you buy a new home and finance it with a new mortgage, many banks offer you the option of financing your residual debt within this new mortgage. Of course you must then meet the mortgage standards.

Option 3: You finance your residual debt with a revolving credit

Option 3: You finance your residual debt with a revolving credit

You can also choose to finance your residual debt with a revolving credit. In this way you opt for flexibility. With a revolving credit, you can always pay extra (fully or partially) without penalty. You may also withdraw the amounts that you have repaid (extra). Only the interest that you pay on the amounts withdrawn is not tax deductible. Other features of a revolving credit are:

* You have a variable interest rate and term
* You only pay interest on the amount withdrawn
* You pay a fixed monthly installment (2%, 1.5% or 1% of the credit limit)
* Your monthly installment consists of interest and repayment

Option 4: You finance your remaining debt with a personal loan

Option 4: You finance your remaining debt with a personal loan

In addition, you can choose to finance your residual debt with a personal loan . With this you opt for certainty; the certainty of a fixed monthly period, a fixed interest rate and a fixed term. You can therefore perfectly match the duration of your personal loan to the maximum term that you may deduct your interest for tax purposes. Other features of a personal loan are:

* You borrow a fixed amount once
* You know in advance where you stand
* At a number of banks, you may recently repay without penalty

The interest is tax deductible

The interest is tax deductible

It has just been mentioned, the interest you pay on your residual debt is tax deductible. This applies to both a revolving credit and a personal loan. The condition here is that the residual debt arises after October 29, 2012. Since 1 January 2015, the period that you may deduct this interest has even been extended from 10 to a maximum of 15 years! So make sure that the maximum duration of your loan is 15 years.

Obtain information in advance

Obtain information in advance

In any case, it is important that you are properly and timely informed about the options for financing your residual debt. Even if your home has not yet been sold, that is wise. After all, you want to know what awaits you. The CreditPostol partner banks can also issue an agreement for a residual debt loan, subject to the definitive sale of your home. This way you know before you start selling the property that you have arranged your residual debt financing properly.

Of course at the lowest possible interest and without closing or consultancy costs. As you are used to from CreditPostol. Do you have questions about your residual debt? Or do you need help with taking out a residual debt loan?