Posts Tagged ‘Financial Tips’
How do I Calculate How Much Money I Need
Most people have multiple debts and payments. We all know that we have a mortgage, car loan, card … But what almost nobody knows is how much money you actually how much time is left to pay and at what cost (interest rate) is paying those debts.
It is very appropriate that we keep a tight check on these data, to know at any time if our situation allows us to meet these debts.
Reports and to request a payment plan
The first thing we do is a list of all loans that we have, other periodic debts and insurance payments will be addressed (taxes, incidentals, etc..) Some of these debts relate to loans for which we paid interest and others do not.
For example, among the debts with interest are: mortgage, car loan, personal loan (for any expenses) and credit card.
Interest-free debts
Debts without interest but we have to pay monthly or other intervals, but we can plan because we know that exist, include: income tax, vehicle tax, tax on the rateable value, shares of the residents, vehicle insurance, home insurance and personal, car reviews (ITV, maintenance …) and so on.
Contingencies
And there will be another section of contingency, we can take into account, and which, although it is uncertain, we can sense in our experience. This is wise not to fall short in forecasting and to provide a sufficient contingency expense (if less then, that money already spent on other things.)
Bank Charges and Loans
When you ask anyone how to make money a bank will respond to granting loans, investing in securities … that’s true, but many do not know that the biggest source of profits for banks are the commissions. It can be said that banks and charge fees for absolutely everything.
The committees are established by each institution, in consultation with the Bank of Spain to ensure that meet certain requirements and comply with the law.
Must be necessary, ie to respond to a service and not covered by another product contracted by the client, must be communicated to customers and posted on the bulletin boards of offices, are not abusive (on this should be discussed much) can not be charged for transactions carried out by failure or negligence of the entity can not be cashed in if there are no contracts and can not exceed a fixed amounts (eg 1% cancellation rate mortgages variable).
The commissions that normally apply are: for transferring money, to keep accounts, to withdraw money from cash, to have cards, study and / or create a credit, cancel, for having an overdraft.
Actually, it is difficult to escape them. The only thing we can do is compare the different entities and seek the lowest commission, because although in theory the commissions should have the degree of marketability, consumers often do not find ourselves in a strong position against the entity.
Posted in Bank Charges, Credit and Loans | 
Tags: Bank Charge, Business Tips, Credit Loans, Financial Tips, Loans | 
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Should I Change My Mortgage Bank?
In recent years, the housing market in Spain has enjoyed spectacular growth, both in terms of houses built and from the sales data from new and existing homes. This large increase was reflected in a large increase in the number of mortgage loans requested and granted. Credit institutions have seen and their profit rates reflected significant growth.
But with the slowdown in sales due to economic uncertainty, the high housing prices and the oversupply of housing, there has also been a decline in the number of mortgage applications.
Banking institutions in order to meet their objectives in terms of volume of loans, are forced to adopt new strategies to attract customers in a market are not as abundant. How? For taking away customers to the competition. If there are no new customers, he will have to convince those already in the mortgage market for transferring their mortgage to our organization: it is what is called subrogation of mortgage.
This war between the entities to grab customers, can be beneficial to the consumer, because the organization must offer more favorable conditions for new mortgages which they had before. On the one hand, some banks offer commission-free mortgages (cancellation, subrogation, etc..).
More advantageous interest including financial compensation that may be a percentage of total mortgage (1% – 2%) or a fixed amount (about 600 €). They also tend to offer the possibility of extending the repayment periods up to 35 or 40 years so that the monthly fees are lower.