This is how responsible debtors behave

They spend no more money than they can afford, avoid impulse purchases, and pay all their bills and credit obligations on a regular basis.

Consumers are financially literate


The financial well-being of an individual is almost entirely dependent on the decisions he or she makes – although it may not seem so to many. Consumers are financially literate, with the knowledge, skills, attitudes, and behaviors required to manage their own finances in accordance with personal and/or family interests.

Individuals must face all the consequences of their choices. The ultimate goal of an individual’s decision is to satisfy one’s need or desire on the one hand, and on the other, to achieve the personal financial goals that he or she has set. Responsible consumer behavior comes down to well-informed, rational decisions.

Consumer decision making is influenced by many factors 


However, consumer decision making is influenced by many factors – why we make decisions that will cause us problems. We are influenced by many social factors such as culture, stock, and situation, as well as personal and psychological influences. The physical and social environment, time, and conditions of purchase may lead us to make adverse decisions for us.

Certain occasions and rituals and how they affect our resilience to what we know is right for our wallet. Christmas, Valentine’s Day, or seasonal reductions are the real situational bait where even the greatest rationalists linger in their control mechanisms.

This is so because in a cultural context these situations have come to be regarded as “normal” and are not perceived as impulsive purchases, but reasonable and expected.

The impact of the environment, especially of family and friends, is extremely important to our consumer decision making and the way we spend money.

Similarly, because of environmental expectations, despite, for example, diminishing financial capacity, individuals continue with the same lifestyle and level of consumption because they feel the pressure of the environment to continue.

Of the personal factors that include motives and motivation, perception, attitudes, personality traits, and knowledge, motivation stands out.

According to some research, up to 90% of our choices at the point of purchase are determined by impulse, feeling, or habit. Although such findings vary widely across groups of people, it remains clear that only a small portion of our decisions are truly based on cognitive decision-making.

7 characteristics of the responsible debtor


Achieving your own well-being is based on money management, planning, and careful consumer decision making. Responsible debtors have the following characteristics:

  • they do not spend more money than they can at the present moment, and given the expected future position
  • avoid impulsive buying decisions; make well-informed decisions
  • select financial products and services that are consistent with their present and future financial capabilities
  • they are well informed and seek advice from experts
  • they save on contingencies, which are the recommended six-month expenditures of one household
  • regularly pay credit card liabilities and other financial liabilities

analyze the possible future financial situation in the light of revenue reductions, unexpected costs, reductions in real assets, and new fiscal rules.

Real Principal Reduction Mortgage Program

Homeowners are not required to pay upfront to lower their mortgage balance More commentary at

There are basically only two places to get a reputable major mortgage reduction. Any other unrecognized company outside of these two places could be a scam. There are a lot of artists in the industry at work whose main goal is to get money out of their pocket and put it in them.

Here are two places for a major reduction:


  • Government Master Reduction Reduction Program
  • A major reduction program offered by your existing lender

What’s more, you don’t have to pay a loan modification company to get a major reduction on your mortgage for you. Help is available for underwater homeowners for free through the Obama Making Home Home program.

Keep in mind that mortgage companies generally will not reduce the equity of your mortgage unless your home is worth less than your existing mortgage or other extenuating circumstances.

Warning Signs The main reduction program is fraud


There is no free lunch, no free money for homeowners, no matter what a fancy site may promise you. Anyone can set up a website and make empty promises. Don’t be fooled by such deceptive tactics. Just because you find it online does not mean it is real. Here are some warning signs that a major reduction program can be a scam:

  • The company is not affiliated with your existing bank or with the government.
  • You do not recognize the company name.
  • Company address and contact information not available. There is no “contact us” button except the toll-free number.
  • There are no individual names listed as business owners or a board of directors.
  • Some websites are empty or under construction.
  • When you call someone for a toll-free number, you feel pressured and confused afterwards.
  • You do not understand how the program works. The major reduction programs are pretty easy to understand.
  • You guarantee that your existing loan will be paid in full. No company can guarantee that your existing lender participates in a major reduction program. Watch out for warranties.
  • They promise you that any type of loan and any loan amount will qualify for each program. Outsiders cannot deliver on this promise without more information from you.
  • A major downsizing company is seeking an advance deposit or down payment in exchange for negotiating or financing a new loan. Advance fee = big red flag! The only check you need to write will be to evaluate.

Check the main reduction program


If you have doubts that a major reduction program is legitimate, listen to your instincts. Your instincts will rarely lead you in the wrong direction. Here are some tips to help you determine if a company is legitimate:

  • Contact a HUD-approved home loan adviser. Click on your country, enter your city and call a free non-profit agency for advice.
  • Research the company name and read what others have to say. You’re probably not the first person to fool. People get online to report criminal behavior all the time.
  • Call a real estate agent, mortgage broker, lawyer, or tax account whom you trust and respect. Ask that person to check the main reduction company for you.

If you get confirmation that your instincts are correct, report your main reduction company to the Federal Citizens Information Center.

You can also report the company to the governing body of your estate and your state Attorney General. Don’t feel that taking additional steps to report to these companies is a laborious effort as it will help you close them to help prevent them from sacrificing others without knowing them.

Credit without Credit Bureau query – is there?

In Germany, more and more citizens are so in debt that they can no longer get credit with Credit Bureau information. So such groups of people are looking for a loan without Credit Bureau query. Such a loan without Credit Bureau query is often a small loan and is an alternative for people with a poor credit rating to earn money in a serious way. Another advantage is that such a loan is not registered with Credit Bureau.

So you can do whatever you want with the money, whether you want to buy new furniture, buy a car, take a vacation or take on other liabilities to pay less interest, no lender is interested in these loans. Other normal loans are mostly earmarked, which is not the case here.

When requesting a loan without a Credit Bureau query, you may not incur any upfront costs, this previous request is always free and non-binding. Costs only arise if the desired loan has been approved and completed without Credit Bureau query. But it is best to clarify in advance what costs you will incur if a contract is concluded. In addition to the interest, there are usually processing fees and agency commissions, perhaps account fees, etc. Such loans are usually offered through brokers or agencies as well as taken out and not directly with a Cream bank.

Credit from Cream banks

Credit from Cream banks

Such a loan without a Credit Bureau query runs mainly through large Cream banks and they do not collect German Credit Bureau information. You just have to prove your creditworthiness with wages or salary slips, but if you can’t prove them either, you don’t have a chance to get a loan. So people with unemployment benefit I and unemployment benefit II or basic security generally do not get a loan without a Credit Bureau query. Then such a group of people would only get a loan if they have a guarantor who can present the proof of earnings.

Internet credit

Internet credit

The borrowing rate starts at 4.83% (it depends on the credit rating) and is fixed for the entire term. The effective annual interest rate would be between 4.9 percent and 16.90 percent. Such a net loan amount could e.g. B. are between 1,000.00 USD and 100,000.00 USD and the terms are usually between 12 – 120 months. But since the conditions are very different, you should get different offers and then compare them. The best offer should then be selected and concluded. If you take a look around the Internet, you will find a lot of offers on “Loans without Credit Bureau query”.

But please take a close look, because there are certainly “crooks” and “dubious offers” – always read everything carefully, even the small print. Such loans are even offered by aution houses, but it is better to look for different providers yourself. Such loans are increasingly shown and offered on television in commercials. This also shows that interest in a loan without a Credit Bureau query is increasing.

A representative example could look like this: You get a net loan of 10,000.00 USD on the following terms – the normal interest rate would be 6.70 percent for the entire term, the effective annual interest rate would then be 9.95 percent and the contract term would be 72 months.

With the crisis, available savings outweigh credit.

Since the economic crisis has had its effects in the daily life of the French, they now seem more inclined to favor liquid investments and short-term spending, to the detriment of investment products and even credit.

French people less inclined to make long-term commitments

French people less inclined to make long-term commitments

Thus, in an increasingly tense economic context, and in the absence of encouraging prospects in the short term, French households are increasingly mobilizing their savings on liquid investment products, such as passbooks for example, in order to be able to dispose of their money at any time, with the aim of avoiding the need for credit in the event of expenditure.

Indeed, in 2011, many French people withdrew all or part of their savings to pay for expenses usually financed by a loan; others chose to buy real estate with maximum cash contributions, thus minimizing the burden of their future repayments, and still others preferred to opt for an early repayment of their various loans, including loans real estate.

A rebalancing of savings solutions

A rebalancing of savings solutions

There is therefore a significant boom in all bank books, despite the loss of confidence experienced by financial institutions accused by many savers of having more or less led to the current deterioration of their economic condition.

However, this preference for liquid investments occurs mechanically to the detriment of other longer-term investment products, life insurance and UCITS securities in particular. This trend is all the more marked as the difference in remuneration between passbooks and less liquid products becomes minimal.

Now, faced with life insurance in particular, ordinary passbooks are becoming very competitive, starting with the very conventional passbook A: not only are their rates almost equivalent, but above all they offer completely liquid savings, available at any time, guaranteed and tax exempt. The transfer of household savings is therefore quite naturally in favor of passbooks.

Banks reduced to serving as piggy banks

Banks reduced to serving as piggy banks

This situation finally gives the impression of arranging the bankers who collect 95% of the outstanding booklets in France (against only 50% of the outstanding life insurance contracts for example). However, this windfall is offset by the drop in borrowing as well as by the increase in loan buy-back operations.

Because the time is definitely no longer for reckless spending and savers are struggling today to project themselves into the future; on the contrary, they strive to ensure their daily lives by postponing or even giving up their longer-term projects, which until then would have required recourse to credit, which was much more remunerative for the banks than the only account service. piggy bank “.

How to optimize your redemption of credits in 2019?

Close to their lowest historical records, credit rates remain at very attractive levels at the start of 2019. These borrowing conditions favor the repurchase of credits and many French households benefited from them in 2018. Allowing you to reduce your monthly payments, invest in new projects or simplify the management of your budget, a loan buy-back offers multiple advantages, subject to achieving it in the rules of the art. Here is a quick reminder of the best practices to follow to optimize your credit buy-back in 2019.

Borrowing rates still very favorable for buying back loans

Borrowing rates still very favorable for buying back loans

Borrowing rates have remained at very low levels throughout the past year. At the start of 2019, it is possible to borrow at average rates from 0.75% to 1.15%, over 15 years. For a 20-year loan, the median rates are 1.25% to 1.55% (compared to 1.30% to 1.65% last year). Suffice to say that rates have kept all their potential for attractiveness to make a credit buyback operation profitable.

These very favorable conditions are bound to continue. Specialists are considering rate stability at least until the end of the first half of 2019.

Recall that the repurchase of credits consists in regrouping all or part of your old loans, credits in progress (real estate loans, consumer loans, revolving credit, debts) and other debts (fiscal, family or rental debts) and to replace them by a single consolidation loan on more advantageous terms.

The more attractive the rate of your new loan, the more profitable your repurchase of credits. However, the rate is not the only criterion to evaluate in order to judge the advisability of a loan repurchase.

Evaluate the different criteria linked to your loan buy-back.

Evaluate the different criteria linked to your loan buy-back.

It’s not just the rate of the new credit to check. It will be advisable to compare the total amount to be paid in each situation: within the framework of your existing credits the total of the monthly payments remaining due, as well as the total cost of the new credit which will replace your grouped credits.

One of the first criteria to study will be the Global Effective Rate (TEG) of the new loan which will replace your old grouped loans. Then assess its nominal rate and the various costs associated with your loan repurchase. The savings made on your new borrower insurance are also part of the points to study.

The Total Effective Rate (TEG) includes all the fees that you will have to pay in connection with the subscription of a credit repurchase agreement. This amount includes administration fees, insurance costs and interest on the consolidation loan replacing your old credits. The nominal rate determines the interest linked to your monthly payments. This amount to be reimbursed must not exceed one third of your income so that you can keep a balanced budget (less than 33% of your income).

In general, the rate difference between the rate currently outstanding and the rate of the new loan must be at least 0.7 points for this to be advantageous. It is also recommended not to carry out a loan repurchase with a mortgage that has exceeded the first 7 years of its repayment. Beyond this period, the total difference in monthly payments is no longer sufficient to cover the penalties and associated costs (in most cases, but there are exceptions).

You can also adjust the duration of your new loan. This duration also determines the overall cost of your loan repurchase. Of course, a longer period allows you to reduce your monthly payments, but also comes with a higher overall cost.

Finally, do not forget to carefully consider all the costs associated with your buy-back transaction. Redemption fees, handling fees, but also prepayment penalties. Indeed, vis-à-vis the first lending institutions, your credit repurchase is equivalent to a prepayment. The prepayment penalties requested by the lender will be due in all cases.

Optimizing the cost of borrower insurance

Optimizing the cost of borrower insurance

Your credit repurchase terminates your previous loan contracts, as well as the borrower insurance in progress on these loans. As a result, you have the opportunity to save on the new borrower insurance that you will need to purchase to cover your new consolidation loan.

Since the Lagarde law (2010) and the Hamon law (2014), you can take out insurance other than that offered by the bank which carries out your loan buy-back. This is called insurance delegation and very often it allows you to halve your insurance contributions on average.

In addition, since January 12, 2018, the Bourquin amendment gives you the opportunity to change insurance once a year. You can therefore adjust your insurance each year according to the evolution of your situation.

Again, choosing your new borrower insurance can be a lot easier by taking advantage of the advice of a credit broker specialist.

Save time and money with a specialist broker.

Save time and money with a specialist broker.

Intermediary in Banking Operations (IOB), the broker in repurchase of credits will help you to compare the offers and to choose the most adapted to your situation. It has a network of partner banks and credit organizations and it can therefore be granted buyout offers more advantageous than those you would have obtained alone.

Not only will it save you time by comparing the offers for you, but it will also facilitate the granting of your credit buy-back by helping you to present a dossier which highlights the positive points of your request.

Build a buyout file, compare the offers of organizations, negotiate the best conditions all this comes with sometimes tedious steps. Thanks to the loan repurchase broker, you benefit from expert support and, ultimately, a much faster delay in granting your credit repurchase.

How much does it cost ? Murcef law specifies that no payment or payment can be required from the borrower before obtaining his credit. In other words, you should only pay your broker for loan redemption when you sign the final loan offer. In addition, this remuneration will be financed by your new single credit. In addition to making you money on the conditions of your credit redemption, your broker will therefore not cost you any fees when launching the transaction.