Overdraft Loan

loanWhat is an overdraft and how does it work?

An overdraft loan (or even overdraft or overdraft) means a loan that allows the bank account holder to dispose of “in minus” money in that account.

It is usually offered by banks as a supplement to current accounts, it can be used at any time, even repeatedly. This is a short-term and non-purpose type of loan, with a maximum maturity of six months to a year, depending on the bank. The Bank also sets time and money limits, ie it determines when the client can use the overdraft and to what amount.

Debt repayment

Debt

The debt is repaid in such a way that the client increases the account balance by the amount borrowed (ie, as much as he draws in minus) + by interest. Usually this is done by an incoming payout that fully or partially covers the interest debt.

As it is a short-term loan, interest is higher (approximately 18.9% pa). For each day your account is minus, interest is added to the debt. (So ​​the sooner you settle the debt, the less you overpay the bank.) On the other hand, most banks do not require the establishment and maintenance of a loan.

You can borrow 5000, but also hundreds of thousands

You can borrow 5000, but also hundreds of thousands

You can borrow from 1 to 5 000 CZK to the amount of approximately 60 to 300 000 CZK, depending on the limits of the particular bank. Tio bank offers up to CZK 3 million. More extensive comparison of overdraft offers at selected banks.

Types of overdraft?

Types of overdraft?

Banks distinguish a secured overdraft, that is, in most cases, a term deposit of the same or higher than an overdraft loan, and an unsecured one that requires no guarantee (but only some banks offer it).

Advantages and disadvantages of overdraft

Advantages and disadvantages of overdraft

An indisputable advantage of an overdraft is that thanks to it, the client has certain certainty of his / her solvency by paying such payments as SIPO, direct debit, other payments etc. from the account to which he / she has overdraft. account balance zero.

TIP: Don’t forget to repay – it’s still a loan. Also keep in mind the limit set by your bank.

The disadvantage of overdraft is the higher interest rate and relatively high penalties for breaking the limit.

Overdraft for entrepreneurs?

Overdraft for entrepreneurs?

Banks usually offer an overdraft adapted to the needs of entrepreneurs, such as Rairaibank, ABC, Tio bank, etc. It is advantageous to use an overdraft loan for your business if your company has enough income; in such a case, the debit balance is paid relatively quickly and the entrepreneur thus saves significantly on interest (which, as we have mentioned, is regularly credited on a daily basis and increases the amount owed). A common practice in this overdraft is also drawing in foreign currencies.

What to watch out for?

Overdraft functionality seems uncomplicated, but think that if you exceed the amount you can draw, you will pay a high penalty (around 25% pa).

Loan to payout without registry

 

The payout is usually possible within a few days before the money is collected from the employer. It takes a few days without funds to make the necessary amount of money in the account. There may be threats to turn off your phone, electricity, or gas. Nobody hides before paying. But there is a solution.

Fast money

Fast money

Who cannot wait weeks to approve loans from banks and needs to immediately fill the account with money can use a quick and easy solution. A registry-free loan will make it easier to survive and several thousand crowns can be available in minutes. Just look for a cheap and safe loan. Money will not come on its own, it must be helped by completing an online questionnaire.

Cashless Loan

Cashless Loan

The fastest solution to a difficult situation is a computer or a mobile. Just search for your amount and register on the loan offer site. Non-bank loans are not data intensive and often only the name, address and date of birth are sufficient. A few thousand crowns don’t have to be secured and you don’t have to look for anyone to guarantee. All you have to do is choose whether you want money on account or send money order.

Rental fee

money

Many believe that loans are financially demanding and will exhaust additional resources. Nothing is free, but the real cost of a loan is not high. It is a risk to get money without guarantee and without creditworthiness. A loan without a register costs about a thousand crowns, which is easy to pay. Other loans are also not free and will burden the budget for many years. The payback of the commitment in a few weeks will free you from further long-term concerns.

No registry

loan

A registry-free loan means not only financial relief, but also the ability to get a loan despite a negative record in the debtors register. Nobody examines whether you have paid off other loans in time, whether you are late, whether you have other debts and obligations. The creditworthiness of smaller loans before payout is not material. Sometimes he needs to borrow everyone, so the borrower is interested in returning the loan. Again, he can reuse a simple and cheap way to borrow money before paying.

20 Year Credit Purchase

Sometimes the credits reach a significant amount, to the point of stifling the finances of a household. With home loans and other ongoing repayments the family budget may experience a severe deficit. Faced with these problems, the 20-year credit buy-out promises to be an effective long-term solution.

 

What does a 20-year credit buyback include?

loan

A 20-year consumer credit buyback includes all outstanding debts. This combination of liabilities includes different types of receivables. There is real estate credit for those who are still paying their house. Then, the offer also includes consumption credits.

These loans granted by the bank, for various expenses, without request for justification, are cumulative. The set of multiple consumption credits can become important. Then, the duration of their reimbursement does not exceed 7 years. However, when they are grouped, their payment spans two decades.

 

The conditions for a consolidation of credits 240 months

consolidation of credits

All profiles are practically eligible for a 20-year credit redemption. The offer is aimed at owners, employees and retirees with adequate financial resources. In general, the maximum amount of a monthly payment follows the quota rule.

The debts of a natural person should not exceed one third of his income. With regard to the different credits, the mortgage loan should normally remain below 60% of the repurchase of credit.

To take advantage of this financial offer The 20-year credit buy-back is a financial boon for families with a high debt ratio. This offer has the particularity of being able to include up to 59% of mortgage loan in the course of repayment. This is an alternative to classic offers whose maximum duration is 7 years. The APR rate is between 1.60% and 1.80%.

The amount of the contract easily exceeds 150,000 euros. The monthly payment for this sum is about 780 euros with credit insurance amounting to 45 euros.

SMS loan immediately on account and on postal order

SMS loans to the bank account immediately provide money quickly and reliably. The applicant can have the necessary amount in just a few minutes after the application has been approved. But what are the tricks of these loans and what to watch out for?

These loans fall into the category of loans up to CZK 10,000. To get a quick SMS loan, you must complete the registration form and wait for approval or disapproval. As a rule, the client chooses how much he or she wants to borrow on the website of a given company, for how long and immediately sees the expected amount of the installment.

“Frequently Asked Questions” and APR

In the Frequently Asked Questions section, the customer usually knows whether a given company is looking into the debtors register, whether a paper receipt is required or if a guarantor is required. Another important indicator that the candidate should follow for each loan is the APR. It means – simply put – how much a year a person pays extra on the amount he borrowed. SMS loans “immediately” usually have a significantly higher APR than other loans.

On the other hand, it is not a problem to borrow even a lower amount – for example, a few hundred crowns – and the excess is not so high in absolute amounts. The maturity of these products is 30 days. This is undoubtedly an advantage because the client does not have to pay too long and only borrows what he really needs.

Loan via SMS – money to bank account

Loan via SMS - money to bank account

Money is usually sent to the client’s bank account after sending an SMS message. Bank transfer is cheap and does not require too much administration from the creditor company.

SMS loans without registry check

SMS loans without registry check

Some companies operating in this area are tolerant of possible negative entries in debtors’ registers. There is also a chance for applicants to have a chance to get funds, who had a “foul” in paying their liabilities and looking for a “loan without registers”.

SMS loans for postal order

Some non-bank companies realize that not all clients are willing to send money to a bank account. They therefore offer the possibility of sending a loan for a postal order. The disadvantage over “loan on account” is the longer delay between the approval of applications and the receipt of money. Money for a postal order usually goes to the applicant for 2-3 working days.

Getting money is simple, but beware of the risks

Getting money

Get a loan via SMS is quick and easy. However, it should be noted that it is not entirely risk-free. Before submitting an online application, the candidate should think carefully about whether he really needs the money and if there is no other way to get the money (for example, ask a family member). He should also count on the fact that he will have to pay a part of his next paycheck in installments, leaving him with less money for next month.

Health Insurance

 

The majority of the population is provided by the State health insurance. Only a few people have a private health insurance . It offers better services than the GKV. Cash patients can, however, extend their insurance coverage by supplementary health insurance.

 

Private health insurance

Private health insurance

Students, civil servants and self-employed people can take private health insurance regardless of their income. Employees can choose between statutory and private insurance if they have an income above the mandatory insurance limit (€ 57,600 gross per year). The PKV provides high-quality services and is cheaper for many customers.

 

Statutory health insurance

Statutory health insurance

The statutory health insurance companies offer a largely uniform insurance protection. Special services at the doctor and in the hospital are not part of the legal standard care. Also applies a uniform general sentence for the calculation of the insured contributions. Nevertheless, there are sometimes significant differences in terms of benefits and costs.

 

health insurance

health insurance

With additional health insurance insured persons can significantly expand the benefits of their health insurance. Among other things, they provide comprehensive insurance coverage for doctors, dentists, non-medical practitioners, hospitals and nursing staff. They offer many options that are otherwise reserved for private patients

 

Tailored health insurance

Tailored health insurance

Self-employed persons, civil servants, students and employees can opt for private health insurance and use individually tailored tariffs. Employees must have an annual gross income of at least € 57,600 in 2017 in order to be allowed to switch to private health insurance. Self-employed, students and civil servants can insure themselves privately independently of income. The private health insurance offers many benefits compared to the statutory health insurance. Often it is even possible to save on the contributions.

 

Super Saver

In the case of private health insurance, the premiums to be paid depend, among other things, on the exact scope of benefits. Generally, the more extensive it is, the more you have to spend on insurance premiums. Therefore, before you look for a private insurance rate, it makes sense to think carefully about which services are particularly important to you.

 

Tips for changing the statutory health insurance

Tips for changing the statutory health insurance

Statutory health insurance companies that keep their promises benefit in the long term from a high number of satisfied members. First-class service and additional services round off the offer of trustworthy health insurances. The change to exactly such a statutory health insurance is very easy. A written notice with a period of two months to the end of the month is sufficient. Only if you have already changed your statutory health insurance in the last 18 months, a proper termination is not readily possible. As soon as you have changed, you will not feel any difference at your next visit to the doctor’s office, including a new health card.

The more members have statutory health insurance, the lower the risk that the company will make an additional contribution. With enough paying insured the enterprise is financially secured and can offer you particularly attractive achievements. However, from 2015, there will be a new income-related additional contribution. These can then raise the health insurance companies independently. Experts believe that almost all funds will access such an additional contribution. The only question is how high this will be.

If you want to switch to the statutory health insurance, it is like all rates: If you pay too much or receive only poor benefits, you should use a better deal. How about health insurance that offers you free anti-stress programs or back exercises? 

 

Complete your insurance cover

Complete your insurance cover

Whether you are in the private or statutory health insurance: Often there are benefits that you want to take advantage of, but their costs are not reimbursed by your health insurance. In addition, if other health insurance companies do not reimburse the appropriate treatment, a supplementary health insurance can help you. Depending on the tariff you will be reimbursed, for example, for the costs of dentures, for non-medical practitioner treatments or for inpatient special services such as the chief physician treatment or a daily sickness allowance or hospital daily allowance. Since the tariffs are very different in price and performance, a detailed consultation by an expert is recommended.