Credit for car, house& co.this is what happens when you can no longer pay your installments

adminonMarch 14, 2022February 11, 2022Leave a Comment

the corona crisis is changing our shopping behavior. Studies show that consumers have been refraining from making major purchases since the middle of last year. the fear of a financial shortfall is too great. But what really happens if you can no longer pay your credit or credit card bill??

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A layoff, short-time work, unexpected expenses, or even a corona-related switch from full-time to part-time at your job can put big gaps in your budget. If it becomes apparent that you will not be able to pay an installment on a loan or even the monthly credit card bill, the following applies: do not panic and address the problem.

There are different options. First, you should check how big the financial hole is and whether there will be an improvement in the next few months. If you have a short-term problem due to unexpected expenses, you can consider whether the overdraft facility on your bank account can fill this financial gap.

In the case of large financial holes, a conversation with the bank is absolutely helpful. Installment breaks, deferments, debt rescheduling and even residual debt insurance can help quickly.

Overdraft facility can help in the short term

Example: suppose your car won’t start anymore. The garage charges 700 euros for repairs. You don’t have the money because you had to go on short-time work due to corona, which has already depleted your financial cushion. The dispokredit could quickly help here. The prerequisite, however, is that you are able to pay it back.

What I have to pay attention to?

Banks pay well for this offer. A dispo loan can cost up to 14 percent interest per year. If, for example, they have drawn down an average of 1000 euros, they will pay just under 140 euros in interest over the course of the year. By way of comparison, the average interest rate for an installment loan with a term of 48 months (four years) is currently less than 4.3 percent. This is the result of an evaluation by the independent financial consultancy FMH.

In addition, they must also repay the dispokredit and that means in turn that they must also step in the following months a little financially shorter. therefore reduce costs as quickly as possible. If you do not absolutely need certain subscriptions, insurances or even purchases, then pause or cancel them as quickly as possible.

It is common that the bank invites you to a conversation, if you slip over six months in a row in the minus, thereby at least 75 percent of the height of their framework with the dispokredit exhaust.

In this conversation the bank suggests how to save costs. For example, an installment loan can help to close the financial gap again without severe cuts.

Credit card with installment option can also help

Smaller sums can also be paid with a credit card. almost all banks also offer installment options on credit card purchases or credit card settlements. After successful registration, you can pay the outstanding amount in convenient monthly installments.

What do I have to pay attention to?

Such offers are usually much more favorable than the dispokredit, but it is still important to read the contract data carefully and also calculate the total costs you will incur.

Many banks call this service "partial payment" or "credit card stretching, because you pay a sum in several installments. interest rates are usually between five and 12 percent.

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I can no longer service my loan, what should I do??

If you can no longer pay your installment for the house or car loan, for example, because the overdraft facility has already been overstretched, the credit institution switches to reminder mode at the beginning and later to crisis mode.

Most banks will first send you a payment reminder by mail. If you ignore this, the first reminder follows. In most cases, processing fees are then due.

After the third reminder at the latest, the bank can terminate your loan agreement. the procedure is as follows: you will receive the reminder and an information letter threatening the termination and the consequences, at the same time you will receive a two-week grace period to transfer the outstanding installments.

If you do not pay this reminder either, the loan will be cancelled. You would then have to pay back the outstanding loan amount – including interest and any processing fees – in one fell swoop.

If the bank calls in a debt collection agency after the second reminder, it is advisable to seek debtor counseling quickly.

installment cannot be paid: what can i do??

If it becomes clear that you are in financial difficulties, you should talk to your bank. Together you can find possible solutions. Don’t worry: Strokes of fate are a part of life and there is a solution for everything.

Solution 1: residual debt insurance

If, for example, you have taken out residual debt insurance for your loan, this can take over the payment of the loan installment. You can activate the residual debt insurance if, for example, you have become unemployed through no fault of your own (e.g. due to corona) or are no longer able to work as a result of an accident.

The insurance company will (generally) pay the installments up to a period of 12 months. From the age of 13. You would then have to continue paying the loan yourself for the next month. The insurance company assumes that you have found a new job in the meantime.

CHIP advises: inform your bank about the residual debt insurance. In special cases, it can even take months until the first installment is actually transferred. For the transitional phase, you should therefore check whether an additional installment break would be possible.

Solution 2: take a break from the installments or let the installments be deferred

In the event of short-term financial problems, an installment break can help. During this time, you only pay the interest due. As soon as you are back on a secure (and solvent) footing, you can simply resume payment of the installments.

In the case of a deferred payment, you can suspend the installment completely for a maximum of two months. In most loans, such an option is already contractually guaranteed and also free of charge.

It is important, however, that you discuss the installment break or the installment deferral with your bank without fail. Consumers cannot simply stop the installment, the bank must first be informed and give its approval. In addition, your advisor can ask for the reasons and, in some cases, request supporting documents.

Solution 3: Reduce the rate or reschedule the debt

if your monthly income slides down over a longer period of time, it helps if you extend the outstanding loan amount over a longer period of time and thus push the rate down as well. In addition, you can also reduce interest rates by rescheduling your debt.

Example: you have actually had a fixed monthly salary of 1.600 euro had. Because you can work less hours due to corona, you will now only receive 1.200 euros and sometimes even less than 1.100 euro. But you can’t pay your monthly installment for a private loan of 400 euros with it. Actually, the loan would be paid off in ten months. What to do?

Solution: you can cut the rate in half. For example, you will then pay 200 euros every month. However, this means that you will have to continue paying the outstanding loan amount for about two more years (including interest).

A debt restructuring is worthwhile if you pay off one or more loans and pay different interest rates for them. you take out a new loan (with more favorable conditions) and pay off the old loan with it. In this case, they can not only set more favorable interest rates, but also lower monthly installments.

CHIP advises: interest rates have fallen sharply in recent years. This makes a debt restructuring more worthwhile than a simple reduction of the monthly rate.

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Beware of "fast" loans and "unbureaucratic solutions"

Consumer advocates warn. Especially in times of corona, the offers of credit intermediaries have increased, offering "unbureaucratic help" or "credit-free" credit advertising.

the consumer advice center schleswig-holstein warns: such offers often result in additional costs and in the end the mountain of debt is only bigger.

They are about the size of a cat and quite cute to look at: martens. Residents of rural areas have long been familiar with this small predator. Like other wild animals, however, martens are increasingly drawn to urban areas. If you have a marten as a co-inhabitant in your house or garden, you will soon find the animal no longer cute, but a nuisance. If a pine marten has taken up residence in your attic, you can "look forward" to loud tripping noises, banging, screaming and hissing.

But that is not all. The marten poses a risk to your car and unfortunately this is the case all year round. The pine marten has earned its nickname "cable biter".

Martens cause high costs

Marten damage to a car can be very expensive, as the rodents are particularly fond of chewing on hoses and cables. If coolant hoses are bitten, the worst that can happen is engine damage from overheating. As part of a spring or winter check, take a look under the hood to check cables and hoses.

If you notice marten damage in the engine compartment, you should make sure your car is roadworthy before you drive to the workshop. If you have comprehensive insurance, however, you should first inform your car insurance company about the damage.

With admiraldirekt, you are insured against marten damage in every comprehensive tariff.

Martens are repeat offenders

Once your car has been visited by a marten, the marten leaves a mark and encloses your vehicle in its territory. Not only does this small pest find your car again and again, but other marten species are also attracted to leave their scent marks behind. Often, the following visitors react aggressively to the already existing marking and give free rein to their biting rage. After a marten damage, you should therefore clean the car, the engine compartment and also the parking area (road, carport, garage) well.

By the way, martens are considered to be wild animals, even if they are more known for biting damage than for wildlife accidents. You can also read about what to look out for in the event of a marten accident in our guidebook.

Tips on marten repellent

Foreclosures:

Devices that seal off the animals from the engine compartment have proven effective. Depending on the car model, there are already ready-made systems available from the manufacturer. Ask your specialist car dealer for more information.

Ultrasonic devices:

Ultrasonic devices emit frequencies that are inaudible to humans.

Rodents are said to perceive the vibrations as disturbing and thus stay away from the car. However, the effectiveness has not been scientifically proven.

Cable protection:

Cable protection is available from specialist car dealers and is best fitted by a professional. However, this only protects the cables and not the hoses and axle boots.

A powered marten scarecrow works like a pasture fence. Metal plates are installed in the marten entry areas that emit light electric shocks when touched. The marten scarecrow is powered by the car battery.

Once the marten has struck

Once the marten has made itself at home in the hood of your car, it is advisable to wash the engine to remove the rodent’s unpleasant odor. This means that even rivals can no longer perceive the marking.

Navigation systems in cars are divided into permanently installed on-board computers and mobile devices. The difference lies in the scope of the integrated software, and thus of course ultimately in the price.

But even the less expensive mobile devices can basically do everything that helps drivers find their way in traffic via GPS. the basic principle is always the same: the vehicle’s current position data is retrieved via GPS receiver, the software calculates any desired information based on the integrated digital map material, and gives it visually on the display and acoustically via voice output.

However, even with these basic functions, significant differences in quality and ease of use are possible. For example, the images on the display range from simple four-color graphics to realistic 3-D animations.

Simple operation is mandatory

Just as it’s illegal to talk on the phone while driving, the same is true for a sat nav. The navigation systems can therefore be controlled like a radio while driving, d.H. Volume and information type can be set at the touch of a button or by touch. more is not necessary, because the manual use of the navi is done before the start of the journey.

In the case of the on-board computer, this is limited to switching it on and entering the destination. The navi does everything else on its own: it receives four supplementary satellite signals that determine its position in space, and suggests the best routes to the driver. Once the selection has been made, the journey can begin. The navi constantly determines the position of the vehicle while driving and guides the driver along the route.

Before a mobile device is ready, however, a few preliminary steps are necessary. The device must be connected to the vehicle’s battery and securely fastened in the driver’s field of vision. Usually this is done with suction cups on the windshield, but brackets on the console or on the dashboard are also possible. It is important that the supply cable does not restrict the freedom of movement in the cockpit.

Navigation systems increase safety

The focus of a navigation system is driving safety. But the devices can also function as anti-theft devices – if a transmitter is added to the GPS receiver. Then the position of the vehicle can also be determined from other locations or. The navi triggers an alarm if the vehicle is moved without authorization or leaves a defined area.

How to use a navigation system

Many details play a role in driving safety. Basically, the driver is informed about the current position, the driving direction, the current speed, the next turn, the estimated remaining driving time incl. the time of the next turn via diplay. informs the driver of the time of arrival and the remaining distance to the destination.

For this purpose, current traffic jam messages can be transferred to the route via bluetooth or TMC radio reception, and the route can be changed operationally. Knowledge of speed limits and the positions of speed measuring stations prevent drivers from making mistakes. Bluetooth also functions as a hands-free system for the cell phone. For a good sound of the announcements many navis use the inserted car radio and/or. Its loudspeakers.

The FM frequency on which the navigation system transmits is set for this purpose. Accordingly, an MP3 player integrated in the navigation system can also provide good entertainment during the journey. Even if the radio is running, an acoustic gap is always created for the orientation announcement. voice input via bluetooth eliminates the need for manual handling of the navi.

Navigation systems help optimize

Navis not only limit the safety risk when driving, but can also achieve ecological and economic effects. With the manufacturer tomtom, for example, it is possible to include the individual driving characteristics of a car owner in the calculations of the navigation system.

In this way, the information on driving time is not only calculated from the general route data, but also from the "speed setting" of the driver. This is known to fluctuate significantly around the respective applicable tempolimit. The navi also "remembers" a driver’s favorite routes and prefers to display them as suggestions. Fuel-saving routes can also be calculated.

The "lane assistant" helps drivers to get into the correct lane in good time before making a turn. The rear view camera helps when parking or approaching charging stations. The image of the vehicle’s rear bumper is transmitted to the navi display and shows the driver exactly how much distance is still available.

On the long drive back from vacation, the display can also be used for other purposes. At least the passengers can take a look at the snapshots from the digital camera or smartphone from their vacation.

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