My WordPress Blog Sun, 26 Apr 2020 06:21:28 +0000 en-US hourly 1 Debt Trap Credit Card – Revolving Card Sun, 26 Apr 2020 06:21:28 +0000 (more...)]]>

The “Revolving Card” credit card is basically a flexible call credit with a cash card. A certain loan amount is available, which can be repaid either in one sum or in monthly installments. Repayment in installments involves a not inconsiderable interest or cost risk in the long term.

Revolving Card credit line

Revolving Card credit line

The credit line of a revolving card is determined individually, is unlimited in time and is based on the income and the creditworthiness of the applicant. Since this is nothing more than a loan, credit card companies and banks check your customers very carefully before issuing a credit card with a credit line.

Repayment of the credit card balance

Repayment of the credit card balance

If you have a Revolving Card credit card with a credit line of 1500 dollars, for example, you can now use it for purchases, services and, as a rule, for cash withdrawals. It is usually billed monthly. Many credit card providers grant a payment target for settlement after receipt of the invoice, which can be up to two months. No interest is charged during this time.

After you have received the statement, you can choose with the Revolving Card whether the outstanding amount should be repaid in full ( no interest accrues) or in partial amounts (loan accrued ). When paying back in installments, you have to comply with minimum requirements, e.g. 2.00 percent of the credit card balance, but not less than 15 dollars per month. These minimum rates can vary from provider to provider.

Interest on drawn credit lines

Interest on drawn credit lines

The loan interest for Revolving Card credit cards can amount to up to 25 percent a year, depending on the provider, and is therefore very high compared to a conventional installment loan. If you fully balance the credit card balance on a monthly basis, it is no longer tragic, since no interest accrues.

Interest on cash withdrawals : Some providers advertise free cash withdrawals, but charge interest on disposals from ATMs from the day of withdrawal. With a cash withdrawal of 500 dollars and for example 18.00% eff. Annual interest is 7.50 dollars for a full month on loan interest alone!

Installment payment

However, if one decides to repay in partial amounts, loan interest is calculated for the open balance. Below is a calculation example for the partial payment for a revolving card. For the sake of simplicity, we expect full months.

Key data : 1,500 dollars of credit line exhausted, 18.00% lending interest pa, 2.00% of the balance / min. Monthly rate of 15 dollars

  Balance open Minimum rate Loan interest pure repayment
1 month $ 1,500.00 $ 30.00 -22.50 $ + $ 7.50
2 months $ 1,492.50 $ 29.85 -22.39 $ + $ 7.46
3 month $ 1,485.04 $ 29.70 -22.28 $ + $ 7.43
4 month $ 1,477.61 $ 29.55 -22.16 $ + $ 7.39
5th month $ 1,470.22 $ 29.40 -22.05 $ + $ 7.35
6th month $ 1,462.87 $ 29.26 -21.94 $ + $ 7.31
7th month $ 1,455.56 $ 29.11 -21.83 $ + $ 7.28
8 months $ 1,448.28 $ 28.97 -21.72 $ + $ 7.24
9th month $ 1,441.04 $ 28.82 -21.62 $ + $ 7.21
10th month $ 1,433.83 $ 28.68 -21.51 $ + $ 7.17
11th month $ 1,426.67 $ 28.53 -21.40 $ + $ 7.13
12th month $ 1,419.53 $ 28.39 -21.29 $ + $ 7.10
total $ 1,412.43 $ 350.26 -262.70 $ + $ 87.57

Calculation of installment payments summarized

After twelve months, a total of $ 350.26 was paid in installments, but only $ 87.57 of the outstanding balance was actually repaid. In this calculation, $ 262.70 of the installment payment is due solely to the calculated loan interest and only benefits the bank. If this example were to be continued now, it would take over 230 months (more than 19 years!) To fully balance the credit card balance. Provided, of course, that the revolving card’s credit line is not exhausted.

Even if the calculation is presented here in a very simplified form, one thing becomes clear: if you compare the at least required repayment with the loan interest and make no special payments, you have a very expensive long-term loan. Most of the monthly installment is on the interest itself and very little of the actual balance is being repaid.

Conclusion on the Revolving Card credit card

Conclusion on the Revolving Card credit card

Even if the above explanations of this financial product do not look so good, we definitely do not want to talk bad about the credit card in the form of the Revolving Card. It represents a flexible financial reserve that can be used in an emergency. Two important points should be noted in connection with the Revolving Card:

Select credit card provider

Choose your provider wisely and take a close look at the terms and conditions, especially the small print. Not everything that is advertised as “free”, “free” or “free of charge” is actually free. Pay attention to terms of payment and interest, both for goods purchases and services and explicitly for cash withdrawals.

Use of the revolving card

In addition to choosing the right credit card provider, the use itself is also crucial. The use of the Revolving Card for expensive purchases with the idea of ​​paying off the amount in small installments is certainly the wrong way, even if the temptation is great. An installment loan would be the better alternative here, since it does not require so much self-discipline – installment amounts and terms are fixed from the start.

Credit card overdrawn and now?

Credit card overdrawn and now?

If the account of one or more credit cards is significantly overdrawn and you can hardly keep up with the installment payments or only serve the interest, you should consider rescheduling to a cheaper installment loan in this case. In the long term, this saves immense credit and interest costs. If the expensive overdraft facility on the checking account is also at risk, you should take this into account when rescheduling.

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What type of loan to take out for your real estate project? Wed, 22 Apr 2020 06:08:25 +0000 (more...)]]>

Need a loan to launch your real estate project? In practice, what are the types of Loans you can take out to finance your acquisition? If you look closely, there is indeed a wide range of loan types, from which you can choose according to your situation, in order to be able to benefit from financing. An overview on the question will certainly allow you to better find the credit that would best suit your needs. Knowing the selection criteria required by the establishments will give you the opportunity to prepare your files beforehand, in order to best prepare your credit application. But all this will only constitute a glimpse of what awaits you in reality, because the best way to complete your process is to entrust your file to a broker, in order to benefit from the best loan conditions.

Overview of the different types of loans to make your real estate project a reality

Overview of the different types of loans to make your real estate project a reality

Depending on your convenience, there are indeed a number of formulas among which you can choose an option for the choice of your mortgage. The advice of a broker will certainly be useful, to help you choose better among all these types of Loans. His skills in this area will be beneficial to you to help you find your way around and better decipher the different conditions offered by the establishments.

Among the usual forms of home loan, you have the choice between: the classic loan, the home savings plan or even the home savings account. Each of these formulas has its own specificities, and therefore they have their advantages and disadvantages respectively.

Otherwise, you can benefit from other specific offers such as the approved loan, the social accession loan or finally the zero rate loan. Again, all of these different alternatives have special conditions that must be met before they can be accessed.

Zoom on classic mortgage

Zoom on classic mortgage

It is indeed important to have all the useful information, to better know the types of Loans that would best meet your expectations. Also, you should learn about the details of the conventional loan, in order to better differentiate the various options offered and choose the appropriate formula accordingly.

Conventional real estate credit is effectively declined in different forms, namely the amortizable loan, the smoothed loan or with stages, the flexible loan, and finally the mortgage loan. You can possibly benefit from a bridging loan in the case of a simultaneous resale transaction and new acquisition. Otherwise, among the other versions of conventional credit, you also have the possibility of having a fine loan or a “no contribution” housing loan.

In short, there are so many possible formulas when it comes to taking out a mortgage, so the best decision is to enlist the help of a broker to help you see more clearly. A comparative study of the proposals received from the different establishments will be easier, thanks to the expertise of a specialist. You will thus have the advantage of benefiting from its informed opinions to choose the best offer, in order to finance your real estate project in the best conditions.

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How to get a home appliance credit Tue, 21 Apr 2020 05:45:41 +0000 (more...)]]>

Nowadays, digitalization is becoming essential. This is why electronic service providers have designed gadgets for every aspect of daily life. Help yourself with household credit!

The house is not immune to the trend of technological accessories. European housing standards even tend to prioritize smart homes.

If you too, you plan to equip your home with the most efficient electronic devices (washing machine, dryer, oven, etc.), opt for a personal loan to finance your household goods.

Which loan should you choose for a home loan?

Which loan should you choose for a home loan?

Here is some information to help you choose the most suitable loan when purchasing household appliances.

Financial organizations have set up a type of credit specially dedicated to the purchase of your high-tech appliances and accessories for the home. This is household appliance credit.

The home appliance loan is an installment sale or a personal loan.

Indeed, many devices wear out easily or become obsolete. In order to follow the trend in terms of consumer goods in housing, choose a suitable loan! Household credit is THE most adequate financial solution.

This type of credit is an integral part of personal loans or consumer loans. The borrower is free to use his capital for the supply of household appliances or other useful appliance to his home. You can then contact Across Lender and subscribe to an electro credit request via our simulator.

It is also possible to apply online by filling out the form and the information required on our simulator. Consumer credit requests will then be studied by financial agents before being validated.

But before applying for a loan, it is better to choose the formula suited to your repayment capacity. This means, a home appliance loan at a very attractive rate and with good repayment conditions. The annual percentage rate (APR) varies according to the amount borrowed.

Appliance loan request

Appliance loan request

The online loan application procedure is the easiest. If you have already found the formula that suits you, make your request directly on the site. If in doubt, use the services of a Across Lender advisor. The advantage of applying online is the saving of time, you limit your trips to the bank until the signing of the contract. However, care must be taken to perfect the content of your credit application. This document is the first step towards obtaining an appliance credit contract. In both cases, its content must be relevant and clear.

Usefulness of a home appliance loan

The advantages of such a credit should be emphasized in order to warn consumers of its importance. Like all credit formulas, you have the opportunity to get a real boost. With the economic crisis, households tend to postpone the purchase of essential goods. A home appliance loan is a good financial alternative to update your kitchen appliances (electric oven, pressure cooker, coffee machine, etc.) or those in your bathroom (washing machine, dryer, etc.). Basically, this loan offer helps you equip your home with the latest technology to make your life easier, because everything can be programmed without you having to lift a finger. Today, you even have the chance to buy devices that are more efficient and more energy efficient.

The point to remember when acquiring credit is that you should not exaggerate. Certainly, you have at your disposal a capital intended to equip your house but it is imperative to manage your loan well in order to buy only the essentials. The amount you request should therefore not be too high. All the more, that with too large a loan you will have to pay more interest. The bank will of course have to carry out an analysis of your repayment capacity before granting you a loan.

It is better to do a study beforehand before applying for a loan. By using a loan simulator, you will have access to more information on the rates and terms offered by Belgian banks. If you have any questions, contact your Across Lender credit intermediary.

Your file will be processed as soon as possible after your online simulation.

Warning, borrowing money also costs money.


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The best advice and tips for your credit Mon, 06 Apr 2020 05:49:10 +0000 (more...)]]>

With rates that are becoming more and more attractive, the French still use consumer credit. For some households, this solution has even become almost a habit with each need. A situation closely followed by the current authorities.

Consumer credit: a beneficial product for banks

Consumer credit: a beneficial product for banks

Compared to other bank loans, such as the mortgage for example, consumer credit remains the most attractive product for the bank. Even if rates are falling, the high demand numbers allow lenders to keep their liquidity always on the move. Which is also the goal. In addition, with shorter repayment periods, the borrowed money can quickly be reinvested in other areas. This is far from the case of mortgages which generally represent a high risk rate for banks.

Today, the banks are then putting forward their consumer credit offer, on the one hand to meet customer needs, than to remain competitive on the other. As a reminder, a groupama consumer loan is a loan granted to an individual in order to finance various purchases of goods and services, or other more important investments, such as the refitting of a house, etc. To find out more about this credit, visit this page.

The consumption credit of French households in figures

The consumption credit of French households in figures

According to reports from the Banque de France, the number of individuals using consumer credit is constantly increasing. Over the past six months, this upward trend has been confirmed with a rate of + 5.7% between April 2019 and June 2019. A rate which continued to climb during the following quarter with an increase of 6, 7%.

Faced with this situation, the authorities of the High Council for Financial Stability were rather concerned. Indeed, they fear a strong uncontrolled increase which could have a negative impact on the economic and budgetary situation of the country. Faced with this, the banks remain confident and continue to grant personal loans to consumers.

The worrying setbacks of consumer credit

The worrying setbacks of consumer credit

With the attractive conditions of access to consumer credit, households generally have no difficulty in accessing it. And the deliberation of the requested sum does not take time. A real boon for consumers.

However, this advantage has its share of drawbacks. And by dint of subscribing and still subscribing to several debts, the consumer could accumulate monthly payments and fall into a situation of critical over-indebtedness.

Despite this, the Banque de France says that this upward trend is not yet ready to stop. And we should still expect an increase in the numbers in the months that follow.

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Energy loan: the essential details of credit Tue, 31 Mar 2020 05:48:46 +0000 (more...)]]>

In the category of personal loans, there are multiple credit formulas intended to help individuals carry out their projects. Energy credit is one of them.

Renovation and interior design projects often fall under the category of work loans. If you plan to change the decoration and / or customize your house, this formula is made for you.

The big news for this kind of offer is that in Belgium you can also benefit from an energy credit. A financial solution that helps lower energy costs.

Get a green loan, an energy credit in Belgium and Luxembourg

Get a green loan, an energy credit in Belgium and Luxembourg

The procedure for obtaining loans in Belgium remains the same. To take advantage of Across Lender’s offers, the first condition is to be domiciled in Belgium or Luxembourg.

The energy credit concerns households wishing to renovate their homes. In particular, renovations concerning energy installations. Green credit, known in Europe, is strongly encouraged by the government.

Indeed, this kind of initiative enters into the general policies of the State, to preserve the ecosystem by replacing all these energy installations by more ecological and less energy-consuming materials.

The household thus adopts an ecological behavior and slows down its energy expenditure. A fact which justifies the fall in the rates allocated to green credit. However, each bank offers a different rate depending on their offers.

The energy loan therefore has many advantages since it falls into the category of personal loans or work loans. In this case, the borrower can define the amount of his monthly payments and choose the repayment deadline. The capital obtained will help carry out the necessary work.

In terms of amount, an energy credit can amount to more than $ 200,000 depending on the financial situation of the debtor. This will result in a period of 3 to 120 months to repay the entire loan.

For more details, it is preferable to contact our Across Lender agents directly or to do an online simulation.

Conditions and documents to provide

Conditions and documents to provide

To benefit from a green credit, you must have a solid financial situation, which will allow you to repay your loan without great difficulty. The more stable your situation, the greater the chances of obtaining a large sum. You must then complete your file with the following documents:

  • Copy of identity card and personal information
  • Residence certificate to justify your domicile (in Belgium or Luxembourg)
  • Copies of pay slips for the last three months
  • Details and information relating to your banking situation

The list of documents may change depending on the bank. Some may be more demanding than others. For more information, contact us directly via our contact form or by phone. In this way, you will be fixed on the procedures to follow to benefit from a green credit as soon as possible.

As earmarked credit, the capital must be mainly dedicated to work related to energy saving. All the details as well as the procedure to be followed will, of course, be mentioned in the contract.

What is an energy credit?

What is an energy credit?

Aside from allowing households to save on their energy costs, this loan is mainly intended for the purchase of machinery and materials or for carrying out certain works. Purchases will simply make the house more economical and greener. An energy credit is therefore granted for:

  • Roof renovations to curb energy loss
  • The installation of solar panels or photovoltaic panels (solar energy).
  • Water heaters
  • Low energy devices
  • Etc.

Individuals who wish to renovate or undertake work related to their energy concerns can always apply for another type of credit.

Indeed, it is not only the energy credit that can help you finance your work. There is also the renovation credit and especially the mortgage credit. The difference with these two types of loans is that they have higher rates especially the home improvement credit.

However, green credit remains, without a doubt, the most suitable financial solution due to the low rate allocated to this loan. In addition, capital can also be used for other projects. Many people use 25% of their funds for other repair work.

Our Across Lender online simulator allows you to find the best energy credit formula possible. You just need to choose the formula that meets your expectations. Applying for a green loan online is feasible and easy to do at your financial institution’s site.

Credit comparison procedures are recommended to ensure a better choice of formula.

Get the best rate by simulating your online credit at Across Lender.

You can also simulate a personal loan in Belgium.

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Realize all your projects with an installment loan Mon, 30 Mar 2020 05:40:02 +0000 (more...)]]>

More and more individuals are taking out personal loans to realize their dreams and make their projects a reality. By contracting an installment loan from a bank or a financial institution, it is possible to make a loan worth $ 100,000.

A pretty sum which could be intended for the realization of a trip, a family event or even the purchase of a particular good. The debtor is free to use his capital from an unrestricted installment loan as he pleases.

Don’t wait to realize your dreams with Lite Lender Bank


Lite Lender Bank gives you the opportunity to realize all your aspirations, even the most improbable. Our installment credit indeed makes it possible to obtain capital which could reach 100,000 $. In addition to this, we provide our customers with quality, responsive and dynamic service.

Lite Lender Bank has experienced experts attentive to the needs of its customers. They will be available to help you every step of the way, from applying for credit to signing the contract. Without forgetting that the answer of your request is done immediately at Lite Lender Bank.

So, if you plan to buy a new car, a state-of-the-art computer or even renovate your home, you’ve found the solution. If you are considering obtaining an installment loan from Lite Lender Bank, you can directly apply online.

Why an installment loan?

Why an installment loan?

There are many different types of loans, including installment loans. If individuals subscribe in large numbers to this offer, it is because it has several advantages. Among other things, a credit that requires no proof. This is a very important point in loan applications. The debtor is entirely free to manage his capital. An installment loan from Lite Lender Bank does not hold any unpleasant surprises in store for you. The repayment monthly payments can be fixed in advance. It is also possible to opt for an unrestricted installment loan with an APR of 5.95%. This offer is valid for a loan of $ 20,000, the repayment duration of which is 84 months.

Another reason to choose an installment loan: its flexibility. This type of personal loan can be adapted to all portfolios. People with limited means can claim this credit because the organizations adjust the reimbursements and fees, according to income.

Installment loans are also loans to individuals.

Online loan application

Online loan application

To obtain this loan from Lite Lender Bank, apply directly online by filling out a form. By using the simulator, it is possible to obtain a comparison of all the existing installment loan formulas. Not to mention that Lite Lender Bank also has a very beneficial credit buy-back operation for individuals.

Customer service can be reached via a free number to obtain all the necessary information or support you in carrying out your online transactions. If you are unable to travel, it is possible to sign the credit contract at your home.

The annual percentage rate (APR) varies according to the amount borrowed.

Calculate the total amount to repay your loan with our credit simulator above. Your situation will be studied by one of our brokers.

You do not have to be on file with the national bank of Belgium to apply for credit.

If you prefer, you can, of course, go to one of our many agencies and take advantage of a personalized offer.

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25000 USD credit – Secure cheap credit with a comparison Tue, 24 Mar 2020 06:28:03 +0000 (more...)]]>

Loans of up to 25,000 dollars are required for different purposes. In private, such a loan can be taken out, for example, for the renovation of the apartment, the purchase of a car or the start of self-employment.

Different wishes can be financed with a 25,000 dollars loan. At such loan levels, certain collateral must be guaranteed to the bank in some cases.

With a car loan, for example, the vehicle itself serves as security. In return, you get cheaper interest. If you take out a loan for a renovation, you may be asked to provide proof. And when it comes to financing self-employment, a good business plan is a prerequisite.

Loans of # 25,000 can be freely used, but also earmarked. The earmarked loan has the advantage that an interest rate of $ 25,000 is usually lower than would be the case with a free consumer loan.

Example calculation of a 25,000 dollars loan

Example calculation of a 25,000 dollars loan

In the calculation below, we assume that a loan of $ 25,000 will be taken out at an interest rate of 2.9%. The table shows the corresponding monthly installments depending on the term and the total costs (interest).

running time Monthly Rate Interest costs
12 months $ 2,115.77 $ 389.28
24 Months $ 1,073.01 $ 752.16
36 months $ 725.51 $ 1,118.45
48 months $ 551.84 $ 1,488.15
60 months $ 447.69 $ 1,861.25
72 months $ 378.30 $ 2,237.75
84 months $ 328.78 $ 2,617.66
96 months $ 291.68 $ 3,000.96

As can be clearly seen, the longer the term is chosen, the higher the interest costs. If, for example, 25,000 dollars are borrowed over 96 months, a total of 28,000.96 dollars must be repaid over the term.

What collateral does the bank require?

What collateral does the bank require?

Banks will not approve 25,000 dollars without collateral. The purpose for which the loan is used is also decisive. When financing a car, the bank uses the car itself as security. The bank therefore keeps the letter until the loan has been repaid in full.

If the 25,000 dollars are to be used for a renovation or renovation, for example, the bank may insist on an entry in the land charge. However, this only if you own the property.

If free consumption is planned at $ 25,000, the bank will require the income as a security. A basic employment contract with a regular income and a monthly budget surplus to pay the installments would be the basic requirements.

The bank is particularly at risk when it comes to financing a planned self-employment because there is no guarantee that the self-employment will work. A good business plan would be a requirement here in any case. Self-employment does not necessarily have to be financed through a normal consumer loan. There are also alternatives.

Finance a car with 25,000 dollars

Finance a car with 25,000 dollars

For example, if a new car is to be financed with a 25,000 dollars loan, there are two options.

Possibility Number 1:
The loan is taken out as a free consumer or installment loan. It is not mandatory that you then have to buy a car. The advantage is that you already have the 25,000 dollars in your account before buying and can then obtain various offers from dealers in peace. Since the money is already there, a cash payment can be agreed with the dealer, which is a good basis for negotiating the purchase price.

Possibility 2:
The loan is taken up with the earmarking “car purchase”. Here, the money may only be used to finance a new car. After the purchase, the bank immediately requests the submission of the vehicle registration document, which serves as security. The car loan has the advantage that it mostly has a significantly lower interest rate than the free consumer loan due to its earmarking.

Tip for buying a car

Since new vehicles have the greatest loss of value within the first year, it can be worthwhile to finance a used annual car instead of a new vehicle with a loan.

Finance free consumption with 25,000 dollars

Finance free consumption with 25,000 dollars

If a 25,000 dollars loan is taken out for free consumption, the bank must be shown to have a very good credit rating, since the bank cannot demand a security deposit for free consumption. A secure and well-paid job, a budget surplus and a historically good credit rating would be the mandatory requirements.

If you want to offer the bank additional collateral, you should designate a second borrower or a guarantor in the loan agreement (see: Loan with guarantor). In both cases, the bank’s ability to collect claims is divided between two or more people, which is more secure since the guarantor or the second borrower is asked to pay if the installments fail.

It is also important what you buy from these 25,000 dollars for free use. If, for example, it is a car, the car still serves as equivalent or real value in the event of a financial bottleneck and could be sold to pay the installments. If you finance yourself a luxury vacation, the money is gone.

A credit comparison saves money

A credit comparison saves money

25,000 dollars is a lot of money and the banks lend this amount on significantly different terms. For example, while the cheapest provider is 0.99%, the most expensive provider is 4.23%. The following is an overview of the difference between these two percentages if we assume a loan amount of # 25,000 and a term of 96 months.

Cost comparison with two different interest rates

  Effective interest rate Monthly Rate Interest costs
Cheapest provider 0.99% $ 270.92 $ 1,008.74
Most expensive provider 4.23% $ 306.48 $ 4,422.18
Saving advantage through comparison: $ 3,413.44

6 steps to a 25,000 dollars loan

6 steps to a 25,000 dollars loan

  1. Online comparison calculator
    To find a cheap $ 25,000 loan, you can use our credit comparison calculator to compare the conditions of various banks directly online and thereby determine the cheap offer
  • Household calculation
    Our comparison calculator shows you a rate that you have to pay back to the bank monthly according to your chosen term. You can use a household calculation to determine whether you can afford this additional monthly burden financially.
  • Take out credit online
    If the conditions are right, you can take out the loan directly online. All you have to do is enter your personal data and information on the income situation. The application will then be sent directly to the bank.
  • Examination & other documents
    The bank will now check your loan application and request further documents if necessary. It is best to have the last 3 salary slips and a current account statement ready.
  • Original application & identification procedure
    At the same time as checking your loan application, you will already be asked to submit the original signed application and to carry out an identification procedure. This is done either at the post office or online via IDnow.
  • Disbursement of the loan
    When all documents have been submitted and the bank gives the “OK”, your credit will be paid out to the account specified in the application within a few days. You will then also receive a request to pay the monthly installments on the respective due date.
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Insuring and borrowing well – Mortgage loans Tue, 17 Mar 2020 05:52:07 +0000 (more...)]]>

Although there is no law requiring you to purchase insurance, insurance is often one of the requirements imposed by the lender, the credit agency. This is an additional guarantee in case you will no longer be able to honor your monthly payments. However, it is worth paying special attention if you want to save some money. Here are some tips that should help you choose your outstanding balance insurance.

What is balance outstanding insurance?

What is balance outstanding insurance?

It is a variation of temporary death insurance which covers the amount of monthly payments remaining to be paid if the borrower ever dies. It is temporary because it only covers the duration of repayment of the loan. If this insurance is mostly taken out for a mortgage loan, other forms of loans can also be guaranteed by the outstanding balance insurance. This insurance mainly protects your loved ones and your families.

Coverage percentage, first criterion

Coverage percentage, first criterion

First, your attention should focus on the percentage of insurance coverage. When you borrow for two, especially with your spouse, you have two possible choices. On the one hand, the 100/100 distribution makes it possible to cover the remaining balance due in full if one of the co-borrowers dies. The other borrower will thus be fully discharged.

On the other hand, you can arrange the insurance and share the coverage, in 50/50 or in 75/25. The remaining balance will be paid by the insurance up to the percentage allocated for the deceased borrower. The survivor, meanwhile, will bear the rest.

The premium payment method

You also have several options for premium payment. Payment in one installment consists in paying the premium in full upon signature of the contract. This mode has the advantage of being simpler to manage, without risk of fluctuation. But full payment at once can be substantial.

On the other hand, you can choose to spread the premium payment over the duration of the contract. More reduced monthly premiums, it is nevertheless necessary to be careful because the rate applied can vary in the meantime, resulting in a considerable additional cost of your credit.

The expected tax benefits

The expected tax benefits

Balance insurance owed on the head of a single person always has a more attractive tax advantage. But the two-insured formula is certainly the most economical, although the premiums are not deductible.

Today there are many sites that offer an insurance simulation service. The main interest is to be able to obtain all the useful information to better compare the offers.

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