My WordPress Blog Fri, 15 Mar 2019 15:28:12 +0000 en-US hourly 1 Family Budget And Debts Compared Fri, 15 Mar 2019 15:28:12 +0000

The state of suffering of Italian families continues. According to the monthly report of the Enterprise Study Center, which analyzes the Bank of Italy data, in the last twelve months, from June 2014 to June 2015, the unpaid installments of households correspond to more than 35 billion, while those of family businesses at over 15 billion. At the same time, credit institutions are increasing, confirming the difficult situation of family budgets: a total of 9.9 billion more (+ 1.66%), having gone from 598.6 billion to 608.6 billion. Personal loans,  on the other hand, decreased by 0.79% from 181.2 billion to 179.8 billion, as were home loans, which recorded a -0.14% from 359.4 to 358.8 billion; in contrast, consumer credit rose by 20.57, with a jump of 11.9 billion: from 57.9 billion to 69.9 billion. 

For Paulo Anglore, President of Enterprise: “The credit situation remains a very serious situation and, faced with the increasing difficulty, both for families and businesses, in paying the installments of loanswe are witnessing an attitude of superficiality on the part of the institutions that should accelerate the launch of the so-called bad bank, that is to say a sort of machine to clean the banks’ budgets from the suffering that ends up curbing new disbursements. “

Indebtedness of families

Indebtedness of families

On the subject of household debt, various European studies are available that highlight a number of interesting circumstances and confirm that debts play a central role in our lives. First of all, “Who is without debt cast the first stone”, one would think to read that:

  • at least 18% of the population has on average a back payment,
  • 15.5% have engaged in a lease for the purchase of a vehicle,
  • 10.5% have a small credit,
  • 10% have at least one debt to family or friends,
  • 8% bought an asset in installments,
  • 8%, at least, have a bank overdraft.

The purchase of a vehicle continues to be a priority, supported by massive promotional bombardment, on television and on social media, which enhances its high symbolic value. The new car is interpreted as an indication of economic well-being and a good social position. But often the financial commitment is underestimated, which can last for years and put the family and personal budget in serious difficulty.

Consumer credit

As far as consumer credit is concerned, which accounts for more than 10% in households, it is directly linked to insufficient income compared to primary needs, such as food, medical care, rent expenses. It should be noted, however, that this insufficiency is not always objective, in the sense that the available sum could satisfy the primary needs, but a bad management of the family budget makes it inadequate. Finally, from the studies, it emerges that another important factor of imbalance of the domestic administration are the delayed payments of bills, taxes and administrative obligations, amounts that increase with the relative sanctions.The research also underlines the relevance of psychological attitudes that favor the mismanagement of money. In other words, the difficulty situation of the family or individual is not always determined by non-modifiable external causes, such as a low income or loss of work. In many cases there are attitudes, behaviors, false beliefs, which cause heavy and unnecessary indebtedness.For example, it has been established that only 10% of the population think it is difficult to keep their budgets under control, a belief that leads to overestimation of their possibilities; another 8% believe that it is lawful to satisfy a desire every now and then (a holiday, a motorbike, a painting, etc.) even if they can not afford it; only four out of ten say that it is necessary to economize in the best possible way.

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Get Rid of Debts: Here Are Some Practical Tips Thu, 14 Mar 2019 14:48:18 +0000

Practical tips to get rid of debts.

Complicated mission, but it can be done.

Becoming aware of both the state of one’s finances and one’s own way of spending is an indispensable condition for reversing the trend and getting rid of debts. Knowing the amount of your debts, noting deadlines, monthly incidence compared to your salary and above all, who are the creditors [some don’t even know it!] And how much the outstanding debts, if any, is absolutely essential.
How to get rid of debts

What to do if I don’t remember how much the debts amount to and with whom I have them.

When it comes to debts to banks or financial institutions, all bank statements can be requested from the institutions themselves, with a simple registered letter.

It is important to ask how much the remaining debt is, but even more important is to make sure you have a copy of the contracts and the amortization plan.

This is because it is not unusual to find contractual anomalies , which make it possible to obtain, in some cases, important repayments.

It is also necessary to make an analysis of the general state of indebtedness, asking to be able to access their data, stored in private databases, also called sic or credit information systems.

Where do I find the references?

Do you have any current leases? You need to check the Assilea database. If you have mortgages or loans or debts exceeding € 30,000 or you are aware of having been reported to be suffering from a bank, you will also need to check the CR – Bank in Italy risk center. Or, if you have not paid credit cards in full or in installments (Revolving) you must check the Bank Alarm.

Finally, you also need to know your debts to the tax authorities or to the regional or municipal authorities that have mandated Revenue Collection Agency.

Some practical tips:

1) Divide your salary as soon as you receive it: Set aside the money for the necessary expenses [rent, bills, installment payments, etc.] maybe using envelopes, on which you will write what the money is destined for, and use it only for that . Address an envelope to UNEXPECTED.  

2) Privilege cash: Use debit cards only for expenses and make it essential to use them. Use credit cards only for emergencies. AVOID AS THE PESTO THE REVOLVING CARDS, (THOSE AT RATE) HAVE RATES OF SCANDAL INTEREST.

3) Keep a diary of purchases: In addition to marking the expenses, mark also the situation in which you shop [example Sunday afternoon in a shopping center] and the mood at the time of shopping [boredom, depression, anger, etc. ]. Doing it regularly you will find out what factors trigger the uncontrolled impulse to shop.

4) Look for alternative interests: Hobbies, sports, cultural circles, and other activities can make up for the time spent on expensive shopping, and restore yourself from the accumulated stress.

5) DO NOT LITIGATE FOR PAYABLES: if you are part of a family unit, fight against debts, perhaps looking for additional sources of income, instead of blaming each other for shortcomings.

6) DO NOT BE DEBIT TO PAY OTHER PAYABLES : The so-called “debt settlement”, that is, to make a single installment of a lower amount, but in the long term, in most cases is not decisive, indeed often, it does nothing but make things worse, increases economic exposure and longevity of risk. Ask an expert or someone who has already been there to confirm this statement. There are specific cases where it may be worthwhile to use this tool, but they must be assessed very carefully (preferably with the help of an expert in debt management).

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Loan despite running loans – fast Wed, 13 Mar 2019 14:38:47 +0000

A loan in spite of current loans is not an impossible task. The inclusion of the additional credit just needs to be properly thought out and planned. How this works, we would like to explain here. for a critique

Why loan despite running loans?

Why loan despite running loans?

It is not uncommon for multiple loans to be serviced simultaneously. Just by the consumer credit, the dealers offer, it can come again and again to overlaps. If another vehicle or property is financed, several loans have come together quickly.

But there are also consumers who consciously rely on multiple loans. Different repayment agreements create a flexibility that keeps the entire financial construct going. But only if there is complete control over revenue and expenditure.

In addition, the borrower must be very dutiful and meticulous, so that no payment obligation is neglected. Otherwise, over-indebtedness threatens.

The planning of borrowing

Since there are already several credit obligations, it is important that the renewed borrowing is planned very well. If this does not happen, the additional loan can bring an imbalance into the finances despite current loans. This will sooner or later lead to debt. To prevent this, a financing plan should be drawn up.

The financing plan includes all income and expenditure recorded each month. Especially with the expenditure should not proceed too economical. Also unpredictable expenses should be considered. Likewise, those that do not take place monthly. Such as the fee, insurance premiums or taxes to be paid.

Once a listing has been compiled, it is possible to see how much financial leeway there is for another loan despite ongoing loans. Based on this, it can be recognized with what monthly rate the new loan can be equipped.

Where is the loan despite current loans?

If the creditworthiness of the borrower matches, then the loan can be taken up at any bank despite current loans. Even private providers will be happy to help. It is always important that the credit is not an additional burden, but skillfully incorporated into life. If that is the case, then no bank will refuse to borrow.

As a borrower, you therefore have the task of comparing the many different loan offers. Without a settlement, no credit should be taken. Most offers differ in detail quite clearly, so that in the end a difference of several thousand euros can arise. Money, which you have to take more or less for the credit in your hand.

The comparison can be done with the help of a comparison computer. It displays suitable loan offers within a few minutes, which can then be used as needed.

When should a rescheduling be considered?

When should a rescheduling be considered?

Sometimes it may make sense to combine the existing loans and the new loan into a single loan. Such rescheduling usually increases financial flexibility and reduces costs.

A rescheduling in the context of taking a loan despite current loans, however, makes sense only if a particularly favorable loan offer is available. In addition, the already existing loans without discount must be terminated early.

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