How to get better conditions on a personal loan

On the other hand, in consumer loans, banks and savings banks choose little by little more to personalize the costs depending on the customer of the service and its connection.

Either because we have to face an unpredictable expense or for the simple fact of wanting to give ourselves a whim, with consumer loans we have the “advantage” that they can adapt according to each person’s needs. Although we must also say that the great disadvantage of this type of financing is the high-interest rate.that we will have to face. As a representative data, we can see how the interest soars up to 20% or more in the quick credits.

Before applying for a personal loan it is highly advisable to be informed to a large extent to make an appropriate decision. There are many offers in the creditor entities to cover the needs of all customers and, therefore, it is our duty to find the one that best suits us. Otherwise, we could lose large long-term benefits or not take advantage of all the available facilities.

Factors that determine the type of loan.

In the first place, the purpose that we are going to give to the capital that we receive determines the options offered by the lender entity. The amount requested and the loan repayment period must also be carefully considered since the interest we are going to pay to the entity depends on it. The term of payment is determinant in the price that we are going to pay for the loan as a commission.

When we have determined the type of loan, that is, the purpose for which the money we need is used, we must resort to comparators or make the comparisons ourselves. This allows us to see the advantages of requesting the personal loan from one entity or another since the commissions and characteristics are not the same in all entities. We must devote the necessary time to this step to be able to decide effectively. The difference can be a few euros, hundreds of euros or even thousands at the end of the life of the loan depending on the amount borrowed.

Another determining factor when hiring a loan is the interest rate. It is very tempting to opt blindly for the lowest interest rate because we can think that this factor necessarily determines that the commission will be lower. However, this is not true. The term of payment of the loan greatly influences and not only does the interest rate. In other words, financing a year is not the same as five years, depending on the amount that is lent to us.

The best way is to check the numbers ourselves or resort to the help of someone who can clearly explain what the loan will cost us. In general, we will have to decide between a few options, maybe only two at the end of our decision period on the loan that we chose and, in this step, it is crucial to know the price that each of the options means for our pocket. As a final step, it is advisable to check that we are going to have enough money to pay the installments during the time the loan lasts.

WILL I QUALIFY FOR A PERSONAL LOAN? We remind you that you can visit the home page of our personal loans website to be up-to-date with everything related to this type of financial products.


Learn how to apply for a payday loan consolidation

Discover how to calculate a loan to know how much you will pay in interest according to the term and the amount of money you choose. Learn how to apply for a payday loan consolidation and get the best lafayette funding bbb offer adapted to your needs quickly and conveniently.

Calculate the cost of your loans in a personalized way

The free calculator developed by the experts of is one of the best online tools we can find to calculate the price of a loan, because it takes into account all aspects that influence the final cost of these products: the interest rate applied, the commissions, the selected reimbursement period.

Furthermore, once the calculations are made, it offers us the cheapest and most advantageous existing alternatives in the current market. To use it we just have to fill in the fields and enter the address of our email.

How does a loan calculator work?

With a loan calculator we can know how much money we will have to pay in total for the loan we hire depending on its amount, its term, the interest applied, the commissions it includes and other factors. In addition, these tools also usually show what is the monthly fee to be paid and what percentage corresponds to each item. We can use several loan calculators depending on the product we request:

  • Mini loan simulator: they are small calculators that will allow us to know how much we will pay in total and when we will do it according to the amount of quick money that we choose and the term in which we want to return it. As this type of credit is reimbursed in a single payment consisting of principal plus interest and does not have any additional commission, it is a very simple simulator that all mini-credit platforms include on their websites to help users.
  • Personal loans calculator: this type of calculator can be found both on the websites of the lenders, in which case we will only have to indicate the amount and the term or quota because the entity already takes into account the other factors; or as independent comparators. In the second case, this simulator is a little more complex since it includes other fields to be taken into account in addition to the amount and the term to adapt to the characteristics that influence the price of the credit in question. In this case we will have to introduce both the money that we want to request and the term or the monthly payment that we are going to choose. In addition, we will also have to introduce other fields such as commissions, purpose or linked products so that the calculator can give us a simulation as approximate as possible.

Using this tool is very useful to know if a credit is cheap or not according to your total costs at the end of the life of the credit and with the variables of amount of money, term and quotas that we have chosen and not having to compare between different offers, where not all have the same characteristics and, therefore, it is not possible to compare them.

5 factors to take into account to calculate credits

When calculating a loan we must take into account all the factors that influence the total cost of financing that we are going to hire. Knowing all the important features when hiring loans is essential to get the offer that best meets our needs. These are the most important factors when using a loan calculator:

  1. Amount: it is one of the most important factors, the amount of money that we are going to request and that they will ask us in all the calculators. Without an amount on which to perform the calculations, we will not know how many interests will be generated.
  2. Interests: both the TIN, which indicates the interest on the loan and the APR, which indicates the total cost of the financing that we are going to request, including both commissions and interest.
  3. Commissions: depending on the credit you can include them or not. The most common are the opening and study and its cost is between 1% and 3% on the capital that we request. Likewise, not all entities decide to apply these fees.
  4. Related products: some loans require us to hire certain products in order to access the financing we need. Depending on the type of link can be free, such as direct debit or payroll or a receipt; or with additional costs, such as contracting insurance. Some entities now offer the optional hiring of some products in exchange for a reduction in interest. If the link has no cost, it is a good offer, although if we have to pay for this product, we must calculate which of the two options is the cheapest.
  5. The term is another of the most influential factors when calculating a loan. The longer the term, the more interest we will pay in total, although the monthly payment will be lower. A good way to calculate the ideal term is that the percentage dedicated to the repayment of the credit that we hire does not exceed 35% of our net income.

Having all this data of the different loans that we want to calculate we will be able to obtain a complete report of how much we will pay in total, what percentage will be in commissions and how high will be the monthly payment of the reimbursement fee. It is essential to compare different loans in order to choose the one that best suits us.

How does the fee affect the calculation of the cost of a loan?

Although not always taken into account, the repayment term of personal loans is one of the factors that most influence the cost of financing. The longer the repayment period, the more interest will accrue, so the more expensive the contracted loan will be. For this reason, it is always advisable to select a rather high fee (always within our economic capacity), as the term will be shorter and, consequently, we will pay less money in interest.

This rule says that in order not to unbalance our economy, we should not allocate more than 35% of our income to the repayment of the credits. So if we charge 1,000 euros per month, the monthly payment we pay should not exceed 350 euros.

Requirements to apply for personal loans

Before calculating how much we will have to pay for a personal loan, it is important that we know the requirements established by the entities so that our profile is suitable. Generally, all companies will require the same requirements, although they may vary depending on their risk policies:

  • Be a permanent resident in Spain and have a DNI or NIE
  • Be of legal age, although depending on the entity, the minimum age maybe 21 years or 25 years
  • Have a regular, sufficient and justifiable income. It does not have to be a payroll, other types of income will also be valid as those of the self-employed or pensioners.
  • Not be registered in any file of defaults, especially if we are requesting a loan to a bank. Some private companies do admit persons registered in delinquent files as long as the debt is not related to a bank and the amount we owe does not exceed 500 euros, in some cases even 1,000 euros.

What documents do we need when requesting credits?

When we decide to request financing, the entity we go to will require us to present certain documents in order to verify that we comply with the required requirements. The documents that we will have to send depending on the entity we go to. In the case of banks, if we are already clients, we will not have to present a lot of documentation because they will already have it, but generally, they will ask us for more documentation than private lenders, since their requirements are stricter. However, if this is the first time we go to a bank or a private lender, we will probably be required to present the following documents:

  • Identity document: DNI, NIE or passport that certifies our age and that we are permanent residents in Spain.
  • Bank statement: with which the entity will analyze our fixed monthly income and expenses.
  • Proof of income: it will be necessary to present a document certifying that we are currently working and valuing our salary to know our ability to pay. In some personal loans, a document certifying that we have stable income will be sufficient (pension, unemployment benefit, IRPF).
  • Loan application form: it is a document in which we will have to add our personal and economic data.
  • Annual VAT summary: this document will only be necessary if we are self-employed.
  • The budget for our project: if we request a loan to carry out a project or acquire a specific asset.

In the event that we request the loan from a bank, we will usually have to physically go to the office and perform the procedure in person. On the contrary, if we decide to ask a private equity entity, they will probably allow us to carry out the whole process online, which will save us time and allow us to obtain the money more quickly.

Shared living in Mehrgenerationenhaus

Shared living in multi Generation House

The intergenerational approach should make it possible, for example, for younger people to help older people. At the same time, however, younger people can benefit from the experience of older roommates. All residents of a multi-generational house thus help each other, regardless of their age and their origin. In the multi-generation house, not only family members have to live together.

Mehrgenerationenhaus as a house of encounter


In addition to the conventional definition of multi-generation houses, there is another approach. This state-supported form of the multi-generation house is more of a meeting place or a meeting place for people of different generations, regardless of social status or origin. These meeting places are supported by volunteers. At the end of this article you will find more about the federal program Mehrgenerationenhaus.


This is how a multi-generation house works as a shared flat

 This is how a multi-generation house works as a shared flat

If several generations live together under one roof, large apartments or generously designed houses are usually used for this purpose. Each resident or family and each couple has their own space for personal use. Other rooms such as kitchens, living rooms, hobby rooms or studios will be used together according to agreed rules.

In Germany, there are already many construction projects that were planned from the ground up as Mehrgenerationshaus. In the planning phase, interested parties meet and build a house that meets their wishes for a fulfilling intergenerational living together. Such houses can be realized by public or private developers.

Find projects on the Internet


On the Internet there are many different contact points to find open projects for multigenerational housing for community living. On the website of the association FORUM Gemeinschaftsliches Wohnen eV, for example, there are current, planned housing projects that are still looking for roommates.


Many life forms in a house possible

In a multigenerational house people of different ages can live together without being related. In addition, residential communities can be organized across generations that belong to a particular religious community or share a particular philosophy of life. Likewise, it is possible to conceive a multi-generation home within the family or to realize such a household only for women. The primary goal of living together is that each generation can benefit from the other.

Anyone who decides to live in a multi-generational house can join public projects or even create such a household. Since the term “multigenerational house” is not protected, there are no special rules for how such a house is managed or planned.

Alternative housing projects for living together

Multi-generational houses are only a variant of alternative housing projects. For example, ecologically engaged citizens often come together to form so-called “eco-settlements” within which the inhabitants commit themselves to a particularly ecological lifestyle.

In rural areas there are country communes. For this, mostly old farms are converted for a common life of different families. In Israel, for example, the kibbutz has been used for many years to create a communal life. Similar projects are also available here in Germany.

Distribution of multi-generational houses in Germany

There are no official figures about how many people live in a multi-generation house and how many of these houses actually exist. But in principle, it can be assumed that every major community has such houses. Due to an increasingly modern way of life, intergenerational living is no longer up to date. But especially in rural areas often grandparents, parents and children live under one roof, and have done so for many generations.

With our neighbors in Switzerland, living in the multi-generation house is even more common. There is already the network “Intergeneration”, in which prospective customers can inform themselves in detail about the possibility of multi-generation houses and join projects.

What are the advantages of a multi-generation house?

If several generations live together under one roof, each roommate can benefit from it. Possible advantages are:

  • Younger residents can help elderly people with shopping or at home.
  • Older roommates can assist parents with childcare.
  • Rarely is anyone alone.
  • Most multigenerational homes are well equipped.
  • There are various potential contact persons for problems.

Conflict potentials in living together

 Conflict potentials in living together

If several people live together under one roof, the danger of conflict increases as well. In a generation house, for example, disputes can arise because roommates complain about too little privacy because they have too few opportunities to retreat. In addition, unfulfilled expectations can lead to disputes between the residents. Finally, financial aspects are often a trigger for discrepancies.

The big advantage of the multi-generational house can ultimately become a big disadvantage. Because the larger the age difference between individual people, the greater the different views, opinions or ideas can be. It is therefore important that all residents agree on central rules and agreements before moving in and at regular intervals during their coexistence.

You should bring that with you if you want to live in a multigenerational house

Those who live together with several people from different generations should have an interest in resolving conflicts and be open to constructive criticism. In addition, there is always a need for a degree of willingness to compromise in the Community. Only in this way can the basic idea of mutual support and the heterogeneous living and household community function.

If you are thinking of moving to a multi-generational home, remember your time at home: what were your parents’ conflicts with your grandparents? When you are ready to experience similar beautiful and critical moments with others, you also have a greater chance of being able to live together in a multi-generational home.

Use funding opportunities


If you want to build a multi-generational house and finance it through mortgages, for example, you can benefit to a great extent from funding opportunities. For example, KfW supports the construction of barrier-free living space. Similarly, churches often promote the realization of family-friendly homes. It is also worth asking in municipalities for funding opportunities for the development of certain land areas.


Save taxes with the multi-generation house

 Save taxes with the multi-generation house

Those who use and plan a multi-generational home can benefit from tax savings. The so-called “rental model” comes into play here. The parents buy the property and rent part of the property to their grandparents. As a landlord, the parents then have the opportunity to tax various costs related to the purchase and maintenance of the property.

The items are deducted as “advertising costs” as part of the income tax return. Which includes:

  • Lending rates for the financing of rented housing for the grandparents
  • Operating costs for the rented residential unit
  • Renovation costs and costs for repairs in the rented apartment
  • Tax consultancy fee

In addition, up to 2.5 percent of the acquisition costs for the part of the property “leased” to the grandparents can be tax-deductible.

If the rental model is used, the parents must also tax the rental income. However, it is possible that the cost of income is higher than the actual income from the rent, so that the losses can be deducted directly from the taxable income. In this way, there is another opportunity to save taxes.

Please note the recommended rental amount


So that the tax office also accepts the leasing model, the rent must not be set so low that a deliberately caused loss can be assumed. It is recommended to demand almost 70 percent of the local rent. Another requirement for the rental model is a proper lease, which is concluded between parents and grandparents. Similarly, the rent should be transferred so that the entrance to the tax office remains comprehensible.


Federal program multigenerational house (as day meeting point)

 Federal program multigenerational house (as day meeting point)

The federal program Mehrgenerationenhaus is now running in the second version. It was initiated by the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth. The aim of the program is to create central and open places where people of different backgrounds and generations can meet. The public spaces should provide space for joint activities and promote social interaction.

Almost every district and every city with its own multi-generation house

The multi-generation house II action program was launched in 2012. There are now more than 450 multi-generation houses throughout Germany participating in this program. The program is based on four major topics:

  1. Age and care
  2. Integration and education
  3. Offering and arranging household services
  4. Volunteering

In multi-generational homes, for example, older people receive help in carrying out daily work by younger people who volunteer there. There are also special offers for migrants or young people in many houses. On the one hand, the goal is that the visitors of the houses get involved themselves and thereby their self-confidence is strengthened. On the other hand, cooperation should improve social cohesion and the coexistence of generations.

The offers of the generation houses are adapted to the regional characteristics of the municipality or the district in which the houses are maintained.

What is available for financial support within the framework of the federal program?

Between 2012 and 2014, all existing 450 multi-generation houses in Germany were subsidized with 40,000 euros each year. The federal family ministry took over 30,000 euros and the respective municipality 10,000 euros. In the 2015 budget, the state once again provided 16 million euros for the promotion of multi-generational housing.

70 million paying subscribers

Spotify claims 70 million paying subscribers – an increase of 10 million since last June. (Credit: Christian Hartmann) The world leader in streaming would be interested in a direct quotation, a form of introduction unusual Exchange. After doubling its turnover in 2016, Spotify has continued to recruit subscribers at full speed last year. The Swedish company now boasts 70 million still far ahead of its main competitor Apple Music.

The arrival of Spotify on Wall Street continues. After months of rumors, the world’s number one music streaming filed a confidential request for IPO with the US stock gendarme (SEC) in late December, said Wednesday the site Axios information. The Swedish platform would seek a listing in the first half 2018, between March and April, completes the Wall Street Journal. Feature: Spotify would be interested in a direct quotation, an unusual procedure –,,

Indeed, this form of introduction unusual Exchange does not plan to issue new shares: it will only allow the current shareholders to sell their shares. Known as simple, direct listing also allows the newly-listed company to save some costs, such as commissions. The operation should be particularly scrutinized by other companies – If the introduction is going well, startups like Airbnb could follow and opt for a direct quotation, according to sources close to the interviewed by the Wall Street Journal.

A world leader with 70 million subscribers
The Swedish group claimed Thursday 70 million subscribers – a jump of 10 million compared to last June. The number of non-subscribers with access to the music, but with ads, is unchanged since last summer (140 million). Founded in 2006, Spotify continues to widen the gap with its main competitor, Apple Music, arrived later 2015. The firm Apple claimed last September only 30 million subscribers.

It remains a downside: Spotify’s business model, which still fails to be profitable since its inception – The platform has seen an explosion of net losses in 2016, to 539 million euros … for a turnover of 2.93 billion euros (+ 52% compared to 2015), according to figures released in June by Luxembourg holding Spotify Technologies. The valuation of Spotify is currently estimated at 19 billion dollars, against 8.5 billion in 2015 at its last fundraising.


Real Estate Financing: The deceptive charm cheaper construction loans

Those who buy a house now, seduced by low-interest rates, is an intriguing problem is one. Because the repayment takes longer.

If you believe that Sisyphus was a happy man because his life he was doing a solid job without ever ready, then read no further. However, you do not want to end up like him, then do it – especially if they want to pay off a mortgage.

You might end that is quite like the tragic hero of Greek legend. For, in fact, it has never been as cheap as it is today to finance a real estate purchase. For about two percent interest per year, it already comes into the home, in the 80s a mortgage still cost a whopping 11.8 percent interest. That’s why many home buyers think that they are also much more debt than previous generations buyers. Exactly the opposite is the case. Those who do not pay attention, pay a lifetime from credit rates without ever becoming owners. This is the so-called “Tilgungsparadox”.

It sounds illogical, but: pay, the lower the interest rate, the longer homebuyers a loan from. The explanation is this: In the most common form of financing, the annuity, you regularly a fixed rate loan pays back over the entire term. This rate is made up of interest and principal. The interest rate remains the same over the entire term. The repayment rate is changing. Currently, the interest rate is about two percent, as the initial repayment rate put many banks traditionally one percent, adds up to three percent. Those are the annual rate. For a loan of EUR 200 000 per year, the 6000 Euro (4000 Euro interest 2,000 euros repayment), ie 500 euros per month, paying off the customer are.

Now reduce each rate of debt – to which the two percent interest accrues annually. After a year liabilities by EUR 200 000 2000 EUR repaid (one percent), there remain 198 000 euros. 3960 Euro interest rates are due to the 40 euros less than before. But the redemption rate now is not reduced by this 40 euros – since the monthly rate will remain the same but yes the repayment increases by exactly that amount. Over the years, this means that the rate of interest charged at the rate becomes smaller and smaller and the capital is growing. Just as the home buyers make it pay off the loan not only in 100 years (as long as it’d take one percent redemption otherwise, would be removed to 100 percent of the loan) but earlier.

And this is where the low-interest rates revenge. Because the lower the interest rate already is, the slower fall, of course, the “interest savings” each year (these are the 40 Euro in the example) and the slower growth of the capital element. This leads to the paradoxical situation that a loan – regardless of the amount – is removed to eight percent interest with a repayment of 1 percent after 27.6 years while paying off a cheap loan for two percent of all 55 years.

But now no one needs a life sentence squeeze credit rates when he makes instead of a: Increase the repayment. However, the rates of only a few banks on its own, after all, they earn well in long-term contracts. A few institutions, after all, have introduced a minimum repayment of 1.5 percent or two at a construction loan. At least two percent, it should actually be better longer. Especially since a higher amortization rate usually also means better interest rates.

Real Estate Financing: Two out of three prepayment penalties are too high

A package height can be for the repayment, not name because of course, this increases the monthly loan installment, and how much load can withstand a borrower, he knows only himself. When 200,000-euro loan a repayment rate of two percent means a monthly rate of 666 euros (instead of 500), at three percent, there are 833 euros. Anyone who does not want to do from the beginning or can, which should hold at least one repayment block change option for later in the contract. Keep it flexible.

Because on permanent Niedrigtilger later lurks a great danger once the fixed interest period of the contract expires. And usually, the customer secure the currently low-interest rates so only for 10 or 15 years. lending rates to rise in the coming years so strongly again and the remaining chunk of debt still very great because you barely have removed him, the rates for the house quickly priceless – and Sisyphus can really salute.