## How does a loan simulation work?

Do you want to perform a loan simulation, or are you curious about the benefits that this has to offer? You can easily do a simulation online, so you know exactly where you stand. Determine on the basis of the amount you wish to borrow, the term and the Annual Cost Percentage what you spend on the loan each month. Do you want to know how much you will pay during the first year? That is also something you can easily find out with the loan simulation.

## Amount borrowed and duration

As soon as you perform a loan simulation it is in any case important to enter the amount that you want to borrow. For example, do you want to purchase a car of \$ 10,000 and do you also have some savings available? Then it is a good idea to first enter the full amount in the loan simulation. Find out what it costs to borrow this amount. Are the costs higher than you thought? Then you assume, for example, \$ 8,000 in the loan simulation, so that you can also contribute \$ 2,000 in savings.

In addition, the duration is also important within the loan simulation. Keep in mind that a longer duration will lower the monthly costs (the monthly payment will be lower), but that the total costs will ultimately be higher (you pay interest over a longer period).

## Annual Cost Percentage

Do you want to get a good idea of ​​the interest you pay per year? Then also enter the Annual Cost Percentage, as stated in the offer from the bank or lender. In this way you can enter the various elements of the loan simulation, so that you get a good picture of the costs that the borrowing money will entail.

## Compare loans

Do you want to compare loans? Then it is wise to perform a loan simulation in any case. In this way you can check, among other things, what it is if you contribute more of your own money. In addition, you can easily find out what it costs if you would, for example, pay 1% more interest per year, or what it would save if the duration turned out to be shorter. Try different loans so that you can choose the terms and conditions for the loan that match the financial picture you have in mind.

## Christmas is coming. Ranking of the best personal loans

Christmas is coming, a holiday season that makes our lives happy every year, with ornaments, music, sweets, walks and gifts. If you are one of the lucky ones that you gather as a family to celebrate, you must be very excited because there is little time left for the holidays.

However, for many it may mean a season of spending where stress is raised. But keep calm! We will give you some suggestions, to build a Christmas holiday budget.

## 1. Determine the limit of money you will spend

The first thing you should do before the holiday season comes, is to establish how much you will have for this year’s expenses. Remember that you should only use that money that you are going to reserve.

Never spend more than you planned! Don’t be tempted to buy that expensive bottle of wine or that pair of shoes. If you fail this saving maneuver you will end up frustrated and without a penny.

## 2. Make your shopping list

It is time to start making your Christmas shopping list. Usually, this list includes: gifts, food, drinks, sweets, clothes, travel, ornaments, among others. Also, it is convenient that you divide your budget by categories, so that you assign to each element of the list the investment amount.

Planning with days in advance will allow you to get excellent products at very reasonable prices. This strategy will help you reduce expenses.

## 3. Purchase in cash

Avoid making your Christmas purchases with another payment method that is not effective. Do not fall into that great temptation to use your credit card, with the thought I buy today and then pay. Without realizing it, you will be full of debts that will be your ordeal in the new year.

## 4. Don’t miss Black Friday

Check the online catalogs early and don’t miss out on Black Friday sales. This holiday is a good opportunity to make advance purchases and take advantage of discounts. In addition, in many online stores you can place your orders without undergoing long lines or last minute trips.

It’s amazing everything you can save by wrapping Christmas presents yourself. You can even print a touch of creativity to your packaging using various types of recycled paper, ties and everything you can think of.

Importantly, your family and friends will appreciate more a gift wrapped with your own hands. In this way, you are demonstrating that you invested time, effort and love in each packaging.

## 6.Effect family activities that reduce expenses

For Christmas traditions to be memorable they don’t have to be expensive. They can think of activities that are cheaper and even free. For example, your family Christmas activities may include:

• Visit the nativity scenes of the city where you live.
• Go to the Christmas markets of the squares.
• You visit the Christmas lights show in your region.
• Stay home to watch a Christmas movie and enjoy seasonal tapas.
• Visit Santa in a mall.
• Bake cookies together with the family.
• Go to church to listen to choirs with Christmas carols.

## 7. Save all year

The month of January is a good time to start saving for Christmas shopping. Each month has an amount for December purchases and you will be surprised how easy it will be to cover all expenses.

## 8. Apply for a loan online

It is no secret to anyone that Christmas is a time where everything increases in price and even if you are a wizard of family budgets. It is possible that some expenses may not be covered with the money set for these dates.

So one way to cover those unforeseen Christmas is through a personal loan. In general, these financing grants adequate amounts to what you need, they are processed quickly and you can pay them comfortably.

The best of all! It is that in a short time you will have the money available in your account.

## Laying out the terrace for mortgage credit

Mira and Larry want to lay their terrace and place a carport. They do not receive financing from their bank, because Mira is incapacitated for work and receives benefits through the health insurance fund. Thanks to an intelligent view of their financial situation, they can still do these small works. They opt for a new mortgage loan.

## Benefit through health insurance is an obstacle to financing

Mira is temporarily unable to work and is currently receiving benefits through his health insurance fund. When Mira and Larry look for financing to lay out their terrace and place the carport, they unsuspectingly approach their house banker.

There, the payment from the health insurance fund appears to be a problem for obtaining an additional loan or a drawback of their mortgage credit.

Moreover, there was no room for an additional loan. They were already on a borrowing charge of 71%! So the banker’s right decision. But no solution for the couple.

## A borrowing charge of 71%

Mira and Larry have a borrowing burden of 71%. How do they get a borrowing charge of 71%? This is a view of their financial situation:

• Mortgage credit of \$ 115,000 – monthly charge of \$ 984
• Installment loan (cash requirement) of \$ +/- \$ 20,000 – monthly charge of \$ 321
• Installment loan (car financing) of \$ 15,000 – monthly charge of \$ 291
• Credit opening (credit card) of \$ 5,000 – (theoretical) monthly charge of \$ 250
• Credit opening (credit card) of \$ 1,240 – (theoretical) monthly charge of \$ 62

In total, Mira and Larry pay off debts of \$ 1,907 per month, where their combined income is just under \$ 2,700.

In order to advise them, they contact an independent credit intermediary in mortgage credit.

## Intelligent view of their financial situation

The credit intermediary in mortgage credit listens carefully to their story and analyzes the entire file. He ultimately formulates a proposal that gives a different perspective.

The proposal is to refinance their existing home loan together with the installment loan (money requirement) in a new mortgage loan. Space can then be made available in this new home loan to borrow the budget for the works (\$ 17,000).

## What are the benefits with their new mortgage credit?

The couple let this proposal sink in and consider the advantages and disadvantages. A calculation convinces them that this is a good proposal.

These are their benefits.

* Decrease in monthly credit burden

The loan burden falls from 71% to 47%. This makes their new situation bearable again.

* Implementing their project, which increases the value of their home

They can lay the terrace and place the carport. This increases the value of their home. From \$ 230,000 for the works to \$ 250,000 after execution of the works.

* New financial comfort

Their surplus of living is rising. This is the amount that the couple has left each month to pay other costs. It rises from \$ 787 to \$ 1,420 per month. A doubling of the household budget.

* Also a long-term winner

Suppose the couple did nothing about their current situation, they would repay a total (capital and interest) of \$ 232,000 for the mortgage loan and installment loans. With the new mortgage loan of \$ 122,000, they will only repay a total of \$ 161,000.

## Investigate your financial situation? Which can!

You do not have to lay a terrace or place a carport, every moment is good to have your financial situation examined. At Lenders Credit you can rely on a network of 500 independent credit intermediaries in mortgage credit. They are happy to help you further. Complete this form and we will get you in touch with one of them as soon as possible.