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The banks’ interest rates can be tough

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Mortgage rates continue to be at very low levels. The average interest rate is around 1.5 percent and some of you out there have also managed to get lower interest rates than that. The interest rate is thus a fairly small part of the housing cost at present. Nevertheless, the banks run with much higher interest rates when they figure out if you can borrow, which can limit how much you can borrow and how expensive housing you can afford to buy.

What is the interest rate and when is it used?

cash

When you want to take out a mortgage, the bank makes some calculations on your finances based on the price of your home, your income and expenses and the cost of the loan to make sure you have an economy strong enough to manage to borrow so much money (and to repay them). The idea is, in principle, to see how much you can borrow the most from your circumstances without having problems with the payments to the bank.

When you apply for a loan promise, these calculations are made and you find out how much you can borrow. Since a normal mortgage loan lends up to 85% of the value / price of the home, you can be granted a loan promise of USD 3,400,000 for a purchase of about 4 million. Of course, it is then also required that you have USD 600,000 to put in cash yourself, but if we expect you to do so, it is basically how it works.

To calculate how much you and your finances can manage, you calculate the cost of the loan in relation to a certain loan amount. So if, for example, you would like to borrow USD 3,400,000, the bank calculates the interest cost plus how much you repay each month (for new mortgages you have to repay at least 2% until you reach a lower mortgage rate) to see if there is a reasonable amount left to live on, based on what you have to dispose of in a normal month.

Calculating the interest rate

Calculating the interest rate

When calculating the interest rate, however, you do not expect 1.5 percent or something, even though the average interest rate is around there today. Instead, one calculates an interest rate that is supposed to have good margins for the future, for interest rate increases and some extra buffer. Many banks expect a discount rate of up to 7 percent. This means that the interest rate that you must manage is about 5.5 points higher than what you currently need to manage. But the banks want to be on the safe side.

The idea is that you should always have a certain amount of money left over to live on when you have paid in housing costs and the like. So that you can afford food and anything else needed. Exactly what amount the bank thinks is reasonable can vary but they get this figure by taking your or your wages after tax and deducting the expenses for the mortgage loan etc.

The bank is thinking ahead and knows that there will be interest rate hikes and that there should be good margins in its economy and therefore they are drawing on an interest rate that is clearly higher than the current average interest rate. However, 7 percent is still a high interest rate and if you want to borrow USD 3,400,000, with just the interest rate, there will be a monthly cost of USD 19,833.

Excessively high interest rates?

Excessively high interest rates?

I clearly understand that the banks want to expect a calculation rate that is higher than the interest rates (and even better the average rates). Especially in these times when interest rates are historically low and we know that higher interest rates will come in the future. Having a higher interest rate when doing their calculations is logical to make sure that people do not have financial problems when the interest rate goes up a bit.

In 2008, the interest rate was up around 6 percent, so it’s not that long since it was a completely different interest rate situation. Many may not remember this anymore or were so young that they were not affected by it at that time. However, it clearly shows that 7 percent is not a fantasy interest but something that has happened and that could happen again in the future.

However, interest rates of around 7 percent are good in my opinion. Sure, a calculated interest rate should include future possible interest rate increases and some extra buffer, but it does not feel reasonable to be at such a high level. It is very unbelievable that the interest rate will go up to these levels for many years to come and as long as there is no threat of large interest rate hikes, one should be able to choose a more reasonable interest rate.

You can understand that the banks want to be on the safe side, but it must also be rooted in reality. Even if interest rates go up over the next few years, it is unlikely to exceed 4 or maybe 5 percent. This, too, would mean quite large increases.

If the bank used, for example, 5 percent interest rate to calculate your loan and loan promise, it would be clearly more reasonable, you might think. Still, it is an interest rate that could emerge in the foreseeable future. When the interest rate starts to rise, there is of course also a greater need to prepare for higher interest rates in the future – but as long as it remains at these low levels and the Riksbank’s forecast for the repo rate is at a very low level for many years to come, then it gets a little overkill quite simply.

Tough for some to get a mortgage

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Obtaining a sufficiently large mortgage loan can be quite difficult at present. Especially for some groups such as young people and those who have previously been outside the housing market and do not have as much savings money. Even those who are at the beginning of their careers and have not yet received so much salary. This is especially true of course in big cities where housing is more expensive.

The same people affected by, for example, the amortization requirements and the tough housing market are also affected by the banks’ high interest rates. Of course, those with lower incomes will have bigger problems with managing a 7 per cent interest rate. The loan they are offered is perhaps less than they would need, and then it quickly becomes really difficult for them to find a reasonable home, which, as I said, is especially true in large cities such as Stockholm, Gothenburg and Malmö.

Obviously, it is important to be careful about loans and not to grant loans without having a security behind. This was a large part of what was behind the great financial crisis that began in the US in 2007. There, the housing market failed when there were too many people who could not pay their mortgages, which was largely because the banks lent to people who actually did not have the ability to pay when higher interest rates set in.

We do not want to repeat those mistakes and end up in a situation where the Swedish economy is threatened by people having problems paying their mortgages. It would be boring quite clearly. However, it is important to find a balance between security and realistic requirements for borrowers. We want a buffer and a security, but we also want to make sure that people who are basically able to borrow and who need to buy a home should have the chance to do so.

There have already been several measures (such as amortization requirements and debt-to-income ceilings) to reduce Swedes’ indebtedness and there may be more coming in the future. There is a thought behind this that is good. But with all the extra requirements, it will also be much more difficult to buy a home and this also means negative things for Swedes as well as for our economy.

If we could find a more balanced level of the interest rate, which realistically matched the interest rates we have today and which are reasonable in the foreseeable future, it would clearly be better. This, together with the new requirements for borrowers and, in addition, how the housing market looks like today with very many expensive housing, would make it a little more reasonable levels of mortgage loans. Then the calculations for a mortgage would not look as impossible and ordinary people could buy a sensible home.

Types of loan Which one suits you?

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More and more financial products are available to us. With so many offers we find it difficult to choose. Has it happened to you? To help you make the best choice, I tell you what are the different types of loans you can buy. Find out which one suits you best.

Bank loans

Bank loans

These are the typical loans that you can access. They are what you acquire with the bank through a contract. Those usually have lower interest rates than other services of the same financial institution. There are different names and there are even loans that specialize according to what you want to acquire with them, with slight variations in interest, amounts, etc.

An example of a bank loan – which insurance you have already requested – is a loan for your own business, another example is a personal loan. To get them you have to go through a process that is not fast at all. This allows the credit and the amount to be approved or not after an evaluation so that they can give you the money.

Card Loans

Card Loans

If you have a credit card, you have been told that you have a parallel line of “x” amount of soles. These can be removed from the same ATM.

You can get very excited when they offer you a loan like that and you may end up accepting it without knowing the high interest rates they carry. If you have time to think about it: I don’t recommend them. Accept it only if it is for an emergency or if you are going to pay them in one or two installments. A planned personal loan is better!

Online loans

Online loans

Online loans are a quick way to get the money you need directly into your account. You just have to have a good credit history, be of legal age and have a mobile phone number in your name – and at hand. One of the great benefits of this type of loans is that they can be obtained in just minutes and not much paperwork is required to access one. On platforms like Squire Allworthy, loans from 500 to 50,000 soles can be requested.

Whatever loan you are going to ask for, the ideal is that you compare the different offers. Even if you are going to request the cash provision, you can get a better proposal, remember: there are banks that charge less interest than others.

Credit cards or a quick loan

Credit cards can be very beneficial. With them we can buy those products that we want and whose price is higher than our current liquidity. And it is that thanks to the benefit of the fees we can buy and pay them intelligently. See http://www.romeo-help4u.com/payday-loan-debt-consolidation-discover-how-to-consolidate-cash-advance-loans/ for an illustration

On the other hand are fast loans; The latter allow us to see the cash in our hands and we can do whatever we want with them. In this note I tell you more about both credits.

Loans for emergencies or planned expenses

Loans for emergencies or planned expenses

Fast loans, those that can be requested online or in person with your ID are perfect when you have an emergency and can not wait to go through a tedious paperwork. Also when you have planned expenses and are able to repay the loan in the shortest possible time (that way high interest rates are reduced).

Applying for them is very easy and they are usually online loans. These are accessed after filling out a form and with the condition of:

  • Have a good credit history.
  • Be of age.
  • Have a mobile phone at hand, in addition to a bank account.

Credit cards for necessary expenses

Credit cards for necessary expenses

In the face of fast loans, credit cards usually have higher interests, so when using it, payments should be considered in the shortest possible time to avoid increasing the debt. The best use you can give to a credit card, in case you don’t have Oberoncia, is for essential expenses.

If you will use it to give you certain tastes it is better that you think twice and never use them if you have the cash to pay what you need, unless you want to accumulate points or benefits and it will not take long to pay.

After knowing all this, what have you decided to use? Whatever your decision do not forget to plan in detail. Keeping a personal budget will be a great help to not seriously affect your finances.

B2B business loan: A new type of business loan

B2BLendingNow is a fast and new way to obtain a business loan. Quickly receive the capital you need to grow your business.

When can I apply for a business loan with B2B business loan?

If your company has been active for at least 2 years, your average annual turnover exceeds 75,000 euros and all directors and / or major shareholders are established in the Netherlands, you may be eligible for a business loan at B2BLendingNow

All the features of the business loan with B2B business Loan:

All the features of the business loan with B2B business Loan:

  • LOANS UP TO 50,000 euros
    – Borrow 2,000 – 50,000 euros
    -6 to 12 month duration
    -Simple and transparent price structure
    -No hidden costs

 

  • QUICKLY ONLINE REQUEST IN ONLY 5 MINUTES
    -No paperwork or hassle
    – You will know within a few minutes and not weeks if your application has been approved
    -After approval you receive the working capital you requested within 1 day

 

  • LET YOUR COMPANY GROW
    – Purchase required resources
    -Manage unexpected costs
    -Contract required staff
    – Receive the capital required for your growth

 

  • SIMPLE and FAST
    -Safe and trustworthy
    -No application costs
    – You can apply 24 hours a day, 7 days a week
    -Watch today how much you are eligible for!

B2 Business Loan. They help your company grow.

B2 Business Loan. They help your company grow.

B2 Business Loan – business loans – how it works:

B2 Business Loan - business loans - how it works:

What they offer

  • Loans between 2,000 and 50,000 euros
  • 6 to 12 monthly installments
  • Monthly statement
  • Request in 5 minutes
  • Money deposited within 1 day after approval
  • Approval based on credit score and based on cash flow
  • Complete the online application in just 5 minutes and receive the required working capital within 1 day.

Have your working capital required quickly

After your application has been approved, you will receive the required working capital in your bank account within 1 day. You then pay the monthly repayments during the term of the loan, making it easy to budget. After you have built up a correct payment history you are eligible for a higher loan amount and possibly better conditions.

Clear price structure

The pricing structure of B2BusinessLening is simple and transparent with no hidden costs, so that you can easily calculate your ROI when you add the requested working capital. The amount of the possible loan for you, the terms and costs are all based on the business analysis they have carried out. 

Cash loan offer 2019 | The latest review of loans and credits

Cash loan bank offers. On the website you will find a quick answer to the question: where to ask for a cash loan? What is the best bank for a cash loan? Comparison of cash loans at banks.

On the website you can get acquainted with the latest offer of cash loans. How do you contact your bank regarding the loan so that you do not waste time? All you have to do is fill out the contact form for the bank you have chosen and the representative will contact us by phone. We will then get information about the credit offer itself, as well as calculate our creditworthiness and find out how much cash credit we can count on what conditions.

Cash loan offers in banks

Cash loan offers in banks

Before you decide on any cash loan you have to answer a few questions. Do you need such a loan? Perhaps it is worth to wait a few months, put down money and then finance the purchase with savings? It is worth giving up a loan or a cash loan, if it is not a purchase urgently needed and if you need 3-6 months to save money.

When saving for a specific purpose, it is worth considering if you have the money to put aside. If you do not have one, then if you take a cash loan, how do you repay your loan installments? Or maybe increase your income by taking an extra job? But do you have time and enough strength? It will definitely be at the expense of your free time. Always remember that you give away more than you borrow, which is why it is so important to compare bank offers.

Cash loan questions

Cash loan questions

What were the most popular loan inquiries in the current month?

No. 1) Cash loan bank. Generally. In which bank we borrow the cheapest. The search engine helps you get acquainted with the basic offer.

2) Cash loans comparison. Similarly to the first point, i.e. comparison of loans without providing parameters.

3) Cash loan PLN 30,000 6 years. Specific query for a specific loan. Annual real interest rate 8.23%, nominal interest rate 6.49%, credit installment PLN 525.05. The most expensive option: rrso 19.51%, monthly installment 683.55 PLN. Calculations as at 10/01/2019.

4) Cash loan calculator. Estimating loan installments. Why not an enumeration? Because we will get answers to the questions regarding the amount of the installment as well as the total credit costs only after contacting the bank regarding the loan. After calculating the creditworthiness (if we have it), the scoring assessment (if it is positive) will be presented with the calculated installment.

Bank loan simulator. – Comparison of loan installments in banks

The loan simulator at the bank is nothing else but calculating the estimated loan installments with the credit parameters set.

Very often the loan simulator is called a calculator, a search engine or a credit comparator.

Regardless of what the financial tool is called, it is primarily used to search for banks, learn about loan offers and their basic parameters, and simulate loan installments. We will emphasize this once more: to simulate installments, not to calculate them exactly. The most common, and thus the most popular simulator is:

Bank loan simulator

Bank loan simulator

Simulation of a bank loan, or actually credit installments, can be made on the website. The assumption is very simple: estimate the amount of the loan installment. Enter the amount of the loan and specify the loan period. You can also select several other search parameters, but these two are enough to check how much (more or less) will be the credit installment.

In the case of cash loans, the lending period is given in months, and in the case of mortgage loans in the years. Why is it just a loan simulator, not an Exact Ratio Calculator? The exact installments can only be calculated by the bank. The amount of the installment depends not only on the amount and duration of the loan, but also on the client’s scoring. The more scoring points a customer gets, the better and more advantageous offer.

Credit simulation and what’s next

Credit simulation and what

If we have already prepared a list of banks from the simulator, then now you should only choose those with whom we will contact you regarding the loan. The very process of applying for a cash loan, contrary to popular opinions, is not at all long or complicated.

Banks require a personal ID and a certificate of earnings. The ID card will of course confirm our identity, age or nationality. Foreigners must have their passport and residence card with them.

An income certificate is also needed to complete the loan application. It is necessary to provide information about the earned income and the type of employment contract. Naturally, the application should also include the amount we want to borrow and the time in which we intend to repay the loan.

If all documents are delivered, the application is correctly completed, then the bank finally verifies the customer’s creditworthiness (the first was during the telephone conversation) and checks the creditworthiness.

Cheap Bank Loan | The Whole Segment of Bank Loans and Loans

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Cheap cash loan bank. On the portal you can check what is a cheap bank loan in cash. Having a bank statement makes it easier to make the right choice. Check where the cheap cash loans compare the bank offers.

A cash loan or cash loan is one of the fastest ways to get financing for any consumer purpose. The main advantage of cash loans is the high availability – even several proposals for loans and cash loans in one bank – and the speed of its obtaining. In some banks, the formalities with the launching of a cash loan can be arranged even on the same day as the loan application sent.

Below you will find a list of cash loans available in banks. In other sections of the portal you can find housing, consolidation and car loans.

When applying for a cash loan, we must be prepared for the bank to ask us for the amount and source of income. Only in the case of cash loans for a small amount and a short loan period, the bank may only request a statement of income or an account statement.

The simplified procedure for applying for a cash loan, with limited formalities, can be used, for example, by professionals, such as, for example, doctors or lawyers. They can apply for a high loan amount with a long loan repayment period.

The cost of a loan in a bank

For each loan, the basic costs are the nominal interest rate of the loan and the commission for its granting. In addition, additional fees and loan insurance may occur. In the case of loans for tens of thousands of zlotys, you will certainly need to provide additional collateral, such as bills of third parties, promissory notes, blockade of securities or insurance.

Each credit offer is general, whereas the credit offer is individual. It is presented after examining the creditworthiness and creditworthiness of the client – checking the credit history at database.

The bank examines the creditworthiness and analyzes whether we are able to repay the loan and what the maximum loan installment can be. When calculating creditworthiness, the bank takes into account, among others, income and fixed expenses.

Cheap loan in the bank

Cheap loan in the bank

The cost of the loan depends not only on the credit offer itself, but also on the scoring by the bank. Customers who have obtained better scores can count on much more favorable loan terms.

If you have not used any credit products in your bank (credit card or account limit) so far, then before you apply for a loan, you should start one of these products a few months before applying for a loan. In this way, database will record that you already have a credit history. Lack of credit history makes it difficult to assess the future borrower. It does not mean that you will not receive the loan, but it may be worse financing conditions.

When comparing loans at banks, one should pay attention to the APRC – the Real Annual Interest Rate – or the total cost of the loan. This allows you to compare loans in a quick and easy way. The general rule is that the smaller the APY and the total cost, the loan will be cheaper.

Which Loan Should You Choose? Cash? Account limit? | All Possibilities

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Which loan should you choose? The most frequently asked question when looking for loans and banks. If we decide to finance purchases from an external source, and not from our own savings, it is very important to choose a specific financial product. From him also depends the cost of borrowed money.

Banks offer many loan products. The most popular are loans and cash loans, installment loans, housing and car loans. The names themselves indicate what we can use: home, car, household appliances, foreign holidays or general renovation.

Loans and loans differ from each other for their purpose, type of security, repayment period, interest rate, etc. Lending alone is not something to blame. Hardly anyone can afford to buy a flat with savings or even a used car.

Only thoughtless use of loans can lead to serious financial problems. Borrowing by people who definitely should not do it only leads to further problems and ends with a spiral of debt. Many of us have more than just one loan, and there will be even several hundred thousand people (!) Who also have loans and cash loans, home loans, account limits and credit cards.

What credit to choose, which is the most popular loan in the bank

What loan is the most popular? Of course, there is only one and many people will point to a cash loan without any thought. This is the most popular credit product at the same time. dearest. That’s why we often ask for a cheap cash loan. Of course, such a loan can be found, provided, however, that we compare the offers (use, for example, the cash loan comparison engine to search for and compare loans).

The credit limit on your account

The credit limit on your account

We can distinguish several cash loans, and the most popular type of such a cash loan is the credit limit in the account, also known as a debit on the account or a revolving loan. Such a loan allows you to withdraw money from your account and make transfers. The credit limit granted by the bank depends on the amount of receipts made on the personal account. It is usually awarded between two and six times our monthly income.

BENEFITS:

  • it is easy to get such a loan,
  • no additional certificates or sureties are required,
  • interest is calculated on the amount of credit actually used,
  • every deposit on the account reduces the debt,
  • the commission on the granted limit may amount to 0 percent. in the case when we apply for such a limit via the Internet,
  • some banks offer promotional terms for those clients who transfer their credit limit from another bank.

DISADVANTAGES:

  • sometimes it is required to have a ROR account with the bank for at least 3 months, similarly it may be with receipts to the account,
  • high interest rate, close to the maximum admissible. Currently, it is 9-10 percent,
  • the commission for granting the limit may amount to 0% as well as 10%,
  • the annual renewal fee, regardless of whether we use the limit or not. It can be determined by the amount or percentage (about 1-3% of the limit),
  • banks often persuade to take out insurance, which of course increases the cost of such a loan,
  • exceeding the limit may result in charging penal interest, additional payments or even in the worst case scenario, the bank may terminate the contract.

A cash loan

It may happen that the bank will refuse to activate the account limit, but it will offer a loan or a cash loan. We can also have a limit in your account and apply for a cash loan. There is a difference between a cash loan and a cash loan. The main difference is that the cash loan is a loan for a specific purpose and can only be granted by banks and credit unions. Because we usually take cash loans, that’s why we find the advantages and disadvantages of this form of financing below.

BENEFITS:

  • can be intended for any purpose,
  • high maximum amount of cash loan that can be obtained from the bank. On average, it is € 120,000, but we can find offers of loans and cash loans with a maximum amount of up to € 150,000 and € 200,000,
  • in the case of a small loan, no additional certificates and security are required, and the decision is made up to 15 minutes.

DISADVANTAGES:

  • required certificate of earnings, loan collateral or guarantor in the case of cash loans for large amounts,
  • commission for granting a loan (there is usually a dependency that if the interest rate is low, the commission is high, and vice versa),
  • additional fees, e.g. preparation or administrative fee,
  • very often the bank requires compulsory loan insurance.

CREDITS AND CASH LOANS OFFERS IN BANKS

Installment loan

Popular when buying home appliances or audio / video products due to a simplified procedure. It is enough to just sign a contract and receive the goods in your hand. Repayment of installment credit is most often spread over 24 months, but there are offers with a longer repayment period. Remember to read the contract carefully, check the amount of all loan installments, because you may find that you pay more for the product than it actually is in the store.

BENEFITS:

  • simplified procedure, sometimes only boils down to presenting your ID card and declaring your earnings,
  • after signing the contract, we can take the goods home,
  • the interest rate on such a loan may amount to 0 percent. (also read the following defects).

DISADVANTAGES:

  • sometimes it is necessary to present documents confirming the receipt of income,
  • the bank may charge a high commission or oblige to take out insurance.
Credit cards

Loan for free? There are no such loans. But a credit card can be a good option for consumers who want to buy using a cheaper loan.

BENEFITS:

  • the possibility of using a free loan during the interest free period. It is usually 50-60 days.
  • many banks offer to make a card for free,
  • additional bonuses for using the card.

DISADVANTAGES:

  • monthly or annual fees are set depending on the type of credit card – most often they refer to prestigious cards or linked to loyalty programs,
  • the annual fee can be set from the amount of trading on the card or the number of transactions made,
  • no debt settlement in the non-interest period, accrued interest on the loan,
  • withdrawing money from an ATM is treated as a cash operation and commission and interest are charged (from the date of payment of the money – in this case the interest-free period is not applicable).

OVERVIEW OF BANKS AND CREDIT CARDS

Mortgage loan

A mortgage loan differs from a mortgage primarily because it can be taken for any purpose. The loan is secured, as in the case of a mortgage, property. However, it is a property that belongs to the borrower or a third party (guarantor).

BENEFITS:

  • at high amounts, usually exceeding 20-30 thousand, such a loan is cheaper than a cash loan. Even when we consider non-interest costs: a fee for property valuation, mortgage entry, insurance, etc.,
  • the high possible loan amount (determined as a percentage of the value of the property) and the long loan period, even 30 years.

DISADVANTAGES:

  • a long time associated with the completion of all formalities, and thus a longer period of time needed to withdraw money from the loan,
  • most banks set a minimum loan amount.

Do you know what loan you need?

Remember, however, that the bank dictates the terms of the loan or loan, but we are not sentenced in advance to worse conditions. We can negotiate the main points of the contract and it is even advisable to get the most favorable terms. In addition, if our creditworthiness and creditworthiness is high, the bank will certainly offer us better credit terms than the average customer.

We should always compare the loans and credits by checking the offer in the bank that runs our account and then compare the proposal with the loans in other banks.

Berlin – If you can only build on the statutory pension in old age, look in the tube. But how do you correctly calculate how much money is needed in retirement? And how do you avoid a pension gap? Theo Pischke, pension expert of Stiftung Warentest, gives tips for the calculation.

Image: Mature couple

The situation is clear for Theo Pischke. “Most insured persons will have a pension gap,” says the pension expert of Stiftung Warentest. This refers to the difference between the statutory pension and the amount that consumers need for their standard of living in retirement. The reason for this is the demographic trend. The working population will have to pay more and more pensioners in the future. As a result, the pension level drops steadily.

Anyone who retires in 2012 can expect a pension of around 1270 euros. However, this only applies if he has paid 45 years into the pension fund in the old federal states with an average annual salary of about 32,400 euros. In the new federal states, the average pension is slightly lower. Who has earned less, gets less statutory pension. Anyone who has earned on average, but has paid shorter, also gets a smaller pension.

The working population must pay more and more pensioners

The average pensioner receives a good 47 percent of his gross salary this year. In 2030, the average pension will have already shrunk to 40 percent of the last gross income. This is what the German Council of Economic Experts predicts for the assessment of overall economic development. “Most pensioners will therefore not even reach the 40 percent in 30 years, because they have earned below average or not get 45 contribution years together and therefore not the full pension entitlement,” says Pischke. Martin Reißig of the Federal Association of pension consultants therefore predicts: “The state pension will be in the future only a basic supply.”

Nobody comes around saving

In order for it does not remain with the basic supply, most must save additional. How much is missing, one learns by calculating the personal pension gap. The starting point for the calculation is the expected statutory pension. The German pension insurance sends this annually a pension information to the insured. The form results in the anticipated amount of the statutory pension.

“The prognosis, however, provides only a clue about the expected pension,” says Josephine Holzhäuser of the Verbraucherzentrale Rheinland-Pfalz. If something changes in the occupational situation, such as child-raising periods or unemployment, the pension entitlements change as well. “Anyone who has been working full-time for some years and has paid heavily into the pension fund, but then suddenly takes a longer break, for the predicted pension is no longer in the specified amount.”

80 percent of the last net salary is realistic

Based on the extrapolation of the German pension insurance, however, everyone can at least roughly determine how much he needs in addition. “Who wants to keep his usual standard of living in retirement, needs about 80 percent of the last net salary, to 20 percent can do without most,” says Pischke.

Many expenses fall away in old age

The reason: many expenses fall away in old age. For example, retirees no longer have to pay any contributions to the statutory pension. Occupational expenditures such as travel expenses to work also save retirees, also possible rates for a real estate loan or training costs for the children. Depending on the lifestyle, however, costs can also be added, for example for travel and hobbies. In addition, usually the health costs increase in old age. “Depending on your personal situation, it may therefore be that 80 percent of the last net salary is not enough,” warns Josephine Holzhäuser.

Theo Pischke also points out that the German pension insurance calculated in their annual pension forecast no monetary devaluation. “The authority refers only to an expected annual inflation rate of 1.5 percent, each insured must plan the purchasing power loss of his pension itself.”

Employees can use the information letter from Deutsche Rentenversicherung and the Rentenlückenrechner of Stiftung Warentest to find out how much they have to cover for retirement in addition. It is also assumed that an annual depreciation rate of 1.5 percent. That is the average inflation rate of the past 20 years. This means that a monthly pension of 800 euros is only worth about 680 euros with a corresponding loss of purchasing power in 10 years.

Ideal is a combination of occupational pension and Riester pension

If you now know the personal pension gap, you should additionally provide for the necessary amount for the age. “Meaningful is always a mix.” Employees usually pay a company pension in combination with the state-subsidized Riester pension, advises Reißig. Rigid pension plans with a regular obligation to pay contributions are in his view currently not recommended: “Now you should rather collect his money, put it for example on the time deposit account, buy funds with low fees and wait for the interest rate market has recovered again Buying a property can be an alternative “.

To close an impending supply gap, you should start saving early, advises Pischke. “If you start early, you can build up wealth with small amounts, because young savers benefit considerably from compound interest.” The closer one gets to the retirement age, the more expensive it will be to close the pension gap.

News Quick and easy: terminate ADAC membership

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Thursday, 23.01.14 , written by Christian Hafler The manipulation scandal leaves a deep scratch on the image of the “Yellow Angel”. Consumers now doubt not only the accuracy of various ADAC tests. Many members like you have lost their confidence in the Automobile Club. Can you cancel the ADAC without

Mitgliedschaft beim ADAC kündigen: Kündigungsfrist beachten

Not only the ADAC helps with breakdowns and accidents

They belong to the nearly 19 million members that the ADAC still has. Many of them are shocked by the scandal surrounding the manipulated numbers of participants in the “Yellow Angel” award ceremony. Now, the uncertainty among them is spreading: Has the ADAC also cheated on winter tires or rest stops tests? Most ADAC members are now only clear that behind the friendly breakdown helpers is a large organization with lobby interests. But if you want to quit the ADAC, you can not do this without further ado.

Announce at the ADAC: You should pay attention to this

To terminate membership of the ADAC is possible for you on one condition: observing the notice period of three months to the end of the contribution year. “Cancellation of the ADAC membership can only be done in writing and only at the end of the contribution period with a quarterly period”, it says in the ADAC regulations. If you have just transferred your annual subscription to the Automobile Club, you will probably have to wait a year.

A special right of termination due to the manipulation scandal does not apply. This view is the legal expert of the SWR, Klaus Hempel. “A contract can only terminate without notice if it is unreasonable for one that the contract continues,” explains Hempel.Da the award ceremony, however, has nothing to do with the membership contract, you must not have the right to a termination without notice .

The ADAC termination can be formulated as follows:
“Dear Ladies and Gentlemen,
I hereby cancel my ADAC membership at the earliest opportunity. Please send me the cancellation confirmation in writing.
Sincerely, Max Mustermann “

The ADAC cancellation is received by mail, preferably by registered letter: ADAC, member service, 81360 Munich. Or by fax at 089-76766346.

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AvD as a cheap alternative to the ADAC

If you are now dissatisfied with the ADAC in the course of the ongoing discussion, you can cancel regularly. Because there are not only the “yellow angels” who come to help with breakdowns and accidents. For example, the Automobile Club of Germany (AvD) is a low-cost alternative. For just under 65 euros a year, the AvD offers global roadside assistance. The ADAC, on the other hand, only helps across Europe – but only to members who have a more expensive ADAC “Plus membership” (84 euros per year). In addition, AvD members benefit from the free medical repatriation, should this become necessary after an accident. The AvD is with one million members Germany’s second largest automobile club.

Costs and benefits in comparison

Another possibility is the European Automobile Club (ACE). The club has around 580,000 members. Slightly smaller are the automobile club Verkehr (ACV, 300,000 members) and the car and travel club Germany (ARCD, 100,000 members). When comparing the performance of each provider in detail, you will find that they differ only slightly from each other. It is striking, however, that ADAC Plus members currently pay most for their service. For some of them, that may be reason enough to give notice to the ADAC.

Breakdown and accident assistance without ADAC: motor vehicle protection certificate makes it possible

Are you just for accident and roadside assistance at the ADAC? What many do not know: You do not have to go into a club for that. For the towing or recovery of your car and help with breakdowns and accidents often enough a so-called motor vehicle protection letter . Many automakers and insurance companies offer these for little money. In general, the benefits of insurance are even the cheaper alternative, says Peter Grieble of the consumer center Baden-Württemberg. Compared to the Tagesspiegel, Grieble explains that this module often only costs ” a few euros “. Depending on the provider, the benefits of a motor vehicle protection certificate are similar to those of good automobile membership, for example with regard to repatriation. However, what a letter of protection actually does, you will learn directly from the motor insurance.

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