Simulating the cost of a payday loan: possible solutions

What are the solutions for a payday loan?

What are the solutions for a payday loan?


Do you want to renovate your interior, finance your children’s studies or go on vacation but you can’t afford it right away? Simulate the cost of a payday loan.

No problem ! You can today use what is called a payday loan. The payday loan is a credit that allows you to get money very quickly and without proof of use …


Like any type of credit, payday loan also comes with costs. It is therefore important to make a loan simulation before getting started. How to go about it ? Here are some ideas.

What is simulating the cost of a payday loan?

What is simulating the cost of a payday loan?


By simulating the cost of a payday loan, you will be able to have an overall idea of ​​the state of your finances for the duration of your loan. It is the means which will allow you to know the amount which you will have to repay monthly according to the amount of the loan, the ancillary expenses as well as the rate of interest.

In order to be able to simulate a payday loan, you will need to specify some information. These include the type of loan, the amount you borrowed, and the term of the loan. Once this information has been provided, the platform will give you an overall estimate of your payment per month, based on the average rate. However, some simulators offer you a personalized rate based on your loan information.

Why use a credit simulator?

Why use a credit simulator?

Banks are offering their customers various services that are becoming more and more attractive. To be the number one choice, most of them offer payday loans at low prices. However, the bank terms and details of this credit are far from accessible to any budget. The information conveyed on a flyer or an advertising poster is not always sufficient to get a correct idea of ​​the loan in question. This is why it is important to use a credit simulator before taking the plunge.

The online credit simulator gives the possibility to a user to have the list of the best banking offers as well as financial establishments which will respond effectively to the needs and desires of everyone. It allows, in most cases, to have a basis for negotiating your credit. However, even if you go to a financial institution that offers the lowest rates on the market, it is still important to learn about the hidden costs.

What are the payday loan simulation tools?

What are the payday loan simulation tools?

Some online credit simulation tools give you access to a precise calculation on your borrowing capacity, as well as your debt ratio, without forgetting the estimate of the monthly payment. The tool is often in the form of a calculator, you just have to fill in the necessary information boxes to enjoy the benefits of the simulation. The most important calculation is that of the APR, it takes into account the borrowing capacity as well as the debt ratio.

Thanks to the borrowing capacity, you can know the maximum amount that you will be able to repay based on your income. For this simulation, you must indicate the type of project you want to start:

  • Works
  • a travel
  • the purchase of equipment
  • buying a car

You must also specify the amount you want to repay each month as well as the total duration of the credit. In addition to this, you can add the lender’s interest rate if you already know it.

For the debt ratio, the calculation is based on the borrower’s income as well as the amount of his monthly charges. So that the result is not distorted, it is necessary to indicate the monthly resources that is to say the main income, the secondary income, the premiums, the pensions, the rents received as well as all the other possible charges.

In the event of an unexpected request a personal loan.


Have you ever thought about applying for a personal loan to solve specific money needs? Since the appearance of fast loans on the Internet, new financial entities that want to join the fast money offer have not stopped appearing, and this new financial tool is increasingly demanded by all citizens who need to resolve certain unforeseen economic events. 

In the following lines we will provide you with all the details so that you understand what exactly it is, what it is for, what its advantages are and how the application process for quick personal credits works.

What are fast personal loans for?

What are fast personal loans for?

The first thing that should be clarified is that they have nothing to do with the concept of conventional mortgage loan that we all know. The amount of money that is provided is small, it generally ranges from 300 to 1000 USD, so it is not an option that can be used to buy a house or a car.

The reasons why someone may need or simply ask for a quick personal loan can be very diverse. To do home renovation, pay for college or graduate tuition, help pay for a celebration, stay up-to-date on technology, and purchase the latest smartphone, computer, laptop, or TV model to make a Travel a little more than your budget allows, to repair an appliance, pay a higher bill than usual, face a traffic ticket, or buy Christmas gifts.

As you can see, the list of situations and contingencies that may arise on a daily basis can be truly infinite, so being able to count on fast money easily and immediately for a few days until the next payroll arrives, can save us from many problems.

What are the advantages of applying for a personal loan online?

What are the advantages of applying for a personal loan online?

Speed. Displacements, waiting times, the request for additional documentation and their corresponding approval are omitted. The entire process is done digitally, following a few simple steps that can be completed in a matter of minutes. From the time you think about it until you have the money in your account, it may take less than 24 hours.

Comfort. Hassle-free, take advantage of any interval of the day you have free, as you only need to connect to the Internet from your mobile phone, computer or tablet. No paperwork and no need to change banks, and all without leaving home.

Transparency. At the same time the data is entered, the corresponding interests of the personal loan are known. It is a calculator in which the most relevant credit data is inserted; the amount requested and the term of the return, and immediately afterwards, calculates the amount of the commission in a directly proportional way. That is, the higher both data are, the higher the price of money and vice versa.

Flexibility. It is possible to anticipate the return after having contracted the personal credit, because it may be the case in which we have the money much earlier than we had anticipated, and in this way the interest would be saved. But it is also possible to postpone the return date in case the date approaches and the money is not yet available.

How do I apply for a personal loan online?

How do I apply for a personal loan online?

The speed with which money can be counted in the current account is the main characteristic of fast online personal loans, as its name suggests. Speed ​​in receiving the money, speed in the return and, in short, speed in the entire process.

The first step is to select the financial institution with which we want to contract this product. This may be the most complicated step of all, given the wide range that exists in the market today, although to solve it, search engines are also emerging that quickly compare the best options, such as Best Lender.

Once the entity has been selected, a registration process must be completed, which does not require more than a few minutes. It is about answering some basic questions related to contact details.

The application form is as fast as the registration form, because here you just have to add more essential information, such as the amount of money requested and the time it takes to return that amount.

Finally, once the request has been completed and submitted, it will be quickly evaluated to provide a response in a few minutes. As soon as approval has been received, the requested money will also be received in the account.

To improve your credit rating.


Your credit rating or any other name and your ENT rating are the names given to the records where your financial history with banks is kept. In order to increase your credit rating, you must first establish a working order with banks. Here are the situations that lower and raise your credit rating:

You should pay attention not to drop your credit rating;

You should pay attention not to drop your credit rating;

1. If you have any disruptive loans, you should arrange them. If you have difficulty paying, you can go to the bank branch to extend the maturity and reduce the amount of installments.

2.Do not expire your credit cards due date. If you cannot pay your full statement debt, pay the minimum amount . Paying the minimum amount does not lower your credit rating.

3. Install your credit card payments according to your monthly income. Use a small number of high-limit credit cards rather than multiple credit cards. This will make it easier for you to track your payments.

4.Do not apply more if you have had your loan request rejected at several banks. Any application that is rejected will lower your credit rating.

5. Pay your credit or credit cards with automatic payment instruction if you have the possibility. In this way, you forget and eliminate the risk of late payment.

6. Check if you owe the banks before making any address or telephone changes. Because even very small debts can not reach you, the banks can follow up (foreclosure) status.

My credit rating is low, so in this case, if you say how I will use credit; You can benefit from our article Nasıl How can people with low credit ratings withdraw credit? ”

Here’s how to upgrade your credit rating:


1. Start if you do not work with the banks. A person must work with banks in order to obtain a credit rating. A person who does not work with banks does not help the majority of banks in the credit process. Because he doesn’t see the payment scheme.

2. Place an automatic payment order to your credit card, your credit card will be active all the time, in which case your credit rating will be increased.

3.If you have a high demand for credit in the future, you can withdraw and pay small loans. It will improve your credit rating and make it easier for banks to give you high credit.

4. Close your small limit credits to get high limit credits from banks. Even if you pay your bank loans regularly, your credit and credit card debt may be low. Your credit rating increases as you pay to banks.

For more information on how a credit grade is calculated, see our article Nasıl How to calculate a credit grade ”.

As a result,

According to the accountworm finance experts, the only difference of banks from tradesmen should be more institutional. If your payments are regular and your debt is low, banks will always respond to your demands positively.

How does consumer credit work? How do I get it?

Want a new car, to change your bathroom, to simply go on a trip …? Consumer credit can be the solution to finance your projects. The operation is very simple: a bank (the lender) makes a sum of money available to a client (the borrower). In return, the borrower agrees to repay the loan amount, with interest.

Several conditions must be fulfilled to obtain consumer credit.

How to obtain consumer credit? 


To be able to obtain a consumer loan, several conditions are required by banking establishments. First, you need to:

  • To be of age,
  • Have taxable income in France,
  • Not be registered in the National File for the reimbursement of Credits to Individuals (FICP).
    To get the green light from the bank, you must also demonstrate sufficient income.

What are the different types of consumer credit?

Two main categories of consumer credit are available:

  • Affected credit: it corresponds to the purchase of a specific item of goods or the provision of clearly defined services. To qualify, you will need to provide a quote and then an invoice. It is a form of credit that lends itself very well to the purchase of a car, a motorcycle, or to do work for example. You do not start to repay the monthly payments of your credit until the delivery of the goods or the provision of the service.
  • Unallocated credit, also called personal loan: is based on the possibility of using the loan amount in a totally free manner. You do not have to justify the use of this credit.

Amounts available with consumer credit

Amounts available with consumer credit

By subscribing to consumer credit, you can obtain variable amounts from 200 to 75,000 $, and repayable over a period of at least three months. This great flexibility allows you to finance many projects with a credit, ranging from the purchase of small equipment for the home through a car or even the financing of a wedding …

The time between a loan agreement and release of funds
In the context of consumer credit, you will not have the funds immediately because of a withdrawal period of 14 days as provided by law. It is, however, possible to adjust this period, at the discretion of the bank. In the event of an express request from you, this withdrawal period may be reduced to 7 days.

The repayment of consumer credit
Do you meet all the criteria to obtain a consumer credit? Have you received a positive response from the bank and the funds have been transferred? Then begins the credit repayment period.

The monthly payments are fixed, known in advance (thanks to an amortization table) and reimbursed on a fixed date (for example the 5th of each month). Your monthly repayment is then composed of a portion of capital and interest which constitute the remuneration of the bank for having made the funds available to you.

3 proposals of commitments for indebted persons without creditworthiness


Are you in debt and do you urgently need cash? You do not have creditworthiness and you do not have where to get the money you need? No problem. You have loan companies at your disposal, and more specifically products that are dedicated to people like you. Below are three proposals for liabilities for those in debt who have no creditworthiness. Be sure to check them out and you will certainly find something suitable!

Loan for those in debt without creditworthiness

Loan for those in debt without creditworthiness

Our first proposal is a loan for those in debt without creditworthiness. It is a long-term commitment with a small amount of formalities. The lender does not pay attention to creditworthiness, nor does he check credit history or registers of debtors. It is an ideal proposition for people with debt as well as for those with an entry in credit history.

You can apply for a loan directly at the branch of the loan company, so it’s worth to apply here, complete the application and wait for the lender’s decision. However, we calm down, its consideration will not take long. As a rule, a credit decision is issued within a few hours.

Online loan

Online loan

However, a loan for those in debt without creditworthiness is just one of the proposals. Another interesting product is the online loan. In this case, we are dealing with a short-term commitment that can be incurred for several days.

The fact that we don’t even have to leave the house to apply for it speaks in her favor. The loan is available online, which means that you only need a device with network access to complete the application. We can apply for a loan equally via phone, tablet, laptop or desktop computer.

Online installment loan

Online installment loan

Our top 3 closes online loan. This is an offer for those who need a longer repayment commitment. An online installment loan can be taken for up to 36 months. We will take care of all the formalities without leaving your home, because it is a loan available through the Internet.

You may be able to get approved for a  loan even without the best creditworthiness if you make a larger down payment. A bigger down payment reduces the amount of risk the lender has to take on.

Cash loan and loan – differences and similarities

Each of us may need a cash loan – buying a car, new home appliances / RTV or dream travel may not be possible without additional funds. An alternative to loans are non-bank loans, thanks to which cash can also come to us for the implementation of our plans. What is the difference between a cash loan and a loan?

A cash loan

A cash loan

One of the most noticeable differences between loans and borrowings is the institution that grants them. Cash loan may be available only at the bank. Financial institutions that are not banks may offer other forms of liabilities, but we will never get a loan from them.

Banks thoroughly verify the creditworthiness of their clients, most often requiring them to have regular regular income, which will be a promise of trouble-free repayment in the future. Therefore, often only people who do not have financial problems and who have not had problems with payments in the past can count on cash loans.

The biggest advantage of bank loans is the availability of large amounts. They can reach from several dozen to even several hundred thousand dollars. Of course, the availability of the highest sums of money is limited – usually only people with very high incomes can count on them. The exception are mortgages, where the liability is secured by real estate, thanks to which high credit may be available to people with average earnings.

Non-bank loan

Non-bank loan

Cash loans have several things in common with loans. In some financial institutions we can find loans in quite high amounts, reaching several thousand dollars. Larger amounts, as in banks, we will be able to repay in installments for several years, thanks to which repayment exceeding income several times will be possible.

In the case of loans, we will also verify our creditworthiness, but non-bank institutions approach this issue more liberally. People who have been denied at a bank can often still count on a non-bank loan. However, it should be remembered that lower creditworthiness requirements and fewer formalities usually involve higher liability costs.

When we need additional funds, both a cash loan and a loan can be a good solution that will meet our expectations. However, we should remember that we will have to pay back both the bank loan and the loan from another institution. Let’s lend it wisely.

Taking out residual debt insurance – is it worth it?

The residual debt insurance is an insurance that is also referred to as residual credit insurance or credit life insurance and is referred to as RSV for short. The purpose of residual debt insurance is to protect the borrower or sometimes his or her surviving dependents from the consequences of borrowing. The protection within the residual debt insurance is variably compatible. This means that a residual debt insurance against death, but also against illness or unemployment can be taken out. In relation to the lender, the residual debt insurance is very good protection in the form of additional credit security. For this reason, residual debt insurance is often ceded to the lending banks when borrowing. In Germany, residual debt insurance accounted for 2.9 percent of the total insurance sums in 2009. The average amount of residual debt insurance in Germany in 2009 was 11,600 dollars.

The importance of residual debt insurance

The importance of residual debt insurance

The residual debt insurance can be taken out by the borrower as well as by the lender. If the lender takes out residual debt insurance, this agreement is made at the borrower’s expense. The protection can be against death, illness and incapacity for work as well as unemployment within the credit period. The insured person is always the borrower. In the event of the borrower’s death, the insurance will assume the remaining debt from the loan taken out. This means that the insurance company will repay the remaining credit. In the event of illness or unemployment, the insurance company pays the installments until the borrower may be financially able to meet the loan again. The residual debt insurance is usually concluded within a group insurance contract instead of an individual insurance contract.

Residual debt insurance, also known as RSV in technical jargon, originated in the United States in the 1950s. The first contract of this kind was approved in Germany in 1957 by the Federal Insurance Supervision Office. In the case of installment loans and annuity loans, the RSV is usually concluded against the payment of a single contribution, which in turn is included in the loan. In the case of current account or revolving loans, the contract is such that the current outstanding balance is determined each month and that the contribution for this outstanding balance is calculated for the current month. Different forms of protection against other risks exist today. The classic of residual debt insurance was protection against death and incapacity to work.

This was supplemented in 1995 when insurance against unemployment through no fault of its own was included. The residual debt insurance was supplemented in 2006, when serious illnesses such as cancer, heart attacks or strokes were also included in the benefits catalog of the residual debt insurance. For this purpose, assistance services, so-called assistances, were used to support the borrower to reintegrate into working life.

Thus, the protection within the residual debt insurance has been greatly optimized over the years of its existence. This is also important because a bank customer has a long repayment obligation to the bank when taking out a loan. It is therefore inevitable to consider what happens in the event of an illness, accident or even death of the borrower. In the event of death in particular, the heirs are automatically obliged to repay the loan together with the heir. Experts recommend considering taking out residual debt insurance from a loan amount of 8,000 to 10,000 dollars. An alternative to the residual debt insurance can be to overwrite an existing risk life insurance for protection. However, life risk insurance only pays in the event of death, so only covers survivors in the event of a loan default.

In addition, borrowers can also check their existing occupational disability insurance to determine whether there is sufficient coverage for the repayment of installments in an emergency. As a rule, most providers of installment loans have the residual debt insurance in a package with the loan for the conclusion and usually the providers also insist on the conclusion of a residual debt insurance before the conclusion of the lending business, unless there are adequate alternatives.

Criticism and disadvantages of residual debt insurance

Criticism and disadvantages of residual debt insurance

The consumer advice center often criticizes the amount of the premiums for the residual debt insurance and the coupling of lending with the residual debt insurance as a sales method. Often, taking out residual debt insurance involves relatively high commission amounts for the credit intermediary or the clerk at the lending bank. These not inconsiderable costs have a noticeable impact on the total cost of the loan for the borrower. Borrowers should also bear in mind that only a few banks take out residual debt insurance to improve credit scoring. If the lender prescribes the conclusion of the residual debt insurance so that a credit transaction takes place, then borrowers should make sure that the costs for this insurance must be legally binding in the annual percentage rate.

As a rule, it is up to the borrower to take out residual debt insurance with most providers. Nevertheless, the residual debt insurance is often advertised aggressively in order to earn final commissions. Residual debt insurance has to take further criticism with regard to the contractually fixed cut-off periods for the benefits. Some require that insurance coverage only comes into force after a contractually stipulated period has expired. Here experts speak of a so-called waiting time. Furthermore, some insurance contracts include a so-called waiting period, which means that unemployment or incapacity to work must exist for a certain period of time before benefits can be claimed.

Advantages of residual debt insurance

Advantages of residual debt insurance

An important advantage that exists with the residual debt insurance is that, unlike the individual insurance, there is no acceptance or health check. This ensures fast and uncomplicated insurance protection. Policyholders should, however, take into account that the vast majority of insurance claims due to the existing medical conditions known and existing at the time of conclusion are excluded from the benefit within the first two insurance years of the residual debt insurance. Protection in the form of residual debt insurance for existing pre-existing conditions in this time frame is either limited to the so-called non-pre-existing conditions, as well as reasons for the inability to work or the cause of death. In addition, residual debt insurance is a purely private law protection against the risks of unemployment through no fault of your own.

Important aspects of residual debt insurance

Important aspects of residual debt insurance

The insurance premium is payable with the residual debt insurance within a one-off amount together with the conclusion of the credit contract. The contribution is added to the loan amount. This automatically increases the cost of the loan. One should note the sum insured that comes into play when taking out residual debt insurance. Especially with long terms of the insurance and the loan contract, this can result in an enormous increase in the cost of the loan. Other providers provide protection that is too low for the loan amount. Experts therefore recommend that the content of the residual debt insurance be checked carefully.

The rule says that as a borrower, you should reject the offer if the costs take up more than ten percent of the loan amount. In addition, borrowers should ensure that if the bank takes out a residual debt insurance with a single premium, there is an obligation to include the resulting costs in the effective interest rate. If you decide to take out residual debt insurance, reading the fine print is essential. Protection can be excluded from the outset by the insurance company in the case of various previous illnesses. Other contracts only take effect when a three-month waiting period has been exceeded. It is also important to know that there is no insurance for protection against unemployment if the borrower cancels his or her employment contract or if this already existed for a limited period when the residual debt insurance contract was concluded.

In all of these cases, the meaning of taking out residual debt insurance may prove questionable. An alternative could then be for the borrower to pay the amount that would have been due for the policy into a savings plan. This allows the borrower to secure important reserves and, in the best case scenario, saves him the opportunity to redeem the loan early.


More expensive credit card purchases abroad

I was surprised (and scared) by the news that the government increased the IOF for credit card purchases abroad. And for those who think the increase was small, it is better to hold on to the chair: it went from 2.38% to 6.38%.

To get an idea of ​​the impact of this increase, if your card bill closed with the dollar at $ 1.70, after the IOF (Financial Transactions Tax) would be $ 1.81 .

The purpose of this article is to briefly explain what the IOF is, why the government has raised it to this level, and to discuss alternatives for making purchases abroad, taking into account the current situation.


What is IOF?

credit cards

The IOF is the tax on financial transactions or, as described on the IRS website, is the Tax on Credit, Exchange and Insurance Transactions, or related to Securities.

In other words, when we use credit (either through credit card or financing), buy or sell foreign currency, or take out insurance (life, auto or health), we are paying IOF. However, it is important to note that, for each of these operations, the IOF rates are different.

Like the IPI (tax on manufactured goods), II (import tax and IE (export tax), the IOF is an extra-tax. This means that its main function is not tax collection but economic control). No wonder the government reduced the IPI after the 2008 crisis to encourage consumption and maintains the IE rate at 0% over several years.


Why did the government raise the IOF?

credit cards

The main objective is to curb Brazilian consumption abroad. Last year alone, we left more than $ 16.4 billion out of the country. This is because the combination of cheap dollar income growth favors outbound travel and imported purchases over the internet.

The major concern is the deficit in the relationship between what Brazilians spend abroad and foreigners spend here, which has been growing year after year. Thus the national economy no longer receives good money and the government tries to contain this movement with this increase.


So how to shop overseas?


As the government raised the tax exclusively for purchases made with credit cards abroad, as can be seen in Decree 7,454 / 2011, we have some far more attractive alternatives: buying cash or using debit cards such as Visa TravelTree .

The great advantage is that this increase does not affect the purchase of foreign currency or debit card withdrawal operations, for example, which continue to suffer only 0.38% .

Last December I wrote the article “How to Buy Dollars for Travel,” where I pointed out the advantages and disadvantages of each alternative to buying dollars and already highlighted the higher IOF rate for credit card transactions. Now, with the tax rate at 6.38%, the disadvantages only increase.


What is the best way to buy dollars for travel?

What is the best way to buy dollars for travel?

I have already made my opinion clear in the article “How to buy dollars to travel” and, with this new increase, I still advise against using credit cards. But do you think so too? Leave a comment with your opinion!