Loan news

Refloating a personal loan, how does this currently work, and what are the options?

Refinancing your personal loan can save you a lot of money. In fact, more than 75% of people borrow too much. Refinancing your personal loan can, in many cases, ensure that you no longer belong to this 75%. But what should you pay attention to when you want to refinance your personal loan? What are the possibilities to make your loan more affordable?

Check your current interest rate

Do you currently have a personal loan with an interest rate of 5% or more? Then chances are you’re paying too much interest at the moment. Refinancing your personal loan can bring you immediate benefits. And can ensure that you save hundreds of euros or more per year.

How much does refinancing a personal loan cost?

In most cases, refinancing a personal loan has become free and you no longer have to pay a penalty. The banks now accept their loss of interest after you decide to refinance your loan.

Switching and paying penalties

A personal loan cannot always be repaid without penalty. When you took out your loan, you signed up for a certain amount of interest that the lender would receive from you for the term of the loan. If you suddenly want to shorten that term by repaying the loan and closing the deal, then the lender will miss out on the amount of interest. They have come up with a solution for this: a ‘penalty’.

It is therefore good to calculate how much you will save when you will refinance your personal loan. Is this amount after a few months already more than the penalty you will have to pay, then refinancing is definitely worth it. You will see that it is especially worthwhile to switch your personal loan when you still have most of the loan term ahead of you.

If you have almost paid off the loan, you will lose more money if you have to pay a penalty than if you keep the loan for a few more months. In Germany they even have a few rules for these types of loans.

Converting a personal loan

You take out a personal loan for a longer period of time. Therefore it is possible that during those years something has changed in the composition of your family or your income. Then the personal loan you took out at the time no longer suits your current situation. Or you would like to take out a loan at a lower rate, in which case you can also decide to switch the loan.

Converting to a personal loan

We mentioned it earlier; do you have a personal loan with a high interest rate? Or did you take out your loan at the time on outdated terms? Then you can choose to convert your personal loan to a new personal loan. That way, you’ll benefit from the current interest rate we have today and get new terms.

Convert to a revolving credit

You can also choose to convert your personal loan to a revolving credit. This is a loan where not everything is fixed in advance. You set a credit limit and within that limit you can withdraw and repay money at your own convenience. You can also dissolve money that you have already repaid once. With a revolving credit you have to deal with a variable interest rate, which can rise and fall during the term. (Read more about the German options here)

Merge

When you have multiple loans, you will also pay interest on all of them. Now it is also the case that you pay proportionally more interest for a small loan than for a large loan. Therefore, it may be wise to merge the small loans into one. An additional advantage is that it becomes more manageable when you are dealing with one loan and only one place where you have to pay off.

Sterbegeld und bestattung

The fear of dying and funeral insurance, how is this taken care of in Germany?

The fear of dying is one of the most common fears people have. The fear is often about the fact and the realization that life ends at some point and one does not know what will happen next. Also, the fear can be about leaving loved ones behind.

  1. The anxiety can manifest itself in a variety of ways, from feeling anxious to actual panic attacks where people sweat profusely, experience palpitations and lose control of their thoughts. If the fear is permanent, we speak of a phobia of death.
  2. We never get rid of a certain fear of death, but that’s okay either. It is normal not to want to let go of life and to resist dying.

Why fear?

The fear of death is often not about dying itself, but about what happens afterwards. In many religions the soul after death is in a heaven or afterlife where there is no pain or war, but only love and freedom. That can be reassuring for many people. This group generally has less fear of death.

  • But for people who have no religion, what happens after death is a total mystery, or rather a black dark hole in which you are all alone. This can be a very frightening thought for some. The fear of death is therefore more common among people who have no religion.
  • Yet there are also believers who are afraid of death. This is especially important if one thinks that after their death a judgment will be passed by the gatekeeper of the afterlife. There is then a fear that people will not go to heaven, but to hell, for example because they would not have given life to them properly or have made many mistakes.

The fear of death can also involve people around us who are loved. Think of a bad feeling that can arise if you threaten to lose your partner, father, mother or brother.

Problematic Anxiety

It is normal for someone to be afraid of certain things at times. There’s nothing wrong with that. In fact, fear can be very helpful in saving yourself from threatening situations or in keeping you from making an unwise choice. If you are anxious, your body produces substances that ensure that you are very alert.

However, anxiety becomes problematic when it takes on a predominant role in life, for example when there are panic attacks, in which one sweats profusely and develops palpitations. Anxiety can also be problematic if the fear makes you avoid certain situations, such as driving (fear of getting into a collision) or flying (fear of crashing). By avoiding death in this way, one hopes to escape from the fearful feelings. However, the fears won’t go away if you avoid the subject. Death will sooner become even more unknown which can make you even more anxious. (Source: Uitvaartpolis-Online.de)

Purchase a new funeral insurance policy from a funeral insurance company of your choice

Keep in mind, however, that the premium will almost certainly be higher than your old policy because you have become older. Also, something may have changed in your health situation that makes you pay more premiums. So in this case, you take out a new, more expensive policy and start again saving for your funeral by paying premiums. For this reason, switching funeral policies is also usually not interesting.

Are you determined to take out a new funeral insurance policy? Then pay attention to the following points in any case:

  • The type of insurance (in kind, capital or combination)
  • The amount of the benefit with a company like Monuta erfahrungen
  • The duration of the insurance (until when do you pay premiums)
  • The experiences that customers have with the insurer