Buy kitchen on installments – by financing quickly to the dream kitchen

Everybody needs a kitchen and kitchens can be very expensive. Therefore, many families have to buy a kitchen on installments.

Whether single, in love couple or family – for most the kitchen is a central place in the flat or in the house. Large parts of everyday life take place in the kitchen. There is not only eaten, but sitting together, spending time together and sometimes receives the guests in the kitchen. Accordingly, many consumers attach great importance to having a quality, well-equipped and modern kitchen their own.

But everyone knows that a modern and well-equipped kitchen costs a lot of money. Such a wish can not be met with just a few hundred USD. Here, larger sums of money have to be taken in hand to make this dream a reality.

Buy a kitchen on installments – financing is not uncommon

Buy a kitchen on installments - financing is not uncommon

Most buyers of a new kitchen therefore opt for financing. You plan to buy a kitchen on installments. Financing is often offered directly by the dealers. However, many consumers choose the direct route to the bank. You would like to decide for yourself how your financing is structured and what particular key data should be taken into account when buying kitchens on installments.

The decisive factor is not whether a modular or fitted kitchen is desired. The only thing that matters is that buying a kitchen is a long-term investment that entails high costs and that can only rarely be dealt with as a cash purchase in combination with financing from one’s own resources.

With a kitchen purchase on installments, however, it is possible to take a suitable kitchen loan, which brings advantages and disadvantages, but at the same time has the option ready to meet the desire for a new kitchen in a timely manner. For those who can not or do not want to save for their dream kitchen, but can buy the kitchen on installments, will meet his dream of a modern kitchen equipment promptly and this step will most likely never regret.

Two options for a kitchen shop on installments

Two options for a kitchen shop on installments

In principle, the consumer has the opportunity to use two different options when buying kitchens on installments. That would be:

  • Credit at a local retailer
  • Credit directly to a bank of his choice

Both variants offer installment payments for kitchens, which come with advantages and disadvantages. The financing applicant is therefore required to consider carefully what type of funding is most interesting to him.

That speaks in favor of buying a kitchen on installments with the help of a bank loan

In general, it should be noted that the consumer has the much greater scope for decision-making in the case of a classic installment loan via a free credit institution. He has the opportunity to individually influence the loan amount, the monthly installments and, ultimately, the amount of the interest. The consumer also has the opportunity to look for a loan on their own and does not have to accept the one offer that the trader usually only holds.

For a kitchen on installments with the help of a bank financing speaks:

  • Duration of the loan can be customized
  • For a kitchen purchase, terms of three to five years are considered appropriate
  • Many banks offer special repayments
  • The loan can be repaid faster and interest is saved
  • The bank can be chosen individually
  • The best terms can be selected as best suited to the borrower
  • Extended withdrawal periods are especially popular with online loans

On top of that, the loan prospective customer has the opportunity to buy at a kitchen on installments using free credit to better negotiate options. Anyone who is able to pay the barkeeper for their food in the bargain, because it is leveraged, also has a better chance of a generous discount on the purchase of the kitchen.

What reasons generally speak for a kitchen to buy on installments?

What reasons generally speak for a kitchen to buy on installments?

The purchase of a kitchen is one of the purchases in the household, which must be planned long term. Because the high costs that go with it, should be designed so that a high benefit can be drawn from it. Furthermore, it is not worthwhile for the consumer to save at the wrong end. The selection of the kitchen should therefore be made carefully. And to cover the cost, buying a kitchen on installments is always recommended.

Financing a kitchen gives the consumer some financial freedom. Not only that no saving over a long period of time is necessary for the purchase to be made. It is also the case that already saved money does not have to be spent on the kitchen purchase, but can flow into other projects. Examples of this include pension provision, which is becoming more and more important in our time, and is based on sound preparatory work and free capital.

If an installment purchase is planned for the purchase of a kitchen, then usually a completely different budget is available, than that would be the case, if the savings need to be resorted to. This also increases the possibilities for buying a kitchen. It can be used a more modern kitchenette.

In addition, it is possible to install additional practical installations. Also, the use of branded equipment is also usually much easier to finance than having to pay for the kitchen purchase with the help of saved funds.

In addition, high-quality kitchen appliances generally provide much more extensive functions than is the case with no-name products. They also have a lower energy consumption, so you can save additional time in the long run. Buying a kitchen on installments makes it much easier to buy a modern, energy efficient and comfortable kitchen.

With or without deposit?

With or without deposit?

Buying a kitchen on installments can be done in a variety of ways. The buyer has the opportunity to decide for himself how much money he wants to take in the form of a loan. Because it is possible to buy a kitchen with or without deposit.

Also with the credit it is therefore possible to decide whether to finance with or without down payment. If there is equity capital that can be used to finance the kitchen, then of course this can be used. The advantage here is that the loan amount is reduced and thus either the term of the loan or the monthly installments are smaller.

In addition, a down payment has the advantage that it is considered as additional security for the loan, as the bank sees that there are financial resources and thus increased creditworthiness.

Of course it is also possible to buy a kitchen without a deposit. One hundred percent financing for a kitchen can easily be taken online. In advance, we are looking for suitable offers that are compared with each other, so that it is possible to see exactly which options are most suitable for financing. Here it is recommended that the costs for the kitchen are already well known.

This includes not only the purchase price of the kitchen, but in the best case, the price for the delivery and installation of the kitchen. Above all, many consumers underestimate the costs of assembling the kitchen. Several hundred USD can be conveniently accessed here.

If this money is not available, it is important that it flows into the financing of the kitchen and is taken into account accordingly in the loan. If a kitchen is bought by installments, then not only the purchase price of the kitchen must be kept in mind, but also the additional costs that will be incurred all around the product.

Cost analysis before borrowing

Buying a kitchen on installments means having to know in advance exactly what the costs are. And that is only the case if the kitchen is already planned exactly. For this it is necessary either to use different programs online or to visit a local kitchen supplier and to start a counseling session there.

The planning of the kitchen is usually free. However, it is important that all key data are known and the kitchen is ordered so that it suits the buyer. The costs, which are then called by the seller, are usually binding. This means no additional costs can be incurred and the exact plan for financing the kitchen can be set in motion.

If the kitchen is not financed by the dealer, but by a free bank, the seller can be asked directly for a cash discount. It is interesting in this context, when the payment of the kitchen has to take place. This is important for taking out the loan so that the money from the loan is really available on time.

If an immediate payment is desired and a purchase on account therefore not possible, the seller must be informed that funding must be included.

When do you get the installment loan for a kitchen?

When do you get the installment loan for a kitchen?

Even if you opt for an instant online loan, a certain amount of time goes by until the borrowing money is actually on the account and can be used to pay for the kitchen. However, if this is made clear to the seller, there will certainly be a solution that will do both justice. The buyer and the seller.

Once all costs have been analyzed, it can start looking for a suitable loan. If the kitchen is bought on installments, then you have to see how high the monthly charge can be for the kitchen. For this, it is important to look at what revenues are available in the month and what expenses must be incurred. The financial leeway that is left then, should additionally be divided exactly.

Of this financial leeway should be used for borrowing a maximum of half of the money. This means that the monthly kitchen purchase rate should not exceed half the amount of free money available each month.

If 500 € per month are available at your leisure, after all other costs have been deducted, the monthly rate should not exceed € 250. This always ensures that there is an additional financial cushion to be able to pay for any additional expenses that have to be scheduled each month.

On the basis of the now known data, the purchase price, the amount of the monthly installments and the own creditworthiness can be looked at, where a suitable offer for the kitchen can be found on installments. It is recommended to use a comparison calculator to consider different offers.

Apply for installment credit online for the kitchen

Most consumers opt for a classic installment loan. But there are also some banks that offer special housing loans or furniture loans, which are of course also ideal for financing a kitchen. These options should be checked individually to see which way is recommended.

After selecting the appropriate bank, the application system of the respective bank must be completed. Personal and economic data must be provided for the credit inquiry to be reviewed. Documents, such as salary statements or account statements should be kept in the foreground.

These documents are required as long as no digital credit is used. If you are using a digital loan, you will be asked for revenue and expense information using online banking.

Buying a kitchen on installments is only possible if you have a good credit rating. If there are credit problems, the financing of the kitchen can fail. Here it is then to search in advance for alternatives. For example, a guarantee that compensates for the weak credit rating and thus enables the financing of the kitchen.

Buy a new kitchen with online financing – always a good idea

Buy a new kitchen with online financing - always a good idea

To make the desire for a new kitchen a reality, online financing can be a very good idea. The following tips should be noted:

  • Read the fine print in the contract and look for hidden costs
  • In the kitchen studio ask for discounts for a cash payment
  • Consider carefully the choice of loan amount
  • Include delivery and bodywork service
  • Determine the amount of monthly installments so that they can be handled well
  • Only decide for the kitchen and then seek the kitchen credit – this does not create unnecessary interest, which can be called for the provision of the credit
  • Compare different conditions – often you can find a high saving potential

Our conclusion to the kitchen on installment buy

Our conclusion to the kitchen on installment buy

If you want to have a nice kitchen, you usually have to finance it. Because a well-equipped modern kitchen, which works efficiently and has a high utility over a long period, costs a lot of money. So much money that either the savings should not be used or the corresponding financial resources are not available.

With a targeted financing and a kitchen buy on installments, it is possible to implement every dream kitchen in reality. With the right selection of the donor, you can save a lot of money if you as a customer can use the cash discount of the kitchen seller.

Government: student loan no debt trap

Government does not see a debt trap

Government does not see a debt trap

The Government does not see a debt trap for students in the student loan of the state-owned Intrasavings bank. On a small request, it was announced that “the critically feared danger of increasing student indebtedness and over-indebtedness as a result of student loan offerings had not been realized”.

The student loan was introduced in 2006. It enables students to earn a living during higher education. The loan provides for monthly payouts of between € 100 and € 650 over a maximum of 14 semesters. In total, students can borrow 54,600 usd from the state bank. According to the Government, there were only a few cases in which the loan was terminated by Intrasavings bank due to payment shortfalls. Altogether this was the case in 478 contractual relationships.

Contracts in the repayment phase

Contracts in the repayment phase

Currently there are nearly 10,500 contracts in the repayment phase, which can be stretched for up to 25 years. Almost 24,000 loan agreements are in the waiting period. This follows the payout phase and lasts 6 to 23 months. During the waiting period, borrowers only have to pay the accrued interest and pay no repayment. Since the program was launched in May 2006, Intrasavings bank has granted 80,000 loans. In the same period, a good 7500 applications were rejected.

Risk of over-indebtedness for students to be low

Risk of over-indebtedness for students to be low

The Government considers the risk of over-indebtedness for students to be low, not least because of the low interest rates. The Intrasavings bank Student Loan is subject to variable interest rates in April and October the interest rate is redefined. The lending rate is derived from the 6-month Eurocens and is currently 3.53 percent pa effective. When concluding the loan, Intrasavings bank approves an interest cap. For currently completed loans, this cap is 6 percent pa

For a long time now, critics have been complaining that the student loan carries a high risk of over-indebtedness and thus contradicts the opinion of the Government. Thus, it is argued that not only the default is an indication of an economic credit overburden. Most students after graduation other projects, such as a mortgage or the private pension, because of the high installment back, do not turn this up in any statistics and was still a significant disadvantage.

Swiss Credit for the Unemployed – these possibilities are there!

A Swiss loan for the unemployed first sounds very unrealistic and utopian. In today’s society, unemployment is a social decline for many people. Often, unemployed people are also immediately labeled as Cretz recipients. The chance for this group of people to receive a so-called unemployment loan is therefore very low.

A loan for the unemployed is not always easy to get

But every unemployed person has his own story and his own destiny. Many workers in Germany become unemployed without being in debt, but find a new job within a short time or have already signed a new employment contract. In many cases, unemployment does not last long and there is still money to service a loan.

Why should not a loan be possible for the unemployed here? The important thing is to find a loan broker who can actually arrange a loan for the unemployed.

Why do unemployed people have problems borrowing?

Why do unemployed people have problems borrowing?

In Germany, you will not find a bank for a loan in case of unemployment, because here the credit rating is checked on the basis of proof of income from a gainful employment. Remedy can create Swiss credit for the unemployed. We show you how and where to find this loan. When making a credit application, German banks always carry out a credit check on each applicant. This is done by querying the stored data at the credit bureau.

All current loan commitments and installment payments of the borrower are stored there. Non-adhered repayment obligations for installment loans and the overdrawn current account are also stored at credit bureau.

Anytime you fail to pay on time for a cell phone contract or other contractual obligation, this will result in a negative entry in your credit bureau file. Too many negative entries in the credit bureau lead in most cases to a credit rejection.

Thus, a borrowing from unemployment and negative credit bureau at German banks is already eliminated. A Swiss loan for the unemployed helps here. Here the credit bureau does not matter, since with a Swiss credit no inquiry with the credit bureau is accomplished. There must be other conditions such as guarantor or other collateral.

Is a Swiss loan available to unemployed people without credit bureau?

Is a Swiss loan available to unemployed people without credit bureau?

Loans for the unemployed are also available without credit bureau As described above, there is no credit bureau in countries such as Switzerland, which is why Swiss credit is particularly suitable for the unemployed.

So there can be no entry in the lending of the German credit bureau. This has the advantage of keeping you financially flexible.

If you later have a permanent employment relationship with sufficient income, you can also take out a loan from a bank in Germany.

With a Swiss loan for the unemployed then appears in your credit bureau file no entry on the loan taken.

What are the conditions for an unemployment loan?

What are the conditions for an unemployment loan?

You can only receive an unemployment loan if the repayment of the monthly installments is guaranteed for the bank. German banks are already retiring, as you have to have a permanent employment relationship here.

But a loan for unemployed from Switzerland can help you here. Credit intermediaries look at your entire financial situation and then decide whether a loan can be forgiven or not.

As an unemployed person, you must prove your creditworthiness through collateral such as real estate or valuables. The use of existing home savings contracts and securities is conceivable.

The proof of unemployment benefit 1 in the corresponding amount is usually not sufficient. The receipt of unemployment benefits is limited in time and the chance to fall into the Cretz reference afterwards is not to be underestimated.

That’s why you usually also need a second co-applicant who has sufficient income.

The requirements for a loan for unemployed in the summary:

  • Unemployed only for a minimum age of 18 years
  • Residence must be in Germany
  • Valid ID card must be present
  • Second co-applicant with income must sign with

Increasing the credit chance by a guarantor

As an unemployed, the chance of a loan is virtually non-existent. You need a guarantor or a second co-applicant. He must fulfill the above requirements and have a regular income above the attachment exemption limit.

If you make the loan application in pairs, then there is also the possibility to take out a loan as an unemployed person. In the best case, you have a guarantor who will pay off the loan in case of default on his part.

Do Cretz recipients have a chance of getting a loan?

Cretz recipients alone can not receive a loan. Also, a Swiss loan or a loan without credit bureau is usually not awarded to recipients of unemployment benefit 2. Here the money is just enough to get over the month.

The repayment of credit installments is out of the question here. You really should only apply for a loan if you have a guarantor or a second co-applicant who can prove sufficient income.

Swiss loan for unemployed persons without pre-payment and down payment

As with all loans, it is also important for unemployment loans that there are no pre-costs and hidden fees for the loan application and processing.

With a respectable loan offer no deposit is necessary it is only in the case of a loan a commission due. Otherwise, your application is completely free and without obligation.

Credit for the unemployed with immediate payment

People who are unemployed often need quick financial help. Therefore, an uncomplicated application and in case of a loan commitment an immediate payment is important.

The loan application is usually done in just 3 minutes and therefore can often be made on the same day a statement whether a loan is possible or not. It is best for a co-applicant to apply for the loan.

Since the Swiss credit for unemployed is not registered with the credit bureau, this has no disadvantages in the credit bureau to expect.

If everything fits, the loan can often be taken out the same day.

Conclusion and our Swiss Credit for Unemployed Experiences

Conclusion and our Swiss Credit for Unemployed Experiences

Anyone who is unemployed and needs a loan, usually has the big problem that he can not demonstrate a sufficiently high income from work. If the loan amount is not too high, then a normal loan could also be within the possible range.

With a guarantor or equivalent collateral Swiss loans for the unemployed might be possible. A second co-applicant is almost always the key to successful borrowing, even when unemployed.

We look at common loan terms for micro credit. We also compare prices.

 In our previous article, we discussed the terms that lenders normally impose on you who want to borrow money. Here we will take a closer look at what applies to the loan itself.

Maturity and repayment

Maturity and repayment

A very important part for those who are borrowing money is knowing how long the loan is valid. This has a major impact on the monthly cost. When it comes to micro-loans, there are loans ranging from 15 days up to 90 days. Often you can be a member here and control how long the term should be.

What one can say is that larger micro loans usually have a maturity of more than 30 days. 30 days which is otherwise the most common maturity. For example, if you borrow USD 10,000 in a month, it will be a very large sum to repay immediately when the entire loan is repaid directly. With a maturity of three months, there will instead be three repayment occasions, which is usually preferred even if the loan becomes more expensive overall.

Lenders should also print out how to pay the money to them. If they are going to send any avi to you by mail, this is something that can often cost you money.

Delay rate and reminder fee

Delay rate and reminder fee

At the time a loan is applied for, you obviously have every intention to repay the debt as planned. But if you forget a refund or do not have enough money to do so, it is important to know what happens. The lenders therefore write rules that apply to interest rates and reminder fees.

However, it is important to do everything possible to avoid such a thing. If the loan is not paid as planned, there is a risk of extra costs and, in the long run, that it goes to debt collection, which means additional costs.

Early redemption

Early redemption

You can always redeem a loan early if you wish. One advantage of micro-loans here is that it is almost always possible to solve them without problems in advance and this without any extra costs. But for safety’s sake, it’s best to read what lenders say about this.

Return Policy

Return Policy

You have the right of withdrawal in accordance with the Distance and Home Sales Act (2005: 59) regarding the entered into loan agreement. Then it may be that the lender also has other rules that are even better than the law which is something you can investigate.

Award

Award

This is probably the most important condition for those who want to borrow money of any kind. Lenders must print the prices clearly on their website. Something that you should keep an eye on is whether they have included a possible application cost or not in their total price. It is not uncommon for it to pay for SMS sent and that this is not included.

Another thing to look carefully at is how much of the cost is interest and what is just a fee. The rules say that fees may only cover the lender’s costs for lending money and if they want to make money on the loan then it should be in the form of interest. This has meant that many lenders now charge most of the cost in interest. Something that is good for you when you get a deduction of 30% of interest costs. Thus, it may be cheaper to borrow from someone who charges a large amount of interest, even if their price is higher than someone who has a large part with fees.

There are many sites online that compare prices between different lenders. We also do this and in our comparisons you can quickly get an idea of ​​which lender is the cheapest.

Always read the rules

Always read the rules

As I said, these articles should only be seen as an introduction to the rules that most often apply. Exact rules for different lenders can only be found directly with them. And before you borrow, always read the terms first. This is to minimize the risks of unpleasant surprises.

 

Borrow to clear old debts – Tips and guides | Loan consolidation

If you have debts, you should of course take care to incur even more debts by borrowing money. It is not very good to have large debts and usually these also cost money in the form of interest and fees, which is why you want to get rid of them as soon as you can. The exception is, of course, mortgages and the like, which are a common part of your personal finances. However, there are some situations when a loan can be good for sorting out your bad finances, which we will look at in this post.

Having debts usually means having to shell out expensive money every month in interest. Especially if you have taken expensive private loans or have credit card debt with a high interest rate. This type of debt can quickly eat up your salary and make it hard to get money over. It may sound strange that the solution to the problem would be to take out a loan but sometimes it can actually be a good idea after all.

Collect expensive loans with a large cheap private loan

money

The most classic solution for avoiding expensive loans and credits is to take a larger loan with a low interest rate and use that money to pay off the old debts. The idea then is that you can pay off several small loans with a high interest rate and instead get a single larger loan with a low interest rate and thus save a lot of money.

Basically, you want to avoid loans that have, for example, 20-30 percent interest and replace them with a loan (which is basically equal in total) that only has, for example, 8-10 percent interest. It is the smaller private loans, SMS loans, installment purchases and credit card debts etc that have high interest rates and which become expensive. By taking a regular large private loan from a major lender, you can repay all the small loans and only keep the cheaper loan.

So you lower your interest cost by maybe 50 – 70% or similar by doing so. This is called gathering loans to solve expensive loans and is a very effective method of lowering their monthly costs. However, it is important to do the right thing for it to succeed.

Large private loan with low interest rates

cash

Firstly, you can even get a large private loan with low interest rates, which is not a given. You need a fixed income and a not too horrible economy for it to go your way. Payment notes can clearly put a spanner in the wheel. Secondly, it is important that you really get a lower interest rate on your big loan, so that you also save money every month. Regardless of what interest rate you have right now, it is required that the new interest rate is noticeably lower, so that you can actually save money.

Finally, it is also important that you actually use your new loan only to pay off all old expensive debts. If you do the right thing, you will only borrow as much as you really need to pay off all small and expensive loans. It is not a good idea to borrow more money or to use it for something else. Your goal is to reduce your expenses and then it is only important to avoid the expensive loans with high interest rates.

Borrow your home further

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Something that many people forget is that there may be room to borrow more money with the housing as collateral. When you take out your mortgage, you can certainly borrow as much as you can, which is 85 percent loan-to-value ratio but over time you get more room.

The mortgage loan is the cheapest loan you can find where you get an interest rate of around 1.5 percent. This makes this loan a very good loan compared to all other loans (possibly apart from student loans which also have good interest rates). Therefore, it is a very advantageous loan for those who want to clean up their finances and get rid of old expensive loans.

After owning your home for a few years, you start to get some leeway and can borrow some more. At least if you have been repaying your mortgage regularly. If you repay a reasonable amount each month and also expect that the property has increased in value since you bought it, you can certainly have some room to mortgage the property further.

As mentioned, you can have a loan-to-value ratio of 85 percent of the value of the home at the most, which means that you may very well have some opportunities here. If you have, for example, repaid USD 3,000 a month for five years, you have already paid off USD 180,000. If your home at this time has also increased in value by, say, USD 200,000, you could theoretically borrow USD 350,000 extra on the mortgage.

The principle is then the same as collecting a loan with a cheap private loan. Borrow the home at a really favorable interest rate, beyond what can be obtained elsewhere, and pay off all the expensive loans. Because the interest rate is so low on mortgages, you can even repay ordinary cheaper private mortgages and earn it.

A regular private loan may have an interest rate of 5-8 per cent and if you can instead get around 1.5 per cent in interest, it means a very large reduction in interest costs. You can save a lot on that. If you have more expensive loans, you can save much more money. You reduce your expenses by taking out a new loan. The important thing is just to take the right type of loan and use the money properly.

Credit card as extra buffer

Credit card as extra buffer

The previous tips are about using loans / credits to improve the situation when you already have old debts. However, this is a way to avoid getting into the debt trap from the beginning. Preventive measures simply.

One way to end up in the debt trap and to incur debt is to not have a buffer. By buffer I mean savings money that is earmarked for unexpected expenses and unusually high costs that can arise for any reason. If such costs arise (for example, that the car or the refrigerator is broken) you need to be able to handle them and it is not always possible to pay these things only with the monthly salary.

After all, you should still be able to afford all the monthly bills, food and the like, and if you do not have very good margins in your finances, the risk is that you do not have all the money required on the day the unexpected occurs. In such a situation, many simply take out a loan to meet the cost. Sometimes an SMS loan, sometimes an expensive small private loan, sometimes another type of credit.

If you do not settle this loan quickly, you are sitting there with an expensive loan that you have to pay on a monthly basis. Therefore, you should primarily have a buffer with savings money that you can use to avoid having to incur debt. However, if you have no such buffer then a credit card can act as a small buffer.

However, if this method is to be used, it must be handled correctly. A credit card can be expensive if you handle it incorrectly. The advantage of the credit card is that it is usually interest free for 45 days or something and therefore it is not so dangerous to use the card for things that you know you can afford to pay next month.

Borrow money interest-free

money

You can borrow money interest-free if you need it, which is not so stupid. However, if you do not repay the entire amount when the next bill arrives, it will be interest on the money and that interest rate is quite high. You definitely want to avoid that. So pay back the full amount.

Thus, if you use the credit card correctly, you may have a small buffer for those occasions when you need a little more money than you have in the account. You can borrow money free of interest for up to around 45 days and can thus basically get a loan for free this period. This is as long as you pay back on the next invoice. So it is a good option for expenses of the size that you can afford to pay back within a couple of months, but less good for large expenses.