Payday Loan: Are Mortgage Interest Rates Too Low?

Payday Loan: Are Mortgage Interest Rates Too Low?


The interest rates offered to real estate borrowers are becoming lower. They continue to descend and reach historically low levels. This “good news” may well have a setback for seniors and other “at risk” borrowers and for the real estate market itself.

Rates that continue to fall

Rates that continue to fall

The 28th credit observatory of has just been published and it reports ever lower rates. One bank out of four offers interest rates between 1.3 and 1.5% and some even offer lower rates, between 1.1 and 1.3%. The average rate posted for a 20-year loan is set at 1.55%. With such rates, it is now possible to obtain a mortgage of € 206,000 for a monthly repayment of € 1,000 . Ten years ago, the amount of the loan was capped at € 148,000 for an identical monthly payment.

Rising prices and rising real estate buying power

Rising prices and rising real estate buying power

For the past 10 years, prices have risen sharply , in line with falling real estate interest rates. Yet, overall, real estate purchasing power has not diminished . With an iso-monthly payment of € 1,650, it is possible to buy 75 square meters more than 10 years ago at Le Mans or Saint-Etienne. But this is not the case in all cities, some losing, on the contrary, square meters:

  • – 25 m² in Bordeaux,
  • – 15 m² in Lyon,
  • – 9 m² in Srasbourg,
  • – 7 m² in Rennes.

With an iso-monthly payment of 990 €, the difference over 10 years is less, but it is still there:

  • + 48 m² at Le Mans and Saint-Etienne,
  • – 14 m² in Bordeaux and – 9 m² in Lyon.

A rather mixed news

A rather mixed news

If lower interest rates appear to be good news, look closely, this may not be the case for all borrowers. Indeed, the rate of wear , in parallel, continues to decrease and is established, also at a very low level. However, a low attrition rate results in more and more frequent refusals of real estate loans of a small amount or for short periods . It is seniors who have to suffer, forced to borrow on longer terms, or rejected because of the high rate of insurance borrowers. It also affects low-income households , who can benefit from assisted loans, which imply a reduction in the duration of the main mortgage. They will probably have to give up the loans to get a classic home loan at a rather low rate.

In the end, the steady decline in interest rates is not such good news, leaving behind excluded real estate credit . In order to claim access to low-rate loans, it will be necessary to show off with a concrete file, a stable situation both professionally and in the family, sound accounts and a good personal contribution, if possible in savings.

To learn more about the impact of very low credit rates

To listen: the podcast “C’est ma maison” of Sunday, March 24, 2019 Radio France / Franceinfo where Charlie Cailloux, legal adviser for the real estate site, explains why a very low borrowing rate is not always good news for borrowers.



I will provide a private payday loan quickly and without checking the databases

There are unforeseen situations in life. This is especially true in the least expected moment. Despite the carefully planned finances, it may happen, therefore, a random situation that completely disturbs the home budget, and even at the same time may lead to its preservation. Such situations can not be predicted, even when we show small savings. The situation is particularly painful if our domestic investments are made from external funds, i.e. payday loans or bank payday loans. Consequently, there are difficulties in obtaining new, free resources. Not everyone, however, has a family from whom he can borrow money in a crisis situation. Then what? The situation is not as hopeless as it might seem at first glance.

Why not from a bank or other institution?

It is easy to imagine a situation in which there are many Poles every day. Immediately after taking a bank payday loan or consolidation payday loan, an unexpected expense appears. We are forced to organize bigger or smaller cash in a quick way. What possibilities appear in our head? A payday loan from the bank, if we have the creditworthiness to a higher amount. What if, however, we do not have such an option? The second, commonly used option are payday loans from friends or family. However, they have a significant disadvantage that firstly they are exposed to family rumors and, secondly, the amounts of such payday loans are usually not too high. All this means that many people are discouraged from borrowing from the family. You can not be surprised by such views. Another option, much more risky are payday loans from a couple of banks.

It is risky because institutions of this type often charge huge interest rates of up to several thousand percent. This makes repayment on time, with other financial commitments, practically impossible. Many people in the search for quick funds fall into the loop of bank payday loans, from which it is very difficult to leave a defensive hand. There is still a payday loan option available on the market. And if we have movable property, it can work, it’s hard to get more cash, leaving small jewelery or electronic equipment. Lack of repayment on time, i.e. the purchase of a pledge, may result in the loss of a thing that was pledged below the market price. This is unpleasant, especially if it concerns family souvenirs or gifts. By inadequate value for the price of the pledge, it is worth avoiding this type of method to obtain cash.

Where to get knowledge about the sources of financing?

When looking for solutions to financial problems, we will search Internet forums, classifieds websites or even browse the traditional press. You can find there a huge number of ads from banking institutions or pawnshops. Among them, however, there may appear an advertisement for this type of content: “I will grant a private payday loan quickly and without checking”. Private payday loans are becoming more and more popular because they completely bypass banking institutions and the banking couple, thanks to which the profits are exchanged directly by the lender and the borrower. This allows you to minimize the cost of the transaction. It is worth analyzing deeply the topic of private payday loans.

Advantages of private payday loans

Private payday loans are less expensive for a person taking a payday loan from other methods outside the bank. On the other hand, bypassing the whole system also results in increased profits for the lender. The current banking system works in such a way that a person with excess cash places a deposit in the bank and receives a percentage as a matrix. Meanwhile, a person looking for cash gets the debit to a higher percentage to meet their needs. The difference between the percentages is the bank’s profit reduced by operating costs and other costs. By opting for a private payday loan, the whole system is bypassed and the percentages are negotiated. This allows for a compromise between the parties to the contract, so that they are satisfied. By avoiding operating costs, it is easier to find a compromise. Another advantage of omitting the banking system is the time advantage.

I will provide a private payday loan quickly and without checking the bases

Two parties to the payday loan agreement can get along even in a few minutes to sign a contract, in the banking system it is a long and arduous estimation and expectation. It is therefore a good solution for people who care about time. And as you know, when you are in a difficult and unexpected situation, often there is no time to deal with banking formalities and search for appropriate certificates or insurance. The signing of the contract and the cash or non-cash exchange can take as long as several minutes as long as both parties are in agreement.

What is more important is the simplicity and clarity of the contract? Compared to payday loan agreements in a bank, the alternative to a private person is simple and easy to understand. To sign it is not necessary even a lawyer, and ready forms can be found on the network. It is also a good alternative for people with unfavorable credit history – private individuals do not use the Credit Information Bureau , thereby incurring the risk of transactions in exchange for increased transaction profits. As you can see, private payday loans have many advantages, but do they have any, which exclude them? Do they generate threats?

Threats and defects of a private payday loan

As you can see above, the advantages of private payday loans are mainly for people taking out payday loans? However, this form also has its drawbacks. If someone chooses an advertisement from the forum, I will give a private payday loan quickly and without checking the databases, it is easy for a dishonest fellow to bring a case in court or get a bailiff’s job. Especially in the era of online courts. Debt can also be sold to debt collection companies. The last advantage of these, and therefore the inability to check the credit history of a person, is a threat especially to the lender. It is difficult to estimate whether the profits will be adequate to the costs incurred, and the borrowed funds will be recovered. This is the key risk borne by the lender. There are also other possibilities that a person will not start paying off the money. Many people also try to lend money only to friends, to minimize this risk.

To sum up, private payday loans are an interesting alternative to other methods of obtaining funds. However, they should be provided in a rational manner and with all caution.



Credit Loan Consolidation – Easy Credit Purchase.

Credit Loan Consolidation – Easy Credit Purchase.


 The military benefits from special and favorable treatment, both state and military officials are advantaged when applying for credit redemption. Although practicing a trade considered at risk, they benefit from special conditions. Their status as a civil servant is a guarantee for the banks since job security is high and wages are the same each month.

Thus, if you are a soldier, you can claim a military credits redemption from the moment you are confronted with an excessive accumulation of debts or if you simply wish to build up savings.

The purchase of military loan is a solution that can help you find a healthy financial situation. You consolidate all your loans into a single loan to reduce your debt ratio each month by renegotiating the interest rate and the repayment term.

In the case of a home loan buyout , both private and military employees can add their homes to their many assets. You remain of course free to dispose of your real estate at your leisure, it is only a question of offering a sure guarantee.


Advantages of Buying Credits

Advantages of Buying Credits


The purchase of military credit is an efficient and safe banking operation. If you have a lot of credit and are having trouble completing the end of the month, consolidating all of your loans allows you to restructure your receivables, which are erased to make room for a single loan.

In general, the loan buyback concerns all types of loans. One of the first advantages is the reduction in the debt ratio, which can go down by half. Whether you make a purchase of your consumer credit or mortgage repurchase , household expenses are considerably reduced.

You pay only one monthly payment to a single financial institution, which allows you to have only one interlocutor. With a single withdrawal in the month on a date that you have chosen, the management of your finances is easier and you get a better visibility of your repayments.

Moreover, this solution makes it possible, if it were not the case, to become again saver. You can thus mitigate the hard knocks and unforeseen situations that may occur, or even realize your projects that you could not achieve, for lack of sufficient resources. Indeed, the monthly deadlines are less heavy to support and you can envisage the future more serenely since your budget is rebalanced. In addition, the interest rate is negotiated according to the current financial market and it is then much more interesting than that of all your current credits.

If you are a soldier and you need to give a breath of fresh air to your budget, our solutions really help to avoid chaotic situations. You can carry out a free credit redemption study on our site, it is very simple and fast.