That’s how I paid off my debts

I’ve collected some stories for you about how people got into and out of a difficult financial situation. I hope their stories will help you avoid or get into financial trouble.

Good Finance was a financial advisor who advised people in credit. The deal went well, with no car loans and no other loans, so they bravely started buying a $ 654,000, 230 square foot home.

The house was the house of their dreams

The house was the house of their dreams

The repayment of the loan was not much more than the rent paid so far and the bank would have given much more. (I recently wrote that both the bank and the realtor want you to get as much credit as possible. If you take as much credit as they can, you are almost guaranteed to borrow too much and buy too much real estate.

Almost immediately after the purchase, the business started to get worse, and if it was scarce, he and his wife would be affected by illness.

Less income and a lot of unplanned health spending

bank

Meant that they had exhausted all their reserves in two years and eventually found themselves in a $ 63,000 credit card debt. (This is far more than the average annual net income of an American household.)

Although Good Finance said he would only move out of this house in a coffin, he had to realize that the only solution was to sell the house, pay off all the loans, and start a new life in a much more modest home. They did so, moving to a small village in the mountains. You can read their story here in English.

Austin started his big life with a $ 72,000 student loan and a $ 9,000 car loan. (This amount is a good 3-year net income for a young beginner.)

In 3 years, he became insolvent. These are the tips for those who are wearing similar shoes:

Decide to get rid of your loans and act accordingly. Most don’t get past the word level, though it’s important that you do what you set out to do. I was sick of being burned out and having to worry about money all the time. I decided to change my financial status.

If you are at the bottom of the pit, do not dig any further. Do not take out additional loans for any reason.

Get in where you are. If you don’t know how much you owe, for what term and at what rate, you can’t change it. Gather all the information about all your credit.

If possible, replace your loan with lower interest loans

If possible, replace your loan with lower interest loans

Develop a strategy for how you want to pay off your loans? Do you repay the smallest amount first and then go step by step, or do you get rid of the highest interest rate first? Have a plan on how you will do it.

Look for more. Doing a career, earning more, will also greatly help you to get rid of your credit.

Finally, repay all your loans and celebrate. How good is it to live in financial freedom, isn’t it?

You can find his story here in English.

Anna was freed of $ 23,000 in 15 months of financial fast, spending only 15 months on essential things. I wrote about financial fast here recently.

Strict financial dieting had the desired effect, and in just over a year, Anna was free of all debt. You can read more about it on its website.

That’s how I paid off my debts

cash

I’ve collected some stories for you about how people got into and out of a difficult financial situation. I hope their stories will help you avoid or get into financial trouble.

Good Finance was a financial advisor who advised people in credit. The deal went well, with no car loans and no other loans, so they bravely started buying a $ 654,000, 230 square foot home.

The house was the house of their dreams

The house was the house of their dreams

The repayment of the loan was not much more than the rent paid so far and the bank would have given much more. (I recently wrote that both the bank and the realtor want you to get as much credit as possible. If you take as much credit as they can, you are almost guaranteed to borrow too much and buy too much real estate.

Almost immediately after the purchase, the business started to get worse, and if it was scarce, he and his wife would be affected by illness.

Less income and a lot of unplanned health spending

bank

Meant that they had exhausted all their reserves in two years and eventually found themselves in a $ 63,000 credit card debt. (This is far more than the average annual net income of an American household.)

Although Good Finance said he would only move out of this house in a coffin, he had to realize that the only solution was to sell the house, pay off all the loans, and start a new life in a much more modest home. They did so, moving to a small village in the mountains. You can read their story here in English.

Austin started his big life with a $ 72,000 student loan and a $ 9,000 car loan. (This amount is a good 3-year net income for a young beginner.)

In 3 years, he became insolvent. These are the tips for those who are wearing similar shoes:

Decide to get rid of your loans and act accordingly. Most don’t get past the word level, though it’s important that you do what you set out to do. I was sick of being burned out and having to worry about money all the time. I decided to change my financial status.

If you are at the bottom of the pit, do not dig any further. Do not take out additional loans for any reason.

Get in where you are. If you don’t know how much you owe, for what term and at what rate, you can’t change it. Gather all the information about all your credit.

If possible, replace your loan with lower interest loans

If possible, replace your loan with lower interest loans

Develop a strategy for how you want to pay off your loans? Do you repay the smallest amount first and then go step by step, or do you get rid of the highest interest rate first? Have a plan on how you will do it.

Look for more. Doing a career, earning more, will also greatly help you to get rid of your credit.

Finally, repay all your loans and celebrate. How good is it to live in financial freedom, isn’t it?

You can find his story here in English.

Anna was freed of $ 23,000 in 15 months of financial fast, spending only 15 months on essential things. I wrote about financial fast here recently.

Strict financial dieting had the desired effect, and in just over a year, Anna was free of all debt. You can read more about it on its website.

Forint foreign currency loans are loan replacement products.

Although only April 2015 is available until the settlement letters on the conversion of foreign currency loans have been received, banks have already offered loans that offer lower installments than forint loans, depending on the customer’s choice.

We at Good Finance show you which bank offers the currency redemption products of forint foreign currency loans so far.

I do not want to read any more, I am interested in the above positives

bank

As a result of automatic forint conversion, banks replace foreign currency loans with forint loans. However, in this case, our “new” credit will be converted into HUF at centrally defined terms. If you do not like these conditions, fortunately, banks will be able to offer much more favorable loans to adapt to the current interest rate environment, which you can use to redeem your loan.

And now, according to the law, we can cancel our loan for free. In fact, there are banks that specifically target foreign currency lenders with their loan replacement products.

How much smaller is our repayment installment when redeeming foreign currency loans after HUF conversion?

Can save a lot on installments by choosing the right mortgage loan

Can save a lot on installments by choosing the right mortgage loan

Nowadays, almost all financial institutions have available mortgage redemption loans to reduce the installment, but so far only a few banks offer a solution specifically for settlement mortgages.

However, there are important conditions for using the loan, which not all mortgage lenders affected by forint conversion can meet.

Based on information published so far, these conditions for mortgage loans (home loans or overdrafts) are:

  • The loan amount shall not exceed 80% of the market value of the property
  • The debtors were not late in repaying them
  • The client did not enter the currency barrier
  • There is no other burden on the property offered as collateral
  • The property has a maximum of two owners

What is a better loan than a simple loan?

What is a better loan than a simple loan?

In the present situation, banks will often waive fees associated with the conclusion of a loan redemption agreement or provide a discount on fees or interest for the purpose of acquiring a customer.

Discounts are so diverse that there is no one-size-fits-all offer, as banks are very careful about who they are giving them their discounts to. In practice, they bid based on the customer’s past behavior, background, and current credit.

Important information is that you do not need to meet the Yield Repayment Ratio (JTM) if your new loan is forint-based, with the same purpose and amount as your old loan.

Forint foreign currency loans are loan replacement products.

Although only April 2015 is available until the settlement letters on the conversion of foreign currency loans have been received, banks have already offered loans that offer lower installments than forint loans, depending on the customer’s choice.

We at Good Finance show you which bank offers the currency redemption products of forint foreign currency loans so far.

I do not want to read any more, I am interested in the above positives

bank

As a result of automatic forint conversion, banks replace foreign currency loans with forint loans. However, in this case, our “new” credit will be converted into HUF at centrally defined terms. If you do not like these conditions, fortunately, banks will be able to offer much more favorable loans to adapt to the current interest rate environment, which you can use to redeem your loan.

And now, according to the law, we can cancel our loan for free. In fact, there are banks that specifically target foreign currency lenders with their loan replacement products.

How much smaller is our repayment installment when redeeming foreign currency loans after HUF conversion?

Can save a lot on installments by choosing the right mortgage loan

Can save a lot on installments by choosing the right mortgage loan

Nowadays, almost all financial institutions have available mortgage redemption loans to reduce the installment, but so far only a few banks offer a solution specifically for settlement mortgages.

However, there are important conditions for using the loan, which not all mortgage lenders affected by forint conversion can meet.

Based on information published so far, these conditions for mortgage loans (home loans or overdrafts) are:

  • The loan amount shall not exceed 80% of the market value of the property
  • The debtors were not late in repaying them
  • The client did not enter the currency barrier
  • There is no other burden on the property offered as collateral
  • The property has a maximum of two owners

What is a better loan than a simple loan?

What is a better loan than a simple loan?

In the present situation, banks will often waive fees associated with the conclusion of a loan redemption agreement or provide a discount on fees or interest for the purpose of acquiring a customer.

Discounts are so diverse that there is no one-size-fits-all offer, as banks are very careful about who they are giving them their discounts to. In practice, they bid based on the customer’s past behavior, background, and current credit.

Important information is that you do not need to meet the Yield Repayment Ratio (JTM) if your new loan is forint-based, with the same purpose and amount as your old loan.

What do the numbers on the credit card mean?

credit card security

The numbers on the credit cards are not random, each group of them has a particular meaning. If you want to know what the numbers on the credit card mean, be sure to read this article.

The numbering of credit cards, and other similar instruments, are governed by the ISO / IEC 7812 standard. This specifies the meaning of each group of the positions of the credit card numbers. It should be noted that there is no standardized number of digits, and these vary between 15 and 19, with the most used amount being 16.

Next, it will be specified what each group of positions of this numbering means.

 

Issuer Identification Number

atm pin

It corresponds to the first six digits of the card number, of which the first identifies the main industry. The banking and financial industries start with the number 4 or 5, and those of travel and entertainment with 3. This group of numbers indicates the type of card, the type of issuer and the geographical area. The main circulating credit cards in our country can be identified by their initial number:

  • 3 for American Express
  • 4 for Visa
  • 5 for MasterCard

In the case of Mastercard, the second, together with the third, fourth or fifth, represents the number of the financial institution. In the case of Visa, numbers 2 to 6 are used to identify the financial institution.

 

Internal code of the banking entity

credit number

The remaining numbers, except the last one, are the numbers that the bank uses to identify its customers. For security reasons, the way in which this numbering is assigned remains secret.

 

Control digit

Control digit

On Visa and Mastercard cards, the last position is reserved for the check digit. This is a number that satisfies Luhn’s algorithm and allows to identify if the number of a card is valid.