Take your mistakes with your financial decision

We often find people still blaming their financial problems on cards, loans, banks, businesses, government. It looks like it’s a general disease, but it’s true. Over the years innumerable “accommodated” have been created, unable to assume the mistakes they make in life.

Throwing the consequences of their acts into excuses.

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You may have probably heard that the problem with card debt is due to the abusive interest that banks charge, or is owed to many companies because their owners are capitalist parasites who want to take everything the people have. Or that in the past the government was helping the needy, and now all the government does is create taxes and steal the income of the needy.

This is all trite excuses used to escape a terrible reality: people unable to handle money. People who do not think about the future, spend everything they have to live momentary experiences and over time begin to find guilty for the life they lead.

How to cure this social disease?

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There is only one way to end such a weed so that we can plant and reap the rewards of good decisions; The answer lies in financial education. Such knowledge needs to be disseminated so that our society becomes more concerned with the future and less concerned with momentary well-being. We need to stop living like spoiled brats who need their candy now, and look to the future wondering what we can do with our money in the medium and long term.

Financial education should be implemented in schools, businesses, colleges, churches, clubs, everywhere, in order to create an awareness that can first plan, then organize, and ultimately evaluate what is possible to consume without letting go. to prepare your “sock”. You have to think sustainably so you can enjoy the present and the future is not cloudy.


Credit Card Renewal How is it done?

Credit cards are a means of payment that we use extensively in our daily lives. Credit card, which is one of the most used products of banks, is widely used in our country and the number of users is expressed in millions. In times when credit cards are used so intensively, the problems we have with the credit card also come along. In some cases, we may have to renew our credit card . If the credit card is stolen, lost, broken or does not work, we apply for credit card renewal . Credit cards may become deformed after a certain period of time and become unusable for transactions. However, there are some reasons that credit cards are automatically renewed. When the expiry date of the credit card expires, the bank performs a search and tells you that your new credit card is redirected to your address and the old card should be broken and discarded with the arrival of the new card. So how to renew your credit card ?


What is Credit Card Renewal?

Credit Card Renewal?

Credit cards are banking products that need to be renewed in some periods. For example, the bank tells the bank that credit cards should be canceled and expired when their expiration dates are reached. As they are registered in the systems, credit cards are shipped to the address registered in the bank as a cancellation upon expiry of the expiry date. Before this process is applied, the bank will make a call to you and confirm that the address is up to date.

If your credit card has been lost or stolen, you can report it to the bank through suspicious transaction notifications and have the old card canceled and replaced. As these transactions are of course short, some banks charge fees for these transactions. So, which bank is charged how much? Is there a charge for credit card renewal?


Is it Paid to Renew Credit Card?

Is it Paid to Renew Credit Card?

Some banks do not charge fees for credit card renewal transactions, as they are based on an inexpensive banking policy. Some banks charge fees for all card renewals, while others demand certain fees by calling certain conditions. At this stage, the reason you want to renew your credit card is the most important factor. Credit card renewal fees are subject to card change requests ;

  • Lost or stolen card,
  • Card breaking, tearing, deforming,
  • Renewal of the card at your request.

As in card renewal transactions , banks are able to charge fees from customers. However, this is not the case for expired cards. Since the expiry date is automatically renewed by the bank, the banks do not charge any fees. Some banks do not charge any card renewal transactions due to their inexpensive banking policy. What are Credit Card Renewal Fees ?


What are Credit Card Renewal Fees?

What are Credit Card Renewal Fees?

In accordance with their own policies, each bank charges certain fees for card renewals . Since this fee varies according to the content of the old card renewal process, it is not possible to say that the credit card renewal fee is as follows. If you apply to the bank yourself to renew your credit card, you can get information about credit card renewal fees, you can proceed with your request. However, on average, banks’ credit card renewal fees vary between 8 and 15 TL . This fee has nothing to do with card fees .


Renewed Card In How Many Days?

Renewed Card In How Many Days?

In this case, the process of bank transactions is completely effective. Although banks immediately process the card renewal request, shipping and courier operations can make things a little long. Both the new card and the number of renewed cards, because of the high number of couriers due to the delivery time of credit cards can be extended.

Renewed credit cards are delivered on average between 15 and 20 days . 2-3 days of this process is preparation (card printing), 3-4 days is cargo, the remaining days is the courier stage. During the delivery of credit cards, the density is mostly on the courier side and courier procedures take longer. You can get information by calling both your bank and the courier company to find out the status, where and when the credit card will be delivered. When the card is delivered to the cargo, it is sent as an information SMS by the bank which courier company will be delivered with.

Loan for Retired Civil Servants – Now with Immediate Approval

A loan for retired civil servants is possible. Unlike employees, civil servants can apply for retirement without too much difficulty. This is mainly due to the high pension pension that officials receive.


What is a civil service loan?

What is a civil service loan?

An official’s loan is often confused with a civil servant’s loan. Anyone who takes out a loan for retired civil servants will never raise a large sum. The term is shorter than a civil service loan.

The loan amount can be chosen freely. This is an installment loan with constant monthly installments. A civil service loan, on the other hand, is often covered by a higher loan amount. In addition, the runtime is very long. Often real estate is bought and financed.

The loan for retired civil servants can be taken out without any purpose.


High service – the best opportunities

High service - the best opportunities

Banks often distinguish between retired and middle-aged civil servants. If a loan is to be taken out for retired civil servants, the bank will first check this status. The bank will not complain about the amount of the pension. Officials who were in the senior service often have a pension of around 2600 euros. The attachment exemption limit is about 1100 euros. Thus, this limit is far exceeded. Often there are only problems if the applicant is over 70 years old. Some banks then require additional security. Credit default risk increases the older the applicant is. Banks often demand a residual debt insurance.


Application of middle-aged pensioners

Application of middle-aged pensioners

Problems are expected when a mid-level pensioner applies. This gets only a pension of about 1800 euros.

If then the fixed costs are still billed, it may be that it is just above the seizure exemption amount. Banks are not always ready to give credit to retired civil servants.

Collateral should be available in any case. If requested, the applicant can respond quickly and receive a loan. An attempt should be made to keep the loan amount as low as possible. A high credit would not always be possible, as opposed to a small loan.


Pensioner a credit risk?

Pensioner a credit risk?

Officials who have taken out a loan while they are working know how easy it is. But who is retired as a civil servant, must probably learn the first time that he too is a credit risk.

Even though banks would not say who is retiring, it is often too old for a loan. This also applies to retired civil servants, even if they receive a good pension. Banks often set an age limit when borrowing for retired civil servants.

Often this limit is 65 years. Few exceptions are made if the applicant is already over 70 years old. Banks will then only lend if further security is available.


Reduce credit risk

Reduce credit risk

The loan for retired civil servants must often be taken with additional security. This security depends on the loan amount. When the loan for retired civil servants goes up to 5,000 euros, often no security is required.

But if the amount is above that, then it may well be that a co-applicant is required. Banks often try to sell a residual debt insurance. This should not be resorted to if other security is available. Applicants could provide their life insurance as collateral if the insurance company allows it.

A co-applicant would be even better. With two borrowers, the loan would be secured for retired civil servants.


Credit comparison for civil servants – the loan for retired civil servants

Credit comparison for civil servants - the loan for retired civil servants

A loan for retired civil servants should be compared. Since not all banks grant this loan, the lender can be found with a credit comparison.

The comparison does not just help to find a bank. Customers can get so favorable interest rates and take advantage of the special conditions. not everyone has the same offer, so the comparison helps get exactly the loan the officer wants.

The details in the offers shows which conditions have to be met. Furthermore, retired officials see the terms and conditions and whether special repayments and installment breaks are possible.

Should we have a fixed or floating rate loan, which one is better?


Fixed rate home loans are becoming increasingly popular. Because paying off your installments for years may seem more secure, but interest is higher than fixed pay, so you’ll have to pay back much more (even millions) for security.

Although more expensive is a fixed rate loan, many people prefer it, as the repayment installment thus provides the same amount each month, which is more transparent and provides security for borrowers, but this is why we have to pay more interest for calm than for variable rate loans.

Which Interest Period is Winning?

According to experts, the interest rate on fixed-rate mortgages is currently higher at 5.5% compared to floating interest rates. less, 3.5%.

Everyone is probably wondering what the difference between the two types of interest will be during the loan period and when it expires, is this question not that simple, so we calculated a 3-month BUBOR for the Budapest Good Finance Offered Rate of a 3-month floating rate loan and a 5-year fixed rate loan.

What does interest rate change depend on?

Depending on the type of loan interest.

1. In the case of variable interest rates:

  • if the rate of the BUBOR changes, the interest on the loan will also follow this on the date of the interest period
  • The other reason for the variable interest rate is the function of the interest margin, which is a change in the interest rate premium that is fixed in the contract. Fixed to the end of the term, or change every 3,4,5 years.

2. The fixed interest rate may change only according to the interest rate change indicator specified in the contract. (3,4,5,10, 20 years or fixed maturity.

The duration of a current home loan is decades, and the average duration of a home loan is 15 years, so we are counting on it, considering the loan amount of HUF 10 million.

Long-term interest rates change several times over the term. We have had several options to determine how variable interest rates affect our repayment schedule.

  1. BUBOR will increase by 2 percentage points in 2 years.
  2. BUBOR will increase by 4 percentage points in 8 years
  3. BUBOR will grow by nearly 6 percentage points in 12 years
  4. BUBOR increases by 2 to 2% with a gradual rise of 2.8.12 years after admission.
  5. The last option in the calculation is to have nearly the same repayment at maturity of the two loans.

Then which is better?

According to our calculations, we have to pay more in the third year, from HUF 71,000 to HUF 83,000, the repayment is expected to reach HUF 14.5 million. In the case of a fixed one, our monthly installment will increase to HUF 82,000 at the beginning, and then to HUF 93,000 after 5 years. At the end of this term, there will be a final repayment of $ 16 million that we had to pay. We can see that the floating interest rate has been won because the interest rate on the fixed rate loan increases every 5 years.
According to our 2nd calculation, after 8 years, our repayment will increase from HUF 71,000 to HUF 93,000, a 4% increase in BUBOR. The fixed loan will increase from HUF 82,000 to HUF 104,000 by the end of the 10th year. here is higher by 23%, which is a difference of HUF 1.4 million.
In our 3rd calculation, if BUBOR rises by 6% after 12 years, we will pay a similar repayment over the term of the fixed loan. For the floating rate loan, our installment in the last 3 years is HUF 104,000. However, the total repayment is more favorable than the variable loan. We pay $ 654,000 less in this case, which is 14% lower than a fixed loan.
In our 4th calculation, the difference could be larger than that of a stepwise BUBOR, as interest rate increases in the middle of the term are mitigated by fixation. However, the interest rate difference here is 14%. We pay most interest on this variation on both options, so this is the most expensive option for borrowers.

In Example 4, the BUBOR changes even after 1 year, rising to the current interest rate before the period end of the fixed loan. In this case, we would need a 7% increase in interest rates to make our repayment repayments nearly the same. This can only happen in a special case. Even in the 2008 crisis, we saw only a one-off interest rate increase of 3%. This is only 5.5% higher than previous increases.
For those who would not change their installment for 5 years, they are warmly offered a 5 year fixed rate loan. The same can be true for 10, 15 year term loans. The interest on these loans is higher and their installments may also increase after the 1st period.

The final repayment of a fixed loan is almost 100% higher than a floating interest rate. Based on the examples above, this can be stated.

What if we fixed it all the way?

Today, many banks can apply for fixed-term loans, so you need to compare the fixed-interest loan products over the entire term, as in the examples above. If the loan has a fixed interest rate for the entire period, it has an interest rate close to 1 percentage point higher than the options fixed for 5 years, so we could expect an interest rate of 6.5%.

In this case, the repayer will pay HUF 87,000 per month until the end of the repayment, the interest paid will be HUF 5.7 million.
A fixed rate loan has less interest paid in case of the 3 rd calculation (6% increase in case of 12 years), or in case of a periodically increased interest rate loan. Non-fixed loans are less, in only 1 case, with periodically increasing interest rates higher than fixed-term loans for the entire loan period.

The moment of truth: Should cash withdraw from the credit card?

Credit cards have many uses, make purchases, pay for services, and also have cash. However, in the eyes of experts, this last option is not recommended however.

Attractive it may be in the eyes of cardholders

Among the main reasons why it is not recommended to withdraw money from the card is because the interest rate for these cases is higher than for purchases. Then, the money you are using costs you more expensive, because in some cases, you will have to return almost double what you withdrew.

Another reason why it is not a good idea to have cash with your card is that, even if you don’t believe it, it generates a custom. Accessing cash easily and quickly is tentative, and even if you end up paying too much for it, it can be attractive and you will find yourself turning to this alternative more frequently than you think.

Now, shouldn’t we do it in any case?

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Only emergencies are valid occasions to opt for these types of withdrawals, and even in these cases, it is important that you be clear that the money must be returned as soon as possible, in order to avoid paying more interest. If you can pay it in one installment, do it.

Something you should evaluate is that today, obtaining a personal loan is much easier than before, and there are even online loans, so before opting for the advance of your card, even in case of emergency, it is convenient that you analyze the other alternatives.

Finally, keep in mind that not all entities have the same interest rates and conditions, so before applying for a card, if you don’t have one, you should check all the associated costs. To do this, so you can use the Keiradella’s credit card comparator.