Ailfam has been successfully doing business in construction for several years . She’s clever, doesn’t stop too much, she earns decent money. Complications occurred once in the winter, when orders fell and the costs of a three-member family did not go too much. Ailfam chose the overdraft for the first time ; Another winter loan and credit card, another year corporate loan and finally a corporate overdraft.
Consolidation of Entrepreneurial Loan
When we met, there were already 6 different loans, overdrafts and credit cards with interest from 12 to 26%. The total debt for 2.5 years was already 360 thousand, the monthly installments have already exceeded CZK 11 thousand. (For an idea with such an installment, you will buy an apartment for 3 million). What now. Ailfam confided to me that they did not look very much at his next bank loan, perhaps because he sometimes paid late. And even though his tax return didn’t look bad at all.
The goal was clear – to reduce the installment until the partner returns to work after parental leave (at least a year and a half). And ideally free of charge and get a small financial reserve.
The appropriate way is to consolidate everything into one loan, with lower interest rates and longer maturities. Based on my experience with these situations, I chose a bank willing to narrow her eyes and be willing to talk about interest rates and fees at the same time. Then everything went quite quickly. Ailfam appreciated the fact that he went to the bank only once – to sign the loan.
And as it turned out – a loan of 400 thousand (to have a smaller reserve), interest of 8.9%, maturity of 10 years, installment of 5.045 CZK, free of charge for the settlement and maintenance of the loan, with the option to pay anytime earlier.
It would seem that such a loan, when Ailfam and Nelou in ten years will pay about 600 thousand. CZK for borrowed 400 ths. CZK is not very favorable. However, in their case , the alternative is, for example, selling their own house or renting and moving to their parents or a small apartment. In addition, with a new, lower, installment of 5 thousand. CZK to cover current living needs without stress and after the return of Nely to work credit to two years to pay.