The loans. Advantages and disadvantages

On more than one occasion throughout the life of a person or a company, it is necessary to apply for some type of loan. In fact, currently, financing is one of the most used methods by all Spaniards. Both for those who start their own business or for anyone who wants to pay off a debt or, for example, buy a car or a house. Futher reading at

However, although financing for companies and individuals is the order of the day, it is a method that should not be taken as a joke. In the event that the provisions of the contract are not complied with, regarding the payment of fees and the agreed repayment period, it is normal for the company that lends the money to penalize the borrower with sanctions. In the long run, failing to meet the terms of a loan can have legal consequences and even the borrower’s entry into jail.

For this reason, the best solution before applying for any type of loan is to be sure that we will be able to face your return. Failure to weigh the pros and cons before applying can lead to a much more difficult situation than the one that has led us to apply for the loan.

Solutions for our loans

Solutions for our loans

Today there are many solutions to avoid incurring defaults or end up having a problem with credit companies that lend your money.

The most normal thing is that in case of failing to meet the deadlines, individual lenders or the various borrowing companies that exist, prefer to reach an agreement with you so that you can get more time to repay your loan. For them it is preferable to recover their money (the loan + interest), in a longer period of time than directly not being able to recover it.

One of the alternatives, at this point, is to try to renegotiate the loan repayment terms and to get a new agreement with which both parties are happy.

Obtain an online loans

Obtain an online loans

Online loans have become another way of obtaining financing today. Whether it is to be able to start certain projects or simply to obtain a certain amount of money that can be used to face more urgent debts that you can no longer postpone. Online loans tend to be characterized by having relatively lower interest rates than traditional financial institutions and by offering time limits that are more in line with the personal situation of each client.

However, do not forget that linking one and the other debt is not convenient and it is a simple patch. Paying off one debt incurring another may end up leading you to an even more complicated situation than the one you initially had.


How a breach of lease can affect your credit

When you signed a lease for your apartment or house, you agreed to pay a certain amount of rent by a certain date each month for a fixed period of time, for example, one or two years. See for the scoop

Sometimes you have to leave the lease earlier than you initially agreed

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You may be moving into work, buying a home with your new spouse, or you have fallen on hard times and can no longer afford to pay your rent.

Removing yourself from a rental before the end of your lease is called a termination of your lease. The termination of your lease can hurt your credit score, and in particular does not pay the remaining balance when you move out. Working with your landlord to terminate your lease can help you avoid damaging your loan.

Rental breach costs

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Your lease probably includes a rental fee that is charged when you complete your lease before it is completed. Depending on the terms of your lease, you will either be charged a rent or rent for the rest of the lease. Contact your lease or call your landlord to find out your rental lease costs and steps taken to breach the lease.

When you move out, you will also be charged for any damage to the apartment that is not covered by your security deposit. These costs should also be if you have not breached your lease. Speaking of security deposit, if you move in before your lease ends, you can lose security, even if you leave the apartment without damage.

Talk to the landlord about applying a security deposit to a lease lease fee. You can avoid violating your loan by fully paying the lease rental fees and giving your landlord advance notice requiring your lease. If you want to avoid paying a lease fee, you may be able to file your apartment.

A raise means that you have taken over the rest of your lease and payment to another person. Work with your landlord to find out the best practices to reduce the cost of breaking your lease and to avoid damaging your loan.

How Leasing Breaking could hurt credit

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You can expect your landlord to take legal action if you move out before the lease is concluded without worrying about the lease termination fee or any other arrears. If your landlord is currently reporting rents to credit bureaus, they can add an irregular balance directly to your credit report.

Or, your landlord can hire a collection agency to guide you to the rest of the lease or file a lawsuit in a small claims court to obtain a judgment against you. Either debt collection or judgment can end up on your credit report and seriously damage your credit score.

When your credit report contains negative items that result from breaking your lease, the listing will remain on your credit report for seven years. Negative grades will affect your credit score and your ability to rent another apartment, buy a home or car, get a credit card, or any other shop that requires a good credit score.

Legal reasons for terminating your lease

If you breach your lease because your landlord failed to fulfill some part of the contract, e.g., failed to make repairs that affect the occupancy of the dwelling, you may be allowed to move around without penalty for the offense. Consult the laws of your country and your lawyer to see if you have a legal reason that allows you to terminate your lease without paying a penalty. Movement for personal reasons does not usually qualify.