taboo-breaker.org http://www.taboo-breaker.org My WordPress Blog Sun, 21 Apr 2019 15:09:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.1 Financial Pyramids – How Not To Be Deceived in Business http://www.taboo-breaker.org/financial-pyramids-how-not-to-be-deceived-in-business/ http://www.taboo-breaker.org/financial-pyramids-how-not-to-be-deceived-in-business/#respond Sun, 21 Apr 2019 15:09:00 +0000 http://www.taboo-breaker.org/financial-pyramids-how-not-to-be-deceived-in-business/

Certainly, each of us has seen the offers of various companies that virtually nothing promises us great profits. You only have to pay a larger or smaller amount, buy some product, etc. In addition, we can make profits when we persuade other people to also invest their funds into the company. At first glance, everything in such offers is beautiful and colorful, but at the end it turns out that not only did we not make the promised money, but we lost what we have invested. And all because the company promising fantastic earnings turned out to be a financial pyramid.

What is a financial pyramid
What is a financial pyramid? The simplest way to say is that it is a specific financial structure, in which the participant’s profits depend on the contributions of people who entered the structure later. The first financial pyramid will be created by Charles Ponzi (hence the pyramids of Ponzi are often referred to as pyramids). And how do these pyramids work? Its creator always promises above-average profits at the beginning. We just need to invest a certain amount of money and wait for profits. Usually, the organizer of such a structure, persuades people who have already paid cash to look for other potential participants, and in return, promises them a commission. And so the whole structure “spills over the world”. It should be said that these types of financial pyramids are doomed to failure. For the profits paid to people who are the first to join the structure, they depend on the contributions of new participants. When they run out of money, problems start with the payment of profits and even previously paid funds, because they have already been embezzled. In the end, impatient people who have paid the money and can not get them back are starting to report the matter to the law enforcement agencies and the whole pyramid collapses.

How to recognize a financial pyramid

How to recognize a financial pyramid

The financial pyramid can be identified in several ways. First of all, participants are promised extraordinary profits. In addition, by browsing the offer of a given company, we can guess that profits depend on introducing more people to the structure. When we notice something like that, we should immediately “light up the warning light” in our head and we should go as far as possible from such offers. Thanks to this, we will not lose money, which we have often saved for many years.

The most famous financial pyramids

The most famous financial pyramids

The best-known financial pyramid in the world is the structure organized by Barnadra Madoff. He attracted wealthy investors to his structures, who, as the investigation showed, paid about 65 billion dollars to her. When the matter came to light, it turned out that over 5,000 people invested in the pyramid.

A large financial pyramid also worked in Russia, and its creator was Sergei Mawrodi. When it collapsed, it turned out that the money to her paid about 5 million Russians, and the total payment was for 150 million dollars.

We also had to deal with financial pyramids in Poland. The first of them was the so-called Safe Savings Bank, whose creator Lech Grobelny promised extremely high interest rates on deposits. StanisÅ‚aw Kotarba, founded Galicyjski Capital and Investment Trust. We can not forget about the last affair, Amber Gold. The company promised high interest rates on their “deposits”, but when they ceased to influence new funds into the structure, it soon became insolvent.

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Chance of Peace: Consumer Bankruptcy http://www.taboo-breaker.org/chance-of-peace-consumer-bankruptcy/ http://www.taboo-breaker.org/chance-of-peace-consumer-bankruptcy/#respond Wed, 06 Mar 2019 16:12:50 +0000 http://www.taboo-breaker.org/chance-of-peace-consumer-bankruptcy/

Reading news from the country or from the world, we can often come across information about company bankruptcies. In the case of this type of entities, it does not arouse greater astonishment – the bankruptcy of unprofitable companies is natural (and some consider that even exceptionally beneficial for the economy as a whole) a phenomenon. Few people know, however, that bankruptcy is a term reserved not only for companies, but may also apply to individuals. We then deal with so-called consumer bankruptcy.

What is consumer bankruptcy?

The very definition of the term speaks of a reduction or a total remission of the obligations of a natural person in the case of a non-default insolvency. The law was introduced to Polish law on March 31, 2009, however, in the current version it was criticized by both parties – both creditors and debtors. The main allegations were the lack of precision or clearly defined procedures, as well as the inconsistency with the European Union law. It is worth noting, however, that the years of disputes, long-lasting and painstaking processes have allowed us to work out much clearer and unambiguous regulations, which we can now effectively use (after the amendment of December 2014).

For whom?

For whom?

Who can benefit from the provisions regarding consumer bankruptcy? As the name suggests – above all, natural persons not conducting business. However, it turns out that the group of beneficiaries of the mentioned legal acts may be a bit wider, as it may also be owned by persons running farms, provided that they do not run another enterprise next to the farm. In addition, shareholders of joint-stock companies, or shareholders in limited liability companies, but also in the case where they do not run a business.

What conditions must be met?

What conditions must be met?

One of the key elements is to prove that the debt was not due to the fault of the debtor, and because of external and unpredictable circumstances. The most common causes can be a long-term illness, an accident or a loss of jobless. It is worth paying attention to the last possibility – disciplinary dismissal, resignation (termination of the contract by the employee) and termination of the employment relationship by agreement between the parties will certainly disqualify the application for bankruptcy. It is worth mentioning that the above condition (or more precisely its non-fulfillment) is the most common reason for refusing to initiate the consumer bankruptcy procedure. Therefore, always make sure that we meet all formal requirements!

What does the procedure look like?

What does the procedure look like?

The basic condition is to prepare an application for bankruptcy. Such an application should include all the contact and contact details of the debtor, as well as:

  • list of assets owned, along with the valuation of its individual components
  • a list of all creditors, together with the amount of individual liabilities and repayment dates
  • list of people who have property obligations to the debtor
  • a list of enforcement and enforcement titles issued against the debtor and a list of proceedings pending against him

Of course, the application should also be accompanied by a statement that the data provided in the application is true. After submitting the application, the court will check it formally, and then (after its positive assessment) will proceed to its consideration. The first stage is the liquidation of the debtor’s property in order to satisfy the creditors – usually it simply means the auction of the debtor’s assets by a designated trustee.

Other ways to get out of debt

Other ways to get out of debt

It is worth noting that in the event that we decide on a “formal” procedure for determining consumer bankruptcy, the court may order the use of all debtor’s assets to satisfy creditors’ claims. This usually means placing real estate, car or other valuable items for auction. So if we have such assets, it is worth considering, for example, a loan, for example, for the collateral of a car – this may be a way to solve a temporary financial problem. The more so because in the case of the auction conducted by the receiver, the starting price is usually set quite low to ensure that they are interested in buying. In this situation, selling a car can bring profits well below the market price – this is an unattractive solution. The main benefit of the loan is a relatively large amount, and most importantly – we can still use the car.

What’s next?

What

In the event that the auctions do not allow the repayment of all amounts due, the court orders the repayment plan to be executed. It is a plan that sets a repayment schedule for creditors. It is worth noting, however, that the court determines it not on the basis of the amount of debt, but on the basis of the current possibilities of repayment by the insurer. It is therefore calculated and prepared on the basis of, for example, the income currently achieved by the debtor. The plan is set for no longer than five years (with the possibility of extending by two years). It is worth noting that during this time the person who submitted the application can not, among others, make purchases in installments or purchases with deferred payment. In addition, it is obliged to report on the implementation of the repayment plan. Although these inconveniences are inconvenient, it is worth noting that after a reliable repayment plan, the court can redeem some or all of the debtor’s other liabilities!

What are the benefits?

What are the benefits?

At this point, it is worth summarizing the benefits that may arise from the announcement of consumer bankruptcy

  • Chance for full debt – the most beneficial, but at the same time the most difficult option to obtain;
  • Repayment of only part of the debt, divided into installments – in this case, the debtor can count on remission of part of the liabilities, while the rest is spread over the installments in the plan enabling their real repayment;
  • Suspension of enforcement, court or recovery proceedings – declaration of bankruptcy suspends proceedings, and the court’s decision may lead to its redemption;
  • Mental relaxation – one of the most important elements! A debtor who is not afraid of next visits of a debt collector, bailiff or creditors’ telephone calls may be much more effective in carrying out activities aimed at extinguishing debts.

 

As you can see, the formal and material requirements imposed on the debtor are quite complicated. This is also indicated by the high percentage of applications rejected due to formal reasons. There is no doubt, however, that this is a method that gives you the chance to effectively get out of debt! It is also worth considering an attempt to declare consumer bankruptcy in another country of the European Union – as a resident of a country in the Community, we have the right to take advantage of the possibility of declaring bankruptcy in any EU country, according to the regulations in force!

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Loans without Checking Databases – Financial Loans http://www.taboo-breaker.org/loans-without-checking-databases-financial-loans/ http://www.taboo-breaker.org/loans-without-checking-databases-financial-loans/#respond Mon, 25 Feb 2019 15:34:53 +0000 http://www.taboo-breaker.org/loans-without-checking-databases-financial-loans/

Banks, through the creation of the Credit Information Bureau, have obtained an excellent database allowing them to verify persons who apply for a loan or a loan. Thanks to this, they can easily and quickly “catch” applicants who either have too big debts and simply can not afford another loan, either pay off their liabilities late or do not repay them at all. This allows you to reduce your credit risk, because as you can easily guess, these people can forget about another loan. Does this mean that people with debt will not get a loan anywhere anymore? Of course not, because in our country there are many loan companies that either do not check the debtors’ registers, or approach the obtained data more tolerantly 

Only a few years ago, only banks and Credit Unions benefited from the registers of the Credit Information Bureau. Currently, more and more loan companies are also checking their clients in these registers. However, a large number still does not do this, which makes it much easier to get a loan for people with debts or a bad credit history. Of course, these are loans much more expensive than bank loans, as well as those provided by companies that BIK registers check. Why? All in relation to the increased risk that these companies incur. By providing loans without checking databases, they significantly increase the risk of losing money. Because, as statistics show, if someone already has debt or is a client who has problems with timely debt service, the repayment of a new loan can also have problems. Therefore, in order for the company to quickly fail due to customers’ insolvency, it raises the costs of its loans and people who pay their debts on time allow the company to make profits. It can be said, therefore, that people who pay their debts on time bear the consequences of the unreliability of a certain group of borrowers.

Obtaining a loan without checking the databases is possible. But if we already have debt or in the past we had problems with its repayment, we have to think carefully whether the new loan will not be too much of a burden for us. Therefore, before submitting the application, let us consider whether it is really needed and whether we can not do without it.

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Christmas Loans – What We Need To Remember http://www.taboo-breaker.org/christmas-loans-what-we-need-to-remember/ http://www.taboo-breaker.org/christmas-loans-what-we-need-to-remember/#respond Wed, 13 Feb 2019 16:05:48 +0000 http://www.taboo-breaker.org/christmas-loans-what-we-need-to-remember/

Christmas is fast approaching. For many people, this is one of the most important events of the year, therefore, we are trying to prepare them in a proper way. And although the preparations are practically the same each year, they are always a few weeks before the Christmas Eve, we are beginning to get a little impatient.

As you know, with the corresponding setting of Christmas, also slightly higher expenses are associated. I should tell the right way to prepare our homes and apartments (Christmas tree, Christmas decorations), buy more food products, and also we can not forget about Christmas presents. Therefore, our home budget can be quite badly tarnished, and in many cases, often for proper preparation for Christmas, we just run out of money. And what do we do then? Of course, we go to the banks to get acquainted with the offer that these institutions have for us. And as you can easily guess, in most of them we can find special Christmas loans. According to the assurances of advertisements and announcements, these are special occasions that we must take advantage of, because if we do not do it, our holidays will not be at the appropriate level. And often we give in to these assurances and apply for a loan for Christmas.

However, we must realize that the banks are not charitable institutions and will not lend us money for free. So let’s check how their Christmas offer really looks like. It may turn out that, as is apparent from the advertisements, an extremely cheap product will in fact turn out to be more expensive than a normal cash loan. Banks may lower the interest rate on holiday loans, but in return they will increase the commission, which will significantly affect the cost of the loan. Or we will get such a “cheap” loan, if at the same time we will apply for a credit card, for which we will have to pay. And such “hooks” could be exchanged more, so before submitting the application, we must be very vigilant not to get caught in the banking trap.

In order not to use the Christmas loan, it is worth planning your budget so that you do not run out of free financial resources. Only we have to remember to do it in advance. Preferably in early November or at the end of October. Let’s prepare a list of the things that are necessary to us, which will help us greatly in the planning of expenses. Maybe thanks to this we will notice that our Christmas tree is still in good condition and we do not need a new one, and Christmas decorations will be enough to vacuum and will look like new. Thanks to this in our budget will be more money for other expenses. Anyway, we can prepare Christmas decorations ourselves, which is always the cheapest solution.

Once we have the shopping list, let’s start looking around, where we can buy the things we need. When we start doing it earlier, we will have a better chance of finding promotions that will again allow for smaller expenses. Leaving shopping for the last minute, especially when it comes to gifts, makes us often overpay and starts to run out of money in our wallet.

Christmas, do not have to be time when we indebted ourselves so that everything is buttoned up. Sometimes it is better to celebrate all the celebrations a little more modestly, but with the awareness that we will not have to pay the borrowed money to the bank after the New Year.

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Debt or Loan Repayment – Rescheduling in Austria http://www.taboo-breaker.org/debt-or-loan-repayment-rescheduling-in-austria/ http://www.taboo-breaker.org/debt-or-loan-repayment-rescheduling-in-austria/#respond Wed, 26 Dec 2018 21:15:18 +0000 http://www.taboo-breaker.org/debt-or-loan-repayment-rescheduling-in-austria/

 

Every form of credit has a term. This can be, for example, 10 or 15 years, and then there may still be residual debt left over. These can then be refinanced and repaid in installments. After the repayment term you are free in your decision and can redesign the loan.

This means that you can change the type of loan (eg conversion into an annuity loan ), change the payment modalities (eg choose higher or lower rates) and there are usually two options:

  • to change the bank or
  • the whereabouts of a bank

 

comparison

The best banks and providers in Austria can be found here:

  ING DiBa
First Bank ING DiBa
to offer to offer
from 3,000 euros from 5,000 euros
up to 50,000 euros up to 50,000 euros

 

Repurpose loan or loan

Repurpose loan or loan

Debt rescheduling involves changes that affect both sides: the bank and borrowers. Depending on interest rates and conditions, both sides must find a compromise and agree on debt rescheduling. This can sometimes mean lengthy negotiations with a bank. In the end, you as a customer should benefit from a rescheduling.

 

This is why rescheduling often makes sense

This is why rescheduling often makes sense

If another bank offers a cheaper interest rate, the debt can be shifted to it. This may be necessary if the monthly burden has just become too big. Maybe because you have received bad contract terms and are choosing a far too high interest rate. This increases the rate and the monthly burden is high.

Of course, it also makes sense to negotiate with your own bank first. Maybe a rescheduling is possible in-house, if you describe your situation there.

Otherwise, the debt would have to be relocated. And that, in turn, puts you, as a borrower, in a less than advantageous position because of course you need a lender. A new, foreign bank may not be courting you as a customer – after all, you are already in debt and are striving for a change.

 

The benefits of debt restructuring

The benefits of debt restructuring

If you have decided to reschedule, you will enjoy some benefits. If the interest rate is currently at a very low level, you can secure it. This often goes on for at least 10 or 15 years. And especially in low interest rates, the rescheduling is worthwhile, because with a new, very low interest rate you save a lot.

You pay less interest and can therefore significantly more share of the actual debt repaid . This means that at a constant monthly rate, the debt would be fully repaid much earlier. With a fixed interest rate you are then also worry-free, because at this nothing will change. So you can calculate the next years with certainty.

 

The disadvantages of debt restructuring

The disadvantages of debt restructuring

In the middle of the repayment term, it is by no means necessary for a bank to simply agree to rescheduling. The self does not benefit from it. If she agrees, that is a courteous accommodation.

In addition, the credit institution may well require that the debt restructuring be coupled to other conditions and reshape the contract. This could mean that you may be more limited in special repayments or have to accept other modalities.

As long as you, as a client, want something from your bank during the regular repayment period, you must hope for its goodwill. After the fixed interest period applies, of course, for both sides: Free hand!

 

You must pay particular attention to this when rescheduling

You must pay particular attention to this when rescheduling

Do not make the same mistakes again and do not take over. A low interest rate should not hide the monthly rate. It should not be so high that, for example, a loss of a job becomes a real problem for you or your spouse. Calculate realistic.

You should also not finance the money abroad. Stay with a bank in Austria and finance where you have your own home. Even when it comes to financing a foreign property, it is still advisable to trust the bank in Austria.

 

Low interest rates

Low interest rates

When rescheduling, make sure that you secure low interest rates for as long as possible. A fixed interest rate of only 5 years brings you back to the same problem in 5 years. Because the interest rates could have risen sharply until then and then you have nothing but to accept them. That may be very expensive. So do not make a hasty decision and think in peace which contract you choose. A rescheduling and the associated consequences tie you back for a few years to your decision.

 

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