The Disadvantageous of Paying Credit
May 5, 2019
It’s a situation that pretty much every German citizen knows: It’s middle of the month, there are still some important bills to pay for and the recreational activity in the form of a cinema visit, a concert, etc. should not be omitted. But looking at your current account quickly reveals that the money will not be enough by the end of the month.
The leisure time may be waived if necessary, but the non-payment of bills is anything but recommended, as this would cause unnecessary additional costs and other inconvenience. So there remains the possibility of a short-term borrowing, with priority here times the possibility of often with the current account disposition credit offered. But is that really the only way?
It is undisputed that every German citizen of working age, who is also in possession of a checking account, has made experiences with the so-called Dispo – be it in a positive or negative sense. Often the overdraft loan granted by the bank serves as a supposedly best and only solution to bridge a financial shortage. Since then, it is also accepted that unfortunately a bad credit often costs a lot of money in the form of high interest rates.
Disadvantages of a disposition credit
The problem of high interest charges can, of course, be undermined by the fact that one recovers his drawn loan relatively quickly and does not lead his account in the minus. However, this is often actually the risk, because there is no obligation on the part of the bank to offset the utilized discretionary credit within a set timeframe. Month by month, because the repayment is pushed further and further, interest charges for the current loan fall.
In addition, there is also the following problem: What if the disposition credit is exhausted, but still pay unexpected bills or necessary acquisitions must be made? The bank will advise you to reschedule and, if necessary, grant no further credit. In addition, one is reported with a corresponding negative note in the SCHUFA.
Alternative: Online mini loan or even short term credit
A real alternative to the discretionary credit is the so-called short-term credit or even mini -loan , as offered by Christopher Tietjens. Christopher Tietjens offers with short-term loans up to 600 euros people who have a short-term liquidity needs, quick and straightforward help. It is not necessary to talk to a bank and ask yourself unpleasant questions or keep to opening hours. With an online mini-credit by Christopher Tietjens, everything is online and without any pre-costs. Thanks to an online loan calculator, the interest charge on the desired loan amount is displayed, so that the borrower knows from the beginning how much has to be repaid. The most decisive advantage of a short-term loan compared to the discretionary credit, however, is the repayment modality established from the beginning: at the earliest after 15 days, at the latest after 30 days, the claimed loan amount plus interest is due for payment. This means clear rules and security for the borrower.
Editor: Markus Gildemeister
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