Instruction

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Banks always offered a debt restructuring for those clients who pre-announces the upcoming or ensuing problems. It can be an increasing the loan term, deferral of principal repayment, the reduction

**percentage**rate. Of course, banks are going it is not too happy, because they will lose part of the planned income. Nevertheless, the Bank is more advantageous to receive a certain amount than in the event of delay not get it at all.2

On average, banks are willing to lower the interest rate on

**the loan**by 1.5-2**percent**tion of the item. However deluded not to be. Usually they offer this benefit for a period not exceeding two years, i.e. not until the borrower is experiencing financial difficulties. Some banks at the end of this term again raises**the percentage of the**target rate and even with the lost revenue during the grace period.3

To reduce

**percent**on**the credit**, you must contact the Bank and submit the documents confirming deterioration of your financial condition. This can be a copy of the workbook, if you were fired, salary certificate, if it fell, sick leave or doctor's note, if you cannot fulfill debt on the condition.4

However, after analyzing your condition, the Bank may consider that you will not be able to pay

**the loan**even after the refinancing, and offer to sell the property, the acquisition of which was spent with borrowed money. So in this situation it is important not to overdo it.5

Banks can reduce

**the percentage**ing the rate and in the following case. For example, the borrower took out a mortgage three years ago at 16% per annum, and now the rate for a similar**loan**is 13 %. But in this situation, there are also its pitfalls. First, it is not necessary to think about refinancing if the difference between**the percentage**tion rates is small, not less than 3**percent**of the data points. Secondly, it is not too noticeable a difference from the decline in**the percentage**rate in annuity payments, especially if you paid more than one-third of the loan. Now the payment amount, a significant portion is the size of the principal debt, and a large share of**the %**s you have already returned to the Bank.# Advice 2 : How to consider the interest of the Bank

In order to know how to calculate

**interest****Bank**loan and loans, you must match three values: the amount of money you borrow, the period for which its going to take, and also the interest rate. Comparing them, we can calculate**the interest****of the Bank**in full. After all, each Bank not only can be different**percentages**, but also the inclusion of hidden fees on a loan.Instruction

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In order to calculate the

**interest****Bank**, you can use a special program "loan calculator", which, as a rule, must be presented on the websites of all major banks of Russia. In this calculator, there are graphs. There enter values: loan amount, interest rate**Bank**and the loan term. After that, you will instantly receive the result, which will show how much money is needed to pay on the loan and the payment that you will need to make monthly.2

You can calculate

**the percent****of the Bank**independently. To do this, take a pen and a piece of paper. Write the amount of loan money and multiply it by the amount of the interest over the loan term. To the number add one. Then divide the resulting value by 24. Then what you get, and multiply by 100 percent.3

Banks entice people of different promotional offers to buy any product on credit at favourable terms. However, a detailed consideration of the proposed variant, in fact it may be that all proposals are significantly different from promotional moves.

4

The customer to choose the Bank, which has a small rate of interest is quite clear. One Bank might offer a rate of 10.5%, and the second to 12.5%, but the first

**Bank**has a one-time fee, which is 1% of the loan amount, and a monthly Commission at the rate of 0.1%. The second Bank may not have any fees, but it is necessary to make a single payment in the amount of $ 100. Having considered these two proposals, it turns out that the costs of the loan more, whose interest rate is lower, but a lot more payments.5

Not to get into such a situation, it is necessary to calculate what costs are waiting for you actually. To do this, fold down the interest rate with all additional fees, then you will be able to get a real "effective" interest rate.

# Advice 3 : How to reduce the interest rate on the loan

As a rule, in the contract price of the loan is set at a fixed rate of interest charged for the use of the funds of the Bank during the year. In the calculation a certain amount of interest on

**the loan**are taken into account the value of the interest rate and the actual number of calendar days on which you take the money. If this is not the last place and the amount of money.Instruction

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To reduce interest

**rate**when you refinance. In this case you instead of the old, the least favorable loan can take a new loan that will offer the best conditions. Due to the new loan is necessary to cover the old loan.Thus, you will be able not only to reduce the interest**rate**, but also reduce the period of payments on**the loan**.2

In order to reduce lending rates from the Bank, you must provide documents that can prove the financial problems have arisen. Typically, banks are most favorable to borrowers, who warn in advance about their problems. But the main thing in this case is a neat implementation of the ongoing obligations of the client.

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For example, if the reason for loss of financial income as a result of dismissal from a permanent place of work, then in this case you will need to provide a copy of your employment record. When low-wage - help 2NDFL (about the monthly income wages). If the reason was a temporary loss of earning capacity, the supporting document is a copy of the hospital and a doctor's note.

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Make a loan that is secured by collateral or guarantee such a mortgage will cost you much cheaper. In this case, the Bank any collateral (a car or apartment) significantly reduces the risks relating to credit defaults. Therefore, a credit institution can make a much more attractive individual parameters of the loan: lower interest

**rate**and increase the credit limit.5

If you do not really need the insurance, then discard this service. Because when any loan for insurance takes also a certain percentage every month, which will then be included in the principal amount of the debt.