Monthly Archives: April 2019

What Is Better to Not Buy in Installments? Installment Loans

 

Today many people rely on the type of payment in installments to keep getting the desired item. For example, when you want to buy goods whose prices tend to be heavy in your pocket, someone can take advantage of a credit card facility by paying installments to be lighter per month. However, there are actually several types of payments that are better not bought by installments because they can lead to waste, find out what types of products are below:

We recommend that you do not use installments / credit

 We recommend that you do not use installments / credit

  • Clothing / Fashion
    A better type of payment is not purchased with installments, for example when shopping for clothes and accessories, it is better not to use installments in paying. The option that you can use is to use a debit card. It’s a shame if you use installments to buy goods whose prices usually can still be paid in cash.
  • Monthly expenditure
    Not only clothes, you also better shop for monthly needs using cash only, or debit cards when shopping at a supermarket. Price Barang-barang yang tidak boleh dibeli dengan dicicil monthly needs are usually still in the dosage that does not require installments at all.
  • Gadget
    The next product is a gadget, the main reason when someone uses installments to buy a gadget is because the price tends to be expensive, so the option to pay in installments can ease their payment. But without realizing it, shopping habits of gadgets with installments can make you tend to be consumptive, because it simplifies payment. If you lose control, even what you have can be more wasteful and more often changing gadgets. Too bad, right?
  • Business Capital
    Installments used in business capital, for example in the form of KTA. Many new businesses rely on bank loans to start their business. Even though using KTA to start a business is an inappropriate step, it is better to use a KTA loan to develop a business that is already running.

Can Use Installments (If Able)

 Can Use Installments (If Able)

  • Property
    The first product that can use installments is home / property. It is no secret that house prices are really expensive, so there is a need for sufficient funds to buy them in cash. To be lighter, the best option is to use installments. Considering that house prices tend to be high, then if you use installments, the nominal can be bigger, make sure you have considered carefully before making a decision in buying a property unit so that you are not in debt later.
  • Motor vehicle
    The second product is motorized vehicles (home / car), just like property units whose prices tend to be expensive, many people take installment options. This choice can be right if you also have a thorough calculation of the installment payments in the future.

In the end, if you really want to buy goods by installments, it will be better if the goods can bring profits and help increase their income. This means you also have to understand about productive debt and consumer debt, buy productive items. Read more about the differences in productive debt and consumer debt here.

Banks Loans – Old and New

 

Switzerland has more than 260 banks, and consumers can handle their daily credit transactions in more than 3,000 branches. But the Swiss banking landscape is increasingly in transition – also thanks to the Internet.

 

The Swiss banking sector includes a variety of banking institutions with different business models and a wide range of services. In addition to the two major Swiss banks, Credit Suisse and UBS, we now have 24 cantonal banks, 62 regional banks and savings banks, seven private bankers, one Raiffeisen bank and many other domestic and foreign financial institutions.

All Swiss banks approved by the Swiss Financial Market Supervisory Authority (FINMA) are affiliated to the German deposit guarantee scheme, which, according to the Consumer Credit Act (KKG), protects loans for up to CHF 80,000, for example. Of the 24 cantonal banks in Switzerland, 21 also have unlimited government guarantees.

 

New challenges for the Swiss banking sector

 

New challenges for the Swiss banking sector

 

However, banks in Switzerland have been facing major challenges for years: rising regulatory costs, negative interest rates, falling margins, rising customer demands, digitization, political and legal uncertainties during the Brexit negotiations, and uncertainty about future US policies. All this will drive structural restructuring in the financial sector in the coming years. In terms of investment and credit, the established banks have already gotten new competitors.

 

Banks and intermediaries – online institutes on the rise

 

Banks and intermediaries - online institutes on the rise

 

For a long time, consumers have no longer been bound by traditional branch business. For example, many banks and brokers are currently also offering their businesses via their own online portals. Most of all, personal loans are available online today. Cashgate, for example, which belongs to Raiffeisen Switzerland and the Cantonal Banks, or Bank-now, the subsidiary of Credit Suisse, and Cembra Money Bank – to name but a few examples.

In many cases, credit institutions even broker their investments and loans exclusively online via their home page – for example eny Finance AG, Migros Bank or bob Money. All of these, for example, only offer their personal loans as modern online loans, where interest rates are generally variable and criteria for the amount of interest vary widely from provider to provider.

On the other hand, there are no online shops that still serve Switzerland’s regional cantonal banks such as the Valais Cantonal Bank, the Zurich Cantonal Bank or the Geneva and Jurassic Cantonal Banks. Most of the regionally active cantonal banks continue to rely on customer advice by meeting and direct contact in the bank.

New Financial Trend – Peer-to-Peer and Landing

 

Modern online platforms have also made completely new business models possible for several years. A relatively new trend in the credit market in Switzerland, for example, are loans from private individuals to private individuals. These so-called peer-to-peer loans are brokered for example on online platforms such as Cashare AG, CreditGate24 and Lend.

These new online service providers bring private and private investors together quickly and easily. Here consumers receive their credit from private individuals or SMEs – and no longer from a traditional bank. Also, the interest rates are not strictly predetermined, but negotiated by supply and demand in concrete loan project with written loan agreement itself. Conversely, entrepreneurs or start-ups can advertise in such online platforms for potential financiers.

Safety is still high on the list

Safety is still high on the list

 

Consumers, however, do not have to worry. Because for online banks or novel peer-to-peer platforms also apply all the rules of the consumer credit law (KKG), especially in terms of liquidity, money laundering and credit check. In order to take advantage of this novel service, credit seekers, such as lenders, must properly register and previously submit all the data required for the credit check online.

 

New banking in the interests of the consumer

 

New banking in the interests of the consumer

 

Up-and-coming comparison portals such as the German start-up CAPITALO have an eye on such novel trends in the Swiss banking market. The aim here is to show the classic Swiss consumer new opportunities, for example in borrowing, and to make the process of providing credit as fast, simple and secure as possible. And this applies to both Swiss citizens, as well as for cross-border commuters and interested parties with other residence status.