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What is a Debt Trap?

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Debt trap?

What is a Debt trap?

Debt trap is a more familiar and used term for a debt spiral . This is a situation where an individual or even a whole family is unable to pay their creditors’ obligations. Which leads to penalties or other obligations by taking additional loans. The total amount and interest are thus increasing.

The most common reason for a debt trap is a poor assessment of future repayment options. As a result of the competitive struggle, lenders do not disclose all the details, which is considerably more expensive when using the product. Therefore, all the advantages and disadvantages should be carefully considered.

The most dangerous are loans up to 10 thousand and loans with maturities of less than 3 months. For these, we should be extremely careful and not be afraid to ask for help from someone who knows the issue. The fact that you own a personal identity card and you are not legal does not mean that you understand credit issues.

However, you can also get into a debt trap if you fail to pay a fine, charge, or improperly handle a credit or debit card. Jumping penalties and amounts charged are often so high that even a person with an average wage has no chance to pay them. Therefore, it is necessary to solve everything at the beginning by agreement before the claim is forwarded.

The third most common reason is job loss. When changing the income ratio, it is necessary to clarify whether the situation can be long-term and act quickly. There are options such as repayment schedule, or consolidation of multiple debts for one creditor, which then sets the repayment method. Often this option is the starting point.

If Debtor’s Debt Trap engulfs so much that it is unable to pay its obligations even at its best faith, personal bankruptcy is an option. However, this is often made possible by few people. The sooner the debtor decides to act the better for him.

If you are facing a problem with repayment, try to contact a debtor assistance institution as soon as possible. Some fall under non-profit organizations or directly under the state. You will not give anything for advice as opposed to another loan.

What is a Consolidation Mortgage Loan?

What is a consolidation mortgage loan?

What is a consolidation mortgage loan?

A consolidation loan may turn out to be a remedy for all those who pay off several loans and are not satisfied with the conditions under which it is carried out. It allows you to create an individual offer and reduce the installment. The real estate mortgage is the repayment security for the bank.

The basic assumption of a consolidation loan is to convert a few expensive loans into one cheaper one. The housing loan taken for several decades often becomes a liability that we are unable to repay regularly. Especially if we add the installment for electronic equipment, car or debt on the credit card. It’s easy to fall into the vicious circle of borrowing more loans.

One way to solve this situation is to convert several installments into one in another bank. Coming to the competition, we have a chance to get a reduced margin and fees. It is possible to consolidate the following liabilities under such a loan: housing loan, car loan, mortgage loan, cash loan, cash loan, liabilities under a credit card agreement, credit in a savings and settlement account.

The condition for obtaining a consolidation mortgage, however, is having creditworthiness, securing a loan for real estate, and a good history in the Credit Information Bureau. It is important not to have significant delays in paying back commitments so far. Recurring problems with the regularity of paying installments, as well as delay longer than thirty days may cause that we will not receive a consolidation loan. The history of five years is important for the bank.

Banks offer different payment options: they may have been equal or decreasing, depending on the client’s preferences. Some offers have so-called “Credit holidays” that you can take once a year. The condition is the timely repayment of installments for twelve months, in some cases, twenty-four months of regular payment is required to have a grace period. An additional convenience in many offers is the chance to borrow cash for any purpose under a consolidation mortgage loan.

Examples of periods for which such a loan can be spread are 30 years.

Examples of periods for which such a loan can be spread are 30 years.

Creditworthiness and the value of real estate determine the value of the consolidation loan. It can not be more than 80% of the value of the collateral. An appraiser’s assessment necessary to calculate this amount is the borrower’s cost.

Most often, a property whose mortgage is a loan security must be owned by the person applying for a loan, but there are cases in which it is allowed that it belongs to a third party who agrees to the loan.

In the case of mortgage loans, long-term repayment is secured by a real estate mortgage. This means that the bank will have pre-emptive rights to the property before other creditors when the borrower will not be able to repay the debt. Regardless of who the owner of the flat will be, the bank can claim his rights.

The purpose of a consolidation loan is to convert several loans that charge the borrower to one with a more convenient installment. This offer is addressed to people who simultaneously pay off various types of loans and are looking for a way to change their situation by securing a real estate mortgage. This is a beneficial way out of a situation that is meeting more and more people in times of economic crisis: we take more and more loans that we pay off for a long time including high interest rates.

A consolidation loan gives you the option of “credit holidays”, we do not have to worry about a few different installments each month, but only about one loan concluded on relatively favorable terms. The very need to consolidate loans is, however, an extreme situation which is prompted by exceptionally unfavorable circumstances, which it is better not to achieve. Definitely every decision to take a loan should be carefully thought out.

Private Loan Without Collateral – Bank Loan with Payment Note


A private loan is a personal loan that is given without collateral. Personal loans can be used for just about anything, for example;

Borrow for holidays, to carry out a renovation, pay more expensive debts, buy a car and much more.

  • Private loans without collateral
  • Bank loan with payment note

Private loans without collateral

Private loans without collateral

  • Private loans without collateral
  • 10 tips for private loans
  • Cheap private loans
  • Refund time for private loans?
  • Checklist for Private loans

Online lenders usually offer free applications and make offers online so you can compare many bank loan offers and choose the one that best suits your needs.

But why put lots of time on information that someone else has already collected?

Lenguada has collected popular private loans at the same place so that it is easy to make a comparison of loans . Here are the most popular loans and their terms so that you can quickly get an overview of the range.

With a personal loan without collateral, the borrower does not need to offer any collateral for the loan. This is the main reason why this type of blank loan is the most common loan for people who do not own their housing.

The interest rate is higher than a regular mortgage because of the higher risk for the lender. The lender will protect himself from this risk by taking out higher interest rates and demanding faster repayment.

The range in interest rates, terms and costs between the most expensive and cheapest loans is great and it is therefore important to compare all options to find the lender that offers the lowest interest rate and most favorable terms.

However, a private loan is still much cheaper than getting financing by using a credit card. Unsecured personal loans are not only easy to qualify for, but the loan application process usually goes very quickly. However, if you do not need a large amount of money, a quick loan online can be a simpler (but more expensive) choice.

10 tips for private loans

10 tips for private loans

  1. Compare loans

As with all financial products, it is worthwhile comparing personal loans. The effective interest rate is the actual cost of a bank loan. It includes interest, all other fees and when payments are due.

Many banks in contact with their customers claim that they offer favorable prices to their current customers, but it is often possible to find cheaper loans elsewhere.

  1. Read the fine print

Before applying for a loan, first check out the fine print. Some of the seemingly best offers may have unfavorable contract terms. This applies in particular to the interest-free loans offered by retailers of capital goods. A late payment means in many cases that the loan is automatically converted into a regular loan with a high interest rate.

Since the payment newspapers are sent out late in the month, many Swedish consumers who each year receive their interest-free loans converted into more expensive credits, as they have been sloppy in reading the terms of the agreement.

  1. Early redemption fees

Although it may seem unlikely that you could pay back the loan in advance, it is always good to have that opportunity. Unfortunately, many creditors charge a high fee for early repayment of loans in order to compensate for missing earnings.

It is a good idea to check how high the cost of early redemption is even if you do not think you will use that opportunity.

If you think there is the slightest chance that you will want to settle your loan prematurely, it may be worth making sure that it can be done without fees.

  1. payment Protection

Some blank loans have insurances embedded in the loan. These are designed to cover the monthly payments if the client is affected by illness or becomes unemployed.

If you want a loan with a payment protection, you should make sure that it is included in the terms and conditions. Keep in mind that a loan with insurance often includes exemptions, so make sure you understand what is covered before signing the contract.

  1. Check your credit rating

Before applying for a private loan, it is important that you check your credit rating. Lenders are only obliged to disclose interest rates and expenses for an average customer.

With poor credit rating as a result of one or more payment remarks, you will receive an offer with significantly poorer terms than you originally expected.

  1. Consider other options

Before applying for a personal loan, consider other forms of credit. You may be able to find a credit card that is cheaper or a short zero percent interest on purchases paid within 60 days.

  1. Check out peer-to-peer

If you want to try an alternative to the bank, you can borrow from a peer-to-peer lender .

P2P websites are marketplaces for social lending that link borrowers and lenders together. You need to have a decent credit rating and no payment notes to be able to search.

  1. Borrow more

In general, the larger the loan, the lower the interest rate may be. Because of how some companies price their loans, there are times when you can actually save money by borrowing more than you intended.

  1. Do not apply for too many loans

When applying for a loan online, most applicants leave a “footprint” on the credit report that the lenders take before approving a loan. Having many inquiries registered makes you look desperate, which may indicate acute economic difficulties.

As a result, many lenders will see you as a credit risk, your loan application will then be less likely to be approved.

  1. Understand the risk of loans against collateral

Loans against collateral are cheaper than unsecured loans, but you risk losing your home if you fail to repay. An increase in the home loan by taking out a mortgage bond can be an alternative to an unsecured loan, but it is only offered to homeowners with equity in their property.

A home loan requires more work by the bank and therefore they charge an application fee. Do not make an application if you are not 100% sure that you will be able to pay the bills on time. Mortgage loans are less risky for lenders but more risky for borrowers.

Have you decided to borrow money and want to take a private bank loan ? There are a number of things to think about definitely and know how much money you want to borrow, what type of loan is the best and what repayment time you should choose. There are just as many uses for private loans as there are people who use them and most lenders lend money without questioning for what purpose the money is.

One of the first and most important aspects concerns unsecured loans . Unsecured loans, unlike collateralised loans (purchase of real estate or shares), are not linked to disposable assets. Instead, it is the borrower’s person and good names that stand as security.

Unlike in the past when the bank only gave loans to people who had a good reputation and were “known in the village” it is today a computer program that assesses how good your name is and how much the bank or any other lender is willing to stretch.

Cheap private loans

Cheap private loans

Unsecured private loans are easy to take, a credit report is enough, then you write under a paper and have the money in the account within a few days.

Since a loan that has no guarantees other than the borrower’s intention to do the right thing involves certain uncertainties, the cost, that is, the interest rate, is higher than for a bank loan with security.

If you own your own home, it is cheaper to borrow money with the property as collateral and it also makes no difference in practice because the home can be subject to sale even for unsecured loans if one cannot pay.

If you want to renovate or expand your house, the bank is often more than willing to lend money because the work raises the value of the house or the tenant-owned apartment and thereby reinforces the bank’s security in the borrower’s assets.

Refund time for private loans?

Refund time for private loans?

As a guideline, one can say that the repayment period of the loan should be about as long as the period one expects to benefit from the purchase or what the loan should be used for. For example, if you are thinking of buying a new car and expecting to have it for five years, it is reasonable to have a repayment period that corresponds to that.

It is not reasonable to own the car for five years but pay on the loan for ten years or more.

Be smart and borrow cheaply. Today you do not need to book meetings and go or call around to different banks. Online offers are the best deals because it is cheapest and most profitable to find their customers online. Lenguada has collected the best bids on our site.

Checklist for Private loans

Checklist for Private loans

No one is guaranteed to get a bank loan, but submitting a digital application form is a simple and quick process to see if it is easy to get a loan application approved .

The rapid technological development, as well as central banks around the world that are pushing new money to push down the cost of loans and stimulate investments, have given us record low interest rates.

In addition to the classic bank loans, many new lenders have also been added, which have created completely new niches in the credit market for private individuals such as SMS loans , micro loans and other flexible loan forms. There are several key areas that lenders look at when they receive a new application.

Although preliminary decisions are automatically made by financial software, it is still important to present as good and error-free information as possible in order for a loan application to pass the needle eye and be approved.

Here are five important points that should be considered so that an application for bank loan results in a suitable loan;

  1. What loan do you need?

Before you go to your bank (online or office) first look at what the different competitors are offering.

You need to be aware of what type of loan you are looking for, terms you can afford and which target is available with repayment time and monthly cost. If you are looking for a certain type of loan (car or boat loan) make sure to hear what the dealer can find a good offer for you.

There may also be offers that come with direct mail, but first check through the contract terms before you proceed with them.

  1. ask questions

When you find the loan offer that you are most interested in, contact the bank directly to find out in advance which requirements they set, thus avoiding that a credit report is taken completely unnecessarily.

You may need to book an appointment in person to discuss the loan by phone or visit the bank, but it will make the loan considerably easier for the loan to be approved. Banks have different requirements and these are usually not public. It is important to know what applies so that you are prepared.

  1. How good is your credit rating?

If you are looking for a loan, you should already be aware of your credit history and have an idea of ​​your credit score. The bank should tell if your income is sufficient for the loan to be approved. Plan ahead and request a credit report on yourself before applying.

Review the information in the report and make sure any errors are corrected. Most lenders rely almost entirely on a credit report even though there are those who make individual assessments and do not take UC on borrowers. If there are errors, this leads to a lower credit rating, which affects the possibility of having the loan approved negatively. Think about your own conditions when planning for a loan.

Apply for a loan that is in line with your personal financial conditions so that you do not have problems with the repayments.

  1. Make a checklist

Based on what information the bank asks for, it is wise to make a checklist of what information is needed for the loan application.

For the newly employed, it may take some time to get the documents you need from the employer. Incomplete applications are the most common reason for refusing loan applications.

  1. Reasonable expectations

Having a hurry when applying for a loan is never a good idea. Loan officers follow a certain template to approve a loan and pay out money.

It can therefore be useful to find out how the process works so that you have a reasonable expectation of waiting time and outcome. While preliminary loan messages can be given on certain loans, all the details may not be clear so that the loan can be paid out until after several days. Such questions you can ask the person who handles your case.

The goal of getting a credit is that it is big enough for the purpose and that it does not cause any difficulties to pay back.

Unsecured loans can be used for anything and it is often not necessary to explain what the loan is for. On the other hand, it can make it essential to get approved if the idea is to collect expensive credits, make investments in the home or other activities that lead to an improved financial situation.

It is frustrating to get a rejection of an application, but it is always possible to return to the lender and get a justification for how they reasoned about the rejection. Keep in mind that it is negative to apply for credits that are refused. Too many loan applications can destroy creditworthiness and reduce the chance of obtaining a loan that would otherwise have been approved.

Quick Finance – Small Simple Quick Loans

Fast loans and SMS loans are a good option if you know that you will soon have the money to pay back the loan, it is not a suitable loan form for longer periods. See of critique.

At Swapfinance who work hard to make it as comfortable as possible to borrow money, you can get a simple quick loan from SEK 1000 – SEK 40.000 with repayment time from 61 to 360 days.

How do I get a loan from Swapfinance?

How do I get a loan from Swapfinance?

  • How do I get a loan from Swapfinance?
  • Who can apply for a loan at Swapfinance?
  • How fast does Fast Finance pay?
  • About Swapfinance

It is easy to submit an application, fill in some information about yourself and click on the button. They give notice within a few hours and pay out the loan directly to the bank account.

Instructions Swapfinance loan


It is easy to take a loan with Swapfinance and it is completely free to submit an application for a loan.

The only thing that is required is to fill in the social security number and mobile number in the form on the page. Choose how much money you want to borrow, installment time and then click the ‘Apply Now’ button.

If you are a new customer, your identity must first be verified. This is easiest to do by logging in to your bank via the verification company Instantor. It is also possible to have their identity verified by sending a code home by post. The code is then used for verification.

Who can apply for a loan at Swapfinance?

Who can apply for a loan at Swapfinance?

You must have turned 20 and have been registered in Sweden for at least three years. Taxed income of at least SEK 150,000 and no payment remarks. Of course, all money must be paid back, so borrow no more than you can handle. They do not use UC but instead receive information from Bisnode Kredit.

Does it cost anything to ask for a loan?

It does not cost anything to submit a loan application, it is completely free to see if the loan is granted before you need to decide whether you want the money or not. How much it costs to borrow is shown by filling in the desired loan amount and credit days on the website.

How much can I borrow?

The first time you can borrow from 1000 SEK – 25 000 SEK. If you previously borrowed and paid back in time, you can next borrow up to SEK 40,000.

How fast does Fast Finance pay?

How fast does Fast Finance pay?

During the week 08.00 – 18.00 your application will be processed within one hour. If you are a SEB customer, the payment is made directly. For the other banks you have the money during the afternoon if you applied before 13.30.

Medium payback with quick payout

Medium payback with quick payout


Being granted a medium-term loan from Swapfinance means immediate access to money and the opportunity to resolve an acute financial problem immediately while the loan can be divided and repaid for up to one year.

Borrowers at Swapfinance pay back loans with an optional period of two months. A quick loan with medium repayment can easily fix a problem while the repayment can be spread out.

When it comes to keeping track of payments or expenses, it may sometimes be necessary to help get money. A loan that is paid out to the bank account the same day but which can be repaid over a long period of time has solved many difficult situations.

Medium loan easy

Medium loan easy


Applying for a medium-term loan at Swapfinance is simple and similar to the application for traditional loans in such a way that the borrower provides basic information such as social security numbers and bank accounts, but the whole process is so much easier and faster.

When lenders and borrowers agree on terms, loan amount, fee and due date, the money will be deposited directly on the borrower’s account.

Size of a medium-sized medium-sized loan

Size of a medium-sized medium-sized loan


Medium-term loans at Swapfinance are granted between SEK 1,000 and up to SEK 40,000 for previous customers. The borrower should carefully consider the loan amount and only borrow as much as they absolutely need because the cost of a quick loan service is higher than the usual bank interest rate.

Borrow responsibly

Borrow responsibly


Short-term loans should be avoided altogether, but even medium-term loans should only be used when absolutely necessary.

In many cases, this type of loan is taken for the borrower to actually save money on doing so – especially for the borrower who is facing the risk of going on collection fees and other costs unless other acute debts are paid.

A small and simple loan can help borrowers to avoid late fees, debt collection and also to end up with the crown bailiff, which completely destroys the credit rating for three years.

The effective interest rate for a medium-term loan from Swapfinance is on average a few hundred percent (calculated as annual interest including all fees). It is a high cost for a loan but still considerably cheaper than many small loans and quick credit.