Is interest deductible? – Save tax and see what you can deduct.

What are the current tax rules and is interest deductible? Can you deduct the interest that you pay per year from the tax?

The rules for deducting interest paid from income tax are subject to continuous change. In the past, you could deduct all interest paid on a loan from income tax. These days, this has been curbed.

Interest on various loans

Interest on various loans

The interest that you pay on loans such as a personal loan, revolving credit or a mini loan are not deductible. Therefore, you cannot deduct the interest on the so-called flash credit. These types of loans have a much higher interest rate than, for example, a mortgage on a home, so the impact is quite large.

A mini-loan in particular can have an interest that can be around 14%. If you want to borrow money quickly, you cannot deduct the interest from the tax with this type of loan.

Mortgage interest deduction

Mortgage interest deduction

In most cases, the interest that you pay on your mortgage is still deductible. However, this too is being further restricted. Before you take out a mortgage also ask the question is interest deductible?

The interest on the popular interest-only mortgage is no longer deductible. You only qualify for a tax deduction for a new mortgage if you also pay off the loan. This can be in the form of an annuity or linear mortgage.

This does mean that your monthly payments will be higher because you have to repay your mortgage in addition to the interest.

Further curtailment of mortgage interest deduction

Further curtailment of mortgage interest deduction

Where in the distant past you could still deduct all interest on all loans and debts, now even the mortgage interest deduction for your own house is increasingly limited. Since January 2013, the rule applies that only the mortgage interest is deductible if you also pay off your mortgage. Fortunately, this arrangement does not apply to mortgages taken out before that time.

A mortgage normally has a long term, with a maximum of 30 years. This is slightly different from the fixed-rate period. For example, you can fix a 30-year mortgage with variable interest or the interest for a year. If this fixed-rate period has expired and it is being determined again, then there is no question of a new mortgage. In that case, the interest simply remains deductible. The interest is tax deductible in box 1. The year in which you may deduct the mortgage interest is the year in which you pay the interest. So make sure that you have paid the interest due before 31 December.

Reduction deduction

Reduction deduction

It is also the case that the maximum rate at which you can deduct the interest from the taxable income is reduced. In the past, if your income was taxed at the highest rate of 52%, you could also deduct the mortgage interest at 52%. In 2014 it was decided that this deduction would be reduced by 0.5% each year, to a maximum of 38% in 2014.

However, it was decided in 2018 that this will be introduced more quickly and that the restriction will be reduced by no less than 3% from 2020. In 2023, the maximum deduction is only 37.05%.

In my opinion, the constantly changing plans cause a lot of unrest. When you buy a home, you make a calculation for yourself of how much you would like to pay in a mortgage. Then suddenly your calculation turns out to be incorrect because the government is re-adjusting its plans.

If you want to sell your old home and buy a new one, make sure that you are well aware of the latest tax legislation. The answer to the question is interest deductible: Only mortgage interest and not all mortgage interest.

A revolving credit is one of the most popular forms of borrowing money.

This is because a revolving credit is very flexible and in many cases has very favorable conditions. Yet there are still many questions about a revolving credit; what exactly is it, how does it work and what are the benefits.

What is a revolving credit?

What is a revolving credit?

A revolving credit is a loan with very favorable conditions. When a loan meets the following characteristics, it can be called a revolving credit. The loan must have a variable duration and a variable interest, the possibility of early repayment must be present, the loan must have a flexible installment and the amount already repaid must be able to be borrowed again.

When taking out a revolving credit, a maximum loan amount is set. Within the limits of this amount you can withdraw and repay at your own discretion, a revolving credit can actually be compared to an extra salary. The interest is only paid on the total amount withdrawn, which is a fixed period of, for example, three months, so if nothing has been withdrawn for a period of time, no interest has to be paid.

What are the benefits of a revolving credit?

What are the benefits of a revolving credit?

There are many advantages to a revolving credit compared to other types of loans. The biggest advantage of a revolving credit is that within the limits of the maximum amount you can borrow and repay how often, when and how much you want. From a technical point of view, a revolving credit is an extra bank account, so borrowing can easily be done by debit or transfer via the bank.

A revolving credit can be very beneficial due to the variable interest. The interest rate depends on the market and can therefore rise but also fall during the term. In addition, interest is only paid on the amount actually borrowed within a set period. This means that the term of the loan can be divided into periods of, for example, three months. If a loan is made within that period, interest will also be paid. If nothing is borrowed, then no interest has to be paid.

With a revolving credit, an amount repaid can be taken up again within the term of the loan. Therefore, if part of the loan amount has already been repaid and an unforeseen cost item arises, it is possible to borrow again. This is not possible with other types of loans. Very handy when the loan is taken out for, for example, a renovation.

How much can I borrow?

How much can I borrow?

With the revolving credit the question is how much can I borrow? another meaning. How much can I borrow provides insight into how far I can go. This form of credit, however, offers the possibility to bypass the question ‘how much can I borrow’, because the amount repaid can also be withdrawn. It may therefore be that one has enough for a smaller amount or that the revolving credit is used as a kind of money box. You can redeem but you can also borrow again. So here is how much I can borrow from an entirely different order than from a personal credit or credit for financing a new car. It takes a little time to sort things out and to compare them, but it certainly pays.

3500 euro credit without credit bureau – repay in 40 installments

There are loans like sand by the sea. Only 3500 euro credit without credit bureau not so often.

In any case, the impression one can get, if one looks at the extensive advertising on loans and financing of all kinds. But as complex as the advertising may be, so sure is the fact that the banks and savings banks choose exactly who they lend money to.

Because even if this may suggest advertising – nothing is given away. And certainly no money.

credit bureau safely financed – briefly informed

  • If it has to be a credit bureau-free loan, only one bank currently offers credit
  • Apply for credit without credit bureau always directly from bank
  • If, despite credit bureau, you have a loan option, we recommend the connected comparison calculator
  • You apply – sed tested safely – without home visit and convenient

The credit bureau can be a problem

The credit bureau can be a problem

Once the credit rating does not fit, it is very difficult to find suitable loan offers. The traditional banking houses then no longer see themselves as compulsory and do not grant loans.

3500 euros credit without credit bureau – repay comfortably in 40 installments

These would only be possible if a guarantor secured the loan. Even a 3500 euro loan without credit bureau would not be possible.

Although it is certainly not a large loan amount. Therefore, alternatives must be sought and found that enable the desired credit.

The problem with the credit bureau is a problem that many consumers have. Every tenth has debts and thus a negative credit bureau.

Credit intermediaries and some foreign banks have specialized in this target group and offer loans that are tailor-made and work without credit bureau.

They like the 3500 euro loan without credit bureau.

Who offers a 3500 Euro loan without credit bureau?

Who offers a 3500 Euro loan without credit bureau?

Offered is a 3500 euro credit without credit bureau among other things by credit brokers, which are resident here in Germany. They build on other securities than the credit bureau and therefore look more after the income or material security.

In addition, the interest rates are slightly higher in the loan offers, which is annoying for the borrower, but for the borrower provides additional security. 

If you are a loan applicant, you will be asked for a loan application and then you have to hope that there will be a private investor who will make the loan possible. Many times, it’s also common for multiple financiers to join together in order to pay the loan.

The worse the requirements of the borrower and the higher the loan amount, the more difficult it is to get a loan. A 3500 euro loan without credit bureau with a good income should be quite feasible in this way.

Swiss credit record

Another way to borrow can be found abroad. In this context, the Swiss credit is gladly spoken, although the best credit offers do not come from Switzerland.

For example, a 3500 euro loan without credit bureau can be borrowed from Credither. This is based in Liechtenstein, specializes in foreign loans and offers a special loan without credit bureau over 3,500 euros.

The conditions and the conditions are clearly defined for the loan. Initial costs or additional costs for mediation do not arise because the loan can be requested directly from the bank.

It requires a fixed income, a permanent residence in Germany and a German bank account. In addition, the bank attaches importance to transfer money, so that the German bank account can be used as a reference account.

A secret trip to Liechtenstein with a cash collection is therefore not possible. The money from the loan leaves its mark in any case and can only partially hidden from creditors.

 

Where are the consumer friendly loans?

cash

Banks are delaying the launch of Central Bank-rated housing loans, although these innovations were announced last fall. But there is no cause for concern, these products need to be introduced soon, and in the meantime, there are a number of very favorable loans.

Fast, simple, with a maximum interest rate premium

bank

Last year, for the first time, the state signaled to the banking industry and the public that it would encourage the development of cheaper, easier-to-access housing loans for the general public. The goal is clear: get more people home without having to settle their debts without problems, such as financial catastrophes like stale foreign currency loans.

On June 23, for the first time, the so-called Qualified Home Loans that were listed in the Central Bank’s Terms and Conditions were published, at which time a bank, FHB, could introduce two loans that had been certified.

Their own versions to conquer customers

bank

Since then, other financial institutions have not come up with their own versions to conquer customers. Earlier, for example, Good Finance Bank indicated that it would apply for a qualified loan from the beginning of June, but it has not yet been launched.

According to experts, financial institutions are currently watching for consumer-friendly credit that has already been released, but are expected to appear with their own competitive offer.

The main reason for this is that potential customers are probably waiting for new offers. In the summer, many people get a little ‘breath’, and away from the daily rush, they have the opportunity to better search through credit terms.

Evaluate the loans granted

Evaluate the loans granted

Of course, it is possible that the requirements could not be met at all points in the first round of applications, so their development is still ongoing. Many of these home loans will probably be available by the fall.

In the meantime, we can find extremely favorable deals on the market. It is worth running your loans in parallel with LTP – not necessarily contracting with the same bank – as home savings can be used for this purpose.