A person reads a credit repair agreement with their phone in their hand.
14.08.2021

Takeover of your credit. Pros and cons.

Restructure your debt by transferring your credit to another bank; it is possible. We explain why, how and what to avoid.

 

A loan repossession. What is it exactly?

Restructuring your loan, consolidating your debts, consolidating your loans, taking over your credit agreement,... 

These terms mean the same thing, namely the transfer of one or more credit agreements from one bank to another. It is therefore a change of creditor covering your personal loan. 

In principle, this is done for the sake of optimising conditions or, in the case of several contracts, in order to have only one point of contact.

This can be done at any time and you do not have to present any proof to start this process. The procedures are relatively simple and do not require the intervention of a lawyer or notary.

 

How much does it cost?

Nothing at all. 

The Federal Act on Consumer Credit even favours this type of transfer as long as an early payment of the debt is possible. Everything is planned to avoid over-indebtedness, overly attractive promises or financing solutions that are difficult to decipher.

As a result, there are no penalties or processing costs charged by financial institutions. This would be contrary to the ethical principles of the profession.

 

Why do it?

There are several reasons why you may want to take over your loan. The one most often put forward is the desire to lower your monthly payments. Of course, it is useful to lighten the burden of monthly expenses to free up your cash flow.

As soon as a more attractive trade-in offer in terms of interest rates is proposed, it can indeed make sense. 

After all, if there are no costs, why not take advantage of better conditions?

The other main reason given, knowing  that credit cards can also be affected by this type of trade-in, is the fact that you have a single intermediary rather than having several contacts with the various banks with which you have taken out private loans. In a way, it simplifies its administrative management. Less time is wasted and you benefit from an individualized service.

 

To be avoided.

We were talking about a reduction in monthly payments. This can also be achieved by extending the term of your loan. Mathematically, your monthly repayment goes down. However, as long as your interest rate doesn't go down, your total cumulative repayment is likely to be higher.

If your intention is to carry out a transaction that allows you to achieve a better balance for your cash flow, this solution may apply. However, if you want to reduce the total amount of your repayment, of course be vigilant about the interest rate applied without changing the term of the loan. 

 

How to do it?

First, you need to know your remaining debt. This is the amount remaining to be repaid to the financial institution with which you have contracted your loan. All you have to do is ask them for this information.

Next, apply for a loan from the intermediary, financing platform or bank to which you want to transfer your credit. In principle, you will have simulated your loan by carefully looking at the interest offered and the repayment period.

All you have to do is request the official final statement from your bank and prepare the documents to send to your new creditor.

The documents are those usually requested such as identity documents, payslips, rental leases, etc.

 

And now? 

It's up to you. A loan takeover is not done on a whim but in a thoughtful way by gathering all the necessary information to make the best possible decision.

Compare and ask the right questions. If you would like more information or advice or even an offer, make an enquiry on Milenia.ch, the Swiss financing platform. 

As with a credit application, it is free of charge, without commitment and the procedures are carried out in complete transparency, in a qualitative and entirely personalized way.

 

 



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Since the Covid pandemic, companies have multiplied remote working methods. The most widely used is telecommuting. Two years later, has this method been successful?

 

Let's take a step back

During the lockdown, the world of work experienced a real shift.

Companies had to adapt and various means were put in place to ensure the continuity of services, sales, and the very functioning of the organization.

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The doctor's appointment, the receipt of the Zalando package, the visit of the plumber... What required us to take time off or organize ourselves differently simply fit into his work schedule, on site.

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Finally, regular reviews were required to assess the effectiveness of telework policies and gather feedback from employees.

The big winners? Zoom, Teams, Skype, Webex... It was a good time and the number of users exploded

 

Video conferencing platforms

In order to establish clear and effective communication channels, it is necessary to have instant messaging and video conferencing tools to maintain smooth communication between team members. This transition is being made by different players who bring specificities specific to each sector.

You may have seen that.

Some companies will use the Zoom platform, which allows simple video conferences with a discussion thread, which is easy to use and not very connected to other services.

Others will use Microsoft Teams or Webex, which offer more integrated and secure business solutions.

Skype and Google Meet round out the market leaders, at least in Europe.

 

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The main fear of some employers during this pandemic?

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The prevailing thought was that employees, less supervised than before, would work less given this new organizational freedom.

The endless breaks, the last-minute shopping, the Netflix binging...

We're not going to lie, the majority of teleworkers have taken advantage of this to better combine professional and personal needs.

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In the end, productivity dropped slightly on average, but this varied enormously depending on the functions and responsibilities.

Profiles whose tasks were recurrent completed their work more quickly and, not needing to do more, to take advantage of the time available to go about their personal business.

Others worked even harder, especially early in the morning, late at night, or on weekends.

Where some managers suffered from a lack of supervision (monitoring?) of their teams; Some employees did not take well to the distance, the lack of clarity on the establishment of rules... All of them missed interpersonal relationships and this may have impacted the corporate culture and sense of well-being.

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Exactly. And today?

Companies are adapting to the demands of employees, especially young people entering the workforce.

They demand flexibility, adapted schedules and, yes, telecommuting.

In Switzerland, the job market is in favour of job applicants. Companies must therefore remain attractive and take these demands into account.

Companies are implementing hybrid work modes that allow the employee more time to work from home but require them to be present for a certain number of days in the office. Again, there is no single rule.

Some organizations simply refuse the principle of remote work.

Others impose a fixed day of attendance.

Some leave the choice to their teams.

One thing is for sure, remote work is here to stay, in one form or another.

More than controlling productivity, more than managing teams and workloads, the real challenge is to keep the links between employees, to ensure proximity between managers and their teams.

Finding a balance between the attractiveness of the employer brand, individual well-being and the needs of the company; This is where the effort must be directed for the future.

 

At work and at home, Milenia is always available

Accessing credit through our financing platform has never been easier.

Everything is within your reach, with customization according to your projects, we accompany you from start to finish so that your projects can see the light of day.

For your personal loan, we offer the best market conditions with 0 application fees. Everything is designed to make your life easier.

Your loan application can be done entirely remotely, with support from your personal advisor or both at the same time.

The flexibility, adaptability, personalization of your offer... All of this is embedded in our approach and services.

As the leading credit player in Switzerland, place your trust in us so that your personal dreams and projects come true.

 

 

 

 

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Loan illustration: loan of CHF 10'000. Effective annual interests rates between 4.9% and 11.95% over a 12 month period lead to total interests of between CHF 261.80 and CHF 624.80. Duration: 6-120 months; Maximum annual interest rate (including all loan handling costs) 11.95%. Loans approval are prohibited if they lead to excess debt for the consumer. (Art. 3 LCD)

 

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