Consumer credit

Getting a loan or credit

Your car has broken down and it cannot be fixed and you need to replace it immediately or your home computer is starting to play up and you are thinking about upgrading your IT package. Before deciding to use credit, you should consider: Do you have the necessary funds? Do you have enough savings to pay for the purchase? Is this right time to take out a loan? Is the purchase essential? Will you be able to meet the repayments? Read more

The cost of consumer credit

The following pages will help you to develop a good understanding of the many elements that need to be taken into account when evaluating the cost of credit and choosing the best deal for your needs. The information on these pages will help you to learn about the way in which you can calculate the cost of credit and the way in which you can compare different credit deals. Read more

Consumer protection in the credit sector

A number of measures and directives have been adopted in the financial services sector. After an introduction to the European legislation, this section aims to ensure that you know which documents and information should be made available to you when applying for credit If your bank or a credit organisation has made you a credit offer, you need to check the details before you commit and sign up to the offer as, in some cases, once the offer is signed there is no going back. The section, therefore, also draws your attention to the areas you need to think about before you sign a (...) Read more

Credit repayment

Redundancy, accidents, death of a spouse or divorce – unfortunately, there are so many things that can happen and unsettle the balance of your budget. The following pages give you an overview of the measures you can take if you find yourself in a situation of over-indebtedness and unable to meet your debt repayments. Often, when you take out a loan or credit, the lender will give you the option to take out a payment protection insurance policy. But do you have all the information needed before you commit to this type of agreement? This section should also help you to understand (...) Read more

Taking out credit in another EU country

Under the principle of freedom of movement for goods and services, any European citizen seeking the best interest rates can take out credit in another EU country. Although the Directives have laid down the basis for consumer credit legislation at a community level, national laws determine the means to deliver consumer protection. This section sets out a brief overview on the main differences between legislations, then focus on establishing which national law is applicable to a given cross-border agreements. It also provides some information on the steps to follow when taking (...) Read more

Guarantee agreements

A family relative or a friend wanting to take out credit asks you to be their guarantor. Before you agree, you need to consider the length and potential consequences of making such a commitment. In fact, acting as guarantor goes beyond the moral obligations set by your pledge, it is a contract whereby you pledge to repay the borrower’s debt if the borrower no longer makes the necessary repayments. Therefore, accepting to be someone’s guarantor is an important commitment which can lead you to over-indebtedness, especially if you do not have a stable financial capability. The (...) Read more