Real pensions are falling, but the cost of living is increasing. Retirees are increasingly in financial difficulties. Borrowing money privately is increasingly the only way for the generation of retirees to get an installment loan. Read in the article why retirees, despite retirement, are welcome borrowers and how small liquidity shortages can be overcome without overdraft.
Senior loans – injustices in old age income
Senior loans from a bank are usually designed for retirees. Borrowing money privately is increasingly the alternative for retirees. More and more old people are extremely poor. Around half a million pensioners have to have their pension increased to the level of social assistance. The number of unreported people who are too embarrassed to go to the social welfare office or who cannot cope with the applications is high. According to official figures, the average pensioner from western Germany is already no longer creditworthy.
The reasons why senior citizens do not get credit from commercial credit providers can affect their age. For many credit institutions, the risk of death, even at the age of 68, is too great to grant an installment loan. At 72, the overdraft facility is at risk. The loss of the death benefit ensures that even small overdrafts are considered a risk. Still, age limits aren’t the biggest problem for retirees to borrow. The low pension makes it practically impossible for commercial credit providers to lend.
The average pension recipient already lacks at least 50 USD in the net pension in order to be considered as a credit partner at all. Credit institutions are obliged to provide credit security over humanity. If you are not attachable, regardless of your repayment behavior in the past, you will not get a loan. There is only a chance of a bank loan if the average pensioner can prove a property security, for example a paid house or a guarantor. Unfortunately, only pensioners are easily creditworthy for the bank up to the age limit.
Installment loan in old age – borrow money from private
Poverty in old age is a hotly debated topic in Germany. Politicians cannot expect retirees to do much more than hot air and that “something should change” in 2017. The pension may be certain. But it is now much safer that current pensioner generations can hardly make a living from it. Many pensioners did not have time to make provisions, which should support the statutory pension as a second mainstay. If there is a need for credit in this situation, for example, the washing machine could be replaced, pensioners have a problem.
Seniors are particularly welcome borrowers on the credit portals. They are considered to be particularly secure repayers. Pensioners have had to learn to make do with very little money. If they borrowed money, the belt is tightened even more until the debt is paid. This finding has not been made by investors who have already lent money to seniors. Even Credit bureau found in a study that seniors are the safest borrowers of all ages. When borrowing money privately, this repayment loyalty is often rewarded with cheap interest offers.
Seniors who want to borrow money through one of the portals do not have to fear age limits either. There are no age limits for a private loan.
Short-term credit instead of overdraft facility
With many wishes, it is not a question of quick money. Seniors finance solidly and with as little interest as possible. For many, it doesn’t matter whether the loan payment takes a few days longer or not. Patience is a virtue of old age. The loan portals offer an alternative to the bank for installment loan requests. Borrowing money privately, however, cannot satisfy small, urgent credit needs. However, young and old borrowers cannot be patient if an unexpectedly high bill goes beyond the monthly budget. Utilities’ invoicing often moves within tight deadlines. Customer service for a defective household appliance can only be ordered if the invoice is then paid in cash.
The disposition is usually intended for such emergencies. Above 72 years of age, however, the disposition for pensioners must be canceled. Borrowing money quickly from a private person is not so easy with fast credit requirements. At most friends could be contacted if money should be borrowed quickly.
An alternative to the overdraft facility is the short-term loan via cash. There are no age limits for microcredit. The pension may also be significantly below the seizure allowance without restricting creditworthiness. A monthly retirement income of USD 500 is sufficient to qualify for a cash loan. When applying for the first time, the company must adhere to the somewhat more time-consuming, legally required, written application process. The Post-ID procedure and mail delivery delay the payment of the loan.
After the first loan processing, cash offers a full replacement for quick overdraft. A loan payment can be arranged within just 30 minutes. Most of the time, the money is available in the checking account on the same day or at the latest on the following day. Borrowing money privately and cash work together to ensure that nobody is discriminated against because of their pension needs when they need credit.