Personal loans, yes. Microcredits No.
Unlike mortgages, in which the repayment period can be as high as 40 years, personal loans are for a period much shorter repayment of between one month and five years, a capital given the not too high -- 3,000 euros to 60,000 euros and an interest rate, quite high, between 7 and 10% APR (and even more in loans under € 3,000).
This higher rate of interest is also due to the bank runs a higher risk because it does not have any kind of guarantee in the event of default, while the mortgage payment is the guarantee of a property, which empowers the bank to dispose of the thing mortgaged in the event of default.
Want € 3000: Careful!
Financial companies have recently emerged, which are advertised heavily in television, which are specialized in the field of micro-loans for an amount not exceeding $ 3,000. With a high cost of financing, interest is rated at around 20% annually, and may even reach a 22'9% and the APR is up to 24'6%.
The granting of a convenient and faster consumer credit can hide under different conditions and the fine, which comes as a great opportunity to address an unexpected cost becomes a larger than expected. Thus, for an amount of 3,000 euros, with an APR of 24'6%, after 12 months will have paid 415 euros in interest.
(Unrated) 
Loading ... Written by Carlos Lopez on May 12, 2006 with 1 comment.
# 1, aa
The Real Estate Bubble
Recent years have seen a significant rise in the price of real estate, to talk about "housing bubble." Construction has been a driving force in economic growth recently. To what extent is sotenible? He then discusses the prospects for the current situation.
Is spreading the feeling that the flats were overstated. And that does not mean that the price decline to be a "limit" but that value has been exceeded by far. This view is actually the official and several weeks ago the Governor of the Bank of Spain.
Are they going to fall in price floors? Analyzing the situation, we can say that there are three factors that will download:
1 .- Increased supply. Each year it is built more houses in Spain. In 2006, more than France, UK and Germany combined. The law of the market will respond to this oversupply with a lower price, despite the current inertia. This factor of oversupply, says a fall in the medium-long term ¿5 years?
2 .- Rise in interest rates. That goes without saying that the Euribor will be at 4% by year's end. Shares mortgages will rise by 30%, making it impossible to access to housing a large segment of the population, leading to a brake on demand. Some may not pay fees to have committed and must sell the floor, causing an increase in supply. It is important to clarify that this factor will lower the price of flats, but not the monthly mortgage. Term, 1 year?
3 .- economic recession. If the economy stagnates (lower growth, lower consumption, increased unemployment, etc ...), this will lower the demand terribly. The deadlock will occur no doubt for the brake on the construction (7% of GDP, only housing, resulting vicious cycle), rising oil prices (1% GDP), so European funds (1% of GDP) and new competitors in industry (Eastern countries, mainly) and tourism. In that situation, the government has waived any kind of reform, believing that the growth pattern of recent years may endure indefinitely. It is unclear when the recession. Roberto Centeno 2006/inicios points at the end of 2007, while Alberto Recarte suggests that the employer may still hold a few more years.
At the time of crisis, the government may be able to inject large amounts of money in the construction of civil works (5% GDP ¿?), Given the current surplus, or even into a large deficit. However, the very economic contraction, which will reduce government revenue, increased social spending (unemployment, primarily) and the stifling of interest rates rising significantly reduced the leeway from the government.
The only possibility would be to abandon the euro and devalue the "new penny." Not cease to be a paradox that, despite regain competitiveness, as the mortgage is in euros, all mortgage debt will be multiplied, as the new peseta was devalued. However, not fail to appear demagogic politicians who promise to remove Spain from the euro, as if that was the origin of the evils that lie ahead.
In summary, the three factors, excess construction, interest rates and economic crisis, pointing to lower demand and increased supply. Prices drop, and a lot. But nobody is made illusions. If the current boom have difficulty buying a flat of 80 million, in the crisis that awaits us, with the rates ahead, can buy the same floor, but worth 60 million?
Like the fires go out in winter, mortgages are paid before you buy the floor. It is time to work and save. It is time to reduce costs and avoid unnecessary debts absurd. Anticipating tough times, we are not ants and locusts. As Ecclesiastes says, nothing new under the sun.