Of course, young people are happy when they finally make their first own money and are no longer financially dependent on their parents. But it can happen again and again that young people in education need a higher amount of money. But what are their options to be financially liquid?
Loans during training
Since apprentices have their own income, it is theoretically possible to get a loan. However, the banks will insist on a guarantor, usually the parents of the borrower jump in and the loan can be granted in most cases. The remuneration of trainees is not very high, so it is too high for banks to simply lend the loan without collateral.
But for smaller purchases, such as a laptop or a TV, the budget of a trainee is usually sufficient. But what you should not do is live beyond your means. Sure, most of the young people in training have board and lodging at Hotel free, but one should not forget that too little financial responsibility can lead to the proper responsible use of money not being properly learned.
Banks do not like to see apprentices borrowing just to meet their consumer needs. This means that parents are also required to teach their children that the money they earn is to earn a living as well.
One has to remember when you get a loan to choose the term so that the loan is paid off until the end of training. This is for the simple reason that it is not always certain that you will be able to stay with the same employer after the end of the training years.
Only if one knows exactly whether the employment relationship will continue to exist, or if another job is firmly in the future, can the duration of the installments be maintained longer.
Credit for training
Similarly, it is the credit that you need for your education, which are not funded by the state. This is usually the case with expensive private schools or for a very specific education, the payment of which can be very expensive and you have to finance this yourself. Unfortunately, only one loan helps, unless you can say with pride that you are the child of very wealthy parents. The case does not go away, but all the other young people have barely enough savings to afford a costly education.
The same applies to students who, in addition to their studies, can not work or do not want to complete their studies quickly.
The advantage of this loan is that it is not paid out all at once, but through the whole training and with the repayment is only started when the training is completed. This type of loan is perfectly fine as you invest in a better future career.
Anyone who starts a new phase of life after finishing school with vocational training does not always find it financially easy. An initially usually low income is often sufficient only for the essentials. However, if short-term investments are necessary, such as repairing the vehicle, paying for the security deposit or urgently needed home furnishings, young people often face a major problem.
Without a sufficient financial cushion or appropriate support from the parents, taking a loan is therefore a good alternative. In order for borrowing to proceed smoothly and the path from desire to award not to end in a dead end, it is important to be well informed and prepared in advance.
To obtain a loan, a number of conditions must be met. In principle, awards are only granted if the applicant is of legal age and resides in Germany. In addition, there is a positive private credit information as well as proof of a fixed or regular income.
Important: As a regular income, neither child benefit nor adult apply.
Especially because of the usually rather low income in education and the often still unclear employment situation (trial period, takeover after training, etc.), it is not easy to prove a good solvency (credit rating) and thus to obtain a loan from the banks. Nevertheless, there are also opportunities for trainees to provide appropriate collateral and thereby significantly increase their chances.
For example, banks like it very much when applicants still live at home and thus have no rental payments to make.
The background is simple:
Without rent, the probably highest monthly burden is eliminated – the financial scope should be sufficient to service the monthly rate. Anyone who can prove in the contract a co-applicant with good creditworthiness (eg the partner or the partner) or even a guarantor (such as the parents), has also much better cards in the award.
No borrowing without a budget
A budget can help to explore your own financial resources. In order to avoid later problems with the eradication or too high monthly burdens in the everyday life, a clear picture of the own situation is necessary. The question of which monthly rate can be used – if possible without too great restrictions – helps to select a comfortable and safe rate of payment.
Credit options – as individual as life itself
On the way to credit, it is important to first have an eye on one’s own and individual life situation: Which loan is needed? What should it be used for? What type of training is completed and how long is the path to the final degree. All questions that have been clarified in advance, ultimately help in the comparison and thus in the selection of many providers.
Credit in the probationary period
As soon as the probationary period is over, the chances of a loan increase significantly. At times, however, banks also require a longer period of time – and thus more than the probationary period – so it is not uncommon to require a job of at least six months, even if the acceptable probationary period is significantly shorter.
Credit period and duration of training
Loans that exceed the actual training period are viewed by lenders as very critical. The background to this is that the banks are planning future payment difficulties for the borrower (due to imminent unemployment after completing their training). However, as soon as one is able to present a written commitment, longer durations are usually no longer a problem.
Oral commitments made by the employer are neither legally binding nor can they be used in a positive way when making a credit inquiry.
Credit for training
Another reason for a loan can also be the way of training: for example, to finance a specific education or private school. If you are not a child of well-off parents, you will soon reach your financial limits.
The same can apply to students who, for some reason, are unable to work alongside their studies or forgo work for a quicker graduation.
Since this type of loan is not paid out all at once, but runs throughout the entire training period, there are several advantages: repayment does not take place until the training is completed or completed. Add to this the good feeling of making a contribution to your own future with such a loan. (And this is known to be priceless.)
Credit during training
As already stated, it is also fundamentally possible in education to obtain a loan. Due to the often very low income, the award is usually linked to conditions for risk minimization. Co-applicants, guarantors or proof of residence (eg with parents) are collateral that banks generally accept.
Banks are reluctant to see a loan serve only to meet consumer needs. Although the budget in training is often quite tight, it should be sufficient for smaller purchases, such as a new TV set or a notebook, but basically. A life beyond one’s own circumstances is to be avoided as far as possible.
If it is just a question of bridging the time until the next payroll payment with a smaller amount, a short-term loan can be a sensible option. Due to the short-term nature and the low loan amount, he is often even awarded during the probationary period.
The loan amount for short-term credit is a maximum of 1000 euros. The repayment usually takes place within 30 days. Prerequisite is still a regular cash receipt.
Caution: Due to the fast processing and allocation sometimes very high fees.
Especially with a loan despite training is worthwhile an extensive and based on one’s own living conditions research. Although the interest rate level is still very favorable, the offers of the banks sometimes vary immensely and can thus have a significant impact on the monthly payout.
A careful comparison is therefore – as well as the consideration of your own financial resources – essential. If all these criteria are respected, then solid and cheap funding should be in the way.