Calculation of the debt ratio: simulator online 100% free

Debt ratio: why calculate it?

Debt ratio: why calculate it?

The debt ratio is one of the key data to study if you want to take a loan . Based on this indicator, the conditions for granting your loan may change. This is why it is important to simulate the debt ratio before taking out a consumer or real estate credit . Our debt ratio calculator gives you the information you need, with ease and without commitment.

The debt ratio makes it possible to know the share of your monthly income allocated to the payment of the installments of your various loans. The calculation of the debt ratio is therefore essential if you want to finance a project with a loan . It will verify that the new deadlines that will generate this loan will not hurt your overall financial situation.

How to calculate your debt ratio for a loan?

How to calculate your debt ratio for a loan?

The calculation of the debt ratio is simple. You need to start by listing your different sources of income as well as your fixed costs . If you take out the loan with two, do not forget to list the expenses and income of the two co-owners of the loan.

Several elements can be taken into account for the income :

  • your taxable salary;
  • your possible contractual premiums (like a 13th month for example);
  • your profits, if you have an unpaid activity;
  • your other potential sources of regular income: rents, annuities, pensions, etc.

Note : sickness benefits and exceptional bonuses are not taken into account. In addition, some financial organizations do not include allocations in the calculation of the debt ratio.

For expenses :

  • You have to add up all the regular expenses like your rent for example, any pension payments, etc.
  • Also remember to include all the monthly payments of your credits in repayment, if you have any.

Then you simply divide the sum of your recurring expenses by the amount of your income .

Finally, multiply the result by 100 . This will give you a percentage of your debt ratio.

How our debt ratio simulator works

How our debt ratio simulator works

Thanks to our simulator, you just have to fill in some information and the calculation of your debt ratio will be done automatically.

At the level of your resources:

  • Are you alone at work or does your household have two sources of income?
  • How much are your professional earnings (net wages and potential bonuses)?
  • Do you have other sources of regular income (rents for example)? If so, how much are they?

At the level of your expenses:

  • What is the amount of your rent if you have one?
  • Do you pay back a mortgage and / or consumer loans and if so, how much are their monthly payments?
  • Do you have other current expenses (alimony for example)?

You will then have immediate access to your debt ratio, as well as the amount of your remaining life.

What is the maximum debt ratio?

The typical debt ratio not to exceed is usually 33% , including the new monthly loan payments you plan to contract. Beyond this 33%, financial organizations can be more cautious to grant a loan, believing that they take a risk of unpaid too high.

However, the law does not prevent you from taking out a loan if your debt ratio exceeds this threshold. In fact, the decision is up to the lending institution to whom you are addressing. Some may refuse your loan even if you have a debt ratio lower than 33%, or accept it even if you have a debt ratio above this threshold.

In concrete terms, there may be some flexibility for specific cases, including:

  • For loans with a short repayment term : in the event of repayment difficulties on the part of the borrower, the lender has the possibility of extending the repayment term in order to reduce the amount of loan maturities.
  • For high incomes : since the rest is important, lenders can accept a higher debt ratio.
  • For civil servants : job security for teachers, gendarmes, firefighters, etc. is an additional guarantee that may encourage lenders to be more flexible about the maximum debt ratio accepted.

The Public Liability Insurance – Protection and Security for Businesses

 

We all know Murphy’s Law: Everything that can go wrong eventually goes awry! This also applies to company activities, services or products. And the company or the entrepreneur is personally liable for all damages that arise as a result. No matter whether people, assets or property are damaged – without a corresponding insurance cover the company or its owner is liable. That can quickly go into the tens of thousands of euros, if for example personal injury arose.

Here is an example from the files of a large German insurance company: A child crashes through a damaged stair railing that had built a craft business in the home. The child is disabled for life. The amount of compensation to be paid by the company amounts to a total of 950,000 euros, which consists of compensation for pain, house remodeling costs, medical treatment costs, etc.

Companies are liable like private persons – without liability limits

 

Businesses or entrepreneurs are liable like private persons without liability limits. This is what the Civil Code (§ 823 BGB) provides. Thus, with a large amount of damage, the entire company can easily be at risk – up to bankruptcy with all consequential damages for the owner himself as well as his employees who lose their jobs.

A public liability insurance is thus part of professional risk management by the management. It therefore belongs to every insurance company in its insurance portfolio. After all, insurance coverage does not only include the company as a legal entity, but also owners and employees are protected against compensation for their business activities.

What does a public liability insurance (BHV) do?

What does a public liability insurance (BHV) do?

A lot can happen when you are doing business. The damage totals can quickly go into the hundreds of thousands of euros, such as environmental or personal injury. This applies to start-up companies as well as established companies with several branches and a few hundred employees.

The BHV acts in the event of damage as a combined legal expenses and liability insurance. It first checks the claim for damages for its legality. If their experts come to the conclusion that these claims are justified, they will reimburse the claimant or the injured party up to the agreed insured sum. This may be personal, material or pecuniary damage suffered by third parties as a result of operational activities, services or products.

If the insurance company does not consider the claims for damages justified, it rejects the claims of the alleged victims. It takes over the costs for lawyers, appraisers or courts in case of litigation and thus offers the company the protection of a classic legal protection insurance.

Regular checks give security

Regular checks give security

Risk situations in companies change. In order to ensure that no false or underinsurance can develop over time, the following aspects should be considered:

  • Old contracts should be regularly checked for accuracy of fit. An adjustment of the public liability insurance by updating the insured risks with the previous insurance company can save considerable sums without reducing the insurance cover.
  • New contracts can not only provide tailor-made insurance protection but also significant cost optimization. A list of all insured risks also prevents conflicts with the insurance company in the event of a claim.
  • Sums insured must always be determined in such a way that all costs can be covered in case of damage without having to resort to own resources. This is especially true for start-ups and companies with high risk of damage.

During the consultation, management and insurance consultants jointly analyze the risk profile of the company and then determine the optimal sum insured. A professional insurance broker makes sure that the company gets its optimal insurance cover at the lowest possible price.

 

Teachers’ loans: benefits for state employees

The INPDAP loans for teachers are now provided by the Public Employee Management of the INPS, the National Social Security Institute, which took over the credit services provided to the state by the former INPDAP, now closed. The transfer of responsibilities to the INPS implies that today teachers, like all other workers in the public sector , can apply to the Institute for funding. The advantage compared to loans available on the market is often constituted by convenient interest rates and more streamlined methods of accessing credit, such as the sale of the fifth.

This rate repayment formula provides for payment to be made directly through a deduction on salary or pension

salary

Which can never exceed the threshold of one fifth of the monthly amount. This means that at any time during the loan term, the installment can never exceed 20% of a teacher’s salary . The advantage of this rate calculation mechanism is that the teacher will always know with certainty how much the payment will be, with the certainty that this will be sustainable compared to his monthly income.

The teacher who requests financing from the former management must present the last two pay slips

teacher

the CUD model and a copy of an identity document and tax code. The main requirement to be able to access the loan for state employees is to hold a permanent chair for at least two years . With this type of loan, a teacher can reach an amount of up to 60,000 euros, if his guarantees are solid. In this regard, the funding is also open to teachers who are approaching the threshold of retirement age.

As with all public employees , INPS also offers various financing solutions to teachers. In particular, there are two INPDAP loans for teachers that directly provide the INPS: the small loan , which works like a traditional personal loan and can last up to 5 years, and the multi-year loan, which instead is a finalized loan, ie requires that the amount is used for a specific purpose, specified at the time of signing the contract.

Loans in 24 hours without payroll – immediate financing

Loans in 24 hours without payroll are a category of loans aimed at those who have difficulty accessing traditional loans but need immediate liquidity. Certain guarantees are needed to obtain rapid financing: the most requested by banks is the demonstration of a stable income, in the form of a paycheck or a pension slip. However, not everyone, starting from the self-employed to reach precarious and unemployed, can boast such guarantees. What if you need financial help quickly?

Fast loans without paychecks are often included in online loans

Fast loans,money

These small loans are provided by financial companies that operate on the web, which greatly reduces the time for granting the loan. The traditional loans, in fact, provide for direct contact with the bank branch (many banking groups, however, now also operate online), a series of bureaucratic procedures to grant the amount (such as the preliminary investigation) and finally the disbursement of the loan. A long journey for those who need money in a short time. Operating online, these times are considerably shortened and flexibility is achieved.

Obviously, even immediate online loans still require some form of guarantee, such as the pay slip

online loans,money

Anyone who cannot present it may be in trouble. One of the methods to receive the financing could be constituted by the signature of a third guarantor who takes charge of any insolvency of the applicant.

It must however be specified that online funding, at most if granted in such a short time as 24 hours, is of a lower amount than those normally obtainable. The figure that can usually be obtained, depending on the company to which it is addressed, is between 500 and 1,500 euros . Therefore those who exploit this possibility gain great flexibility, but at the same time cannot expect significant sums.

It is also necessary to pay attention to the wording “24 hours”: loans in 24 hours without pay can also be advertised on the market, but one day is really a very short period to obtain a loan. Better to talk about urgent loans , which will certainly be paid out more quickly than a normal loan.