Have you taken out a loan ? Read everything about this type of loan.
Persons taking a loan in a currency other than the zloty must take into account the risk of this type of solution. In some cases, of course, it is tempting, because it saves a lot of money. Many years ago the ones we are talking about today are franked. Admittedly, however, that at the time nothing predicted the disaster that awaited borrowers who decided to debt in . Probably most of them are thrilled by the prospect of calculating the amount of remaining installments and the awareness that each day brings a loss.
Almost everyone has heard about the situation of people who took a loan in that currency at the time, and society has been divided into two groups for years. Those who sympathize with the , claiming that the state should somehow help them get out of trouble, as well as those who judge that they are themselves guilty. There is no shortage of voices that the cunning loses twice. However, it is difficult to discuss spilled milk. It is worth quietly thinking about the current situation of frank-borrowers and what forecasts economists have for them.
How did it start?
The loan craze reached its apogee mainly in the years 2006 – 2009, which was at the time of the great crisis. It is estimated that around 700,000 Poles indebted in this currency. We would like to remind you that in 2008 the exchange rate was around PLN 2. It was comfortable for Poles who began to indebted themselves in this currency on a mass scale, because such a loan guaranteed at that time several or even several thousand zlotys of savings over the entire repayment of the liability.
Foreign currency loan
Opting for a loan in a currency other than Polish zloty is always an extremely dangerous way. Many experts argue that – especially in the current, so unstable economic times – it is not worth borrowing in a currency in which we do not earn. In addition, following the turmoil in the loan market, many financial institutions, for fear of further sudden changes in exchange rates, not only discourage such commitments, but do not allow them to be incurred at home. Banks that today offer loans in PLN to people earning abroad can be counted on one hand. We wrote more about the reasons for this, which was largely caused by the recommendation.
Loans – what to do?
The repayment of the loan naturally leads to losses. It seems that the times of favorable CHF exchange rates against the Polish zloty are irrevocably gone, although now the situation has calmed down a bit and the prognosis is better than assumed some time ago. If, however, nothing can be prevented, how to cope with the treatment, or actually cure the disease called loan? You can choose several solutions to get out of trouble. One of them is to be patient, i.e. wait for better forecasts when it comes to the difference in the exchange rates of both currencies. Perhaps soon the rulers will resume the discussion about the problem. Those who do not count on this type of treatment may try to take out a loan, which they will use to pay back the loan. Of course, this does not solve the problem of debt, it only allows you to “return” to Polish soil, namely to regulate credit arrears in PLN. Institutions offering quick loans without a certificate can help, which we describe in detail in this article .
Many also think about converting the loan into PLN. Experts, however, advise against this way of saving the skin. With dynamic exchange rates, such a solution could bring further problems. It is important to realize that after currency conversion, what is left to us will be calculated at the current exchange rate of the zloty, another higher will be taken into account, as well as the margin calculated as for loans in PLN. This step may even turn out to be less profitable for our portfolio than it would be when paying back the loan , in practice the installment may be higher than we expect. Before undertaking such actions, it is worth making detailed calculations.
A helping hand for everyone
However, taking loans to pay off a loan may prove to be a vicious circle. Unless you take advantage of the opportunity to take out a low-interest loan specially prepared for repayment of installments. Two years ago, with the help of banks operating in our country, the Borrowers Support Fund was created. However, the list of borrowers who can take out a loan is strictly defined. The fund is addressed mainly to people who find themselves in a difficult financial situation – unemployed, indebted, as well as those whose monthly installment exceeds 60 percent of income.
What about loans ?
The exchange rate of the currency is one of the most volatile in Europe and even in the world. Hence, despite the reduction in the slightly real installment of loans, borrowers are shaking for every change on the market. Any help from the government is unlikely, which, as if by magic, would be able to solve the problem. Economists leave no illusions – one should wait for better times.