The Smart Way to Avoid Dug Hole Close Hole When Loans Online

Online lending and borrowing services on a Peer to Peer Lending or P2P Lending platform are very helpful for the people of Indonesia, including those not yet reached by banks to improve their financial condition, whether they are in need of emergency funds or venture capital.

In addition to being easy and not complicated, the funds raised are also quickly disbursed. As an illustration, to make it easier, in general, this fintech lending platform is a non-collateral loan container that can be accessed only through smartphones and their guests with very easy requirements, including KTP, NPWP, and salary slip. Without having to wait a long time, the amount of funds submitted will immediately be disbursed in approximately 2 x 24 hours.

When they have decided to apply for an online loan

When they have decided to apply for an online loan

Automatically the borrower has the responsibility to pay the installments every month until they are paid off. However, unfortunately, many people also underestimate so that there are those who are heavily in debt.

Without thinking to pay off their debts quickly, they decided to make another online loan to a different fintech lending or an activity like this is better known as the hole digging hole cover. This is not the right solution, it will make the debt unresolved.

Before it’s too late, you should stop these harmful activities and start managing debt well. Here are five smart ways that online borrowers or borrowers can practice to avoid digging holes when online loans are in progress.

Make Debt a Priority

Make Debt a Priority

When there is an online loan you are applying for, it means that the monthly register records also increase. In addition to having a monthly list of needs that must be met, debt is also part of a very important list.

If debt repayment is prioritized, it will make you more meticulous when managing monthly finances. For example, reducing the budget in certain areas such as traveling or choosing shopping items that are cheaper than usual.

Tip: put the debt on the monthly priority list. This aims to be seen more often and to avoid payment of debt installments that are forgotten.

Apply Life Savings

The thing that is often ignored and underestimated by many people is not being able to implement life-saving. In fact, no longer think long spending money just to fulfill a high lifestyle.

Even though frugality does not make life miserable, it is precisely by implementing a frugal and simple life that makes financial conditions better. It’s okay to fulfill the desire, but remember there are still other needs such as debt that must be paid as the responsibility of the borrower.

Tip: Immediately aware, start not to spend too much money just to hang out in cafes, expensive restaurants or shopping for items that are not actually needed just to fulfill your desires. If there is a need to spend, use the promos to be a very appropriate solution.

Use Credit Cards Wisely

Use Credit Cards Wisely

In this day and age, almost everyone has a credit card. Because, many credit cards provide benefits in transactions for users, one of which can shop first and pay installments later.

But, it’s this convenience that makes not a few people dark eyes. They use credit cards to fulfill their high lifestyle by shopping for branded goods without thinking about the installment fees that must be paid every month.

If you do it like that and have other debt installments, it will certainly burden your costs every month. It’s possible that defaults can occur which causes the debt to pile up. For this reason, avoid using credit cards just for consumptive life.

Tips: Consider again if you want to use a credit card, whether the items to be purchased are needed or not. It is better to use a credit card wisely, for example, only for shopping for monthly needs.


Can you renegotiate your mortgage with your bank?

Did you take out a home loan some time ago and today the rates offered are better? Does a cash inflow allow you to repay your loan faster?

It may be possible to rediscuss your loan with your bank and thus save money.

How to renegotiate your mortgage with your bank


As explained above, there are several cases where renegotiating a home loan with your lender could be beneficial to you. Explanations.

1. Prepayment of the loan


During your loan, you may benefit from a cash inflow, planned or not.

This return of money could encourage you to repay your credit faster to save money. Indeed, by repaying your loan in advance, you will be able to reduce the interest. You have two options: reduce the term of your loan or reduce the amount of your monthly payments.

Also, you can save through your loan insurance which will stop before its initial term.

However, it is possible that your lending institution may impose prepayment penalties on you. The amount of the penalties corresponds to the total of six months of interest at the average rate of the principal repaid, or then to 3% of the principal remaining due. The lowest amount will be retained.

These penalties are not mandatory and can be negotiated with your bank.

For your transaction to be interesting, the savings made on interest and insurance must be greater than your possible prepayment costs.

2. Renegotiation of the loan following a fall in interest rates


As rates change over the years, they may be more attractive today than when you took out a loan for your real estate project.

You can, therefore, renegotiate with your lender, but this is not always possible. If the answer he gives you is not satisfactory to you, then it is entirely possible to compete and take out a new loan at another bank.

Here in summary, it is a new banking organization which will buy back your old loan.

As in the case of an early repayment, various costs may be charged to you. However, when they buy back a loan, many banks include these different costs in the financing.

The Fine Bank experts are at your disposal to help you in the constitution of your file but also in the search for the best loan offer.

The various possible costs:

  • Application fees in your new bank

  • Guarantee costs (negotiable for loans of less than 30,000 USD)
  • Prepayment charges . Your bank is entitled to ask you for these costs. According to the Fine Bank law, they are at most 3% of the capital that you had to repay with a ceiling set at 6 months of interest.

The law of 25 June 1999 on savings and financial security specifies that if you sell your home, these costs will be waived in 3 cases:

  • Forced cessation of professional activity, for example in the context of a dismissal
  • Job transfer
  • Death of person

These 3 situations apply to the borrower and his spouse. All contracts signed after June 30, 1999, are affected by this law.

The repurchase of mortgage, the alternative to renegotiation


Having your mortgage bought by another bank can still save you money.

In order for the operation to be profitable, it is preferable to study your situation well in advance.

It is also advisable to renegotiate your mortgage with your bank or have it redeemed in the first half, or even in the first third of the contract. This is where the amount of interest is highest, and therefore where you will realize the greatest savings.

In the context of a buyout, the difference between the two rates (the current one and that proposed by the new bank) must be around one point for optimal savings.

In addition, with this lower interest rate, you could include additional cash in your loan. This can be a solution to finance certain projects that are still pending: works, purchase of a new vehicle, etc.

Note that Fine Bank can also assist you in changing the insurance of your loan. Indeed, a buyout being a new contract, a new borrower insurance is necessary.

For any renegotiation or home loan buyout project, our advisers are at your disposal to save you time. Indeed, the procedures can be long and tedious if you decide to conduct them yourself. Do not hesitate to submit your request on our online form, it’s free and without obligation!

Benefits of Children Having a Credit Card

Parents should not give their children the freedom to access credit cards carelessly. Parents must ensure that their child’s age is old enough to use a credit card. In addition, parents are required to provide assistance and understanding of the benefits of credit cards and the dangers of using them carelessly.

On the other hand, actually giving children the opportunity to manage credit cards has a positive impact as well. This credit card can be a learning tool to educate children to be better at managing their finances. Other benefits, let’s look at 4 benefits of giving children the confidence to use the following credit cards:

Teach Children How to Manage Finances

Teach Children How to Manage Finances

Introducing and providing credit card facilities is one of the best ways to teach children how to manage finances carefully. Look at the extent to which the child’s ability to learn to manage income, expenses, and debt.

Parents can set limits that can be used by their children so that children can learn to be responsible for their finances. Perform regular checks on the use of child credit cards every month to prevent misuse of credit card facilities. This can be a provision in the future of children, so they can manage their personal finances well.

Instilling a Sense of Responsibility

Giving trust to children to use credit cards means that they have trained and instilled a sense of responsibility for children to manage their own finances.

Parents must still see and monitor how children carry out the trust that has been given to him. Assistance from parents is needed because children are still very vulnerable to be tempted to try something new. So teach them the responsibility of using their credit cards intelligently and wisely.

Learn to Control Yourself

Learn to Control Yourself

As explained above, young people are very susceptible to temptation, whether they come from social media, electronic media, advertisements, sales promos or social partners. This means that children must learn to control themselves so as not to be tempted to try something new or buy new things that are not really needed.

Give them an understanding that credit cards are not parents’ money, but debt to banks that must be paid, so the more often the credit card is used, the amount of the debt bills will also increase.

Learn to have a good track record

Children will surely grow up and maybe they will have their own credit card. Before having their own credit card, teach them to be good customers by learning to build a good credit track record.

Basically a credit card is a debt to the bank, but giving a credit card to a child will provide its own benefits if used properly. The positive side they will understand better how to use credit cards more wisely, do not just look at it from the negative side only.

General Benefits of Credit Cards in General

General Benefits of Credit Cards in General:

As a parent, you should be clear about what features and facilities are included on the credit card used to explain to their children. Here are some of the benefits of a credit card that you must know:

a) Balance Transfer Facility

The facilities offered by this particular bank can be taken into consideration, especially those with old credit card bills. The use of this feature is done by moving the bill from the old credit card to the new credit card (80% of the total bill) and then the bill will be paid off on the new credit card. This is done because of the consideration of smaller interest or more favorable installment facilities, so there is no need to use an old credit card.

b) Cash Withdrawal Facility

This facility is given to all credit cards. However, you should carefully consider the decision to make cash withdrawals via credit card, because cash withdrawal transactions will incur no small amount of fees plus daily interest calculated from the time of the cash withdrawal transaction.

c) 0% Installment Facility

This facility is quite tempting for credit card users. The customer will be given the convenience of paying the installment bills without interest for a certain period. But you should always be careful using a credit card, do not let features that should ease the burden will actually become an unpaid debt burden in the future.

d) Reward Points

In general rewards or bonuses given by issuing banks are in the form of points and cash back that can be obtained from purchases using a credit card. This facility will be very beneficial because by actively using it, you can save money at the same time. For points earned, it can be exchanged for a variety of interesting items offered through a monthly catalog that is sent with the bill.

e) Transactions in Foreign Currencies

This feature makes it easy for you to conduct financial transactions or purchases in foreign currencies, especially for those who like to travel abroad. For credit cardholders who have a foreign currency transaction feature, you will be given the convenience of spending using a foreign exchange rate, because the bill will be billed in the dollar.