My WordPress Blog
The household allowance is the minimum amount to maintain the normal standard of living. The household lump sum plays a role in connection with the financing of a property , especially by private individuals. The lender will only agree to the loan applied for if the person is still able to make a living even after deduction of interest and principal . This is checked and determined by the lender in advance. Only then will a commitment be given for the loan.
Expenses and income of the borrower are checked. The banks set minimum rates in this calculation, which must be left over, so that their livelihood is assured. Household allowances ensure, for example, catering, accommodation, clothing, and education. Even a car and – and liability insurance are guaranteed household contents. If a family has two cars or even more insurances such as pensions, long-term care or supplementary health insurance, these must be listed separately in the budget. Nevertheless, if the family should have lower maintenance costs, the household allowance will not be reduced. For a household with one person, there is a household allowance of at least 790 euros for a household with two people 995 euros. For each child, who lives in the household, 154 euros are added. Other banks start at a flat rate of 700 euros and then increase this for each additional person by 200 euros. Even for infants, a household flat rate is set, because with the aging, also incur more costs for the child, which must be included in the calculation for a loan. Only when the calculation at the bank with a program created specifically for the calculation proves that there is a budget surplus, can a loan be paid with the monthly installments. Subject to a Schufa query, which of course must be positive, then a loan approval can be made.
There are certainly many more criteria that have to be taken into account when making a loan request, but if it turns out that the entire household flat rate, ie all calculated costs, does not allow for a budget surplus, the process of a credit check need not be carried out at all , If the costs change a bit for the better, you can ask again for a loan. Of course, a calculation taking into account the household allowance will take place again.