Reform of consumer credit & free choice of insurance

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Thanks to the law “Lagarde”, the borrowers can shop around and compare offers from insurance of their home loan.

Under the reform law of consumer credit and revolving credit , one of the little-known provisions of the Act may appeal to future buyers of properties in their demand for bank insurance borrower.

Real Estate: the reform of consumer credit, more transparency for insurance borrowers

The law known as “Lagarde” to ensure greater transparency and equity for loans, credit purchases, consumer loans and other revolving loans to fight against over-indebtedness has radically reformed practices that prevailed previously. One of the provisions of that Act entered into force on 1 September 2010 has liberalized the offer loan protection insurance, such insurance as banks or credit organizations require from the co-borrowers to secure payment of maturity of their mortgage. Indeed, until now, the future buyer of a property was actually confronted with the banks’ monopoly on insurance borrowers. Specifically, your bank makes you generally, including the proposal to lower interest rates for your mortgage, to buy insurance from their own insurer.

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Credit ratings or investment interest: understanding your contract

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Why a nominal rate and an APR in your loan offer? How to calculate the profitability of a savings contract with compound interest?

The financial professionals regularly use acronyms in their speech, forgetting that their interlocutors do not always know the exact meaning. Beyond the misunderstanding that may result, the financial consequences can sometimes be unpleasant.

Comparison between nominal and real interest rate in a loan offer

The face or nominal rate of a loan used to calculate interest owed. Multiply the principal borrowed by the rate, which does not take into account the effective date of cash flow. The result is therefore relative. However, this rate is announced in advertisements relating to credits. The real interest rate is the nominal rate adjusted for inflation. For example, you can have a positive nominal rate and a negative real rate if the loan was subscribed to a fixed rate very low, and that inflationary period then began.

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The Annual Percentage Rate (APR) in credit proposal

Under the provisions of Articles L313-1 and L313-2 of the Consumer Code , the TEG must be included in any loan offer, so you can compare different credit agreements. Indeed, “are added to interest charges, fees or payments of any kind, direct or indirect, including those paid or payable to intermediaries intervened in any way whatsoever in the loan, even if these fees, commissions or fees correspond to actual disbursements. In addition, for loans that are subject to amortization installments, the percentage rate should be calculated taking into account the terms of the amortization of the debt “. Continue reading →

How far will the tremendous rise in Chinese?

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The tremendous rise in Chinese economic surprised that questions often gnawing economic experts. Will it stop one day to another?

Apparel products to hardware, gadgets to electronic and electrical items, world trade is now almost 40% dominated by products from China. Better still, China has become the partner of several developed countries and third world, for whom it lends money or is involved in construction of buildings. Today, more than one economic expert is interested in this meteoric rise. In the West, one wonders how far will this tremendous rise?

The reasons for China’s economic ascent

It is thanks to an official figure of 9.5%, and a real figure closer to 13%, said that China now has 40% of the increase in world trade. To say this is difficult to grasp slow the machine as desired by the West vulnerable to attack Chinese products. Everyone knows that, in the absence of an internal market sufficiently creditworthy, China’s growth is based primarily on expotations (over 27% since January 2005) and market share gains they generate. One could imagine that the Chinese are exposed thereby to protectionist measures. If one recalls that half of the trade between the U.S. and China based on intra-firm trade, we can deduce that Washington has no interest in protecting its territory, which would penalize its businesses.

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How to calculate the cost of a loan?

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When an employee or an entrepreneur decides to take out a loan, his first instinct is to learn about the interest rate charged by their bank or their credit institution. A financial meanwhile will have a markedly different approach in that it will use different calculations to compare credit offers. Although such mathematical and financial procedures are binding, however, it is essential to understand the broad outlines for not moving headlong into a loan and the risk of being manipulated by bankers.

Note also that most numbers and rates shown are approximate, since they follow a long and complicated process. Thus, we must understand that when you borrow, it is rare that the banker tells you exactly how this operation could cost you. Determining the real cost of credit uses several simple concepts but the combination of which complicates the process. Without going into mathematical details, it is still necessary to understand the basis of this calculation and to know each of its components in order to negotiate your loan in the best possible conditions.

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The basic elements used to calculate the cost of a credit

The information required for a loan differ according to your plans and credit institution to which you are addressing. In all cases, your loan file must contain critical elements on which your bank will use to decide whether to grant you the credit you are requesting. These analyzes generate costs called “administrative fees” that can be fixed or proportional to the amount awarded, but generally do not exceed 1.5% of the amount. However, remember that you will be excused if your loan was rejected. Depending on what your needs, it is possible that your bank requires a bond, mortgage or lien lender denier. If the first is quite simple and cost, we must know that each of these acts has expenses, including the notary in the last two cases. In addition, there must be additional costs relating to the nature of each transaction that is in fact a guarantee for your banker, plus insurance costs. Continue reading →

Win or rather save money: three simple tips

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Three simple tricks, accessible to everyone without enormous effort, you will save a few hundred (thousand) euros per year.

Like everyone else, you want to increase the amount of money available in your household, but like many, the accounts are close to zero at the end of the month. You make beautiful, impossible to set aside money or save more than 10 euros per month unfortunate . There are to address this concern a few tricks that require no special knowledge, no skill in finance very sharp, but simply a measure of discipline in managing its revenues. These principles are applicable to everyone without exception, regardless of the monthly income, and you will if it is to become rich, at least be able to put aside a certain amount per month.

Principle 1: Save early this month, not month-end

Most people tend to wait until the end, watching what remains on their account, and put on their savings accounts diverse and varied the remaining amount. And often, the amount involved is very small or zero. Why not work the other way, and start by deciding what will be the amount to be saved (10 to 20% of revenues are already a great percentage of savings), and do so upon receipt of his salary? Better, there is the possibility to set up automatic transfers from your bank, so you do not even have to think about it!

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Marketing mix and marketing of luxury products

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The luxury consumer is very demanding and selling a luxury product requires a particular strategy, adapted to his wishes.

Business strategy, conducting a marketing mix and marketing mix, in French, is an analysis of market divided into four parts. As part of a product launch, create a marketing mix brings out a communication plan and a development strategy for the company and its product. The four elements of the marketing mix are product analysis (choice of the range, packaging), the pricing policy (penetration, skimming, cost), the distribution policy (sales channels, sales force) and communication strategy (advertising, direct marketing, public relations.) On the luxury market, the target specific and does not respond and has certain stimuli. It is impossible to achieve a basic marketing mix when trying to market a luxury product. Indeed, the luxury market is very narrow and highly competitive, where only the boldest brands with higher value have a chance to survive against the big holding companies that generate billions in revenue.

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The luxury product is perfect and the dream factory

Carrying with him an aura of dream, luxury product should not present any defect. It must meet a high standard aesthetic. Valuable and sophisticated, its invention and creation of a new face, involving the use of noble materials, new manufacturing techniques or the production of parts and unique designs. The choice of colors and the originality of concepts are also important. Rare, the product is unattainable luxury for the elite, which informs and seeks to get ahead in the acquisition of extraordinary objects.The luxury item, although perfect, is not enough alone. Indeed, we must also consider its packaging, packaging. More the product is high-end, its packaging is more work. Perfume bottle, jewelry box or shoe box, the presentation of the product in its packaging must be perfected. This criterion is important to mark the brand’s imagination. This is something that may further justify the price of the item. Continue reading →

Marketing: delivering value to consumers

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Marketing, which reviews the needs and desires of consumers, must be sensitive to changes in society to be always a guarantee of value.

What is marketing? The marketing department of this company so discredited today, however, is a great source of value. To him the burden of strengthening the image of brands that a loyalty based customers ever increasing.

And customer value, two concepts at the basis of marketing

Indeed, the primary role of marketing. It revolves around the notions of value (it must create, communicate and deliver) and customers, prospects (he must choose a relevant and must manage). Value, it must indeed create for goods and services but also now for events (the World Cup), experiments (a trip to Disneyland), personalities (politicians), organizations ( it is institutional communication) and information (magazines). Regarding prospects, we can differentiate their desires in phases. It can vary from low level or no support or even to excess and unwanted.

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The SMS boom in direct marketing

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Rusent marketing professionals to learn how to attract consumers to the tune of direct marketing. The SMS is the most used medium.

Advertising on television, film, radio, print media, posters in transport, in the street, spam, the consumer is flooded with advertisements of all kinds. Brands competing processes to increase their reputation, their customers and increase loyalty. But while the effectiveness of traditional media is slowing and they are costly to businesses, a means of communication appears to be doing the game in recent years. SMS is increasingly used and coveted by advertisers. Why this appeal? Why does it work?

What is direct marketing?

In marketing, there are several professions suited to each business. Direct marketing is the act of sending a message to potential recipients quantified and qualified to draw attention to an offer and get them to act, that is to say, to buy or s’ learn about the brand. It should trigger an immediate reaction among consumers and may take the form of games / contests, promotional offers or announcements of events with registration required to participate in the key.

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Income taxes: actual expenses or standard deduction?

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Choosing the mode of declaration of business expenses is essential to alleviate its imposition, but are not provided a puzzle!

We often wonder whether it is better to keep the deduction of 10% or opt for the actual costs. In fact, every taxpayer is a special case and it can be very advantageous to choose the most suitable system for everyone. The easiest way is still to make a simulation to make the right choice!

Some simple rules to know

# The taxpayer has the right to change each year how it is reported by fees or actual deduction of 10%,
# how actual expenses are allowed for each member of the household,
# if you declare the actual costs, we must declare in return, with the gross taxable income, all special allowances related to professional fees paid by the employer.

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Finance, real estate, humanitarian, how to pay less tax?

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At the declaration of income, one wonders about the possibilities to reduce the amount of taxes. Tax exemption to everyone.

This is the hour to complete the tax return and with it its attendant questions about how at your fingertips to pay less tax. There is no need to be a major investor or a financial expert to enjoy the many features of tax exemption. Within your means, your boldness and your inclinations, you will find good placement that suits you.

The estate, valued multiple-choice

Scellier laws, Jego, Girardin: acquiring, from 1 January 2009 and December 31, 2012 a new home or in the future state of completion, rental purpose (as a primary home, unfurnished), and respecting energy performance standards, and geographic location, you can benefit from a tax reduction of 20 to 25%. By investing in the DOM or TOM, the deduction is spread over nine years from the completion of the well, with a possibility of 6 more years, the tax reduction can then reach 52%.
Demessine law: it is here to help the economic recovery in some areas by upgrading their tourism. By investing between 1 January 2005 and December 31, 2012, either in new housing or rehabilitating the old (repairs, home improvements) it is possible to benefit from a tax reduction that can go up ‘€ 25 000 over 6 years (€ 4,166 / year for a couple).

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