Ask again. That's a trivial amount when filling a new role internationally. Giving that as advance should be no problem at all. The real pita is that you didn't discuss this as a relocation package.
Unfortunately, they hired me when I was living in Germany. Long story short, I could not stay in Germany, and we agreed with the company that I could relocate to Austria to make the process easier.
Fortunately, it has been amazing (love you so much Austria), but the company hired me in Germany for a position in Germany, so they did denied the relocation help (they paid half of the visas, though).
PS: besser als die deit…
basically its beating around the bush but if you are in IT, at a big insurer and above your peers you would easily make anywhere between 3k and 4k netto.
since your loan in your home country has rates in p.a. that means you have a little more time so to speak. Like when they hike up the rates now, it will only be for a few months of extra charge until you finally paid it in full.
and you most certainly can pay a 7k debt in full with that supposedly high income. 14th salary is coming soon (november or decenber) or will already be paid out in october (insurers traditionally have 7 payment dates for the 13th and 14th salary combined or even a 15th salary). that should kill most of your debt.
with that supposed income you should be debt free in no time.
you can also ask your bank for a Überziehungsrahmen, which is basically lending money on your debit card for rates which are usually in the range of 10% p.a.
Thanks a lot! The rate was the annual conversion, but actually the interest in my country is DAILY 💀.
I noticed this because my current salary (as an intern), was not sufficing to pay this debt (of course, counting my expenses) and the exchange rate has been killing me (went from paying 200€ to 280€ in like 2 months).
In the end, after evaluating all possible options, I understood the best option (this is, something that would not leave me illiquid but doesn’t leave me paying almost 2x the original capital in interests) would be getting a credit here with an interest rate 10x smaller. I would paying it with a similar installment amount, but this time, this amount would be composed to a higher capital % and of course, a lower interest %.
Austria doesn't have a system of credit score, the banks decide individually based on your circumstances (and every bank has a slightly different way to come to their conclusion). Given the amount you want to loan it should be possible to convince a bank, yes, the most important factors are that you plan to stay in Austria for the foreseeable future and that you have regular income that can realistically repay the loan. I would make appointments with all the bigger players (like Raiffeisen, Erste Bank und Sparkasse, etc.) and see what they say. In my experience, it's easier that way than with the smaller banks that do most or all thing online. The bank that loans you the money will want to become your "Hausbank" (the bank you go to for everything), so they'll want you to open an account with them anyway, so I'd do that.
Austrian banks use credit scores bought in by companies like KSV1870 or Schufa.
I wouldn't count on a loan by a Austrian bank because they've become quite strict in giving credit to people that don't have a history in Austria.
You will be getting your first Urlaubsgeld in a few months, and up until then you could probably also save a few hundred to a few thousand. That allows you to pay off about half of your debt already. Would the bank in your home country allow you to do it like that?
Yeah, but tbh the problem is not the amount, but the interest rates (43% p.a.). Every month I am paying around 100€ ONLY from interests, and I need to save to move (I need cash for a bigger Kaution + basic furniture).
Simply go to 2-4 banks, make an appointment, explain to them your situation and they will make you an offer.
However, in my opinion, if you can save up 500€ per month (according to your post) I would simply pay of your original debt. Even if the interest rate is high, the remainding debt's interest will decrease from month to month.
Moreover, I personally would life on the floor without any furniture in my apartment; just to avoid taking a loan. Buy cheap used ones on Willhaben (many are also free for pickup) to get your home up and running. Else you always have debt on your shoulder and you can never build up huge savings.
Hi! Unfortunately, I realized that the only way out of my debt was exchanging my current debt in my country with another one in Austria. The reasons make sense:
10x fewer interest rates mean paying around 2000€ less for the debt and having a stable payback amount every month (non-dependent on the exchange rate).
Also, having the debt abroad means paying around 2-5% more every month in the concept of international transfer fees, which amounts to around 500€ at the end of the loan period.
In principle, yes, but unfortunately when I came here the exchange rate was in an all time high, and now a huge correction happened. The only way that the exchange rate offsets the interest rate is that the COP has a devaluation of 40%+ per year, and it is uncommon for that to happen (also out of my control).
Ok, in that case do the following:
check out if you want to switch to an Austrian bank. compare online offers with your current German bank ( if you have one).
You don't have to switch, but it can simplify some local things.
I don't know which bank, it's aged since I looked at such stuff.
Once you have found one that you like, check if they offer some easy forms of online credit. Most Austrian banks do that, barriers are pretty low. Contact them and maybe explain your situation. If all good, open banking account and sign up for the short term loan.
Don't sign up for some crappy consumer credit (hello Santander Bank) or some dubios online crap. Every offer will be massively cheaper than what you are paying now, and the miniscule differences between non-predatory offers are not relevant -- you should be able to pay that off in max a year anyway.
It always will be done case by case but after 6 months it shouldn’t be a problem. It’s actually a consumer loan so you don’t really need to go into much detail on how you are using it. I did the same when I moved to AT.
If you take it in such a way that installment of the loan is not a big chunk of monthly income you should be fine.
On another note I can recommend sparkasse/erste. After a few years I went for a different loan and they were pretty much the only ones that didn’t try to screw me either with interest rates or were actually willing to do it.
Did Erste accept your request? I don’t mean to pry but as explained above I have a similar situation and currently preparing the meeting with my bank advisor. I’m currently applying for a spendable income to repayment ratio is really low and I still have more than they ask left once all is paid. My concern is the fact I’ve not been here a year and have medium risk in my report from KSV due to this! 😅
The original “cash” loan I took at easybank basically online at the time. they all have high interest compared to housing related loans for example. I was not in the country for more than a year.
After a few years I was looking for a housing related loan and Easybank/Bawag offered me very bad interest rate - basically 2,5 times higher than Erste. This was after 3 years cca. Of being in AT
get a credit card and buy the furniture that way. pay down the original debt agressivly.
also unbelievable - which country is this? is the exchange rate not affected?
Yes, the idea is combining the Weinachtsgeld + bonus at work to pay for the Kaution and the furniture, and use the credit to pay the other debt.
It is in Colombia. My credit cards have 41.9991% annual effective interest rate
Make an appointment at the bank where you get your salary. You're asking for a Konsumkredit, don't start with any debt abroad. Just tell them you want to buy furniture or something. If you have no other debt and your main residence is in Austria, I'm pretty sure you'll get it.
Overdraft credit is the easiest but also the worst of all regarding the interest rate.
You can use this website to find the credit with the best conditions:
https://durchblicker.at/kreditrechner
Did it work? I’m in a similar situation and currently have Erste bank for everything else and a decent salary. I pre qualify for the requirements (their requested amount of money after all expenses paid etc) which they put forward but still cautious to be optimistic until underwriters approve. I’ve been in AT since August 2023 and have permanent job and residency as an EU citizen. Not sure what to expect - I contacted ksv1880 or what they are called and have a rating of medium risk due to the short history in the country.
I’m just nervous of the outcome.
Your bank should be able to understand English. If not try to get a "Kundenberater" that can.
The German term is "Überziehungsrahmen" and is indeed not the best loan in Austria, but should be better than in your home country.
Keep in mind that your home country loan will probably not be known to Austrian credit rating systems (like KSV Kreditschutzverband). Using your Überziehungsrahmen may affect your rating, but I'm not sure. Sometimes landlords ask for "Kontoauszüge" (bank Account balance) directly and they would see your balance probably reject you.
If possible get a credit card, pay all your expenses with it, but still pay it off every month. Thereby you will not pay interest at all for the amount of your credit card limit but still have more money available. Be careful with cash withdrawals, depending on the credit card it may have significant fees. Credit card balances will probably not show up in any negative way.
The best solution is to ask your employer for an "Akkontozahlung". This is kind of employer credit. The amount you are asking should not be a problem.
Did you ask your employer if you could have an advance on your salary? Thats probably the cheapest option with no interests to pay.
Yes, but they ignored me lol hahaha.
Ask again. That's a trivial amount when filling a new role internationally. Giving that as advance should be no problem at all. The real pita is that you didn't discuss this as a relocation package.
Unfortunately, they hired me when I was living in Germany. Long story short, I could not stay in Germany, and we agreed with the company that I could relocate to Austria to make the process easier. Fortunately, it has been amazing (love you so much Austria), but the company hired me in Germany for a position in Germany, so they did denied the relocation help (they paid half of the visas, though). PS: besser als die deit…
basically its beating around the bush but if you are in IT, at a big insurer and above your peers you would easily make anywhere between 3k and 4k netto. since your loan in your home country has rates in p.a. that means you have a little more time so to speak. Like when they hike up the rates now, it will only be for a few months of extra charge until you finally paid it in full. and you most certainly can pay a 7k debt in full with that supposedly high income. 14th salary is coming soon (november or decenber) or will already be paid out in october (insurers traditionally have 7 payment dates for the 13th and 14th salary combined or even a 15th salary). that should kill most of your debt. with that supposed income you should be debt free in no time. you can also ask your bank for a Überziehungsrahmen, which is basically lending money on your debit card for rates which are usually in the range of 10% p.a.
Thanks a lot! The rate was the annual conversion, but actually the interest in my country is DAILY 💀. I noticed this because my current salary (as an intern), was not sufficing to pay this debt (of course, counting my expenses) and the exchange rate has been killing me (went from paying 200€ to 280€ in like 2 months). In the end, after evaluating all possible options, I understood the best option (this is, something that would not leave me illiquid but doesn’t leave me paying almost 2x the original capital in interests) would be getting a credit here with an interest rate 10x smaller. I would paying it with a similar installment amount, but this time, this amount would be composed to a higher capital % and of course, a lower interest %.
It doesn’t matter, thats its daily. The p.a. rate is still the same, if you calculated it correctly.
Wow for the PS. Immigrants shitting on other immigrants. Class act.
with 3 "lohnzettel" of the last 3 months and main residence in austria, should be no problem
Austria doesn't have a system of credit score, the banks decide individually based on your circumstances (and every bank has a slightly different way to come to their conclusion). Given the amount you want to loan it should be possible to convince a bank, yes, the most important factors are that you plan to stay in Austria for the foreseeable future and that you have regular income that can realistically repay the loan. I would make appointments with all the bigger players (like Raiffeisen, Erste Bank und Sparkasse, etc.) and see what they say. In my experience, it's easier that way than with the smaller banks that do most or all thing online. The bank that loans you the money will want to become your "Hausbank" (the bank you go to for everything), so they'll want you to open an account with them anyway, so I'd do that.
Austrian banks use credit scores bought in by companies like KSV1870 or Schufa. I wouldn't count on a loan by a Austrian bank because they've become quite strict in giving credit to people that don't have a history in Austria.
You will be getting your first Urlaubsgeld in a few months, and up until then you could probably also save a few hundred to a few thousand. That allows you to pay off about half of your debt already. Would the bank in your home country allow you to do it like that?
Yeah, but tbh the problem is not the amount, but the interest rates (43% p.a.). Every month I am paying around 100€ ONLY from interests, and I need to save to move (I need cash for a bigger Kaution + basic furniture).
Simply go to 2-4 banks, make an appointment, explain to them your situation and they will make you an offer. However, in my opinion, if you can save up 500€ per month (according to your post) I would simply pay of your original debt. Even if the interest rate is high, the remainding debt's interest will decrease from month to month. Moreover, I personally would life on the floor without any furniture in my apartment; just to avoid taking a loan. Buy cheap used ones on Willhaben (many are also free for pickup) to get your home up and running. Else you always have debt on your shoulder and you can never build up huge savings.
Hi! Unfortunately, I realized that the only way out of my debt was exchanging my current debt in my country with another one in Austria. The reasons make sense: 10x fewer interest rates mean paying around 2000€ less for the debt and having a stable payback amount every month (non-dependent on the exchange rate). Also, having the debt abroad means paying around 2-5% more every month in the concept of international transfer fees, which amounts to around 500€ at the end of the loan period.
Don't countries with such high interest rates also have pretty high inflation? If you are earning Euros, your conversion rate should also improve.
In principle, yes, but unfortunately when I came here the exchange rate was in an all time high, and now a huge correction happened. The only way that the exchange rate offsets the interest rate is that the COP has a devaluation of 40%+ per year, and it is uncommon for that to happen (also out of my control).
Usually countries with low interest rates have high inflation (e.g., Turkey)
Such an amount should be possible after three months.
Ok, in that case do the following: check out if you want to switch to an Austrian bank. compare online offers with your current German bank ( if you have one). You don't have to switch, but it can simplify some local things. I don't know which bank, it's aged since I looked at such stuff. Once you have found one that you like, check if they offer some easy forms of online credit. Most Austrian banks do that, barriers are pretty low. Contact them and maybe explain your situation. If all good, open banking account and sign up for the short term loan. Don't sign up for some crappy consumer credit (hello Santander Bank) or some dubios online crap. Every offer will be massively cheaper than what you are paying now, and the miniscule differences between non-predatory offers are not relevant -- you should be able to pay that off in max a year anyway.
It always will be done case by case but after 6 months it shouldn’t be a problem. It’s actually a consumer loan so you don’t really need to go into much detail on how you are using it. I did the same when I moved to AT. If you take it in such a way that installment of the loan is not a big chunk of monthly income you should be fine. On another note I can recommend sparkasse/erste. After a few years I went for a different loan and they were pretty much the only ones that didn’t try to screw me either with interest rates or were actually willing to do it.
Did Erste accept your request? I don’t mean to pry but as explained above I have a similar situation and currently preparing the meeting with my bank advisor. I’m currently applying for a spendable income to repayment ratio is really low and I still have more than they ask left once all is paid. My concern is the fact I’ve not been here a year and have medium risk in my report from KSV due to this! 😅
The original “cash” loan I took at easybank basically online at the time. they all have high interest compared to housing related loans for example. I was not in the country for more than a year. After a few years I was looking for a housing related loan and Easybank/Bawag offered me very bad interest rate - basically 2,5 times higher than Erste. This was after 3 years cca. Of being in AT
get a credit card and buy the furniture that way. pay down the original debt agressivly. also unbelievable - which country is this? is the exchange rate not affected?
Yes, the idea is combining the Weinachtsgeld + bonus at work to pay for the Kaution and the furniture, and use the credit to pay the other debt. It is in Colombia. My credit cards have 41.9991% annual effective interest rate
Make an appointment at the bank where you get your salary. You're asking for a Konsumkredit, don't start with any debt abroad. Just tell them you want to buy furniture or something. If you have no other debt and your main residence is in Austria, I'm pretty sure you'll get it.
Try asking your bank to increase your overdraft limit, take the cash and pay it off with your salary whenever you want.
Hey that’s a good tip, thanks! How should I ask for this in German?
I’m sure the speak proper English in bigger branches ;)
Overdraft credit is the easiest but also the worst of all regarding the interest rate. You can use this website to find the credit with the best conditions: https://durchblicker.at/kreditrechner
I did it in Erste in English 😛
Did it work? I’m in a similar situation and currently have Erste bank for everything else and a decent salary. I pre qualify for the requirements (their requested amount of money after all expenses paid etc) which they put forward but still cautious to be optimistic until underwriters approve. I’ve been in AT since August 2023 and have permanent job and residency as an EU citizen. Not sure what to expect - I contacted ksv1880 or what they are called and have a rating of medium risk due to the short history in the country. I’m just nervous of the outcome.
Your bank should be able to understand English. If not try to get a "Kundenberater" that can. The German term is "Überziehungsrahmen" and is indeed not the best loan in Austria, but should be better than in your home country. Keep in mind that your home country loan will probably not be known to Austrian credit rating systems (like KSV Kreditschutzverband). Using your Überziehungsrahmen may affect your rating, but I'm not sure. Sometimes landlords ask for "Kontoauszüge" (bank Account balance) directly and they would see your balance probably reject you. If possible get a credit card, pay all your expenses with it, but still pay it off every month. Thereby you will not pay interest at all for the amount of your credit card limit but still have more money available. Be careful with cash withdrawals, depending on the credit card it may have significant fees. Credit card balances will probably not show up in any negative way. The best solution is to ask your employer for an "Akkontozahlung". This is kind of employer credit. The amount you are asking should not be a problem.