23.03.2023

OVERDRAFT, REVOLVING LOAN OR LINE OF CREDIT

The overdraft as well as the revolving credit are intended to provide revolving financing to the business. For both types of loans, a limit is approved up to which the borrower can use amounts. Both loans are short-term and are used within one year, after which they must be reviewed and the term extended.

In practice, the revolving credit has many of the characteristics of another type of credit - a line of credit. It represents the maximum amount of credit that a customer can withdraw within a certain period of time, and the borrower can repeatedly withdraw funds and repay them within the contract period.

What is an overdraft?

An overdraft is a credit limit on a current account, suitable for meeting short-term business needs. The amount of the overdraft is determined in relation to the bank turnover of the company. The used amount of the overdraft increases as payments are made from the company account to suppliers and decreases automatically as cash flows to the same account.

The main difference between an overdraft and a revolving credit comes from the need to request amounts to draw on the revolving credit. With the overdraft, amounts are withdrawn automatically, without the need to make a withdrawal request. The overdraft is granted as a limit on the account on which you receive your income. When amounts are received on this card account, the amounts used by the overdraft are automatically repaid.

You can have a revolving credit on another account, which will only be for the purpose of drawing and repaying the credit. Revolving credit works on the principle of a credit card - the bank sets a fixed credit limit for you, and you can not spend the entire amount, but only a part of it according to your needs. Each month, you pay installments that include the portion of the loan you used, as well as the interest on that portion.

If desired, the bank can issue you a bank card attached to the loan to facilitate you as much as possible. It's called a revolving credit card. Unlike other types of credit, where you withdraw a certain fixed amount, with the withdrawal of a revolving credit, you can use a very small part of the allocated funds and repay them quickly. This type of loan gives you more freedom.

Revolving credit fees vary by credit institution. In addition to the borrowed amount, your monthly payments also include the interest and fees due on the current obligation. For this reason, payments can often vary from month to month, as the calculations are based on how much of the credit limit you've used.

Pros and cons of revolving credit

A major plus of revolving credit is time savings for your business, as you don't need to apply constantly, and whenever you need money, you can use part of the credit.

Another convenience is the bank card, which provides constant access to the money that you can withdraw from an ATM, even when the bank is not working. With a revolving credit, the bank gives the user the opportunity to plan repayment without tying him to fixed monthly installments.

In addition to the positive sides, it also has negative sides. For example, the higher interest rate compared to traditional loans, the calculation of bank fees, late penalty interest and others make it not as attractive as it seems at first glance.

If you don't pay the minimum monthly payment on time, you may be subject to penalties. You should also keep in mind that revolving credit usually charges higher interest rates than consumer credit. Another downside is that even if you decide not to withdraw a penny from the loan, you will have to pay a commitment fee and other fees described in your contract.

In case of non-payment, the creditor has the right to block your account if you do not make your payments regularly or meet the minimum installments described in the contract. If this happens, you will no longer be able to use the money on the loan. What's more, you may have to pay penalty fees, even if they are not clearly mentioned in the contract. Some banks cleverly disguise them in the bank's "Terms and Conditions" section.

If you choose to pay only the monthly minimum, your interest rate can increase significantly. In such a case, it would be more profitable to focus on another loan than to remain on a revolving credit.

If the contract you sign with the bank or creditor does not have all possible details filled out, including the revolving period and the amount, you should not sign it. If you sign such a document, you can become a victim of an unscrupulous creditor and then not be able to prove your rights in court.

Features of the credit line

A line of credit is suitable for financing all current activities of your business, without the need to repeatedly apply for credit during the year. After limit approval, funds are disbursed by request from the client. The amount used from the line is repaid with a request submitted by the customer after his current account is funded.

With this type of credit, the creditor sets a limit for an amount that is permanently available to the recipient. The money from the credit line within the specified limit can be withdrawn and repaid at any time, with the debtor paying interest only on the used amount of the limit. After repayment of the utilized amount from the credit line under the terms of the contract, the person can apply for a new credit line.

A line of credit is a contractual agreement between a financial institution (most often a bank) and a borrower that specifies the amount of money (the limit) that the customer can withdraw. The bank may require the borrower to make minimum repayment installments when using a credit line.

The main difference with revolving credit is that a line of credit is a one-time arrangement and once it is paid off, the account is closed and can no longer be used. If you wish to open a new credit line, apply again.

In the case of the revolving or "open" line of credit, there is the possibility of re-granting the entire loan without drawing up a new contract.

Like most loans, revolving credit and lines of credit may be available with or without collateral. This largely depends on the desired credit limit and the conditions of the lending bank.

With both loans, users must have an open current account with the creditor bank. On this account, they receive and repay the loan funds, having a predetermined withdrawal limit. Interest rates are determined by the prime rate and are floating. They are repaid only on the used assets that the customer has already withdrawn from his working capital account.

The limit on the overdraft or credit line that the consumer can take advantage of depends on his monthly income and the degree of credit security. Some lenders have a requirement when applying for an overdraft that the entire amount of the monthly remuneration be transferred to the account. Often, the overdraft is granted for a short period of up to 12 months, but its extension is automatic and the credit line revolves (it is renewed after its repayment).

Although the credit line is most often used by businesses (business credit line) – companies and legal entities that regularly need liquid funds, it can also be used by individuals to cover various needs.

22.03.2023

IN WHICH CASES AM I ENTITLED TO UNION PROTECTION WHEN I AM FIRED?

According to Art. 333, para. 3 of The Labor Code, in the cases under Art. 328, para. 1, item 2 (in the case of closing a part of the enterprise or downsizing), item 3 (in case of reduction in the volume of work), item 5 (in case of lack of qualities of the worker or employee for effective performance of the work), item 11 (when changing the requirements for the performance of the position, if the worker or employee does not meet them) and Art. 330, para. 2, item 6 of the Labor Code (disciplinary dismissal), the employer may dismiss a worker or an employee who is a member of the trade union leadership in the enterprise, of a territorial, sectoral or national leading elective trade union body, during the time he holds the relevant trade union position and until 6 months after his release, only with the prior consent of a trade union body, determined by a decision of the central leadership of the relevant trade union organization. In § 1, item 6 of the Additional Provisions of the Labor Code, it is defined that "trade union leadership" is the chairman and secretary of the relevant trade union organization.

According to Art. 333, para. 4 of the Labor Code, when this is provided for in the collective labor agreement, the employer may dismiss a worker or employee due to layoffs or a reduction in the volume of work after prior consent of the relevant trade union body in the enterprise.

In order to have protection under Art. 333, para. 4 of the Labor Code is necessary: ​​a valid collective labor agreement, which expressly provides for this protection, and which applies to workers or employees - members of the trade union organization - a party to the contract, or those who have joined the contract in accordance with Art. 57, para. 2 of the Labor Code.

By virtue of this protection, the prior consent is given by the relevant trade union body in the enterprise. In each individual case, it is necessary that this body be explicitly mentioned in the collective labor agreement. The request for dismissal is made by the employer to the relevant trade union body, it must be in writing and refer to each worker or employee whose dismissal is undertaken. The request must be motivated, i.e. it must state the circumstances and considerations for which the dismissal of the named worker or employee is requested, as well as the grounds for requesting his dismissal. It must have been made before the dismissal.

21.03.2023

THE EUROPEAN GREEN DEAL: EU AGREES ON STRICTER RULES TO INCREASE ENERGY EFFICIENCY

The European Commission welcomes the preliminary agreement reached between the European Parliament and the Council to reform and strengthen the EU Energy Efficiency Directive. This agreement marks another step towards the completion of the Fit for 55 package to implement the European Green Deal and the REPowerEU plan. It reaffirms the EU's determination to become climate neutral by 2050.

For the first time, the energy efficiency first principle is given legal force with a clear requirement that EU countries take energy efficiency into account when making policy, planning and major investment decisions in the energy sector and beyond.

The agreement includes the EU's first ever definition of energy poverty. Member States will now have to prioritize measures to improve energy efficiency among people affected by energy poverty, vulnerable customers, low-income households and, where applicable, people living in social housing. The revised rules put a stronger emphasis on reducing energy poverty and providing more rights to consumers, including the creation of a one-stop shop for technical and financial assistance and out-of-court dispute resolution mechanisms.

The agreement sets an EU energy efficiency target of 11.7% for 2030, which exceeds the Commission's initial proposal Fit for 55. It requires EU Member States to collectively deliver further reductions in final and primary energy consumption compared to energy consumption forecasts made in 2020

Under the preliminary agreement, the obligation for annual energy savings is almost doubled to ensure continued progress. EU countries will be required to achieve new savings of an average of 1.49% of final consumption each year from 2024 to 2030, compared to the current level of 0.8%. They will gradually have to reach 1.9% by the end of 2030. This is an important tool to stimulate energy savings in end-use sectors such as buildings, industry and transport.

The revised rules also place more responsibility on the public sector to increase energy efficiency. Public authorities will have to systematically take energy efficiency requirements into account when awarding public contracts for products, services, buildings and construction works. A new annual target to reduce energy consumption by 1.9% for the public sector is introduced. The obligation of EU countries to renovate at least 3% of the total built-up area of buildings owned by the public administration every year now also covers the regional and local level.

Businesses will be encouraged to be more energy efficient under the revised directive. First, energy management systems will become a default obligation for large energy users. All businesses, including SMEs, that exceed 85 TJ of annual energy consumption will have to implement an energy management system. Otherwise, they will be subject to an energy audit (if their annual consumption exceeds 10 TJ). A scheme for reporting the energy performance of large data centers is also being introduced for the first time.

Under the agreed rules, EU countries will have to promote local heating and cooling plans in large municipalities with a population of more than 45,000. In addition, with the revised definition of efficient district heating and cooling systems, the minimum requirements will be gradually changed to ensure a fully decarbonised supply of district heating and cooling systems by 2050. Support for new high-efficiency cogeneration units using natural gas and connected to district heating systems in efficient district heating and cooling systems, will only be possible until 2030, while any other use of fossil fuels will be prohibited for new heat generation capacities in such systems.

Next steps

The provisional agreement now requires formal approval by the European Parliament and the Council. Once this process is complete, the new legislation will be published in the Official Journal of the Union and come into force.

21.03.2023

HOW TO AVOID A DEBT SPIRAL - WHEN THE SALARY IS NOT ENOUGH TO COVER OUR EXPENSES

We've already discussed the topic of payday loans and when (not) it's a good idea to use them. The main rule for fast loans is that they should be an exception and not become a common practice for getting out of a difficult financial situation.

But what to do if the salary is systematically not enough for you? Taking out one loan to cover another can put you in a debt spiral that will be hard to get out of. However, the same can happen with the accumulation of loans to your loved ones.

Loans from friends and relatives are also a double-edged sword. Although there is (probably) no interest with them, history knows quite a few cases in which close people ruined their relationships even for small sums. Therefore, it is good to adhere to the maxim: "Clean accounts - good friends". Here are the alternatives:

Ask for a raise

If you like your current job and the only downside is that it doesn't pay enough, then maybe it's time to ask for a raise. Schedule a meeting with your manager to discuss opportunities for growth and development within the company. You need to think through your requests in advance and clearly state to your boss what you can give in return. Be open to the idea of not only a salary increase, but also a promotion to a new position.

Look for a new job

Sometimes, no matter how hard you try, you may not get the desired increase in your salary. If your salary is systematically falling short, it's probably time to think about looking for a new job. When applying, always highlight your experience and aim for a better salary offer. Sometimes refresher courses can help you with this. Or you can retrain to a higher paying field, but keep in mind that starting from scratch is always harder.

Look for additional income

Do you love your job because it gives you great personal fulfillment and satisfaction, even though it doesn't pay you well? Then think about how to earn extra income - whether in the form of starting a side job, starting your own business or passive investments. The advantages of additional income are that you determine when, how and how much. There is no negotiation with the boss, and there is no limitation of ideas. Let your creativity work for you and think outside the box.

Don't be afraid to ask questions

When it comes to money, people often avoid talking about it because the topic makes them feel uncomfortable. This applies to both the have-nots and the haves. But to better manage your finances, you should learn to seek advice from people who have more experience. This will help you explore different ideas and strategies for managing your finances effectively. You can even get free financial advice on managing personal funds.

Create a budget and stick to it

Any financial advisor will give you one basic piece of advice – make a budget, follow it and make adjustments until it starts working in your favor. A budget should outline the ratio between your expenses and income - so that you can plan your expenses and limit overspending. Learning to spend your money more wisely will help you get ahead financially. Once you're in control of your budget, you'll be in a better position to ensure your spending habits match your savings goals.

Set savings goals

And on that line of thought – one of the most important steps is determining your short-term and long-term savings goals. Financial goals are where you want to be with your money in the next 5, 10, and 20 years. What do you want to achieve? How long will it take? What are the implementation steps? Write down your goals and post them in a prominent place to serve as a reminder and motivation. Only when you have a clear vision will you be able to make financial restrictions for the sake of your dream.

Income - Savings = Expenses, instead of Income - Expenses = Savings

By rearranging the equation, we are actually prioritizing savings over spending. This means that the moment we draw our paycheck, we allocate the money to savings and spend whatever is left after that. This limits unnecessary spending – you have to learn to say no to things you don't need. Managing your finances requires a lot of patience and hard work, but these daily "sacrifices" will definitely pay off in the long run. If you constantly work on this, your financial situation will provide you with peace of mind and expand your options for decisions that have a great effect on the quality of your life.

Change your lifestyle

As a rule, your lifestyle expenses increase as life progresses. As your family grows and your needs change, the amount of money you need to finance your lifestyle grows. Large household purchases, children's needs, rent/mortgage and any other monthly expenses can add up, especially if you spend more than you save. If you often find yourself overspending, it might be time to consider more budget-friendly purchases – like second-hand clothes and appliances. Some classifieds sites and social media groups even have items being given away.

20.03.2023

BNB WITH INFLATION FORECAST IN OUR COUNTRY

Based on managers' expectations for sales prices, our assumptions about changes in commodity prices in international markets and labor market conditions, we forecast inflation in the first six months of 2023 to follow a gradual downward trend. This is according to the forecast of the BNB, says the publication "Economic Review".

Factors that are expected to continue to have a pro-inflationary impact are the projected substantial growth in unit labor costs and private consumption, the persistence of high inflation in industrial goods in Bulgaria's main trading partners, as well as the elimination of some of the introduced by government fiscal measures. Food inflation rose to 25% in December 2022 (compared to 8.1% at the end of 2021).

This group had the largest positive contribution to headline inflation, which was due to both processed and unprocessed foods. In the group of unprocessed foods, a price increase of 22.3% was recorded on an annual basis in December 2022 (compared to 6.0% in December 2021), the analysis stated.

The subgroups "meat and meat products" and "fruits and vegetables" contributed the most to the increase in the price of unprocessed foods, which can be explained by the higher import prices of these products, as well as the increased costs of local production in line with with the rise in prices of products and services used for intermediate consumption in agriculture. Annual inflation in the processed food group reached 26.3% in December 2022 (at 9.2% at the end of 2021). The subgroup "milk, milk products and eggs" had the biggest positive contribution, followed by "bread and cereals" and "sugar and chocolate". The increase in the price of the listed foods was determined by the upward dynamics of import prices, as well as by the growth of producer prices in the processing industry in the conditions of a significant increase in the price of agricultural production in the country and higher costs of companies for salaries, electricity, fuels and other materials, emphasized by the BNB.

Regarding income, the bank reports that household incomes in nominal and real terms have continued to rise. “Gross household income in nominal terms rose by 21.1% year-on-year in the third quarter of 2022, with the main contributor to the increase being the increase in pensions, followed by growth in wage income. A year-on-year increase in the third quarter of 2022 was also reported in household income from savings withdrawals, while the amount of loans and credits received decreased year-on-year.

In real terms, annual growth in total household income also accelerated in the third quarter of 2022 from the second quarter, reaching 5.1%.

Pension income rose by 25% year-on-year in real terms in the third quarter of 2022, while wage income in real terms fell for the second quarter in a row by 3.9% year-on-year. Stronger growth in total household income in real terms, while wage income, which has a major share of total income, fell, was due to an increase in alternative sources of income for households, such as pensions, property income, sales income and social benefits.

In line with stronger growth in total income, real household disposable income growth also accelerated to 6.7% year-on-year in the third quarter of 2022, following an annual increase of 4.3% in the second quarter of the year,” the analysis said.

The BNB expects a weakening of economic activity in the first half of 2023, which will be contributed to by both the projected decrease in stocks in the economy and the expected weaker export of goods as a result of the deteriorating global economic situation and factors specific to Bulgaria.

20.03.2023

SUCCESS TECHNIQUES: STEVE JOBS' THEORY OF HAPPINESS

Six years before he passed away, Steve Jobs gave a speech that continues to resonate to this day.

"Your time is limited, so don't waste it living someone else's life," was the late Apple co-founder's message to Stanford University graduates in 2005, shortly after he was diagnosed with pancreatic cancer and learned that his between three and six months left to live.

Faced with his own mortality, he has realized the importance of living the best life one can possibly have. He was able to convey this message to the graduates and the rest of the world who listened.

Jobs' message made many people think about the things that really matter in their own lives. To this day, when we listen to that speech, we feel the need to look in the mirror and ask ourselves questions inspired by Jobs. We will all be happier if we occasionally seek answers to these three questions:

Am I living the life I want? Am I doing what I want?

After hearing the diagnosis, Jobs began to live each day as if it would be his last. The idea of the limited time each of us has on this earth is not meant to make us downcast. On the contrary, it empowers us to use this precious time in the most meaningful way possible.

Jobs called the moment he came face to face with death "the most important tool I've ever come across to help me make the big choices in life." Almost everything, he said, our fears, our failures and our pride, "disappear in the face of death, leaving only what is truly important."

If today were the last day of my life, would I want to do what I'm about to do today?

It's a question Jobs said he asked himself every day as he literally stood in front of his mirror after being diagnosed with a terminal illness.

“When the answer is no too many days in a row, I know I have to change something.” If I asked myself the same question every day at this point in my life and career, the answer would be a resounding yes!, the late co-founder shared of Apple.

We urge you to do the same. Be prepared to ask yourself the same question when you start your day. Pay attention to what is ahead of you and the feelings it makes you feel. If you're being true to yourself, it can be scary to admit that you're not living the life you want, but it's the only way to set yourself up to pursue something new—something that might just be your true calling.

Am I doing what I love?

As Jobs explained, to live someone else's life is to waste your own. Instead, he was urging you to find the role you were meant to fill.

“You have to find what you love. ... Your work will fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do," he used to say.

A study published in the Harvard Business Review concluded that to be fully engaged and happy, people need to feel that their work matters and that their contribution helps achieve something important.

When people find purpose in their work and love what they do, it will not only make them happier, but also increase their productivity.

17.03.2023

A DECREASE IN THE NUMBER OF JOB ADVERTISEMENTS

A decrease in the number of advertisements for the month of February compared to a year earlier is reported by the career site "Job Tiger" in its monthly analysis of the dynamics of the labor market in the country.

At the end of February, job offers on the leading job sites were around 46,300, which was 300 more than in January, but on a year-on-year basis, there was a decline in their number - about 2,500 fewer than in February 2022, it said in the message.

There was a drop in offers in February in most sectors. The exception is "Hospitality and restaurant industry", where the active recruitment period is gradually starting. Its listings grew by 1,200, or 19 percent growth over the previous month.

Minimal growth is also recorded in the "Manufacturing" (140 offers more) and "Construction" (60 offers more) sectors, both of which saw an increase of two percent.

In other sectors, however, the number of advertisements has decreased. The biggest drop was in the "Trade and Sales" sector (450 offers less, 4 percent drop). In the January analysis, there was a large increase in listings (+4,600) in this sector.

It is followed by the sectors "IT" (320 offers less, 6 percent drop), "Marketing and advertising" (230 offers less, 14 percent drop), "Health care and pharmacy" (220 offers less, 10 percent drop), "Administrative and service activities" (190 offers less, 4 percent drop), "Logistics and transport" (40 offers less, 1 percent drop) and "Accounting, audit, finance" (30 offers by -small, 1 percent decline).

The "IT" sector recorded the biggest drop in job postings on an annual basis. It has 2,600 fewer offers than in February 2022, a drop of 34 percent.

An annual decline was also reported in the sectors "Marketing and advertising" (-14 percent), "Administrative and service activities" (-6 percent), "Hospitality and catering" (-4 percent) and "Accounting, audit, finance" (- 2 percent).

With growth on an annual basis are the sectors "Logistics and transport" (ten percent), "Trade and sales" (eight percent), "Construction" (seven percent), "Health care and pharmacy" (five percent) and "Manufacturing" (three percent).

Fewer offers were also made for working from home and/or remote work in February - five percent. Their number is 4,600 and they are nearly 260 less than in January. The main reason for their decline is the smaller number of offers in the "IT", "Administrative and service activities" and "Trade and sales" sectors. The distribution of these proposals is: 62 percent in the "IT" sector, followed by "Administrative and service activities" (14 percent), the outsourcing industry sectors (12 percent) and "Trade and sales" (6 percent).

According to the breakdown in the analysis of the career site, the total number of advertisements in the leading regional cities has decreased by two percent. The largest number of advertisements are in the capital, Dyalovo - 44 percent, followed by Plovdiv (ten percent), Varna (nine percent), Burgas (4 percent) and Ruse and Stara Zagora with three percent each.

There was a 4 percent increase in job postings for refugees – 2,300, which is six percent of all postings.

17.03.2023

SUCCESS TECHNIQUES: NO MORE BURNOUT

When it comes to leading, working and living, we all experience stress, but there are ways to deal with it and avoid excessive levels that lead to burnout. You can try making four changes in your thinking that can help you avoid stress and make you more efficient:

Prioritize self-care

Make time for activities that nourish your mind, body, and spirit, such as exercise, meditation, or spending time with loved ones. This can help you recharge your energy and support your mental and emotional well-being, which in turn will make dealing with stress more effective.

Do not put yourself under extra stress

Free yourself from perfectionism and the pursuit of constant excellence. Learn to recognize when you are being too hard on yourself. As a result, you can reduce the strain you put on yourself. This can help you deal with stress more effectively and avoid burnout.

Change your thinking

To be flexible as a leader, you must constantly change your perspective. The same goes for stress. When you view a situation as a problem to be solved, you may feel more motivated to find a solution; you may believe that things are under your control. This shift in perspective can help you manage stress and avoid burnout. Also, seeing a situation as a problem instead of a threat can reduce stress levels.

Find out what your limits are

It's important for leaders to know exactly where their capabilities stretch, because trying to do it all yourself can be overwhelming and lead to burnout. Instead, it's better to be honest with yourself and others about what you can and can't do, and ask for help when you need it. This can help you manage your work responsibilities and workload more effectively, and can also foster a sense of collaboration and support within your team. If you don't have the opportunity or time to do something, be honest with yourself and ask for help.

These four mindset shifts can help you better manage stress and avoid burnout by bringing your purpose back into focus and giving you more clarity on what you really want to achieve.

16.03.2023

THE PRIME MINISTER OF ROMANIA HAS APPOINTED AN AI-ASSISTANT AS AN ADVISER

Romanian Prime Minister Nicolae Chuca introduced a robot named ION, gifted with artificial intelligence, and appointed him as his adviser. The Prime Minister emphasized that ION is a Romanian project developed by Romanian researchers. Its name is a mirror image of the word NOI, which means "we" in Romanian, News.ro reports.

"He will be given the role of Honorary Advisor to the Prime Minister, and I appreciate that he will help us better serve the Romanian citizens by informing the government in real time about the proposals, problems and wishes of the Romanians," Chuca said.

The Liberal minister said the newest member of his entourage - a mirror-like structure with a sound interface - was a "first of its kind international event", describing ION as "the first government adviser to use artificial intelligence".

“Hello, you gave me life and now my role is to reflect you like a mirror. What should I know about Romania?” said the voice of ION at the launch.

ION "will use technology and artificial intelligence to capture public opinion," using "data publicly available on social networks," according to a government document detailing the project.

People in Romania will also be able to chat with ION on the project website.

"I am convinced that the use of artificial intelligence should not be an option, but an obligation to make more informed decisions," points out Chuka.

Romania, one of the poorest countries in the EU, is often described as the 'Silicon Valley' of Eastern Europe with a thriving start-up scene.

16.03.2023

HOW CAN WE PAY OFF A QUICK LOAN EARLY

Fast loans are becoming an increasingly significant source of funds for Bulgarians. From the online platform "We, the users " give valuable advice for people taking out such loans.

"If the user had an urgent need for money, but already has free funds, he should know that at any time he can repay the loan ahead of schedule - in full or in part. In this case, the creditor has no right to demand the interest and expenses for the remaining part of the term of the contract", explains Gabriela Rumenova from "We, the users".

"The borrower does not owe compensation or a penalty in the following cases - when the loan is repaid in a period during which the interest rate under the loan agreement is not fixed, the repayment is made on the basis of a payment under an insurance contract aimed at guaranteeing the return of the loan, or the contract is in the form of an overdraft," Rumenova points out.

In all other cases of early repayment, the creditor is entitled to compensation. However, it cannot exceed 1% of the early repaid loan amount - with a remaining contract period of more than one year, and 0.5% - with a remaining contract period of less than one year.

Another right of the consumer is to withdraw from the credit agreement within 14 days of its conclusion or from the day on which he received the conditions under it. In this case, he does not owe penalties and compensation to the creditor, with the exception of the costs incurred by him to public administrative bodies, which are not subject to reimbursement.

Important!

"When exercising the right to withdraw from the contract, the consumer must send a notification to the creditor before the expiry of the deadline in which he has the right to withdraw (14 days). Then, within a period of up to 30 days, he must return to the creditor the amount withdrawn plus the interest for the days from the granting of the loan to the return of the principal, applying the interest rate specified in the contract. And another important thing - the right of refusal applies to loans over BGN 400, "We, the users" explain.