Debtor’s commandments, or how to get out of the loop of obligations

Our hero is 30 years old, works as a salesman selling advertising space in one of the Polish publishing houses. He is employed on the basis of an employment contract, but a large part of his salary is bonuses and bonuses for implementing sales plans. His earnings twice exceed the national average, thanks to which he receives a monthly salary of 7,000. USD.

High work efficiency makes him forget that his fixed salary is only 2,000. USD net and the remaining amount are bonuses and bonuses. He lives in the capital, in an apartment he inherited from his grandmother. Thanks to high earnings, he managed to collect several thousand savings, which he placed on the bank deposit. He decided that they would be secure if he lost his job.

First credit card …

First credit card ...

The credit adventure begins innocently. First, as a reward for a client internship, the bank grants our hero a credit card with a limit equal to his monthly net income. Without hesitating, the card accepts and immediately finances the purchase of a trip to Majorca.

I am glad that he will not have to pay back the card immediately, and the bank will require that he repay only 5% of the debt every month. He does so too, leaving the repayment for later. He considers that USD 250 of the monthly installment will not affect his monthly budget.

First installment purchases


Returning from vacation, our hero dreams of buying a new TV. He finds a large-screen LCD TV worth 3000 USD, which he buys in installments. The store receives a proposal to spread the purchase over 20 installments, to which interest will be added monthly in the amount of 1% of the value of the purchased equipment. So he believes that it is better not to touch the savings since the store has such an interesting offer.

A month after the first repayment (USD 180), the bank that granted the installment loan sends our hero another credit card, with the limit set at 5,000. USD. With this help, the hero immediately buys a home theater and spends the remaining limit on the card for grocery shopping. He decides to pay them back later.


Our hero, encouraged by current expenses and dreams realized thanks to them, decides to buy a car. He decides to buy a two-year Opel Astra for 40,000 USD. He considers that the formalities related to taking a car loan are too complicated and his bank provides promotional cash loans.

The monthly installment will be 50 zlotys more, but you will not have to establish a car loan collateral, which will speed up the purchase and will not be an obstacle to any resale of the car. This loan, with an interest rate of 15% per annum, taken for 5 years will cost it USD 1040 every month.

Stairs appear, no bonus is paid

Stairs appear, no bonus is paid

Our hero’s employer is in financial trouble. Due to the fact that our hero is the best salesman in the department, he is not afraid of losing his job. However, it turns out that the bonuses paid out on a monthly basis were determined on a discretionary basis.

By the decision of the board, all bonuses are withheld, and our hero’s monthly income is reduced by USD 1,000. As a result, his income “on-hand” falls from 5 thousand. USD to 4 USD.

The bonus also down

The atmosphere at work sits down. Our hero begins to look for another job, distracted. He still receives bonuses for the result, but it is just USD 1,000. As a result, his monthly net income fell to 3,000. USD. It is enough in installments, but for the first time, our hero realizes that this month he will have to leave the car in the garage, because shopping and rent are still enough, but not for gas.

Looking for another job

Our hero is already getting closer to signing an employment contract in a new company. It is to start in three months, and its income is expected to return to its pre-crisis level, thanks to which it will calmly return to last year’s standard of living. Calls are dragging on so he has not yet given notice. But because he has already “almost” signed a contract in a new company, he will decide to take one more loan.

This is a cash loan, based on a statement, from the bank that financed the purchase of the TV and a second credit card. Both liabilities are repaid by our hero out of textbooks, so the bank grants a new loan. USD goes to the account, and the next monthly installment is USD 130.

Loan for GFI 2020 – is it possible to obtain it?

A mortgage allows you to obtain money from a bank for, among others for the purchase of the residential property. Can such a loan be obtained if the subject of the investment carried out by the borrower is a GFI flat?

It is good to know how banks view such lending purposes and whether investors will be able to take out a cash loan in such a situation.

What are social housing associations (GFI)?


GFIs have been created in Poland for over 20 years. This term refers to residential premises built by social housing associations – in short GFI. S tus tus usually has a municipal company operating on a nonprofit basis.

The construction and management of GFI-type apartments are not aimed at generating profit for these companies. Their primary goal remains to meet the housing needs of the society from the given commune.

The history of GFI begins around the second half of the 90s of the last century. Their creation was made possible by the Act on certain forms of support for housing construction of October 26, 1995.

According to the act and its art. 23 social housing associations can be created in the form of limited liability companies, joint-stock companies or cooperative legal entities.

Characteristic for GFIs is that they operate in the area specified in the contract or their statutes, and their income can not be allocated to partners or their members. The subject of GFI activities is the construction of residential houses and their operation on a lease basis.

Can I take a mortgage for an apartment in GFI?


People who do not own residential real estate and cannot afford to buy an apartment due to low income and insufficient creditworthiness, as well as those who cannot afford to rent on market terms, can take advantage of the offer of GFI apartments.

The Act on certain forms of support for housing construction defines the income criterion that must be met by persons applying for a GFI flat. The limit varies depending on:

  • voivodship in which the GFI building is located;
  • household size;
  • the period in which the apartment was built, and whether participation was required.

In order to receive the keys to a GFI apartment, you have to pay considerable costs, including:

  • a deposit of up to one year’s rent,
  • participation, which can reach up to 30 percent apartment prices.

Many Poles interested in living in the GFI premises do not have the funds to finance such an investment. Can I take a mortgage on GFI? Will the mortgage cover the costs of participation and deposit?

Unfortunately, this is not possible because residential premises that were built as part of social housing associations cannot be secured by a mortgage.

All because the customers who buy them are not the legitimate owners of the property, but only tenants of the apartment. A loan for a GFI flat can be taken in a form other than a mortgage.

What credit can be used to participate in GFI?


The fact that you cannot take out a mortgage for participation in GFI does not mean that banks are not willing to finance their clients’ investment. What credit for GFI should be taken to get a chance to live in an apartment built by a social housing association?

Coverage of participation costs in GFI in the amount of up to 30 percent. we can secure real estate values ​​by taking out a cash loan or mortgage. Banks grant cash loans for the implementation of any credit purposes by the customer. So he can spend money from a cash loan to cover the cost of participation.

The disadvantage of cash loans is their low amount and relatively short loan period. However, this loan can be taken from some banks even within 15 minutes of submitting the loan application.

The formalities that a potential borrower must complete are kept to a minimum. On the other hand, the mortgage loan will also cover the costs of participation in GFIs, but at the same time, it can be granted on more preferential terms, even for 30 years, which will reduce the amount of the principal and interest installment.

A mortgage loan may be granted in a fairly high amount, but it requires collateral in the form of a mortgage established on a residential property, which cannot be a GFI premise, but another property.