Cession of the Fifth Agreements


You hear a lot about the sale of the fifth salary, you’re probably wondering if this type of product can meet your financial needs.

It is right to ask the questions of the case, but above all to inform yourself and to have the answers, so as to be aware of what you choose. Subscribing to a contract that concerns a few thousand euro or tens of thousands of euro, involves a commitment and a loan contract that will keep you tied for a certain period to the bank or the financial institution that you have carefully chosen, with repercussions over time important.

In this article, we intend to let you find out whether or not you need to make a salary or retirement allowance , and we suggest some elements to be explored if you decide to favor this product.

What is the assignment of the fifth

The Cession of the Fifth is a special fixed rate loan online or offline . As well as by its very definition this type of financing provides for the transfer of part of your salary , or a fifth of the salary / pension, the applicant will be asked for a monthly repayment with a constant installment, deducted directly on the paycheck or coupon of the pension, in fact the employer or the social security institution will use the remuneration to make the payment of the installments.

Regarding the “fifth” limit is established by law, as this value has been defined to avoid excessive indebtedness, in fact this product will not allow a deduction of more than 20% of the net salary.

Do you need more liquidity? You could consider asking for the proxy loan, which will allow you to commit another fifth, this choice will involve “weighing” for a maximum percentage of 40% on your salary.

But is this loan really worthwhile? Together we evaluate the strengths and weaknesses of this product.

Because the assignment of the fifth is convenient

Unlike what happened about 10/15 years ago, the sale of the fifth today is not considered a limit solution with which you can get the liquidity necessary to meet your needs, in fact today this is a valid financing formula taken into account as the others.

In fact, the transfer of the fifth is very valid as it allows you to have excellent economic conditions . Being a type of credit defined as “safe” by banks and financial institutions, the latter will provide good conditions; it is in fact an insured credit, which obtains the priority of repayment with respect to other forms of loans.

The assignment of the Fifth as anticipated is a form of financing guaranteed by law , in fact there is a specific legislation assignment of the fifth that regulates this type of product. If you encounter problems during the course of the loan, such as the invalidity or loss of your job, the insurance policy is completely covered by the debt, which will avoid burdening the user or his loved ones.

Why is it convenient to ask for the Cession of the Fifth? Because it will be the bank or the financial company to take care of the whole practice, they will also take care to make the request to the INPS of the transferable quota or to the employer of the salary certificate.

Because it is NOT the assignment of the fifth

The costs of the sale of the fifth are on average higher than consumer credit and traditional loans.

The reason for the higher costs is to be attributed not so much to the nominal annual rate percentage that is applied to the sum that will be financed, but to the accessory costs which can not be excluded. The most expensive expense to bear is the insurance policy, which generally weighs approximately several thousand euros.

Another aspect to be evaluated is that the sale of the fifth is not easily renegotiable or consolidable , in fact it is not possible to proceed in this direction in a short time. The user has the opportunity to renegotiate therefore revise the contract, extinguishing the old debt and lighting a new one, but this operation again involves the payment of ancillary costs.

Finally, some people prefer not to choose the loan by assignment of the fifth salary because it is necessary to involve and inform the employer, as it will be himself to cut the sum of the installment from the paycheck. Not all workers wish to communicate their debts to the employer, therefore, they prefer more ordinary loans.

How to understand if the assignment of the fifth TI agrees

According to what is written in this article it should be clear that it is not possible to establish absolutely, if the loan with the transfer of the fifth is a convenient loan or it is not; each case and each person must assess their needs and determine if this form of credit is the best choice by evaluating the characteristics of the product described here.

In order to make an evaluation, we also recommend checking the APR of the assignment of the fifth choice and comparing it with other proposed transfers but also with other types of financing . This is a quick and very simple method that will allow you to predict the real cost of the loan.