It is not uncommon to have a lot of smaller credits that cost a lot each month. This can for example be short at electronics companies, clothing stores, etc.

Other credit is smaller private loans etc. which can be taken as these also have high interest rates to be paid. A good option for those who have this is to try to collect these loans for a larger one that is cheaper.

Why you should collect the loans

We have already almost answered this question in the introduction when we talked about that it is a big cost that these smaller loans often carry. It is therefore possible to save a lot of money each month which is reason enough to try to collect the loans.

Furthermore, it is also much better when it comes to the overview of the economy as it gives to have all the loans pooled in one place. Instead of having a variety of smaller credits, it’s just a loan to keep track of.

A slightly more concrete example

Say you have four loans of USD 25,000, USD 20,000, USD 35,000 and USD 5,000. These all have fairly high interest rates, say between 15 and 20%. In total, you owe about USD 85,000. If you could instead get a single private loan of USD 85,000, and pay off all the other loans, where your interest rate is only 8%, that would mean a substantial interest rate cut. In addition, you would have to avoid notification fees and any other fees for the old expensive loans.

You would have a rather cheap loan instead of four expensive loans. You would lower your monthly cost a lot for your loans and even as I said have better overview since you only have to pay on a single loan. It is a good option for saving money.

What type of loan is suitable for those who want to collect the loans

It is important to get as cheap a loan as possible when you collect the loans and thus it is best to try to get a mortgage. But this requires that you have a home that is currently not fully mortgaged for it to be possible. Something that far from everyone has.

If you should, our tip is that you contact the lender where your mortgage is located and talk to them if it is possible to borrow more money on the house to settle the other debts.

Making money is not an exact science and is something that is available to everyone. Some will have more ease. For others it will be more difficult. To facilitate your path, we suggest that you pay attention to 5 tips that will help you save and make money over time.

To Save Money You Can’t Spend More Than You Earn

A beautiful phrase that seems impossible for many people. Unfortunately, many have made the habit of turning to credit quite often, especially credit cards, which turns out to be halfway to financial ruin.

To spend less than you earn you will need to have strict control over your money, which implies making your budget. And if you keep in mind, you’ll see that you can cut a lot of costs which will help you save money every month.

Start Saving Money the Long Before

Assuming for sure that we have to spend less than we earn, space is created to save money every month. The earlier you start your savings effort the greater the savings you will make and the greater the return you will get on the financial markets.

You’ve probably heard of compound interest. In a nutshell, the interest you get on an investment will generate interest in the future. And all this interest together will also generate additional interest, in a move that strengthens over time, creating a very interesting “snowball” effect.

The Greater The Return The Greater The Risk

A maxim that is often overlooked but is a truth in everything we do. The greater the return that is promised to us The greater the risk that we will have to necessarily run. It is essential that we do not forget this reality, otherwise we will have huge financial losses. In Portugal, we have had countless cases where investors have forgotten that it is impossible to earn more than others without taking more risks … the result was dramatic …

Diversify Your Risks To Make Money

In order to improve the relationship between the risk incurred and the obtained / expected return it is essential to diversify the risks of your investments by different assets. The idea is to “not put the eggs all in the same basket”, spreading the risks through different baskets are just to guard against the fall of one of the baskets. Additionally, it is of little value to choose several baskets if all are connected. This will imply that some baskets will drag the others in case of fall.

In the investment world, diversification involves choosing assets from different classes, such as stocks, financial obligations, products with less risk such as time deposits or certificates of public debt, among others. Investments in other markets, such as the real estate market, make sense in markets other than Portuguese. In Portugal I do not recommend it given its poor liquidity, fiscal problems and the lack of transparency of real estate investment funds.

Saving Money With Auto Plans

We often cross with people who tell us that it is impossible to save. As we speak we realize that people save every month. How to explain this incoherence?

The explanation is simple: if we become the automatic process we end up saving without realizing it and we forget. And if we forget it is because we can save every month without great sacrifice. Maybe the first month will be a tougher month, but as time goes by, we’ll adapt … and save every month on instruments that earn us interest … which in turn will yield other interest (do you remember compound interest? ) and increased the size of your bank account.

Offer Tip: Do Not Call Your Account Manager

The account manager that the bank assigns you are the commercial service and we should treat you like the bureaucrat. Look at him as someone who gives us some information, who solves some problems and is there for what we need. Please note that the recommendations of the account manager are recommendations that will generate returns for the bank.

When the banks went through an unprecedented liquidity crisis, what was the bank’s financial product? Were not the term deposits? But why propose these products when products like stocks and bonds were giving returns two to three times higher (though at higher risk … or not). Banks needed our money not to close doors so they sold what suited them. As they currently have excess liquidity … what rate do they give on deposits?