Loans and term depositsLoans
Investors in Credit Adviser have their money diversified and protected by the Guarantee Fund. Abroad, it is becoming increasingly common to use the P2P sector to assess money.
Today’s Slovak consumer must be sufficiently proficient and financially literate to be able to choose the right product. Abroad, it is common to fund and teach finance at primary schools. Unfortunately, education in Slovakia does not have enough qualified teachers to teach our children to do so. They taught us how to earn money, but not how to take care of them. And the role of banks is not to educate the client, but to sell products. Fortunately, there are already companies in Slovakia trying to educate the Slovak consumer and learn financial literacy. But it is not a question of one day. Perhaps the whole generation needs to change more responsibly, even where and how to borrow their money, to make it difficult for the client to get into financial difficulties.
Credit Adviser is not able to teach Slovak consumers financial literacy day by day, but we will try to bring you interesting articles that will help you to find your way around the market.
Today we would like to point out various options to borrow and at the same time where you can evaluate your free financial resources.
Loans, consumer loans, credit cards
Financial institutions offer various types of loans and loans. Some companies offer quick loans to other cash or non-cash, another to installment systems or credit cards. Well not all, they are beneficial to the consumer. The great advantage of disadvantageous loans is their ease of handling and often they are without proof of income. At the same time, this also entails a major disadvantage, namely high interest rates, fees and a high annual percentage rate of charge (RPMN). High RPMN means high overpayment of the loan, ie how much you actually return.
Why use the Credit Adviser Euro loan option ? It is true that multiple documents are needed to process a loan application. It is precisely because Credit Adviser assesses each client individually, while at the same time ensuring consistent documentation, whether of identity, income or overall financial situation. Credit Adviser can assume the ability to repay client liabilities as well as payment discipline so that the client does not become insolvent. Although the Credit Adviser scoring system is more stringent than in banks, it is precisely for its clients that it can offer better conditions. Because Credit Adviser missed the banks, both sides have better conditions. Those who want to invest will get more interest than the bank, and conversely those who want to borrow will receive less interest than they do in the bank. All terms are transparent and the client does not pay any hidden fees except for interest. The APR in Credit Adviser is equal to the annual interest rate. There was enough theory, here is reality. We compared Credit Adviser vs Slovak banks.
Term deposits and investment opportunities
The client has several options for investing free resources. It is up to him whether he is conservative or willing to take some risk. There is a direct proportion, the greater the risk is the higher reward (interest). For those who are willing to risk, they can also invest directly on the stock exchange or through a management company. The disadvantage of investing through the stock exchange is that you never know how the market will really develop, which the client itself bears the risk of investing.
The Slovak investor can also deposit his money on a term deposit at the bank, which is more for a more conservative investor. However, the downside is their current low interest rates. Average interest on time deposits in Slovakia is 1.5% pa Some financial institutions report interest rates for the entire term deposit period and not yearly. So there is not all the gold that glitters.
What about using another option as an alternative to the term deposit of your money, but with much higher interest , but at the same time with the money back. Investors in Credit Adviser have their money not only diversified but also protected by the Guarantee Fund . Abroad, it is becoming increasingly commonplace to use money to raise money and save on retirement through loans for people because they are more profitable than what banks offer. In the United Kingdom, the British Parliament has included people-to-people loans in the ISA (Individual Saving Account) group, which is subject to income tax relief. Maybe it is a matter of time when the Slovak Parliament will also deal with it.