Refinancing debts, what is it? Debt financing

Do you know what debt refinancing is ? Do not worry if you do not know it since let’s explain what all this consists of.

The refinancing of debts or refinancing of loans consists of canceling the loans or debts that we have over replacing them with a new debt either in the form of loans or under any other formula.

The usual thing in that sense is that the refinancing of debts is carried through loans that we use to cancel the previous loans or debts that we could have for others more flexible.

When is a debt refinancing done?

By power you can do it whenever you want, although from experience it is usual to do it when we need to cancel unpaid debts or when we want to take an expensive loan for a cheaper one.

That is why it is said that the refinancing of debts is often confused with the grouping of loans even though they are really different loans.

Refinancing is something that in fact can be done with the same creditor entity with which we have signed the debt.

That is, if you have a debt such as a personal loan with a bank and you want to change the conditions of such financing, you can request the refinancing of the debt with that entity to see if they accept it.

Because refinancing basically means changing the conditions of a debt or a loan with different ones.

It is evident that if the same loan conditions were maintained, carrying out a refinancing would be 100% meaningless.

The refinancing has to start from a logic because otherwise it is better not to do anything.

We must bear in mind that this type of management many times what they cause is an increase in indebtedness because when signing a new financing customers return to pay commissions, expenses for signing the loan.

Hence, it is said that the refinancing of loans as well as other loans as the grouping should only be carried out in situations where you know very well what you want.

Refinancing unpaid debts?

It is also an option although, as is logical, it is also more difficult to achieve.

At the level of processing for the financial it is not the same to have to refinance debts when they are unpaid than when they are up to date.

Right now financiers who are willing to refinance debts without collateral are few, and both those with collateral and those without collateral will always do the management through private capital.

The traditional banking and financial entities have to be completely discarded because they are not a type of financier accustomed to carrying out these financial procedures.

The ideal from a financial point of view is that the refinancing comes from an intention to change creditor entity and not for a default.

There are people who may want to simply change creditor because they feel that they are not interested in continuing with them.

And it is advisable that if you do this you always do it when the debt is up to date and not when it is unpaid.

18 tips for saving during the holidays

With the holiday season just around the corner, there are also important expenses: gifts, events, parties, dinners, family get-togethers, etc. It goes without saying that these expenses can have a detrimental effect on your personal finances. You wonder sometimes if it is even possible to spend this time of year without getting into debt. Fortunately, there are several easy-to-apply tips that can help you survive the holiday season, even on a tight budget:

  • Budgeting : You probably already have a budget for the rest of the year, but it’s important during the holidays to include expenses such as gifts and outings in your calculations. After all, there is nothing that spoils a holiday souvenir more than a salted credit card statement in January.
  • Make a list : Your list should include all the people for whom you want to buy gifts and what you want to offer them. This will help establish a concrete goal without spending more than you can afford.
  • Respect your list! If there is an item that is not there, it is not necessary. Find out what you want to buy by entering the store and get out as soon as possible. Do not be tempted by the compulsive desire to buy!
  • Take the time to shop for the best price: The perfect gift will bring a smile to your loved one’s mouth whether it cost you a fortune or not; you have access to the internet, take advantage of it to find the best price before buying.
  • Do not forget your coupons : coupons are a simple and effective way to make real savings during the holidays. Do not leave money on the table!
  • Take advantage of sales : You do not have to wait until November or December to buy your gifts. If you find something on your list at a reduced price, take advantage of it to save the cost during the holiday season.
  • Speaking of sales : Many traders offer liquidation sales in late December and January to sell off their surplus Christmas merchandise. Ideal time to prepare your supply of gift cards, wrapping paper and any other items that may not be useful immediately, but will save you significant amounts next year. And who knows, there may be the perfect gift for your someone on your 2015 list!
  • Be creative! : There is no more precious gift than the one you have carefully created yourself. If you have a talent for drawing, cooking, whatever it is, you can sow joy and save at the same time. The internet has all kinds of ideas to inspire you during this winter season. Enjoy your talent and get to work!
  • Decorate less : Yes, you understand correctly. It is possible to decorate too much during the holidays. In addition, in many cases, by placing less decoration more strategically, the aesthetic effect can be magnified. In addition, using only decorations that are dear to you, the effect would be even more impressive to you.
  • Participate in gift exchanges : When you see that the names on your list are multiplying and your budget is shrinking, it may be a good idea to try to make a secret gift exchange instead of buying a gift for everyone. In this way, you only have one gift to give and no one will be disappointed. This is a good strategy for parties with friends and office parties – your budget will be saved so that you can better participate in the family celebration.
  • Avoid misusing fairy lights : It may seem perfectly normal to illuminate your entire block to celebrate Christmas, but in reality this practice can be harmful to your Hydro-Québec bill and, let’s face it. it is not necessary. So save energy and money during the holidays and show discretion by installing your lights.
  • Mission: Black Friday : If merchants in your area offer Black Friday sales, you might find the best prices of the year. So put on the dial, get up early and enjoy!
  • Personalize your gifts : The price of a gift is immaterial when it comes from the heart. A gift well thought out and useful to the one who receives it can have an immense sentimental value. Take time to think about the person to whom you are giving your gift, what they like and what they need. Your gifts will be a great success and you could even save a lot of money.
  • To celebrate is not an obligation : If you are invited to several parties and suppers, it is not rude to apologize for the few ones; especially if you go to see the same people several times.
  • The Christmas dinner should be a team effort : The Christmas dinner is a huge expense. It should not fall on the shoulders of one person. By asking all guests to bring a dish they have made themselves, you can save time and money, and at the same time the evening will be a little warmer thanks to this participation.
  • Create and deliver your own Christmas cards : Christmas cards do not have to come from Hallmark. You can design and create maps yourself using recycled materials, custom color choices and your imagination. They will be unique and precious. Deliver them to your loved ones and neighbors by hand and they are guaranteed to be well received.
  • Make charitable donations : In lieu of gifts, you can make charitable donations on behalf of your loved ones. Put a copy of the donation receipt in their Christmas cards and enjoy the holidays to help those who need it most.
  • Take a break : The holidays can be a difficult time. Know that crushing stress will not help you save or budget. Sleep, take care of yourself and give yourself some rest before facing the excitement of the holidays. Your bank accounts will thank you.

Can you invest money without risk

In spite of the crisis you have managed to save some money and you want to invest it but you do not dare because you fear losing it if you do not invest it well? It is normal, it has cost you a lot to save it and you need a guarantee to invest your money with the minimum possible risk.

The first thing to keep in mind is that both 2014 and the previous years have not been a good year for investments and deposits. Despite this, the market continues to offer a series of opportunities to invest without risk , or minimizing it to the maximum.

Keys to invest money without risk

  • Pay off the debts that you have with the banks and that have high interests . If you have a mortgage or a personal loan requested, this may be your best investment since you will soon lower the interest that the loan is generating and when you have it settled it will be the moment when you can think of other investment alternatives.
  • Opt for paid accounts. It is a type of bank account that offers a certain profitability according to the balance that is in it. It offers total availability of the money that is in it. When hiring, you must be aware of the interest they offer and from when you start counting (if the first euro or require a minimum balance). It is also necessary to know if they charge commissions (service, transfer, cards, etc.) as this could reduce the profitability of the investment.
  • Betting on fixed-term deposits . They do not offer many benefits because the interests are very low, but there are still some that are 2% APR. Keep in mind that when choosing a fixed deposit you have to see how long we want to have the money invested and especially if there will be a penalty if you need to cancel early. The ideal is to choose a deposit that you can have your money invested at any time and without being penalized for it.
  • Choose a savings insurance. It is a very fashionable product that has a profitability of more than 2% in most cases. In addition, if the money contributed is for a long time, they usually incorporate bonuses that can reach up to 8% of the money contributed. It is a type of investment with little complexity and also, in almost all savings insurance, you can rescue the capital invested when needed.
  • Test structured deposits with guaranteed capital . It consists of a type of deposit that is referenced to stock or stock indexes. The profitability is quite high but its main risk is that they depend on the underlying assets to evolve favorably.

These are some of the investments that are considered “safer” and less complex nowadays in the world of investment. However, there are always other alternatives that can lead to more or less risk but which are undoubtedly much more complex to manage such as: buying bonds, debts, stocks, currencies, etc.

How do you invest your savings? Do you consider that the alternatives offered in the post are a good investment option? And above all, do you think they involve investing without risk or with minimal risk? Tell us about your experience … We are waiting for you!