9 Ways of Personal Financing

1-Borrowing from friends and relatives: the most conservative way of financing

Financing costs: gold is easy to get, but debts are difficult to repay

Suitable for the crowd: people with fixed income and fixed deposits, but only those who have difficulty in cash flow for a while

The so-called brother-in-law settles accounts, this remark hurts the harmony between relatives, but if you are in urgent need of a sum of money, and you do not intend to use financial tools to help you, then it should be a good way for relatives to lend to each other.

Compared with financial instruments, the procedure for borrowing money between relatives is much simpler. If you are borrowing money from your parents, you only need to inform them about the purpose of the funds. As for when to repay, your parents generally do not set the final repayment date; if you are borrowing money from other relatives and friends in the family, you need to follow the general procedures for borrowing. , neatly write an IOU, and sign the name of the borrower and the date of the loan; if you are borrowing money from a friend, in addition to the IOU, you should take the initiative to make a commitment to repay the principal and interest, according to the borrowing experience of many people., even if your friend has not raised the interest issue with you at all, you should pay interest to the other party according to a certain percentage when repaying the loan.

Comments: To borrow money from family members, you must distinguish the difference between borrowing and gifting. A parent is a parent, and wealth is wealth.

2-Consumer Loans: Reasonable Interest Rates

Financing cost: The annual interest rate does not exceed 5%

Suitable for the crowd: high-income people

If your household income is high, you can obtain a consumer loan with a low interest rate and a moderate term. The following is an example of Bank of Communications.

First, you need to hold the housing provident fund co-branded card of the Bank of Communications, and then issue an income certificate from the unit (if you are married, you need the income certificate of both husband and wife). Then you can apply for a consumer loan from the Bank of Communications. The loan can be used for all POS consumption or to support the consumption of the Bank of Communications online payment, just like a credit card. All consumption will be automatically divided into 12 installments to repay the principal and interest in equal monthly amounts. After the arrears are returned, the amount will be automatically restored and can be recycled, which is very convenient.

There is almost no difference between consumer loans and credit card consumption. The difference is that consumer loans have no consumption points, no interest-free repayment period, and no cash withdrawal, but the advantage is that the interest rate is very low, and the interest is paid after use, unlike other loans In that case, interest will be paid from the application, whether you use it immediately or not.

Comments: It is understood that the annual interest rate of consumer loans does not exceed 5%, which is a very low interest rate loan, and does not require any pledge. The only restriction is that those with higher incomes are required.

3-Pawn financing: save the capital chain in the fastest one hour

Financing cost: The monthly interest rate is 2.5%-3%, and the rate will be calculated on a daily basis from the second month

Suitable for the crowd: people who own valuable items and are waiting for money in a short time

Pawnbrokers, once the source of income for declining families in the old society, are now open to all those in a hurry for cash. From a real estate car to a small camera or a ring, as long as the discerning person in the pawn shop believes that the things you bring are valuable, you can get the cash you need in as little as an hour. For the collateral you send, the pawnbroker will tell you a last redemption date (usually two to three months), after this date, the thing will be handled by the pawnbroker itself.

From what we know, pawnshops have been receiving high-level collaterals recently. According to the data released by Baoruitong Pawnshop, as of September this year, the pawnshop’s vehicle pawns have increased by 4%, and the value is 500,000 yuan. The pawns of the above-mentioned high-end vehicles have increased by 25% compared with 2008. At the same time, dozens of famous cars with a value of more than 2 million yuan have appeared this year. Not only the car, but also someone who just used a famous watch as a mortgage and received 280,000 yuan in cash from Baoruitong.

Perhaps because pawn shops come from the people, they have always been regarded as places to solve the problem of food and clothing for the common people. Therefore, “fast time and less formalities” is a major advantage of pawn shops. From the perspective of the loan interest rate level, including the management fee, the monthly rate of the pawn shop is 2.5% to 3%, and the rate can be calculated on a daily basis in the second month, and the interest rate level is not high.

Comments: If you are pawning your favorite thing, we advise you to borrow it early and return it early. Because in many cases, your beloved things are seen by those who specialize in buying things in pawn shops, even if you are only one day late in repayment, the things may not be yours.

4-Bank Unsecured Line of Credit: ‘No Guarantees’ May Be a Pretend

Financing cost: annual interest rate 8%-9%, up to 50%

Suitable for the crowd: high-income white-collar workers, skilled technical people

With loans to buy cars, loans to travel , and loans to renovate houses, under the background of Chinese banks’ “reluctance to borrow”, the willingness of personal credit consumption is still very strong. To meet this demand, many banks are busy using their products to seize the unsecured credit market for personal consumption.

As far as we know, in order to attract customers, foreign banks mainly focus on fast loan cards. The slogan “Lending in the fastest one hour” has almost been used by many foreign banks, and the maximum loan time limit of 3-4 working days has also attracted the attention of many customers.

However, since such products are not warranted, the product interest rate level is higher. Many products are sold with the slogan that the annual interest rate is 8%-9%, and regardless of whether the central bank will adjust interest rates in the future, the repayment interest rate of customers in the last few months or years will be locked in this range. In addition, the bank charges a monthly management fee of 0.49%, and the actual repayment interest rate is as high as 12%. If some products are returned according to the longest term, the actual repayment interest rate is close to 50%. In addition, if you plan to repay early, you will also pay a liquidated penalty as required by the bank, which is equivalent to 5% of your remaining principal.

Comments: According to the feedback of many customers who have done such loans, the cost of unsecured credit loans is too high. It was originally an emergency. As a result, the temporary debts will need more funds to pay off, and some of the gains outweigh the losses.

5-Consumer finance company: interest rate level is only lower than usury

Financing cost: no more than 4 times the central bank’s loan interest rate for the same period

Suitable for the crowd: people with higher income

According to a person from the China Banking Regulatory Commission, the purpose of establishing a consumer finance company is to provide new and alternative financial services for individual customers that commercial banks cannot benefit from, and to meet the needs of different groups of consumers at different levels. , Unsecured, Unsecured. The main scope includes consumer purchase of household appliances, house decoration, personal and family travel, wedding, education and so on.

According to sources, as of now, only Bank of Beijing has applied to the CBRC to establish a consumer finance company in Beijing. In order to prevent consumers from excessive consumption, the “Pilot Measures” stipulate that the balance of consumer loans issued by consumer finance companies to individuals shall not exceed 5 times the borrower’s monthly income. Regarding the interest rate of such loans, the China Banking Regulatory Commission said that although it is priced according to the risk level of the borrower, the maximum cannot exceed 4 times the loan interest rate of the central bank for the same period.

According to regulations, loan interest rates that are more than 4 times higher than the central bank’s benchmark interest rate are usury loans, and consumer finance companies just hit the edge here. However, compared with other short-term financing methods, the interest rate of 4 times is already a very high interest rate level in the same product.

Comments: This type of company is somewhat similar to the unsecured loan products offered by banks, but the company’s market penetration rate is not high, so you can pay attention and don’t participate.

6-Credit card overdraft: easy repayment

Financing cost: about 19% annual interest rate

Suitable for the crowd: People with unstable income

Credit card consumption, and then the monthly repayment is not less than the minimum repayment amount. This consumption method is expensive, but the threshold is very low. It has been reported that some young people spend excessively with credit cards and eventually become card slaves. Although it is said that you are smart when you spend money, you must also be smart when you repay.

Using a credit card for overdraft consumption, there is a basic premise, that is, the minimum repayment amount must be returned on a monthly basis. So what kind of person is suitable for using a credit card overdraft?

For example, a freelancer can generally earn 200,000 yuan a year, but it is difficult to say when this income will arrive. Then he can use a credit card to pay for daily consumption, and then wait for the income to be paid in one lump sum, so as to ensure that neither loss The quality of life, and not being able to reach out like relatives and friends, is a method that does not ask for help. However, credit card overdraft consumption needs to be used by people who have a source of income. If you are a civilian, it is better to reduce expenses and consume rationally.

Comments: The annual interest rate of credit card overdraft is about 19%, which is a relatively high borrowing channel. It is not suitable for long-term borrowing. Generally, it is only used for emergency. Cardholders should pay attention. blacklisted.

7-Credit Card Installments: Affordable

Financing cost: The annual interest rate is about 9%-15%

Suitable for the crowd: people with stable income

People with unstable income are suitable for overdrafting with credit cards, but if they are wage earners with stable income, it is suitable to use credit cards to pay in installments. For example, the same annual income is 200,000 yuan. After spending 100,000 yuan, if you apply for 12 installments, and then use your monthly salary to repay the monthly amortization of the arrears, the cost is much lower than the credit card overdraft.

The credit card installment fee varies from bank to bank. For example, the installment fee of China Everbright Bank and Hua Xia Bank is 0.5%, most banks are 0.6%, and Shanghai Pudong Development Bank is more than 0.7%. Therefore, those who intend to use a credit card to pay in installments should focus on the specific terms of each bank and choose a bank credit card. Here we mainly recommend the installment payment of China Everbright Bank credit card, which is particularly cost-effective.

There is also a disadvantage of using credit card installments, that is, the monthly amortization is generally included in the minimum repayment amount. If you do not have a stable income, it is recommended not to use installments, otherwise you will find your repayment pressure at the end. It is particularly large, and if you use a credit card to overdraft, your monthly minimum repayment amount will decrease month by month, and the repayment pressure is relatively small.

Comments: The annual interest rate for instalment consumption with a credit card is about 9%-15%. Slightly lower than a credit card overdraft, but prepayment is not very cost-effective. It is recommended to use it for large consumption, and installment payment is not recommended for small consumption.

8-Policy pledge loan: far water can also quench thirst near

Financing cost: Bank’s benchmark interest rate for consumer credit over the same period

Suitable for the crowd: People who have good insurance habits and have purchased long-term insurance

The so-called policy mortgage loan, that is, the policy owner uses the policy as a pledge to obtain short-term funds according to a certain percentage of the cash value of the policy. There are two main modes of policy-pledged loans in my country: one is that the policyholder directly mortgages the policy to the insurance company and obtains the loan directly from the insurance company. If the borrower cannot perform the debt due to maturity, when the principal and interest of the loan reaches the surrender amount, the insurance company Terminate the validity of its insurance contract; the other is that the policyholder mortgages the policy to the bank, and the bank pays the loan to the borrower. When the borrower cannot perform the debt due, the bank can repay the principal and interest of the loan by the insurance company according to the contract.

Judging from the current situation, what can be used for loans is life insurance with contracts such as savings function, investment-participating insurance and annuity insurance that have been in force for more than two years; medical expense insurance, accident insurance and property insurance cannot be pledged. Under normal circumstances, the insured can directly obtain a pledge loan from an insurance company. If the insured purchases a bank agency insurance product, the policy can also be directly pledged to the bank. The loan period of insurance companies is generally 6 months, the loan amount does not exceed 70% of the cash value of the policy, and the interest rate is usually the benchmark interest rate of the bank’s consumer credit for the same period.

Comments: Linyuan is envious of fish, it is better to retreat and make a net. Don’t wait until you are short of money to remember that the insured documents can be used as pledge loans. In fact, the real use of insurance is by no means limited to emergency relief, it is an attitude to life.

9-Certificate of deposit pledge: ultra-short-term borrowing

Financing cost: The annual interest rate is about 5.51%

Suitable for the crowd: the certificate of deposit is about to expire or hold a foreign currency certificate of deposit

The deposit certificate pledge financing method is a low-cost financing method, but it is relatively limited, that is, if the borrower has a deposit certificate of 100,000 yuan, and then goes to the bank to borrow 90,000 yuan, in many cases, it is better to take it directly. .

There are only two situations in which the deposit certificate is suitable for financing. First, the deposit certificate is about to expire. If you withdraw it in advance, you will lose a lot of interest. If you use the deposit certificate pledge method, you can preserve the fixed deposit interest rate. Generally speaking, if it is a 1-year fixed deposit, and the remaining time is more than 2 months, it is no longer suitable to use the deposit certificate as pledge, because it is better to withdraw money directly because of the complicated procedures.

Another situation is holding foreign currency deposits. Since foreign currency deposits cannot be used directly and do not want to exchange foreign currency for RMB, the best way to use foreign currency is to pledge the certificate of deposit. If you use the loan channels of China Merchants Bank’s e-banking, it will be very convenient. You can borrow if you want, repay it if you want, and the interest expense is also lower.

Comments: Under normal circumstances, the annual interest rate of the certificate of deposit pledge is about 5.51%, and the cost is relatively low, and with the increase of the number of certificates of deposit, the upper limit of the loan will continue to increase, which is not controlled by the quota, so it is recommended to use it.

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