The Back Pocket
Here’s a secret: expenses can mean more income!
Find me a person who doesn’t want to make more money. It’s nearly impossible to find! Everyone wants to make money and there’s nothing wrong with that because money makes the world go ‘round! But many people don’t know that you can actually make money with a loan! Did you know that? It’s true! One way that you can get more money is with a secured loan. Wait a minute, you’re saying. How can a loan give me more money? Doesn’t a loan, by its very nature, reduce the amount of money I have? It’s true that it may seem like that, but a secured loan is an ideal way to make money. Here’s how: A secured loan is a loan that provides some kind of asset as a guarantee to a lending agency. So when you apply for a loan, you also suggest that if you cannot pay, you have some kind of asset that will cover the default amount.
For some people, it’s their car. For others, it may be their jewelry or some stock certificates. Whatever it is, lending institutes like secured loans because it reduces the risk they have when lending money. Unsecured loans are high risk endeavours for them because if someone defaults on the loan, there is little they can do to get their money back. On the other hand, secured loans have some kind of guarantee which makes them a risk-free investment for the lending agency.
And because there is little risk to them, they are willing to pass some of that savings on to you in the form of reduced interest rates and longer repayment terms. So here’s how you can make money from it. First, collect all of your credit card bills together. Add up how much you own. Many people owe in the thousands and are shocked to discover that the interest rate is abysmally high. Second, find an asset that you can use to get a secured loan. Third, shop around and find a loan provider. Collect those debts together and consolidate them under one secured loan. That way, you’ll reduce the amount of interest you pay on each debt because secured loans have lower interest rates than credit cards. And, you’ll stretch out your repayment period beyond the short term that credit cards give you.
And, even better, you’ll have a fixed amount of money you know you have to pay each month, rather than get surprised every few days with another bill from a credit card company. Since people often pay half as much above the purchase price in interest on credit cards, you’ll make money you would have spent by consolidating your loan into a UK secured credit card consolidation loan.
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