Private Lending Is Risky. How Do You Manage Your Money?

Hu, director of Hu Jiang Village, zintong Town, took private lending to villagers in the village and Jiangtong village in the neighboring village on the grounds of expanding the scale of pig farms. The annual interest rate was 20%, and the villagers agreed to lend them in view of the high profits.

But Hu did not have the expected expansion of the pig farm after he got the money, instead, he took money to support his mistress, and participated in gambling and extravagance.

Eventually, the pig farms broke the capital, and Hu failed to repay the villagers' capital on time and took off.

The case involved more than ten million yuan of funds.

In fact, similar cases of private lending capital chain breaking have been quite common in recent years.

How to prevent risks and how to find a suitable investment way? For this reason, I consulted Zhang Wei, senior financial manager of Chunan Credit Union, and gave many opinions on financial management.

Illegal fund-raising

Zhang Wei said: "Chunan county is different from other counties and cities in Hangzhou. The rural population still accounts for the majority of the population in our county.

Many farmers are subject to low levels of education, lack of legal awareness and lack of awareness of rights protection, and are often caught in the scam of illegal fund-raising.

When faced with a huge return of 30% or even 100% promised by speculators, it is easy to fall into the trap and offer their hard-earned money voluntarily.

Zhang Wei felt that the desire of a farmer friend to get profits through financial management is good, but he must have some basic financial knowledge.

According to the opinions of the Supreme People's Court on hearing loan cases, the interest rate of private lending can be higher than that of bank interest rates, but the maximum rate should not exceed 4 times of the bank lending rate of the same period.

At the same time, interest shall not be included in the compound interest, which is often referred to as "profit rolling" and "donkey rolling", and the interest and compound interest beyond part shall not be protected by law.

Therefore, the interest rate negotiated by both sides of the loan should not only be reasonable but also legal.

According to a commercial bank for more than 5 years loan interest rate is 6.55% floating up to 10% and multiplied by 4, the highest interest rate of private lending will not exceed 30%.

If a company or a person promises to you, a loan investment project with an annual yield of more than 30% must be illegal fund-raising.

The case of the village head runner in Hu Jiang village is a case in front of us. We must keep our eyes open and guard against being cheated.

Experts suggest watching it.

If you do not manage money, money will ignore you.

Zhang Wei said that many people always hope that they can continue to raise their salaries and earn more money.

In fact, many times, although the income is large, at the same time, with the rise of CPI and the increase of consumption desire, the income will never keep up with the level of consumption.

Over time, a strange circle has formed.

Therefore, if you want to jump out of a strange circle, you must learn to manage finances.

In order to reduce risks and achieve goals in all stages of life, Zhang Wei suggests that everyone should have a sound financial planning.

In real life, many people have taken a fancy to the appreciation speed and potential of real estate. They will accumulate small amounts of cash into the down payment expenses. They not only use money to "rush", but also have some debts and become "house slaves", thus affecting the normal living expenses of their families, resulting in the inability to pay unexpected expenses.

Some people have heard that stocks are coming fast enough to blindly follow up, almost all their savings are invested in the stock market, but they have been stuck in a series of limit plates.

The reason is that there is no good financial planning and no firewall is set up to avoid economic risks.

So the problem is coming.

What should we do?

Zhang Wei disclosed: "in the most common financial management methods, time deposits are becoming more and more unpopular.

Poor flexibility, low yield, although ensuring that the principal is not lost, the lower annualized yield sometimes does not even win CPI.

Holding these interests means that your annual wealth growth is only less than 1%.

Zhang Wei suggested: if a farmer friend wants to manage his money, he can consider buying some bank financial products if he does not rush to use money.

Financial products are more secure and yield than some other investments. Now, the expected annual yield of many financial products is about 5.5%, and the period of financial products is relatively short, usually not more than 1 years.

For workers with certain financial knowledge, if their own risk tolerance is good, some financial products or even trust products of Mammon Inc with better reputation, higher reputation and stricter risk control are also acceptable.

Friends who like to challenge themselves and pursue high risk and high returns can also enter the stock market.

Zhang Wei said that since the beginning of this year, the market has steadily increased.