The importance of studying the various platforms
and acquire information before investing
I think the best way to tell you and make you understand what I want to tell you with this post is to tell you an error in which I myself have stumbled.
The platform in question is Twino, the occasion was that of a new product made available on the market: the loans PG (payment guaranteed). How do they work? Simple, it’s an even greater guarantee than the buyback. In practice debts in default was paid by Twino the monthly installment as if the user had paid. There it seemed to me convenient because I would not have to worry about reinvesting the money that came from the repurchases because it remained invested.
Obviously things are rarely as they seem and the first questions I put them seeing that on the marketplace the payment guaranteed loans had a greater interest of buyback. As we invariably know higher interest = higher risk. I then searched the forums and it turns out that in my analysis I had been superficial and that, this operation, was used to leave the loans in default load to the user. With the buyback guaranteed in fact the user by definition can not have loans in default in the portfolio while with this new mechanism the portfolio was gradually filled by default while Twino did not have to pay all the capital that probably does not Would recover immediately but in convenient installments.
In conclusion How to defend yourself?
Be careful to read the conditions well, you know it is a tedious job and you would not want to do it but you need to understand where you are putting your sweaty savings.
Pros and cons
Once you are sure that you have understood all the conditions, make all the necessary projections to understand if it suits you (not only today but also at the end of investment).
We are all fallible and something can always escape us. Do not sin of pride and go to understand the motives of detractors of an idea is a good way to make sure you have asked all the questions.
Once you get here you have all the elements to decide in an informed way about what to do. Now you know whether or not you have to invest your money in that new product that intrigues you so much.