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We all know that in financial matters there are no magic solutions, we must sit down and analyze each variant that can change our daily situation. From Good Finance. We leave you three tips that will help you control your loans and make better decisions in your finances:

Life insurance, VAT on interest, administrative expenses: all of these are costs that derive from the loan and therefore must be computed in the calculation of the total rate paid for it, known as the Annual Effective Rate (TEA).

There are some financial entities that, in order to attract new clients, usually report the cost of loans in terms of Annual Nominal Rate, which does not take into account the items mentioned above. This is because these costs would not exist in case the loan is not granted. However, they are significant in the total cost. For this reason, it is always convenient to analyze whether or not we take a loan taking into account ALL the associated costs.

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