Some loans are better to have and some worse, so it is important to go through their loans sometimes and try to clear some. It saves a lot of money in the long run. Here we will try to take a look at tips on how to go through and clear out their loans to get rid of things that cost unnecessary money. The story is on http://hottoast.org/help-for-payday-loan-debt-quick-app-for-payday-loan-debt-consolidation/
Loans are a more or less natural part of a normal private economy
The most common are mortgages and car loans, but it is also not uncommon for other loans and credits. Credit cards are definitely common and many people also trade in installments, which is also a type of loan. Ordinary private loans and smaller loans such as SMS loans / quick loans also occur regularly. The loans can often be a perfectly ok part of your finances but sometimes it is better to be without them.
I do not intend to look very much at the most common and cheapest loans such as mortgages and car loans. This is because such loans are usually necessary and they also usually have their natural place in a sound private economy. It is not loans that can be cleaned up too much and normally you should not have to.
The advice I have to give here is not to get too comfortable with what you have
It is possible to revise their large loans and to lower prices, if you just take the time. It is possible to bargain and negotiate the interest rate when it comes to mortgages, and you can change the bank if you are not satisfied. It just has to do with actually doing the job. You can save a lot of money by looking over the big loans and especially the mortgage, so look at it.
High-interest loans burden the economy
The biggest culprit is often private loans with high interest rates. Unfortunately, a little less private loans and slightly smaller lenders can often entail interest rates of up to 30 percent. For the very smallest loans such as SMS loans, the interest rate is even higher than that.
The danger of such loans is not only that they are expensive but also that they can be built on more and more if you do not pay them properly. If you have a slightly worse economy and find it difficult to pay on the loans, the debt can increase more and more and then it will only be harder to get out of debt.
If you have one or more private loans with high interest rates, it is always good to try to get away from them / them as quickly as possible. Of course, it is important to pay off the loan completely so that you do not have to. Then you also avoid the expensive interest rate and release more money in your monthly budget.
This is how you can avoid expensive private loans
One way to get rid of a number of less expensive loans is to collect them into one big cheap loan. It is a now known method that involves collecting existing loans and credits by finding a good and cheap large loan that covers all the small debts one has. You repay all the small expensive loans with the big cheap loan and thus save a lot of money on the interest rate.
The idea is that the cheap big loan should have a clearly lower interest rate than the old loans. Maybe you can get an interest rate of 10-15 percent on that loan compared to 30 percent (or more for old SMS loans) and then you have quickly saved half or two-thirds of your interest expense. It makes a big difference and you save a lot of money.
Solving their expensive loans is important to get more money over. You do not have to take out a new loan to redeem old loans, but you can do it yourself. Either you can try to find a larger amount of money and pay off a loan entirely directly. You can, for example, do this by selling things and getting some extra money. Then start by settling the most expensive loan.
If you do not have the opportunity to collect a larger amount of money directly, you can start saving on things in your personal finances and make a better budget. This way you can reduce your costs and get more money over. The idea is that the money you get over will go to pay off on their expensive loans.
The more you can pay off on an old loan the better. Over time, you can redeem a loan altogether. Preferably with the highest interest rate. When it is resolved you will get more money in your budget as you do not have to pay interest on that loan. Then you can advantageously continue to pay off your other loans if you have several. You can settle the next loan faster because you have more money to deal with. The more loans you settle the faster you can settle for the next one - a kind of positive snowball effect that gives your finances a push in the right direction.
Make the best of the loans you have left
Resolving a loan is of course the best way to save money, but this is especially true if the loan is expensive and if it is actually reasonable to settle it. Sometimes you have no way to redeem the loan or it may make sense to keep it (such as with the mortgage). However, some small things can also be done with these loans.
As I mentioned earlier, the mortgage loan is a good example of a loan that is a natural part of the private economy and that you do not immediately get rid of, but that you can actually save money on if you want. As mentioned, you can bargain on the interest rate and maybe change the bank if needed to get a better deal. Especially if you run on variable interest rates.
A private loan that you have left you can always pay extra on at no extra cost. This allows you to easily make extra payments when you have some money left over. All such payments reduce your interest expense. The higher interest rate you have on the loan, the more you save by paying a little extra.
Of course, it is important to avoid missing payments on the loans. If you skip or fail to pay the payment, there will usually be extra fees in the form of late fees and interest rates. These are put on the existing debt and then it can quickly tick. So be sure to take care of your debts, lest it be unnecessarily expensive.
Talk to the lender
In fact, if you have a strained economy, you can sometimes manage to get a deal with the lender. It can be about getting a payment plan with a longer repayment period or a lower interest rate than you first got.
You can talk to lenders and lenders more than you think. Not everyone knows that it is possible and therefore they get problems and miss payments even though they could have escaped. Try to call and discuss your situation - you may be pleasantly surprised.
The lenders obviously want you to repay your loan according to the original plan, but when you have bad finances it is better for them if you repay at all than you end up at ABC and in the end can not pay anything at all. Therefore, they can be amenable and, for example, freeze / lower your interest rate, increase the repayment period or remove fees. Such things can be crucial for you to be able to afford the loan and your finances.
Credits and installment purchases
Here are some quick tips for credit card debt and installment purchases, which are also loans, though of a slightly different kind than the usual loans.
The credit card is a very handy tool in everyday life, which allows you to postpone some costs in the future if needed and also to, for example, share costs in households with shared finances etc. It also works as an extra buffer if an unexpected expense turns up which you cannot afford without a loan.
It's easy to argue why you can have a credit card. However, one should keep in mind that a credit card can be both excellent and less good depending on how you use it. It is best to always pay back everything you have used on the first bill. Then you usually get everything interest-free, which is nice.
Almost all credit cards offer 30-45 days interest-free (ie all purchases up to the nearest invoice) and if you then settle the entire debt, you do not have to pay any interest at all. The only thing you pay then is usually the card's annual fee. This means that credit cards work very well, for example, to buy food if you have a shared economy. When the invoice comes, you can share the one you want.
The problems arise when you do not pay the entire debt directly. Since you only pay the amount, you have to pay interest and unfortunately that interest rate is quite high. It is not a credit you want to have for too long. If you use a credit card, then the tip is to avoid having a debt there if you don't really need to, and pay off it as soon as you can.
Purchase on installment
When it comes to installment purchases, some general tips apply. First of all, you should of course consider before choosing a installment, as it means that what you buy costs a lot more than if you had paid cash. In most cases, it is not very affordable to pay over a longer period of time when you have to pay interest and other fees. But if you have already decided to pay part, that does not help the council much.
One thing to watch out for when choosing a installment is that it is usually not only the interest rate that costs, but also fees such as setup fee and management fee. The Avi fee comes classic from the cost incurred when the lender sends you an avi / invoice.
If you do not receive a paper invoice, I think you should also avoid the fees, but unfortunately this is not always the case. However, if you can pay by direct debit or via your Internet bank, etc., you can sometimes avoid the fees and that is a clear advantage. The longer the repayment period you have, the more money you save.
If you have a debt for three years and receive USD 50 a month in fees, it is USD 1,800. Money you don't want to pay. If you have a charge on your loan, credit or installment purchase, it is worth checking out if you can get rid of it by paying the money in a different way than you do now. If you can and hear with the lender, try canceling the paper invoice.