” All you need to borrow money cheaply is to find the cheapest way to do it, the company that has the best offers and the type of loan with lower interest rates. “
After all, the cheaper the credit borrowed, the more of your money goes towards repaying the debt or to the balance of your savings or investment.
One of the clearest and most positive ways to reduce debt with loan is to increase the credit score that the loan officers keep on you.
With a higher score and clear history of negative entries, it will help you gain access to lower interest rates and more attractive personal credit deals with financial institutions.
Without a doubt, you can save a good amount of money, either on your first loan or on recurring loans, or by reorganizing your debt to reduce the amount you currently pay.
The cheapest form of loan will depend on how much you need and how much time you have to look for, plus it has the fact that you are in some category of people like:
The right loan mode will depend on your timing, your profile and your circumstances, so be sure to look around and compare all of the alternatives.
If you need a few hundred real quick for a relatively short period of time – up to 10/20 08 30 days, then it pays to consider making a withdrawal on your pre-approved check in your checking account.
Many banks offer interest-free personal credit limits for a period and small interest rates within the specified time frame – just be sure to talk to your bank manager before you are owed or in the red because otherwise penalties like fines and interest on the debtor balance can be very severe.
Credit card interest rates can be much higher than any personal loan, except for the loan shark loan, but some offer an interest-free period for new purchases and others provide a long interest-free installment period, make sure it is not of interest instead of using cash, buy with your card taking advantage of these benefits.
Prioritize the payment of your most expensive debt without running the risk of failing to meet the minimum payments in your other essenssiais financial commitments
To get into that card use or cash withdrawal on the card, you should be confident that you will not be tempted to leave the card debt longer than the interest-free period, or you run the risk of paying one of the most expensive to borrow money.
You will usually find out one hour or another that the higher your debt, the lower the interest rate offered or charged for the value contracted eg: real estate loan.
That means – if you have a number of smaller loans, with debts like credit cards, store card, loan to negatives – it may be cheaper to consolidate them into a home equity loan (mortgage) or loan with vehicle warranty.
The peer-to-peer loans are becoming increasingly common and accepted in the world of traditional finance here in Brazil, the rates of these types of personal loans can be quite attractive if you find the right company to complete your application.
As with conventional personal loans, you will generally find that if you have been negative with bad credit history, you will have to pay more money to secure the release of the loan and the payment and reduction of your debts.
There are many credit unions that lend money to people associated with very low interest rates. facility is in getting personal loan when there is difficulty in obtaining credit in traditional means like banks and financial.
In some cases, interest rates may be equivalent to the conventional market, but the financial products offered in cooperatives serve well for people who do not qualify for the best bank loan offerings, payroll loans or do not possess assets to give as collateral.
Joining in cooperatives also helps not run the risk of falling into the hands of lenders and alternative lenders who charge excessive interest.
When you have decided on what kind of personal loan or other credit product you want to get financial resources, always use a comparison tool or review sites with smart analysis as available here at Boris Godunov.
These tools allow you to get to know how a certain type of loan works and how the company has behaved in the credit market. It will also show you the best loans that you will likely be accepted before you proceed with your request.
A simple search can have a real impact on the amount of money you can take, and the amount of interest savings when making the right choice of your new loan, refinancing or credit portability.
Make a list of all your current debts in progress, include debts such as loans, financings, credit card balances, banked debits, store cards, mortgages, and other expensive debts.
Ideally, you should prioritize higher-paying debts and you can not risk being unable to make the minimum payments, as well as essential commitments that can not be discharged.
If you have debts in progress but you have money left over in the savings, or the bank invested in some paper, keep in mind that you may be paying more expensive to keep your loan than you are earning with interest on your investments.
Use your money in the best way possible! It may be feasible to pay all or part of the debt, although you should think carefully before using your emergency funds to pay off personal loans in advance, this is not a bad idea.
To tell you the truth, all people need to have an umbrella for rainy days – our advice is typical, try to accumulate about three to six months of salary. If you have money left over, think about using this money to pay off any expensive or very expensive interest debt.
Probably you make the installments payments month by month, you knew that part of your money is simply to pay interest while the rest pays your principal debt. Removing your debt early generally helps save some money with interest, so if possible, try to make double installment payments or pay off the entire loan when you have the opportunity.
By financial logic, the sooner you finish paying a loan agreement, the less you will pay off balance and interest – remembering that you should take into account all the fees that evolve the settlement or prepayment ahead of time.
Check with your lender what the costs, penalties or penalties are foreseen when making advance payments. Once you know, ask for the discharge letter, statement or other documents to settle the debt in full or in part to ensure that this is worthwhile.
You would be surprised how much you could save on the cost of your loan, paying installments early or taking out the outstanding balance in advance – even if there are additional costs to do so.
If you have access to interest-free or zero-interest loans, or access to payroll with interest of less than 2.10%, do not waste time, hire and pay any other loan above 5% monthly interest.
When you have extra money or access to cheaper loans, it means that you can save money by consolidating debts into a single debt, much more convenient procedure, since you will only have to deal with one or two creditors at most.
If you make a loan for debt consolidation, know that this is really a good idea, canceling any expensive personal loans and high interest cards so that you do not end up with a big snowball of debt makes all sense in addition to cutting the temptation of consumerism by the roots!
Arguably the best form of debt consolidation is to think of using the cheapest interest loan as the mortgage or secured loan.
Although this may be a good alternative, it is often with cheaper interest, 1.49% a month, sometimes it becomes a debt with long term, and not so safe, because despite paying a very low interest rate, your assets are sold until the end of the contract.
You should always think carefully before giving as collateral of debt to your home, rural property or car.
They are worth mentioning that the manager of your credit card can not auction your house or car, but a mortgage lender can. This makes it essential that you avoid contracting debts with future risks – think about it!
If you are struggling to pay off all your debts month after month, your installments are tightening your finances and personal or family budget, talk to your lender as a first port of call to know the possibilities of renegotiating or even refinancing the debt.
Usually lenders do not want you to default by failing to repay the debt, so he can find a way to help. If this is not possible, find other means of realizing the interest rate cut to reduce the debts with your personal loan or financing.