Times are hard and earning money to provide for your family’s every need, pay the bills, and afford you that occasional indulgence is even harder. Struggling to make both ends meet sometimes can be tricky and it is no wonder why a number of people resort to obtaining loans to buy things that they otherwise cannot afford or pay for emergency expenses that they have not prepared and saved up for. I guess it is okay to get a loan every now and then, what is important is to pay them up on time so you won’t accrue unnecessary interest that would only add up to the amount you have to pay. Here are a few tips from our friends from Loan Solutions Philippines on how to efficiently manage your existing loans.
It is very rare to find an individual who is debt-free. However, it is easy to find people who are too stressed out because of their loans. There are people who are not too worried even if they have loans to pay. What is their secret? How do they remain calm? Loan Solutions Philippines is a financing company that matches lenders and borrowers through their own matching system to give Filipinos access to financial assistance faster and easier. Here are some steps you can take so that you do not worry too much about managing your loans:
- Monitor your credit ~ If you borrow money, you should keep a close look at your credit, especially if your loan involves the use of credit cards. Monitor your credit score because is it important. Your credit score affects your credit rating. If you have been negligent with your payments, not only will you be incurring higher interest rates, your credit score goes lower. If you take care of your credit, you can avail of cheaper loans and you can negotiate for lower interest rates on your loan. If you can afford to pay off your loan immediately, your good credit standing could help you to negotiate for lower rates.
- Think of consolidating your loans ~ This is a good idea if you have quite a few loans. There are financial companies that are willing to absorb your other loans and even offer you lower interest rates. It is easier to deal with one company than with several companies, don’t you think. It is likewise easier to monitor all your loans when it is all in one place.
- Take control of your spending ~ Try to take care of your debts on your own. All it takes is strict discipline, although it is easier said than done. Sit down and take stock of your outstanding loans and how much money comes in. Do simple math exercises. List all your outstanding loans, how much you have to pay and for how long, and make sure you factor in the interest. Likewise, do the same for your monies. Make a list of the money that comes in every month and make a list of your regular expenses. See where you can cut back. You might find that there are things that you buy which are not necessary. You do not need new things every month, except food. You do not need to buy a new pair of shoes or a new bag unless it is absolutely necessary. You do not need to add a new jacket to your wardrobe just because the weather is turning cold. You might even do an inventory of the things you own that you can resell, which means additional income. If you go by this route, be sure to put this extra money in your bank account and forget about it.
- See what the bank or credit card company has to offer ~ You might be surprised to know that banks and credit card companies sometimes offer options to lower the interest rates on your loan, so go ahead and inquire. Again your credit rating will be your ally.
- Be sure to pay on time ~ Your interest rate will be lower if you pay on time, so make this a habit. Do not miss out on any payment as this affects your credit score.
- Pay more each month ~ Instead of thinking about the things you can do with a bonus you expect to come in, it is wiser to apply part of it to your loan and pay more than what you pay regularly. Not only will you be able to shorten the time that you can pay your loan in full, you will also have lower interest rates.
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