Whether we talk about a bank loan or a quick loan , a clever reimbursement plan will help you cut costs and make important savings. You will find in this article some basic rules that you need to keep in mind.
The cost of a credit can be greatly increased over time, through penalties and interest that accumulate when you can not pay rates in time. Therefore, it is very important to make a realistic calculation from the beginning, analyze the funds you have and go to the most pessimistic scenario, you have to be sure you can pay each installment at the set deadline.
When setting up your credit, remember that a shorter one is always cheaper than a longer one. At first glance it does not seem like this, because a longer term means more and smaller monthly installments. However, you pay interest for the entire period, a simple calculation shows that in time there are much higher costs. This rule applies to both a bank product and a credit card only , always chooses the shorter duration if you manage to fit into it. You do not have to force the note and assume a term that you can not respect, go on a balance between the maximum amount that you can return on a monthly basis and the shortest possible contract.
Credit products are becoming more flexible and today it is possible to opt for variable-rate rates. You can choose the rates to be equal, ascending or descending. Again, the cheapest solution is one that seems to be the hardest after a superficial analysis, the most advantageous is to pay the highest rates first and not the other way round.
The explanation is simple, the amount of interest is calculated based on the remaining balance. The sooner you pay a more consistent amount of the amount, the lower the total cost. If you are able to support higher amounts from the beginning, choose the maximum option.
You still have a chance to lower your credit if you redeem it in advance, most banks and Non-Banking Financial Institutions (IFN) offer you this option. You can achieve important savings, especially if you have a long-term credit, such as a real estate.
A useful idea is to try to set aside a fixed amount on a monthly basis, over the rate you normally pay, will help you get used to a strict financial discipline. If you have a quick credit, you can repay it all in one advance installment, not just get rid of a care but interest will be recalculated. For a long-term bank loan, wait until you raise a higher amount and then ask in writing to the bank for partial payment of part of the balance. Alternatively, you can put this money into a separate account by which to pay the entire loan ahead of schedule when you have accumulated a sufficient amount.
Ultimate Blogger Theme By Buywptemplates