Taking out a loan from a bank when you are already in debt is a questionable financial decision. However, delaying the repayment of said loan for any longer than necessary is comparable to financial suicide.
Late payment means extra interest payable on your loan, which accumulates for every extra month that it takes you to repay your debt. These added interest charges often snowball into astronomically large sums of money before you even realise what has happened. There are of course companies who offer financing say on a vehicle, with a rent-to-buy option that has a fixed rate, with no balloon payments or hidden costs.
You might be interested to learn that banks actually make the vast majority of their money on the interest that they charge on loans. In order for you to have any hope of beating the system and saving untold sums of your own hard earned money, paying off your loans as quickly as possible is an absolute must. Just how can this be done quickly and efficiently?
Steps You Can Take
- Motivational Research:
- Cut Back On Spending:
- Get A Second Job
There is no better motivation for quickly repaying your loans than to calculate exactly how much more expensive it will be if you delay the payments. You will be sure to discover that each extra month could potentially tear hundreds, even thousands more Rand out of your bank balance. For this step, a simple repayment calculator found online should be more than sufficient.
Perhaps the most important step to take towards a quick loan repayment is the cutting down of any unnecessary expenses, with all of the subsequent money saved thereafter diverted towards paying off the loan. An effective strategy towards successfully implementing this step is to lay out a thorough budget, with this sure to provide key insight into your spending habits.
Getting an extra job, although time consuming, could go a long way towards paying off your loan ahead of schedule. This is undoubtedly hard work, but putting all your new extra income towards quickly paying off your loan will put a significant dent into the amount owed before you know it!
All of the above tips should see you pay off any outstanding loans at a rate of knots, with this crucial decision – if you choose to make it, sure to infinitely improve your future quality of life and your credit record.