I have insisted on the repayment of credits because I consider one of the best strategies to consolidate the financial situation of any household. Amortizing credits will not only reduce your exposure to debt and the factors that influence it, such as interest rates, but also ensure a lower weight of credit benefits in your family budget.
In the same way and if savings are your goal, a loan repayment means large euros of savings, thus allowing you to maximize your financial position. Regardless of whether you have a home equity loan and wish to pay your home to the bank or a credit card that has been completely out of control and the debt consumes you tens of euros, the tips for repaying credit are always applicable to any type of credit.
If There Is Credit Then There Is Possibility Of Amortizing
Of course, I hope that your situation is not alarming and that your credits do not take hours of sleep, because if your family is struggling to pay the car loan, credit housing, credit cards and even that credit who did it because it sounded good business, so he needs a lot of discipline and rigor in managing his personal finances. However, these tips are also for you, analyze and be rigorous.
Declare War on Credits with the Highest Interest Rate
There is a lot of controversy about which loans should be repaid first. Many are those who defend the amortization of the higher rate, others advocate those of shorter term until there is who stipulates the value of the provision as a decisive element. I consider, however, that the greater savings are directed towards the cost of money , the interest rate. If the interest rate represents the burden you have on your credit, then the less interest you pay the more money you will save. Simple.
Paid a Credit? Imagine That You Still Have It
Many people as soon as they have just paid a loan to the bank, think of contracting another for any other project they had in mind. Well, it is good to get the projects done, but you will be back on credit. A good way to get around this desire is to imagine that you still have your credit and pay the monthly installment to yourself by putting that money into a savings account or better yet, pay the other credit you have.
Discipline is the Secret
There are no deviations or distractions, your path should be taken with all dedication. If you have decided to pay your debts and get rid of them with the fruit of your monthly savings then do not give up. If they said that instead of dining twice a week out would only dine once a month and this savings was to write off their housing credit, then materialize. If you said that you would spend every Sunday afternoon as a family or take a walk in the park of your city and that you would not go to the shopping malls to spend money and with that savings you would pay your credit card, so do it. As you can see many are the possibilities to save extra money and to join this money in order to pay off your credits.
Small Steps Will Make Miracles
Well, now that you’ve just read all the previous tips you’re anxious to start repaying your credits. I understand, because I also have my credits, but the secret is to take small steps at a time, for example:
- Save first;
- Amortize later;
- Save again …
This is the secret. If you can only save 50 euros a month, do not be discouraged, since there are 600 euros a year that will cut down on the debt capital. If organizing your monthly expenses allow you to save 100 euros per month, excellent, you can pay off 1200 euros per year.
Do not Give Up
If you want to end your credits quickly, never give up. If possible, see the potential of consolidated credit and simulate the savings you would have with your credit. Did you know that the negotiation of credits enables you to reduce your installments by more than 30% and free up cash to repay all your credits?