We all need to borrow money sometimes. Banks can be more than happy to lend you the money, but when it comes to repaying them here are few things they may not have told you, according to https://www.harmoney.co.nz:
The credit card hangover: Credit cards are fun when you are spending, not so great when you are stuck with their interest rates. If you cannot pay off your credit card all in one go, there are ways around the bankís high interest rates.
Not all interest is created equal: If you have bought what you have always wanted, the interest you are paying on that loan might be way more than at other places. So, there is no harm in shopping around and taking advantage of companies that will tailor a rate to suit your needs.
You donít owe them anything: You may owe them money, but you donít owe them your loyalty. If their interest rate is too high, or they get a bit judgemental, you can take your loan elsewhere.
Banks are not the only option: In the past, you either had the big banks or worse, the loan sharks. Thanks to the wonder of the Internet, things have changed for the better. Now, you can borrow from each other, without needing the banks. It is called a peer-to-peer money marketplace.
Consolidate all your debts: If you have got credit card bills and loan repayments sending you up the wall, why not put them all together. Consolidate your debts now.
Managing your debt burden
If you are in debt, you are not alone because living in denial will only increase your money woes as well as your anxiety. As soon as you face up to the situation, paying off your debts may be simpler than you realise, www.independent.co.uk.
Face the facts: Your first step is to discover the extent of your financial problems. Begin by collating your latest bank statements, tracking down any misplaced pieces of paperwork and opening those bills you have been ignoring. Next, make a list of how much you owe and the rates of interest. Once you have this information, you can prioritise your debts.
Draw up a budget: Next, work out how much you can afford to spend on debt repayment each month. You can then put this amount towards your debt repayment every month.
Once you know exactly how much you can afford to allocate to paying off your debts, you will be able to devise a repayment plan to suit you.
This is also a good opportunity to assess your spending habits and see if you can cut back on luxuries you can really do without. Simple steps such as taking a packed lunch to work and giving up your morning latte can make a significant difference to your bank balance.
If you owe money on expensive credit cards, find out if you can transfer your debt onto a zero per cent balance transfer credit card. These clever cards eliminate interest charges for an introductory period, ensuring that every penny you repay goes towards beating down your balance. However, to make the most of this type of deal, you must ensure you repay your debt within the offer period.
Alternatively, if you need longer to repay your debt, you may be better off opting for a long term, low rate credit card. Although you will still pay some interest each month, it will probably be at a much lower rate.
Explore overdraft options: Paying too much interest on your overdraft can easily exacerbate your debt problems.