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Personal loans are now being offered by banks and non-banks with cheap interest rates, although personal loans are often not too extraordinarily large amounts.

If you have been lucky to borrow on such terms and yet find yourself struggling to pay off your debt, do not despair. There are several solutions you can look into. See which one will work best for you. You may be surprised by how much you can save on the cost of your loan by moving it or repaying early, even if there are extra charges for doing so. We take a look at your potential options below for unsecured loans and provide tools to help you compare costs. www.cashfloat.com gives the following five tips to reduce the cost of your personal loans:

Repay loans with savings

According to www.moneyadviceservice.org.uk, it almost always makes sense to repay any outstanding loans using your savings, considering any early repayment charges. And if you have savings to use, always pay off your most expensive loan debts first. Always try to scoop out of your savings account.

A savings account is in place for emergency situations. In this case, you can think about your situation as an emergency because you will not be able to get out of debt if you pay off what you owe from an outside source; and you may not lose the asset, possession, or service you borrowed money for because the lender will not seize it from you, but you may still eventually because you will use the money from the sale for repayment and other expenses

Consider a switch to another loan

If you don’t have savings, you may be able to pay off your loan in full and more cheaply with another loan; for example, where you can get a lower rate, a shorter deal, or both. Look for a deal that dishes out a lower interest rate and takes shorter time to pay. Or, negotiate with your lender regarding lowering the terms of your current loan. With either option, the goal is to pay off your existing debt in a short amount of time. Work on the loan you switched to afterward. If you take this route, remember to settle for a deal that will give you a chance to pay back the new loan in a short amount of time.

Sign up for debt consolidation with caution

Debt consolidation schemes are attractive because their rates and repayments are offered for less. The trouble is you now have to give the lender the right to seize your property or home if you default on the loan. So, proceed with caution. A thorough assessment of your financial capacity will help you see the big picture, as this option may take you out of the current debt but bury you deeper into the borrowing cycle.

Focus your eyes on the goal of getting out of your personal loan troubles first. But if you think you can manage debt consolidation, and you did an evaluation of your finances as objectively as you can, then by all means, proceed.

Cash withdrawals via credit card

The problem that can arise from using your credit card’s cash advance feature is that if you are not disciplined with repayment, you will end up with an outstanding balance that will only get inflated over time because of the sky-high rates. The reason some people take out a personal loan is because it is less expensive than a credit card. Imagine you can finish your personal loan repayment faster but will be left with an ever bigger balance to repay with the use of your credit card.

On the other hand, if you are a disciplined user, you will find this option manageable as time goes by. This is especially achievable if you can do away with swiping for small to medium purchases, and even big-ticket items. As with any kind of financial obligation, smart and prudent borrowing is the way to go.

Rework your budget

Last but not the least, rework your budget. Check if there are items on the list that you can slash for the meantime. Determine your needs and wants. If you see a window, use the spare amount from the monthly budget to finish off your loan.

Always have a game plan. Whatever option you settle with, in the end it will all be your responsibility: Your determination to get out of a crippling current debt; your persistence in wiping your slate clean; and your willingness to live within your means. After all the toiling, the rewards are great. And what is sweeter is, the rewards will be yours to cherish.

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