Older people love to dish out advice about being frugal and saving money. Their horror stories about loans and difficult repayments are part of their growing older stories. Today the rates of interests have gone up and the mortgages and loans are very difficult to pay back for most common people.
However, there are times that you need short-term loans to tide over some exigencies, like festival shopping, wedding or sickness in the family. If you have a huge debt, then another loan would cost you more.
There are many ways to reduce the cost of the loans.
- The first method is to repay the loan that carries the higher rates of interest. This includes credit card debts and loans from private agencies that charge higher rates of interests. This will slowly reduce the burden on your payments.
- You can also increase the amount that you are repaying as and when your income increases.
- Do not plan to spend your bonuses and gifts on further items that you may not even need. Use any windfall judiciously to repay the loans.
- Another aspect, of course, is to be careful once you realize that you have a huge burden of repayment. You can transfer the loan to another scheme or company where the rate of interest is lower than what you are paying right now.
- Payback the loan from any saving that you may have.
- You can also take a short-term loan like payday loan that does not affect your credit score and helps to reduce the cost of loans. You can read more about some wonderful institutions that can lend you money at lower interest rates, by following this link, http://www.nettivipit.fi/vippi-20/. They have details of interest and total amount to be repaid.
Of course, as far as possible adopt the policies of wiser and rich people. Reduce the loans and live as prudently as you can. Above all improve the credit score to keep the cost of loans low.