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5 tips to speed up your loan payments

The article will be useful to those who have decided to get rid of credit debt, as it will advise on how to speed up this process.

There are various ways to achieve the desired results. It takes money to go to rest or carry out repairs at home. It will take a long time to save. But you can not put it on the back burner, but take a loan. The borrowed funds will have to be returned, and how to do it faster will be announced within the framework of this article.

Writing debts on paper

If a citizen is the owner of several loans, then he tries not to think about how much he will have to overpay the lender. This is understandable, since such information upsets him greatly. Every month he looks for the necessary amount to carry it to the lender.

Meanwhile, if all this is written down on paper and analyzed, then the citizen will see such an amount of overpayments that he will immediately want to pay off the existing loans faster.

He will simply be horrified by the existing financial losses. By fixing all payments on paper, he will see how his debt is decreasing.

Repayment of loans using the snowball method

First of all, the smallest loan of all available loans is repaid. The loans are then repaid as they increase. It is not worth reducing the total amount of payments. What remains after the first loan is repaid should be added to the monthly payment that is currently being repaid.

A small loan is easier to repay. By closing one and then another loan, the borrower will see the results of his work. The amounts remaining after the loans are repaid will be used to close the next loans.

Reducing running costs

If you do not follow this rule, then it is unlikely that you will be able to quickly return the borrowed funds. You can agree with the management to do your work remotely (if possible). This way you can reduce the cost of transport and dining in the cafe.

Savings on groceries can be achieved by changing the expensive supermarket to a regular store. Evening cinema trips can be replaced with morning screenings. Tickets are cheaper. As a result, you can save a decent amount, and use the money to pay off loans.

You must pay more than the minimum required monthly payment. Usually the amount of the obligatory payment is 3-5% of the total amount. If the borrower makes only mandatory payments, and spends the rest of the money on himself, then he will never pay off the loan. He will pay interest for 10 or even 15 years. Monthly it is necessary to deposit as much money as possible, which only allows the family budget.

Cut all your credit cards

Today, the use of many cards comes with a grace period. It can be up to 100 or even 120 days. But not every borrower can use a credit card correctly. Some, succumbing to temptation, borrow too much money. For obvious reasons, they cannot pay off on time. The grace period ends, and the bank calculates interest in full.

If someone does not know how to live within their means, they should close all their credit cards. Otherwise, they will have to pay interest to the bank for the rest of their days. It’s okay if at first the rejection of the habitual consumption will cause some discomfort. Over time, things will get better. But the borrower will get satisfaction from being able to exercise financial control over his expenses.

Anyone who observes all these rules is likely to be able to quickly close all their debts.

Read: Earning in the foreign exchange market: the advantages of technical analysis tools

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