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CREATIVE WAYS TO DEAL WITH LOANS

 

DEBT5There is nothing like FREE LUNCH anywhere, not even in FREETOWN!. There are many quick fix debt solutions available but most should be avoided as they will not lead to a debt free life.

When most people find themselves in debt problems, there is tendency to give up and continue acquire more toxic liability thinking the problem will either go away or solve itself. To solve the debt problems requires identifying the debt triggers, solving the underlying poor money skills and a lot of creativity in managing the existing loans. There may be the temptation to take the seemly easiest route of the quick fixes offered by debt companies. Quick fixes can take the form of debt consolidation loans or loans that will give the extra money needed to make repayments on present debts. Desperation will often see logically minded people making bad financial decisions. Lenders are well aware of the pressure that debt problems can place on people and may exploit it to the fullest.

Keep Away From Consumer Loan

The Banks will always bombard you with various Consumer loans with all the hype, many will be snared and led by the nose into debt problems. The simple act of buying a car or clothes can lead to opening a store credit account when faced with the temptation of a 10% discount on purchases. The long-term view should be taken when considering any credit options. Credit cards and store credit accounts can be extortionate when it comes to interest rates. Impulse buying is made easier when using plastic( ATM Card) but these easy buying options can lead to serious debt problems.

Easy Debt Solutions

It is not hard to find easy debt solutions but most will leave the debtor making monthly repayments and interest fees for many years. When people are in debt they tend to panic and take any lifeline that is offered and this is exactly what lenders bank on. Easy debt solutions will come with guarantees of low repayments that they claim will be easily met by the borrower each month. In reality the overall cost of the loan will be high as the repayment periods will be longer.

Avoid Taking High Interest Loans

High interest rates are designed to create income for the Lenders while loading the debtor paying a lot more over the length of the loan. In many cases the overall repayments and interest fees will be a lot higher than the original debt the borrower was trying to eliminate. Lenders will tempt borrowers with a lot of incentives and waivers, but always remember there is no FREE money, you are certainly going to pay a price.

Salary Overdraft Loans

While once in a while you will be pressed with cash crunch, financing your needs with loans on monthly basis is a sure way to dig your “financial grave” usually it is a sign of desperation that many turn to as easy debt solution. Salary Advance or overdraft may seem like a good idea but they are not good as permanent debt solution. Borrowers often think that they will use the Salary loan once as a short-term debt solution. The reality is that it is easy to get caught up in the debt cycle of using this type of loan month after month. Interest rates on Salary overdraft loans can be high and the full amount will usually need to be repaid by the end of the month. Salary overdraft loans also have very high charges for late and missed payments. This should only be used as a last resort, and even then rarely.

Consolidation Loans

Consolidation loans are required when carrying several loans with multiple interest rates. Consolidation loans will only be a good option if the interest rate is lower than the combined interest on present debts. Calculating the amount of interest and overall monthly repayments will help to work out whether or not a consolidation loan is an option. Companies that charge extortionate fees before they will help borrowers should be avoided at all costs. In most cases they play the middlemen role and usually add to the total cost of the loans as their fees have to be paid.

Look For Help

One of the best and cheapest ways to get out of debt problems is to take advice. Make yourself accountable to someone you trust and respect. Contact reputable Financial Expert for expert advice if you can afford one. Take up prudent resource handling habits including Budgeting before spending, carrying out Cost/Benefit analysis on purchases before spending.

Easy debt solutions are never the answer when it comes to eliminating debt. Companies that offer easy solutions to debt may seem like the ideal option, but they are there to make as much money as possible from their customers. Work at your debt slowly but consistent and aim to become DEBT FREE except of course for GOOD DEBT.

You can always drop your comments below, I will be glad to read from you.

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About Emeka Nwankwo

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2 comments
felixcorp
felixcorp moderator

you should keep this up i love it