I Need to Know What’s the Best Way to Solve My Financial Problems?

I Need to Know What’s the Best Way to Solve My Financial Problems?

How to solve my financial problems?

Here are some easy and affordable ways to get out of debt. You have probably heard the expression; Money talks, but it also walks! If you do not understand that statement, you should learn because it is the basic principle behind getting out of debt.

Your creditors will see any income you make from other sources and will make your payments in full or part-way based on what they can realistically afford. In order for you to become financially secure, you have to be able to pay back what you owe, and if you are not able to, then you have a problem.

The first thing that you want to do is to look at the payday loans that you have and use payday loan consolidation. Once you have done this according to this payday loan relief, you can get out of many payday loans.

Find out the best way to pay off your debt

Look at the interest rate you are paying now. When you take the current interest rate plus about 20% of your total debt, you can calculate the amount of interest that is left after you have paid off the debt.

This number will be the best way for you to figure out how much money you will be able to pay back on the loan or debt consolidation you are getting. The last thing you want to do is to use the current interest rate for loans and credit cards.

If you do not have any debt, you can easily qualify for an unsecured loan to consolidate your debt into one that you will not have to worry about paying anymore. This loan will be much easier to manage than paying off high interest debt. Once you have found a consolidation company, they will take care of making all of the paperwork and all of the credit card and loan payments so that you only have one payment to make each month and it is easy on your budget.

You might think that you can’t afford to use debt consolidation if you are in over your head on debt. However, there are some debt consolidation companies that work with people who are in financial trouble and they will help to take care of everything for them. This includes finding a good lender and finding a loan that you can afford so that you can start to pay off your debt.

You will want to make sure that the debt consolidation company that you choose is experienced and reputable. Make sure that the company is in business for at least 10 years and that it has been in business for at least that long. Make sure that you do some research and find out what companies have good reviews before you start looking into them.

The reason why you need to check into a consolidation company

It’s so that you can figure out if it is right for you or not. This is why you will want to talk to the people that work there to find out what you can do to make sure that they will give you the best deal.

If you do decide that you do not want to use consolidation, you will want to look into credit card companies. If you want to make a one time payment each month that you can afford, you will want to talk to a consolidation company that will help you set up a budget.

After you find a company that you feel comfortable with, you will want to make a monthly payment. Talk to them and see if they can help you negotiate for a lower interest rate on your monthly payments.

Consumer credit and interest rate: how much can you save?

Consumer credit and interest rate: how much can you save?

When customers are looking for a consumer loan, they are primarily interested in the interest rate and sometimes forget other elements that can be important. How important is the interest rate for borrowing costs and how do I get a cheap consumer loan? As credit specialists, we know the answer.

Consumer credit, interest rate and payback period

Consumer credit, interest rate and payback period

With a classic consumer loan, two factors influence the costs: the interest rate and the payback period. Customers often compare different interest rates to get the cheapest offer, but sometimes forget to take the payback periods into account. The fact is that a consumer loan with a better interest rate is generally more expensive for a longer period. We take the example of a consumer credit of USD 10,000:

  • With an interest rate of 7.9% over 12 months, the loan costs a total of USD 417
  • With an interest rate of 5.9% over 24 months, the loan costs a total of USD 609

In this example, the consumer loan at 5.9% interest is almost 50% more expensive than the offer at 7.9%! The difference lies in the payback period, which is 12 and 24 months.

Other important points

Not only the total loan interest is important, but also the other cost points of the loan have to be considered. In certain cases, banks charge additional costs when it comes to consumer credit. For example:

  • Installment insurance secures the repayment of the monthly installments (eg in the case of unemployment). This insurance has special modalities and means additional costs for the customer.
  • Will early repayment fees apply?
  • Are there any fees for a billing request?

Consumer credit and better interest rate – how much can you save?

consumer loans

For our example, we take an “average” consumer loan of USD 25,000 over 36 months. How much can you save with an optimally low interest rate with this offer?

  • Interest rate of 8.9%: monthly rate of USD 789 for a total interest of USD 3,434
  • Interest rate of 7.9%: monthly rate of USD 779 for a total interest of USD 3,048
  • Interest rate of 6.9%: monthly rate of USD 768 for a total interest of USD 2,662

In our example, the following applies: Every time the interest rate drops by 1%, the borrower saves USD 386. For a consumer loan of USD 25,000, the cost differences due to the term are much larger than due to the interest rate. The same loan of USD 25,000 with an interest rate of 7.9% already costs USD 4,086 if it is repaid within 48 months instead of USD 36 (a little more USD 1,000).

Request the help of a specialist

Are you still hesitating to take out a consumer loan? Don’t you know which interest rate and which term suit your situation? We can only recommend that you contact an experienced credit broker. They can take over your dossier and compare offers so that you benefit from the best offers on the market.