How to Get Rid of Loans Faster: Beat the Banks and Deal with Credit Cards

Getting the best deals out of home loans and credit cards simplifies finances that can save time and money. It also takes away a lot of pressure. There are no magic bullets when it comes to reducing the principal of the loan, or paying credit cards, except to pay as early and as often as possible.

Thinking in these terms and implementing them where applicable can achieve that needed peace of mind.

  • Pay Regularly

While this does not make a great deal of difference, it is still worthwhile to pay regularly, say, fortnightly or monthly. It is always better to have the money out of the general bank account as early as possible so it does not get spent for unnecessary things.

  • Get the Deposit as High as Possible

As people with mortgages are most likely aware, the first few years can be mind-numbing as thousands of dollars in repayments are plugged in, only to find the principal debt has dropped by a few hundred dollars. Because of the way interest is worked out, by keeping the deposit as high as possible, the principal is cut into much earlier.

  • Pump Pay Increases into the Mortgage

Take a holiday for a month or so, then pump a pay raise into the mortgage or other loans with higher interest.

  • Mind Other Debts

Personal loan and the credit card repayments are often the monthly destabilizers. First of all, be wary of lines of credit. Get rid of the smallest debt first, then the next and the next.

  • Choose Lenders Wisely the First Time

The costs of changing lenders can be quite damaging. Compared with the saving of, say, a quarter of a per cent, the cost involved can make changing lenders not worth it especially for short-term loan plans.

  • Use the Redraw Facility

If it is there and being paid for, use it.

  • Pay the Fees Upfront

What seems to be negligible monthly account-keeping fees can mean something on the total yearly repayments. Pay the fees upfront, otherwise, they are added to the load, with interest attached.

  • Salary Crediting

This may work for some people who have disposable income. Make sure that the higher interest rate paid for a fully featured loan will be more than compensated by the savings from the salary crediting.

  • Keep an Eye on Mortgage Options

For most people, mortgage is the biggest single payment every month. Rates and options should be looked into. Mortgage brokers can be contacted as necessary. They may have a current better deal to offer.

4 Strategies to Help You Finance Your Next Startup Business

When it comes to starting your own business, the process of financing it is the most important decisions one has to make. You will need to prepare a startup capital as well as have extra funds that will carry you throughout your lean months of low customer traffic. However, with the right knowledge, you can prepare for your next startup business as a success.

Here are 4 strategies to help you finance your next startup business.

Apply for Small Business Loans

You can apply for a low-interest rate for a small business loan. This is the least expensive way to get proper funding. Instead of applying for a loan at a large bank, go to a community bank or credit union for your best bet.

Use Crowdfunded Platforms

Do your research and look for platforms that allow you to show your business plan and post it online. They will help you raise funds for your business project, however, the cost of the transaction may be around 5-10% of the actual money raised on site.

Personal Savings and Assets

While this is one of the most self-sufficient ways to get money for your business, you can gather up your assets and savings and use it as collateral with lower interest rates. Keep in mind that this is also one of the riskiest options to consider.

Pre-Sale Orders

If you’ve already made a solid proposition, then chances are that you’ve already had customers ready to buy your product or service. This will also play a strong role in helping you raise money while selling your business to gain a strong reputation. Consider this method as a good way of raising capital.

Aside from having savings from your own personal assets, there are other methods to finance your business. However, you must also have a great business plan to back it up. Your proposal should gain the audience’s attention to help them be inspired to want to help you.

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