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6 Effective Hacks for Getting and Managing Your Loans

6 Effective Hacks for Getting and Managing Your Loans

A loan can help you greatly in many situations, both personal and business related. However, not managing your credit wisely is a sure way to bankruptcy and a variety of other problems. If you want to avoid them, you need to know the best ways to get a good deal on a loan and have a strategy of repaying it in the most effective manner.

Hack #1: Look for Loans Outside of Banks

Big banks offer a high level of stability, which is important for financing. However, in many situations, you can find a better loan deal elsewhere. As getting a low rate is one of the most important things to consider when searching for funds, you need to research all your options first.

Financing sources to explore include:

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You also need to look into both national and local financial organizations.

Hack #2: Reduce Your Debt by Consolidating Loans

If you have several outstanding loans, you should look into consolidation options available to you. You can try to do this on your own or seek professional assistance. The latter would be preferable as an expert would be able to help you choose the best option for your current financial situation.

Transferring your debt balances is a very good idea if you have an opportunity to pay off your loans in a short period of time. This way, you might be able to get a much lower rate.

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Hack #3: Choose The Most Suitable Offer

A personal or business loan calculator is the most helpful tool for finding a great financing deal. Considering the number of financial organizations available today, comparing their offers individually will save a great amount of time and effort.

With the right software solution, you will be able to find and analyze a great number of loans. Most importantly, you will see not only the interest rate but the actual price of the loan.

There are dozens of factors that must be considered when choosing a financing option, and in some cases, a seemingly good deal will have extra costs that will make it expensive in the long run. If you aren’t a financial pro or have much experience in the matter, you’ll be hard pressed in understanding all the relevant details. Specialized calculators will do this work for you. This is especially important for business loans that are more complicated by default.

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Hack #4: Automate Your Monthly Payments

One of the main rules of effective debt management is to pay your bills very month. Making even the minimal payment is paramount for maintaining financial stability, especially when you have loans to pay off.

Don’t allow yourself to miss a payment by automating this process. There are a variety of banking apps that will allow you to develop payment schedules so that your bills are paid without your direct involvement. This automation system is one of the most popular services among mobile banking app users because it prevents from overspending and missing an important payment due to poor money management.

Hack #5: Prioritize Your Debts

If you have several debts and your financial situation is shaky, you may need to prioritize them. In this case, seeking professional advice would be best. A professional financier will be able to assess your balance and income, as well as predict the implications of defaulting on any of your current loans.

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Usually, the loan with the highest rate gets priority, closely followed by the debt with the lowest balance.

Hack #6: Keep Your Positive Accounts Positive

When you are unable to keep up with your debt payments, you should focus on keeping any positive accounts you have in good standing. Pay off the past due accounts when you have a chance, but do your best to preserve any positive credit you have left.

How to Stay Out of the Deep Water with Your Debt

Today you can get a loan for almost anything, but this kind of financial freedom makes many people a bit reckless with their funds. If you want to avoid financial problems, you need to manage your debts very carefully.

First of all, you need to get the best loan deals you can find. After you get the money, you need to plan your budget carefully and keep up with monthly payments. When the situation gets too difficult for you to control, seek professional counsel.

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Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

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Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

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Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

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