It is no secret that most people use loans in order to afford things that are needed in everyday life, such as homes, cars, appliances, clothing, etc. In fact, most people will continue to keep loans for extended amounts of time so they can continue to live the lifestyle desired.
To help you reduce the amount of money you spend on the interest for these loans consider the following:
- Getting a FREE copy of your Credit Report – You really should get a copy of your credit report annually so you can be sure that the information being presented to creditors is accurate and representative of your lending history. If you find incorrect information, be sure to contact the companies to get the information corrected. Get your free copy of the credit report by visiting annualcreditreport.com. Remember, getting your credit report CORRECT is vital to getting the best available rates when taking out a loan or applying for credit.
- Get Credit – If you do not have any credit established, start off by getting a savings account. Be sure to fund the account and hold it for a few months. This will help you establish a foundation to good credit! If you plan on purchasing larger items such as a house or car, be sure to continue building your foundation as a good creditor by borrowing money and repaying it ON TIME. Another way to continue building a positive foundation is by getting a credit card and paying off the balance every month ON TIME! The key is to show that you are trustworthy with the borrowed monies by always paying it back on time.
- Make the Call – If you have a credit card with a high balance, be sure to know your interest rate. Often times, you can simply call your credit card company and request a decrease in interest rates. This can save you large sums of money! Inquire today to begin saving.
- Get Rid of the High Rates – If you have several credit cards and loans to pay off, you need to establish a plan as follows: monthly pay all minimum balances due on time, then apply any remaining funds available to the balance that holds the highest interest rate. This will help you get this loan paid off first. Continue with this rationale until all of your loans and credit card balances are paid off.
I hope that these strategies will help you save a bundle of money on your interest expenses. If you liked this strategy be sure to check out all of the others at StrategiesForPayingforDisney.com.