Are you one of the millions of South Africans who just can’t on top of their financial status? Do you find yourself that you don’t know what loans to attend to first? In this article I will give out a few useful tips on how to manage your personal loans in order to secure a stress free financial status.
It is important to pay off the loans with the highest interest rates and fees first. If you can manage to pay of the loans with the higher interest rates first, you will see that on the long run you can and will save thousands of rands and enabling you to pay off the loans with lower interest rates a lot faster and with a lot more ease.
There are also a lot of personal loan companies that offers fixed low rate packages to their customers. By applying for a fixed low rate personal loan you will see that you will have more money in hand to adhere to other personal loan payments and to have more money for home necessities etc.
Only spend money on necessities in the house. Aim to only spend with in your monthly earnings, and avoid buying on credit in the future. Get rid of any extra spending, like to go eat out once a week or movie dates etc. Admit to yourself that you are busy spending money that you could have used to attend to your personal loans. As soon as you realize that you are over spending, then you will see that you will have more money to attend to your current personal loans and other type of debt.
If you have a bad credit score, then it's highly unlikely that you will get a loan. Get your credit score first and see where you can improve.
By creating a daily list of all your daily expenses, even all the smaller amounts like your kid’s daily school allowance, you can then easily see where you can save money in order to attend to all your current loans, You will see that you will have to make some sacrifices and life changes in order to attend to all of your personal loans. You will first need to settle all of your personal loans in order to say that you have total financial freedom.
Another important tip is to not create any more debt, by opening up more credit accounts, whether it is applying for another credit card or a clothing shop account etc. First settle all of your current personal loans. By getting more credit might solve your short term problem, but it will only make your long term debt situation worst.
To conclude we can say that there are a few helpful tips which you can use to manage your personal loans. If you can attend to all of your monthly debt instalments, you will see that the pay-back time period will be much quicker. By adhering to all of your personal loan rules you can dodge any unnecessary penalty fees and secure a good and trusted credit record, enabling you to apply for more personal loans in the future when they are really needed.