How to make the most of personal loans?
Everyone at some point in their lives requires a personal loan, either to pay off some debt, to inject capital into a business or to cover recreational expenses. The use of credit allows people to assume expenses and investments that they could not otherwise cover, since they would not have the necessary cash. Personal loans , depending on the amount, may be easier or harder to obtain, but once they are granted, it is best to make the most of them.
Currently there are many people who apply for a loan and they occupy it inefficiently, so it ends up affecting their level of indebtedness, quality of life and in many cases they can lose more than what they borrowed; when in reality the end result should be the opposite. Therefore, below, we will give you some tips to make the most of your personal loan.
The first of our advice is that they ask only for the amount they need
Requesting more money than necessary or rounding up an amount can become a temptation in which many people fall when applying for loans. The main excuse is that they ask for something else in case something unexpected happens and they do not take into account that it will affect them more than they imagine, since, on the one hand, they must be aware that each peso they request must be returned, together with the payment. corresponding interest. Also, by requesting more money than they need, they will most likely end up spending it on unnecessary purchases; that is to say, they will be living beyond their economic possibilities, at least in the short term.
Loans should never be used to finance a higher cost of living, but to make viable an operation whose liquidity they do not currently have, but which is a need or an investment that can be profitable.
When personal loans are requested only the amount that is required, you can have complementary benefits, because the less money you request, the lower the interest you must pay in total, plus the lower the loan, do not require paperwork complementary, such as having an endorsement or a bond, which means significant savings in expenses. Also in small loans, commissions are usually dispensed with, such as opening commissions or economic study commissions, which also represents savings.
Another very efficient way to make the most of a personal loan is to use it to refinance a previous loan that is in poor condition and a refinance will help you reduce your total debts. For this to be efficient, the interests of the previous loan must be higher than those of the new one. Although they should take into account possible early redemption fees or any other commission, to ensure that the operation is in their favor.
They can also opt for the reunification of previous debts, following the same criteria that we have mentioned, since, sometimes, over time they may have accumulated several small loans, each with their own monthly installments and fixed or variable interest, which generate an increase in debts and in the amount of payment they must make.
If a situation like this has gotten out of hand, it is likely that the sum of all these quotas represents a very large amount and if that is added the fact that the interest rates of these debts are less favorable than interest to unify them with a single loan; The reunification of debts can be an excellent solution. They only have to cancel all the previous debts with the money acquired through the new personal loan. From that moment, they will only have to pay a monthly fee, which they can adjust according to their needs and reduce their debts more quickly.
Another way to take advantage of personal loans is to amortize your debt ahead of time
The early cancellation of the loan is an excellent way to take advantage of the financing obtained and at the same time save. For these cases, they must contemplate two different scenarios: the first one reduces the total of the quotas in case of habitual excess of liquidity, which happens in case their economic and financial situation has improved and they are certain that they have an excess of liquidity on a regular basis, so that the extra capital should be used to amortize the debt and reduce the total of the installments to be paid. This means that the monthly fee will remain the same, but they will have fewer outstanding fees to pay.
The second scenario is to reduce the amount of the installments in case of uncertainty, which happens in cases where their financial situation has not changed, but they have obtained a capital or income in an extraordinary way, whatever the situation, as receiving an inheritance In these situations, it may be worthwhile to proceed to keep the number of outstanding installments to be paid, in which case the amortization will reduce the amount to be paid monthly; that is, the amount of the monthly fee. This is a repayment alternative that will allow them to live more easily and have to pay a little less money month after month.
Following these tips will help them to apply for and receive personal loans in the most intelligent and efficient way possible. If they can get the loan out cheaper than expected, or reduce a previous debt, then they will be on track to have good financial health.
In Gilgamesh we care about you and economy, so we offer loans on your car, an option with the best benefits, lending up to 60 percent of its value, without holding the vehicle. We handle a low interest rate and different personal loan plans that will adapt to your needs. Get in touch with us for more information and find the solution to those unforeseen circumstances or the need for investment capital. We provide our customers with the security they need when purchasing a loan on their car.