How to Quickly Repay a Loan

Having loans is never fun. They are a constant source of stress; what’s worse, if we borrow money from those near to us, the loans cause a constant strain in the relationship. Whenever we have a loan, we’d do well to pay it off as soon as possible; otherwise, more grievance can follow from our unresolved financial difficulties.
This article will present to you some of the most helpful hints at how to repay a loan that you already have, and to provide you with some safety measures for the loans that you may have in future.

1) Borrow from friends and family. Now, this may seem like a poor option because it involves financial aspects to otherwise personal relationships, but friends and family generally don’t charge interest, and they may be more understanding of your financial situation. You will save money on the interest of your original loan.

2) Refinancing your loan. If you don’t want to bring your family and friends into your loan (or they refuse that happening), refinancing your loan is the best option – simply find a loan with a better interest rate than the original loan and start from there.

3) Avoid more debt. This seems like an apparent advice to give, but it needs to repeated for one simple reason: you will be tempted to take another loan to finance your current one. Now, this is a great strategy if the new loan has lower interest rates (see advice above), but if the new debt has same (or, God forbid, worse) interest rate than the old one, you’re heading fast towards financial ruin. It may seem like a quick solution, but like all quick solutions, it is disastrous.

4) Rounding up your payments. This is a neat strategy for you to pay off your loan a bit more without actually noticing it. For example, if your rate is £852, you can round it up to £900 – this will reduce your loan for those £50, and it really adds up over time.

5) Rank interest rates. This really only applies to people who have multiple debts; if you fall into this category, you’d do well to pay off your debts as ranked by their interest rates. Clearly, the biggest interest rates should be paid off first.

6) Lowering interest rates. If you have a credit card debt, you can usually do a balance transfer, i.e. transferring your credit card to another bank. Now, where this option truly shines is that the new bank will lower the interest rates for you to snatch a client from a competitive bank. This is probably a good option to get a good monetary fix. After the debt is repaid, you can safely return to your old bank. It’s a win-win.

7) Budget. Many people do not budget their income and expenses, and end up in debt. Even if you think you’re fairly good with your finances, you should make a detailed list of how much you earn, how much you plan to spend and how much do you actually spend. The primary strategy here is to see where you can cut corners to save money.

8) Create a payment schedule. Paying of debt is a lot of like creating savings – if you put into your savings accounts the money you have at the end of the month, the odds are that you won’t put in much – or at all. However, if you make your savings primary and invest in it at the beginning of the month, you will have a sizeable amount of savings in a couple of years. Guess what? The exact same principle applies to debts. Simply pay off your debts first and live off what’s left, not vice versa; you won’t get very far.

9) Sell stuff. Now, this isn’t the most popular option there is, but it is a really good one if you think about it. Check all the stuff you own, and more often than not, you’ll find that you’re literally drowning in the things you don’t need. Try to sell them off at eBay or Amazon – the money will eventually pile up and you’ll be able to pay off your loan faster. Also, there is an added bonus of reduced stress – all the clutter that we own tends to accumulate background stress without us even realizing it. That is why the modern simple living movement is in full swing.

We hope that this article helped you out with your debts and has given you some sort of good ideas to improve your financial standing further. Remember – no financial situation is beyond repair. The sole question is that of personal integrity, willpower and desire to finally resolve the issue. Once the matter has been resolved, there can be no price for the peace of mind you’ll achieve.

Why You Should Not Borrow Money from Friends and Family

Anyone who is familiar with Shakespeare will recognize these verses from the opening pages of one of his most well-known works, Hamlet. Here, the aged Polonius discusses loans with his son, Laertes, and gives us these insightful words.

Borrowing and lending was running amok among the English gentry in Shakespeare’s time, and many people were selling off their estates piece by piece in order to keep up the appearances to their friends and family. As we all know, it is a poor management of one’s resources that led to their eventual ruin.

However, that isn’t the focus of today’s article. The first two verses interest us more. Why is it a poor choice to borrow money from friends and family? On surface, it sounds like a great idea – friends and family aren’t going to come banging at your door, to sell off your house and land, and they (most probably, at least) won’t take the issue to the court. In truth, you’re probably better using a reputable lender like Emu.co.uk.

But, as it often happens, the experience shows there is far more at stake than material goods. When it comes to friends, when we borrow money from them, and fail to keep up our end of the bargain, we usually have one of two outcomes, depending on who we’re borrowing money from.

If we’re borrowing from a friend, what we essentially do is endangering a friendship, and, more often than not, we kill it off entirely. After all, why would someone keep up a friendship with someone who doesn’t take finances seriously, especially when they come between two friends? With family, the issue is more complicated, as familial relations are not something that can be dealt away that easily. What usually happens is that family members will cut ties with us. That may not sound too terrible, depending on the family in question, but remember – family forms a safety net upon which we can always count if the things go sour. You do not want to cut this net to shreds, and borrowing money from family (and failing to return it) is a sure way to do so.

Now, the question remains – why are loans such a powerful way to destroy familial ties and friendships? Aren’t both of these bonds supposed to be above such petty matters, like money is? Aren’t we supposed to be better than that? Why people cut their ties with us when we fail to return the loan, and why are we prone to do the same when the identical thing happens to us with reversed roles?

It all has to do with what a familial ties and friendships are and what a loan does.

In family and in friendship, there is an unspoken rule that we’re equal. Sure, we will respect our elder family members and we will look down upon our younger ones, but it is generally assumed that one member of the family isn’t more important, so to speak, than the other. This goes even more for friendships, because friendships involve an element of will. We stay friends because we will to do so – we may ignore our family members for 20 years or more, but they still remain family. Friendships require more care to thrive.

However, that is where loans stab their black daggers. Borrowing and lending includes an element of superiority and inferiority that, ideally, should have no place amongst family and friends. To the lender, you are no longer a cherished family member or just a friend. You are those things, but now, there exists a thorn of economic inequality. The lender has the power to destroy – he or she most probably won’t resolve to such an approach, but the very fact that they’re abstaining from such an extreme option is what will inevitably cause a strain in the relationship between people who used to be equal.

Now, what are your options?

There are multiple ones. First, you shouldn’t borrow from your family and friends. Sometimes, paying an interest is better than risking those near and dear to you. Of course, sometimes that isn’t an option.

Second, emphasize that there exists a chance that you may not be able to return the money and that the lender shouldn’t borrow the money to you if that poses a risk to your relationship with that person. Honesty is the best policy.

Third, consider borrowing money from multiple friends and family members, but in smaller amounts. Let them all know you’re doing this – individual family member or friend would be much less likely to make an issue over a smaller loan than a bigger one.

Most importantly, take some responsibility with your finances and never fall into the vicious circle of borrowing again.

What are personal loans and how do they work

At this moment in time, there are numerous types of loans available on the market, some of which are more popular when compared to others. With this aspect in mind, it is important to note the fact that personal loans are by far the most popular types of debt, as a specific amount is issued, which can then be used for various types of purposes, which lay at the complete discretion of the borrower.

Based on this, most people get personal loans in order to help pay for education, fund businesses, purchasing various types of items, vacations, but also dealing with medical emergencies, getting married, buying a car, covering other forms of debt, helping friends and family and more. At this moment in time, personal loans can be either secured or unsecured. The main difference between the two types of personal loans is the fact that secured loans used a real-item to back themselves with, such as a car or a house. In case the borrower decides to no longer pay back the sum agreed on, the bank or financial institution that has given the loan, will be entitled to sell the car, the house, or order type of collateral item, in order to cover the losses. Unsecured loans on the other hand to not require collateral, which is why they are of a high risk to the lender, thus requiring a higher interest rate as well. To help avoid risk, personal loans are usually not given to those with a history of bad credit, which is completely understandable.

The main benefits associated with personal loans

The main benefit is the fact that it is personal, which means that you can use the money for whatever purpose you would like, without having to give explanations later on. Apart from this aspect, getting access to a personal loan is also fairly easy, due to the fact that an application form needs to be filled, whereas a couple of documents need to be supplied as well.

Some of the other benefits associated with personal loans include the fact that approval is normally a bit faster when compared to conventional loans, no bank account is needed, as the money can also come from an online lender, the interest rate is fixed, alongside with the rate of the repayment and monthly payments, which are fixed as well. Most of the times, loan amounts range from $1,000 up to $100,000, which is great news. Last but not least, most personal loan providers also offer lower interest rates when compared to those associated with credit cards.

The types of personal loans

At this moment in time, there are a couple of sub-categories of personal loans, as there a couple of types of personal loans that people can be eligible to get. With this in mind, these are:

The home equity personal loan, the home equity line of credit, the fast cash-advance or payday loan, the short-term personal loans, the military payday loan, the second-chance personal loan, and last but not least, the bad credit personal loan.

Out of these sub-categories, payday loans have quickly gained in popularity, due to the numerous benefits that they offer when compared to other types of loans present on the market. With this in mind, payday loans are processed almost instantly, and most of the agencies on the market, do not conduct credit checks. This is mainly due to the fact that payday loans are usually of small amounts, need to be paid back within a couple of weeks, and are only given to those who have an active fulltime job, from which they get a monthly salary that can be used to cover the loan in question. While costs are somewhat higher for payday loans, when compared to other types of personal loans, it is important to keep in mind that these are mostly meant for emergencies, where a small sum of money is needed as soon as possible, and you don’t want to borrow it from friends and families. Some examples of emergencies can include, but are not limited to having your car break down, needing to go on an emergency trip, dealing with accumulating debt, having a medical emergency and more. Regardless of the emergency that the client is dealing with, the loan remains personal, which means that the funds can be used for any purpose whatsoever.

Based on everything that has been outlined so far, personal loans represent one of the best choices on the market, considering the fact that they pose numerous advantages when compared to conventional loans that are both expensive, require an excellent credit score, and require borrowers to use the funds being given out for specified purposes only. Not to mention the fact that the application process is also more difficult.