How to pay off your personal loan wisely?

The success of financial management, in terms of loans, can be measured in the action plan that you implement during the term of the loan. I will show you some strategies that will allow you to have a good performance during the balance of the debt. Click here for 15 minute loan.

The importance of having a strategy

Usually when we think about acquiring something and we need to help with a personal loan, we usually focus on the loan installment, do a mathematical calculation and a quick analysis of it, and if it fits us, we “get into the mess” because “everything is so done”. Visit this site for 15 minute loan.

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When this happens we overlook the importance of having an action plan. In other words, we do not do the real numbers, and this has as a consequence that we have the rope around our neck month after month.

That is why the strategy you implement is decisive, because with it you get ahead of what could happen and pose the way you can solve this or that situation. For example, that you lose your job or something happens to the car, among other things that can happen.

Strategies to settle loans

Starting from the importance of having an action plan to pay off your personal loans in an intelligent way, I want to share with you some key points so that you can have an optimal and bearable financial performance for your pockets.

Create an emergency fund

The first thing you have to foresee is a potential low in your income, one that comes from unexpected situations but that can be real. For example, that you are counting on that commission of the business that you did, and that in the end could not be given or of the bonds of the company, which were less this year.

Coordinate with the payment of the most “lazy” fortnight of the month

Generally of the two fortnights there is one that has a lower weight in financial commitments. In that sense, try to coordinate the date of payment of the fee with that half of the most flexible month.

To determine this you can prepare a payment schedule where you specify your monthly fixed commitments, as well as the date on which the salary discounts are made, so that you can choose the most convenient date to pay the loan.

Make extraordinary payments to capital

Finally, within the framework of the possibility, it makes extraordinary payments to the capital of the loan. This reduces the time of the loan, and in the long term, lessens the interest burden.

It is important to note that for this you have to see the terms of the agreement in terms of repaying the loan in advance. Since there are entities that penalize when the entire loan is canceled prior to the stipulated date.

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