Clever Tips to Make Sure You Borrow Without Extreme Risk
If you think you can be as casual as you want when using a credit card or borrowing money in any other way, my friend, think again! It might well be a trap you’re getting yourself into.
Wait, hold that flurry of thoughts, we don’t mean to confuse you. All that we meant to do is apprise you of the mistakes people make when borrowing money.
Everyone needs to borrow funds sooner or later, but unless you’re wise about it, you can end up paying much more than what you signed up for. To help you stay away from unnecessary debt pile-up, we’ve brought forth a few handy tips you must consider before borrowing money or using credit cards. Have a look.
Interest-free loans might not be such a good idea
It’s not like you can keep the amount forever without paying any interest. You’re free from paying interest only for a certain period of time. But if you fail to pay the entire loan off within that time, the eventual interest rates are going to be very high. Thus, we suggest being completely sure of whether or not you can pay off the loan before borrowing.
Try to pay more than the minimum
Here’s another super hack to successfully pay your loan. What if you manage to pay 10% of your credit card bill every month? You see, paying the minimum card charges will do, but it will take more time to pay off the entire card bill which anyways keeps piling up. Thus, you should try to pay slightly more than the minimum amount requirement.
Overdraw your bank account?
Often, instead of borrowing money in the form of loans people just overdraft their accounts. You should know that doing this can make you pay several fees, and needless to say, you won’t like doing that.
Do your homework
It might be a good idea to research thoroughly before taking a loan. Even if it’s an urgent need, you should still put some time and effort into research. If doing that isn’t possible on your own, ask for help from your friends. One thing you should remember while doing your research is to try and find the returnable amount. Keep in mind that you can get a lower annual percentage on a shorter repayment period.
Are you signing up without reading?
Do you go through each and every term and condition before signing a paper? If not, you might easily get tricked. There are agreements with hidden clauses that you may not want to accept. Hence it’s necessary to read and understand everything.
Wrapping it up
While borrowing, you can easily get trapped into something you don’t understand or don’t anticipate. Thus, it’s of utmost importance that you be careful. A bit of research and expert assistance can help a lot.
More in Advisor
Here’s Your Personal Guide to Making Nearly-Perfect Financial Decisions
Everyone makes dozens of financial decisions every day. From paying household utility bills to signing critical documents at work, in some...September 1, 2020
A Drink from the Fount of Investment Master, Warren Buffett
If you’re knee-deep in the world of investment and finances, you’d be well aware that Warren Buffett’s name is synonymous with...August 29, 2020
Financial Tips to Sail Through 2020 Without Drowning
Caution advisory: We don’t mean to scare you, but we just might (only a little bit, though)! When you realize that...August 28, 2020
Hear It From The Horse’s Mouth – Self-Made Millionaires Reveal Their Richness Secrets
Making money isn’t a child’s play. But regardless of how challenging business gets, you can’t give up if you want success....August 25, 2020
Financial Advice You Want to Make Your Clients Stay Away From
Ever heard of someone who didn’t want a luxurious life? Sounds laughable, right? But the truth is that while most people crave to...August 22, 2020
Financial Advice: Is the year 2020 Favorable for Investment in Residential Property?
The year 2020 has taken an unexpected turn, leaving everyone baffled. Individuals had different goals and plans for the New Year,...August 21, 2020
Three Critical Thing You Need to Know to Build a Diversified Investment Portfolio
If you’re new to investing, complex terms like “diversification of portfolio” could leave you a little baffled. Well, take respite for...August 14, 2020
The Year Ahead Looking Bleak? Here Are a Few Investing Tips that will Give You Some Hope
The world is at war against a global pandemic. Over 600,000 people have been lost to the fight. Yet, it doesn’t...August 11, 2020
It’s Never Too Late! Learn How To Build Your Wealth in Your 70s.
As you enter your 70s, it isn’t uncommon to want to change your investment strategies. Long gone are the days when...August 11, 2020