Debt Consolidation

i need help with payday loans? There are people who use payday loan consolidation. 

What loan do you want to cancel before?

As you can imagine, this situation can not bring you any good. If you are one of them, you must know that you can break a spear for your financial health and put an end to this problem, but you have to react as soon as possible. As soon as you become aware of what your debts cost you (not only in economic but also emotional terms) and that you adopt the firm decision to end them, you can get out of that situation. Everything happens because you make a plan based on reducing your expenses and increasing your income. From there, decide which loan you want to cancel before and which one next.

Strategy 1. The one with the highest interest rate.

The higher the interest rate you pay for the loan, the more money you will have to pay in total for it. Do not lose sight of the concepts of TAE and TIN, review the fine print of all your debts and start by eliminating the one with the highest interest rate. In general, credit cards have the highest interests in the market.

If you choose this strategy, you have to consider one very important thing. Almost all loans are governed by the French depreciation system, which causes the interest payment to be concentrated in the first years of the debt and gradually reduced later, to the point that in recent years almost everything you pay is capital.

Strategy 2. The least amount.

If you want a quick morale, order the debts depending on the amount of each payment pending and first cancel the amount that is less, regardless of everything else. If you finish soon or relatively soon with that debt, you will feel happy and that will encourage you to continue canceling more debts.

Strategy 3. The one with fewer commissions.

If you are thinking about amortizing debt, you should know that some financial institutions charge interest for it, whether it is a partial amortization or a total amortization. Therefore, another valid strategy is to first cancel those debts whose commissions are lower. In this way, when you have to cancel the loans with higher commissions, the amount to be paid will be lower and, therefore, also the commissions to be paid.

Strategy 4. The happiest you feel.

If there is a loan to which you have a special hobby, go for it first. For example, if the entity that has granted you forces you to have the payroll registered there and you want to go to another with better conditions, first attack that debt and feel free to decide what to do with your money.

In short, four methods that lead to the same end, which is none other than canceling your debts. Depending on your financial and personal situation you will prefer one or the other. Do you tell us which one?

Intelligent Debts

Generally, we believe that credit cards have interest rates between 19% and 25% (or higher for some specialized reward cards). With a low-interest rate card, your rate will vary between 10% and 15%. These types of credit cards usually come with no reward system and are best suited for those who need to keep a balance month after month. Be aware that some low-interest credit cards come with an annual fee that can encroach on the lower interest rate. In addition, this low-interest-rate can prevent you from doing certain types of transactions. Let’s take a look at the pros and cons of using a low-interest credit card. It is important to obtain as much information as possible before using any type of financial product.

The benefits of a low-interest credit card

Lower interest charges

Obviously, the biggest benefit of having a low-interest credit card is the money you will save on monthly interest charges. Although we do not suggest that you keep a balance on your credit card every month, we also understand that sometimes it’s quite inevitable. If you are currently going through a difficult time, you may have no choice but to use a credit card balance and you should definitely go to the low-interest credit card options available for you. If you qualify for a credit card with a 10% interest rate, you can save more than 50% of your interest charges each month (based on your current interest rate).

Ability to reduce annual fees

Some low-interest credit cards have zero annual fees and some do not. If a low-interest card comes with an annual subscription, it is usually less than $ 50 a year. If you are currently using a high annual fee card, going to a low-interest rate card with lower annual fees could save you a lot of money. Be aware that some credit cards that have average interest rates (usually around 20%) do not have annual fees. It may not be worthwhile to change your card and start paying annual fees.

Debt relief

In general, interest rates greatly contribute to an individual’s ability or inability to repay credit card debt. A low-interest credit card can be a great option for those looking for a way to lighten their debt by themselves. A balance transfer credit card is another option to lighten your debt. This type of credit card usually comes with a 0% interest rate for a short introductory period. This is where a low-interest credit card could be a better choice. If you can not pay off your debt in the time period where you have a 0% interest rate, then it is a waste of time and money. Choosing a reputable debt consolidation is often a better option for those looking to get out of debt.

The disadvantages of a low-interest credit card

Limited rewards systems

In general, a low-rate credit card does not come with a rewards program as extensive as for other higher-rate cards or travel. It is the low-interest rate that you get that is considered the main benefit of one of these cards.

The low-interest rate trap

A low-interest rate is a great benefit that can help you control your consumer debt and free you from it. Unfortunately, it is very easy to fall into the trap of low-interest rates. This happens when you become too comfortable with your monthly interest charges so low and you have no serious reason to repay your balance. It is easy to achieve good financial solvency. If you plan to upgrade to one of these credit cards, make sure you do not fail by loading your card too much but keep a balance.

Balance transfers are not free

A low-interest credit card can help you repay your credit card debt by helping you save on interest. It is possible to transfer your current credit card balances to a card with a lower interest rate, this is called a balance transfer. While a balance transfer could potentially save you a lot of money, they are also not free. The fees associated with balance transfers are often so high that they cancel the benefit of a lower interest rate.

Monitor the cash advance rates

One of the disadvantages of low-interest rate credit cards is that this rate often does not apply to all types of transactions that are made with the card. This can be a problem for anyone who wants to make a cash advance with their credit card. Low-rate credit cards often have high interest rates for cash advances. However, this is not the case for all low-rate cards. Make sure you understand all the interest rates associated with your credit card before using it.