How to Reduce Loan Burden in USA? Top 3 Suggestions Convert Credit Card Loan in EMIs & More:
If any loan borrower in USA assumes that either Government or Loan lending company will make the unprecedented reforms in Loan & Insurance policies or EMIs, he/she might may remain in prejudice. Hereby we are providing the key points a loan borrower should remember weather a single or multiple Loan he/she has.
How to decrease Debt Burden in USA
If You Have Multiple Loans- It is felt that it remains more challenging for a Loan Borrower to keep the trajectory of EMIs & interest rate variations of multiple loans in USA. For any borrower missing an EMI means strict interest and bad Credit Score. If possible any multiple loan borrower can consider to consolidate all the debt, which involves combining several loans into one single loan.
The idea is that you avail of a loan with affordable Lower Interest Rate than that being paid on existing loans. In case of loan repayment having a single loan & the feeling of single loan over multiple burdens gives greater relief and ease.
- Apart from the lower rate, having a single loan will offer greater ease in repayment.
Note: If for instance, you have a big outstanding bill through multiple credit cards, we suggest you to approach a Loan lender for a personal loan, through which the entire outstanding amount can be repaid at a lower rate than your credit card.
How to Reduce Loan Burden in USA
Suggestion-1- Convert Your Credit Card dues to EMIs
At some amount credit cards are felt more convenient which give Interest-Free Credit for up to 50 days. A borrower should be aware about that, Credit Cards can bring a vacuity in your wallet if he/she turns to be irresponsible spender. If you have run up a huge credit card bill and are unable to pay it at one go, ask the credit card company to convert your dues into EMIs. Credit Card borrower should keep few things during the entire loan session that most of the companies want to let customers or loan borrowers to pay down their large balances in 6-12 EMIs.
Among the experts’ suggestions in case the loan sum founds big, companies may even extend that to 24 months. This is how a borrower can get benefit converting their Credit Card Bill into an EMI Option.
NOTE: However, if any borrower misses a single EMI, the rate increases to the regular rate of interest the credit cards charges. You can also take a personal loan. These are costly and charge up to 18-24%, but they will still be cheaper than the 36-44% you pay on the credit card rollover.
Suggestion-2- Use Existing Investments to Repay Debt
In case any Loan borrower’s Debt situation becomes bad, borrower can use their existing or current Investments to make that better as soon the possibility arises. There are lots of options remain in this situation that borrower can borrow against their Life Insurance Policies to pay off their burdened loans.
NOTE: They also can think about PPF- (PPF allows the investor to take a loan against the balance from the third financial year of investment, and the same is to be repaid within three years).
Suggestion-3- Make changes in Lifestyle-
In ongoing WT Loan Article No-2 we have discussed different suggestion through which a borrower could reduce their loan burden.
A borrower always remember that sometimes little things in case of Financial aspects help at large scale, we also suggest a borrower also can decrease the burden by making lifestyle adjustments to accommodate loan repayments. A lifestyle change is needed until all loan debts are repaid by borrower. Cutting down on luxuries and unwanted spending likewise movie shows, dining out and weekend getaways. In case of Credit Card huge debt borrower may locked up their Credit Cards when they try to make purchases in malls and other retailers’ shops, they can use cash despite of Card payment.
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