Quick Money Tips
It is always considered good practice to keep a clean payment record and a cleaner credit score for various purposes, including getting a personal loan approved in times of need. This translates into you keeping a tab on all your dues, while ensuring that your credibility stands well with different loan-lending institutions. The interest rates on personal loans are also determined according to an individual’s credit score. So, if you are thinking about how to get a personal loan of your choice, you must ensure that you are not in debt and that you are not lagging behind in terms of any due payments.
The problem with maintaining a good score, of course, is that several expenses keep mounting and savings become hard to maintain, especially when personal borrowings are added to the mix. To help you boost your financial potential and plan your budget better, here are some quick tips on money management-
Check Interest Rates
Loans that attract a higher interest rate should be paid off first, so you can save on the future interest amount. Credit card dues can pile up because of compound interest rates. With this established, you should prioritise your financial commitments on the basis of interest rates.
Allocate a Percentage of Income toward Financial Priorities
Priorities, such as paying off debts and emergency savings, warrant an allocation of at least 20-25% of your income. Doing so will not take away from your basic needs and entertainment, but does help cut back on unnecessary expenditure, besides providing a safety net.
Pay Off Little Debts, One at a Time
If you have a number of debts to pay off, and it seems like a scary task, you should start with the smallest one and make your way up. Sometimes, it helps to tackle the smaller ones first to boost your confidence.
Do Not Consign a Loan
If a bank requires a consigner, they do not trust the borrower to repay the loan. In case that borrower fails to make a payment, the lender comes after you and your credit score gets affected.
When purchasing something, opt for things which will serve you effectively for a longer period of time. Invest in experiences over material things as they stay with you longer.
Start Saving Today
The earlier you save, the more time your money has to grow. There’s no better time than now to start saving.