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When Is The Right Time To Consider A New Lending Strategy

4 Mins read

Money matters. When you are in debt, it’s always best to start considering your lending strategy. Does your current one work for you? Do you think you could benefit from reassessing your strategy and implementing a new one?

When it comes to matters regarding lending, it’s always best to try a number of ways of paying them back and seeing which ones work for you in the long term. After all, there is not a one size fits all solution to debt matters. There is a wide range of different ways that these can be assessed and repaid. It’s all about what works for you and your money.

It’s Time to Take Control

If your debt is getting to the point where you have lost control, you need to ensure that you are making your money work for you. Taking back the control element of your finances is vital. You need to make sure that you are reassessing your strategies so that you can reduce your dependency on loans.

Of course, some debt is essential. Without it, we may not be able to attend university or own our own property. But, there are some instances of debt where it’s not a good idea to exceed what you can reasonably afford to pay.

Much like student loans and a mortgage, it’s always worth remembering that you will be debt-free one day. You need to make sure that you are taking control of your finances so that you can set an end date. After all, if you have personal goal to achieve the likelihood is that you will work hard to achieve that.

So, now is the time to devise a strategic approach to your financial affairs. You need to be able to exercise a lot of monetary discipline and stick to your own rules. The end result of all this? A debt-free life. It’s worth it in the long run.

When Is The Right Time To Consider A New Lending Strategy

Consolidation Loans

 Credit consolidation loans are one of the best ways to manage your pertinent debt problems. If you are keen to make sure that you are managing your finances and you don’t have this kind of credit agreement in place, this could be the best strategy to use. You need to make sure that you are consolidating all of the credit agreements that you currently have. Whether this in the form of bank loans, credit card debt, payday loans and store cards, you can ensure that you are taking control of your finances by using this option.

 If you have not heard of this kind of loan before, the premise of this is easy to understand. Instead of dealing with your creditors directly, you take out the cost of your total loans in the form of a consolidation loan agreement. All of your loans are then paid off to the various creditors. All you have to do is manage one loan to one company. This means that you pay only one rate of interest. However, this needs to be paid off within the designated time frame, so, if you have an agreement that goes over four years, you need to pay it back within that timeframe as espoused by your consolidation loan provider. This is often one of the easiest ways to ensure that your loans are paid back in full, at a great rate of interest.

 You will need to be in a great financial place and have a good credit history in order to obtain this kind of loan. After all, this is still a loan and there are terms attached to this. Make sure that you shop around and get the best possible deal on your consolidation loans. There are a wide range of companies that offer this kind of debt strategy. Each company will have its own terms. So, do your homework and decide what’s best for you.

Talk to Your Creditors

Talking to your creditors can be a positive way of managing your debt problems. If you don’t have a severe problem, but you are foreseeing an event happening, this may be a good way to start tackling your finances before they become an issue. For many, they find that talking to their creditors is one of the best ways to reduce interest or even get their fees wavered in the long term. However, this requires an investment of time and there are no guarantees that this solution will work. You will need to speak to each provider and ensure that you are meeting their new terms. Essentially, you are bartering for a new, better deal. This can be easier said than done.

Talking to your creditors before you have any financial problems is the best course of action.

For example, if you have been given reduced hours at work and you will be taking a drop in pay over the next few months, talk to your creditors about your new situation. They may help, so it’s worth a shot.

Leverage the Payment Cycle

One of the best ways to ensure that you do not face problems when you are borrowing is to ensure that you check out the terms of the payment cycle. This kind of strategy can be an effective way of ensuring that you do not plunge yourself into financial disarray.

It works like this…

Typically, a credit agreement will have interest free period. This is usually the first month. But, if you want until 1 month and 1 day to pay off your loan, you can get an extended period of interest which usually goes into two months. However, you will need to check your credit terms. What is more, this typically only applies to credit card debt. So, don’t try this with your mortgage.

Balance Transfers

A balance transfer could be another way of strategically managing your debts. You can transfer your entire loans onto a credit card. This means that you will save money on your interest as you will get a new customer rate. This is one of the more popular ways to manage credit card loans and it’s a great way of slowing down the rates of interest that are incurred.

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