Paying less for your personal loans

Some may look at their personal loans as something they have to deal with as it is, but there are ways to reduce the costs even after you take them on

11:18 26 September 2013

Just because you have already contracted personal loans – even if you did this over several years ago – does not mean that you will have to stick to the initial terms of the loans until you fully repay them. These loans may not be flexible, but there are easy ways of reducing the costs yet.

Here are just some of the most commons ways of doing just that.

• You can start another loan to fully repay the other smaller loans that you have, in the idea that the new interest would be smaller than the one you pay now. You have to make sure that you calculate then interest rates precisely before choosing this option;

 

• Start by fully repaying the smaller loans that you can repay, so that you won't have to continue paying interest on those. With the money you earn doing this, continue to repay the next smaller loan you have, and so on;

 

• Think about a debt consolidation plan, but make sure that you do not risk too much doing so – merging all your loans means that missing a months' payment will bring more severe consequences;

 

• try to make extra payments on the loans you have, if you are not able to fully repay any of them – this will still mean that you deal with interests more efficiently and will lead to you cutting costs on personal loans;

These are just some of the ways to reduce costs on personal loans. Remember to always be on the lookout! Keep your eyes open for new promotional products on the financial market, as there are many financial companies or banks that always look to attract new clients by offering better products in the beginning.