When it comes to saving money, we often think of cutting back on our everyday expenses. Fewer dinners out, streaming movies instead of going out to the movies or lowering our cell phone bills. But did you know one of the best ways to free up significant funds is by looking at the loans you pay each month?
It’s no secret that rates have been hovering at record lows for the past several years - even before the pandemic hit. In fact, it’s probably been close to a decade since there’s been a significant increase in loan rates. However, that trend may soon be coming to an end.
When looking to save money, most begin by reviewing their current monthly budget and expenses. But limiting dinners out or cutting the cord on cable only nets you so much in savings. One of the most significant ways to free up extra money is by reviewing your current loans.
Let’s be honest… saving money isn’t always as easy as it sounds. You create a monthly budget and do your best to follow it, but something always pops up to throw you off track. Plus, there are only so many ways to cut back your spending.
Sometimes loans and borrowing money can have a negative connotation. The truth is that loans are powerful instruments that can drastically improve your financial standing when used properly. Whether you’re investing in yourself through higher education, purchasing a home for your family, or just need cash flow for monthly expenses, loans often make the impossible possible.
You might be under the impression that all debt is bad. That simply isn’t the case. While no one likes to owe money, some loans can help you become more financially secure and provide you with opportunities to improve your current financial situation further.
With the holidays quickly approaching, your mind is probably focused on gift lists, decorations, travel plans, and family events. But the end of the year is also the perfect time to review your loans.
If you’re like most, you probably have multiple reoccurring debts that must be paid off. These debts can consist of student loans, personal loans, credit cards, medical bills, and car payments. It can be hard to pay off the debts separately because each debt has a different balance, payment period, and interest rate.
We live in a world where loans can help us afford the items we need without having to make hefty initial payments for the items. People are getting mortgages to purchase their first home, car loans to have an extra vehicle for their spouse, personal loans to finance a home business, and credit cards to pay for incidentals.
You’ve probably heard by now, more than once, that it is important to have a good credit score. While this sounds good and wise, the importance of a high credit score often doesn’t sink in until you see it in black and white.
