Quick money lending can sometimes be the right solution when it comes to needing funds because of its easy and fast disbursement. But in the long run, we are often made to lose weight and realize that the debt has already spread. How do I fix it? Check out Good Finance’s clever way below!
Today when people are in dire need of funds, people are more likely to opt for a quick money loan than a bank loan. This is because this type of fast money loan offers the convenience and variety of benefits it offers. You don’t have to bother getting out of the house and lining up at the bank for hours to apply for a loan because, with a fast cash loan, you can apply online anywhere and anytime. Plus, fast money lending is a very fast process. Some fast money lenders even offer a one-day dilution process.
Fast or often called money lending online
Is provided by a peer to peer lending (P2P lending ) company. Typically a fund that can be given ranges from $ 50 to $ 20 million or $ 3 million. As per the requirements of the application, too, you will be required to provide a National ID, Tax ID, Tax slip, and personal bank account number.
With so many benefits and benefits on offer, it’s no wonder that many people are interested in lending money fast. Unfortunately, this convenience is not accompanied by the intelligence of the public in managing the finances so that it is not uncommon for people to lend a quick loan instead of having a fast cash loan due to not being able to pay the installments on time.
Follow this procedure if you do not want to get hit by a fast cash loan
In order for you not to get caught up on fast money loan debt, Good Finance has a few ways you can apply:
Make Debt a Priority in Finance
The first way is to make loan debt a priority in finance after a basic need. We often underestimate the installment of a loan that is due on a monthly basis so, at the time of receiving a paycheck, the last installment is the last thing we do. From now on, make debt a priority once you receive your paycheck. Set aside funds for basic needs first, then set aside to pay off installment debt. Don’t use it for consumer needs like clothes shopping and so on.
Perform Debt Calculation Simulation
Always perform debt calculation simulations so that finances can continue to be well controlled. This debt calculation simulation is intended to determine whether the debt you currently have is healthy or not. The allowable healthy debt is only about 30% of the total monthly income.
So suppose your monthly income is $ 5 million, then the healthy debt you can have is $ 5 million x 30% = $ 1.5 million. So if your installment debt is still below $ 0.1 million then it’s still safe. But if it feels right at USD1,5 million, then don’t try to take out another loan before the current loan installment ends.
Pay Maximum Installment
A fast money lender will always offer you to pay the minimum installment. We are often tempted to take the minimum installment due to the small amount of it so it feels light. But do you know that the less the installment you pay, the longer the time taken and the larger the interest to bear? Therefore, if your debt ratio has not reached 30%, then take the maximum installment so that the debt can be quickly repaid. That way, you have less debt burden.
4. Never Deferred Payment
Who among you has ever been in payment? We often forget to pay off our online loan installment debt which leads to delinquency. In fast cash loans, if you are in arrears of payments, there will definitely be penalties imposed and those penalties are usually calculated based on the day. Not to mention the flowers to pay for. So if you are late paying the installment within a one-week period of seven days, then you don’t have to pay the fine plus interest. So always try to pay off loan repayments on time.
Avoid Quick Cash Loans for Consumer Needs
Fast cash loans are so flexible that they can be used for any needs. But that doesn’t mean you can use it for consumer purposes. If you use a loan for consumer purposes then it will never end until you end up with a debt consolidation here and there. Use loans for emergency or essential needs such as paying for your child’s school expenses, hospital expenses, vehicle repairs, business capital, and home renovations.
Learn to Save More
Another way to avoid debt lending is to learn to save money. Life-saving will not make you suffer because by saving, you can not only escape debt, but you can also allocate some of your monthly income to invest. How do we begin to learn to live frugally? You can start by cutting your budget for lifestyles such as hanging out at a cafe, eating at a restaurant, and even buying clothes or other fashion essentials. Spending for a safe lifestyle is only between 5% and a maximum of 10% of total income. So if you exceed that number, then you’re a wasteful person.
Always Record Expenditure
Keeping track of every expenditure that comes out of your personal bag is very important. We sometimes take these financial expenditure notes seriously. Whereas a record of financial expenditure is meant to help you remember and know what expenses you have expended. With a note of expenditure, you can also take lessons so that if this month’s expenditure is swollen, you can find out which post generates the most money and next month you will not repeat the same mistake. So don’t be shy to keep spending. If you don’t have time, you can take a picture of the payment stall or item you purchased and store it in a special folder on your phone.
Set aside Fund to Save
The last way is to set aside funds to save. We have been taught by parents from an early age to be diligent in saving every month so that if there are an urgent need and a need for immediate funding, there is a saving that can be a solution or solution. It doesn’t mean that when we save a lot this month, then next month you don’t save at all. The goal of saving is to practice discipline. So even if you only save $ 10,000 to $ 20 a month, but if you do this regularly, it will be a good habit for you. Who knows you’ll add a nominal amount of money to save.
Now you know the best ways to get out of debt fast loans. I hope the above information can be useful for you and can make your finances more healthy ya buddy!