Tips to Improve Your Finances Creatively and Avoid Personal Loans – Part 2
In our last entry, we considered the adverse economic situation that the country faced a few years ago and offered some advice on how to improve your finances even in conditions like these.
Let’s continue looking at some other tips that you can use to improve your financial status and try to avoid applying for personal loans.
Consider Refinancing Carefully
It tends to happen that when interest rates go down, a lot of people are tempted to refinance their personal loans and lock in a lower rate. However, there are some issues with this approach. For example, refinancing brings along a series of added costs, like closing costs and even all the time you will invest in the process. So before jumping blindly on the refinancing idea, be sure to thoroughly analyze all the numbers using one of the many online refinance calculators available to know beforehand if you will really be saving money.
Get Your Credit Score Back in Shape or Improve It
There is no doubt that something as simple as your credit score can have tremendous power over your life, influencing a series of aspects from your finances, such as personal loan rates, your ability to rent, your eligibility when it comes to applying for a mortgages and even when applying for a job. Because of this, it is essential to know how to keep your credit score in great shape, and one of the best ways to do this get rid of any room for mistakes, including late payments on credit cards and personal loans.
Additionally, you can also request a free credit report every year. This information can be tremendously helpful, since it will allow you to see where you stand financially and to take care of any mistakes and potential problems with your credit history.
Learn to be Patient
One point in common that all researches and surveys seem to show is that people who are impatient usually have lower credit scores. This means that these people usually ends up paying a lot more for their personal loans and/or didn’t considered and studied all the aspects and terms of it before signing the agreements.
On the other hand, those who had no problem waiting for their cash rewards benefited from credit scores that were at least 30 points higher.
The lesson here? Learn to wait before making any financial decision and be sure to consider all variables about it.
Be Sure to Have an Emergency Savings Account
it is a fact that, no matter how prepared you think you are, emergencies will always happen that will cost you a lot of money. Because of this, you should always have an emergency savings account that can take you out of trouble, even if it is something as simple as getting fund to pay one of your personal loans installments. As a general rule, experts advice having anything between three to six months’ worth of expenses into an emergency fund.
Consider Working Even After Your Retire
As the years go by, more and more senior people in the country are increasingly working well into their retirements for several reasons. And this is not only because they are facing financial trouble, but also because they like their jobs or hobbies. So if you are nearing the 60-something years of age but you feel comfortable and at ease at your work, then you should consider staying in your job for as long as you can. This will not only keep you active, but will also provide yo with a nice, sustainable income for a few more years, so you won’t need to apply for a personal loan.
That’s it! Using these small tips you can make a huge difference on your finances and completely improve them, all the while putting the need for personal loans (and their cost) aside.