Personal Loan Low Interest

Reducing Your Interest Expenses Should Be an Annual Financial Goal

Needless to say, it should be your goal to reduce your interest expenses on loan. Lending companies, creditors earn on interest and many people find it tough to pay back the money because of the high interest component. Secondly due to not paying the bill on time or defaulting on payment, the interest rate rises and it can become quite a strain on the budget to pay back the money that is lent to you. You should therefore take every effort to pay the amount outstanding monthly in full, so that there is no scope for high interest rate as penalty and late-fees. Here is how you can reduce your interest expenses

1. Go through your credit report – You can order a free credit report at annualcreditreport.com and check your credit profile and credit score. The Fair Credit Reporting Act has made it mandatory that consumers should be allowed one credit report every month. Check your credit report for any fraud or discrepancy. You can dispute them with your credit company and tell them that the interest rate should not rise because the fault is not at your end.

2. Pay bills on time – Firstly, endeavor to pay all your outstanding amounts in full each month. If that is not possible, pay more than the minimum due. Prioritize your debt payment according to the interest rates. Pay the debt with the highest interest rate and then the lower one and so. This way, you become more creditors to the loan and your credit score can be improved.

3. Look for secondary income – If you can manage it, look for a secondary source of income that can help you pay up your loan and reduce the monthly cash flow. You can use the extra cash to pay debt and this can also help reduce the interest rate because you are able to bring down the loan amount significantly.

4. Bargain and ask for waiver or interest rate reduction – You can call up your creditor and ask him or her to go through your credit profile. If you are able to state your case well and it appears to them that you have been making payments on or before time, most of the time, they will be open to reducing the interest rate on your loan. This they will, do for the sake of competition, if not for your sake. You can add more weight to your bargain by saying that you will be transferring your balance to other companies. You can also discuss this with the senior management. You can also keep an eye on the Federal Reserve Board which is responsible for the monetary policy in the US. If it is lowering the interest rate, you can call up your creditor and ask for reduced interest rate on your own accounts.

5. Balance Transfer – You can actually go ahead and transfer your outstanding balance to another company that offers better terms of credit with much lowered interest or zero percent interest for a promotional period.

Personal Loan Low Interest