How profitable and properly repay loans
Since an average of 3 credits per Russian per person, we decided that it would also be interesting for IT specialists to learn how to properly and profitably repay their loans and debts.
It is very easy to get a loan, but it is much more difficult to pay off creditors. As practice has, you can get out of the deepest financial pit, if not despair. Our tips and methods will help to pay even with large debts: competently repay debt, find money to pay, choose the best payment method.
In no case do not need to disappear, drop calls and ignore email notifications. As soon as you feel that the situation is critical, and you will not be able to repay the loan on time - notify the creditor. Specify that you are not going to cheat the bank, regularly paid the loan until specific circumstances arose, and you are going to regularly pay what you can. No one is interested in long trials, on the contrary, surely they will meet you.
You may be offered a reduction in interest rates for a while, or even cancel some late fees, change the payment schedule. All this will help to move on, and as an option, your credit history will not suffer. Of course, you must stop using a credit card, fixing the debt so that it does not increase.
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Tip:
The bank is not less interested in repaying the loan. There are cases where banks can close a loan even at a loss, while this does not affect the customer’s credit history - the usual cost management business process.
Credit companies and banks are very fond of when you pay exactly what you need. It seems to you that you are repaying a loan, albeit little by little, but in reality your debt at the expense of interest only increases. If you pay a little more, it will be more profitable, as it will shorten the payment terms. As practice shows, approximately 10% of income is spent on random things, so try to immediately deposit them into a credit account.
For example, take a credit card with a spent credit limit of 100,000 rubles. The minimum payment table for this amount will look something like this:
As can be seen from the table, the minimum payment does not pay off the debt for one calendar year, as many believe
by the end of the year you will be able to pay only 60.000-70.000, and interest will be charged on the balance of the debt. In fact, the minimum payment is arranged in such a way as to make your loan as long as possible and profitable for the bank. If the minimum payment is made even with small, but overdue, it can all go to the repayment of fines, overpayment interest, interest, current interest. You will pay, but the debt will not decrease at all.
Tip:
Surely there are things that you spend more than you need, considering that this minimum amount will not work. What can change a cup of coffee, if you need to pay a loan for a car? It sounds naive, but write down all your expenses and you will see where you can save. No fiction, but even a small amount will be enough to cover interest payments, and besides, pay a little more than the minimum payment. This is exactly the money you spend on bullshit.
Tip:
There are no general tips. Someone can take more working hours or days, someone can work longer and get a bonus. Some earn with the help of their skills and hobbies. Take up any temporary job, look for a part-time job, you need to improve your financial situation. There is a car - get a driver in a taxi. You can try to sell unnecessary things. You can buy anything from an old washing machine to a broken children's bicycle. What has been gathering dust on the balcony for years can bring you $ 20- $ 50. Already enough for the minimum payment.
If you save money on training, it may be worth spending it now, postponing plans for a year. If there are two cars in a family, you can sell one of them, so you will not only get a large sum, but you will not spend money on gasoline and maintenance, or rent a garage. Riding on public transport is uncomfortable, but cheaper. Try to abandon your hobbies and hobbies, it will release a certain amount every month and allocate time for part-time work.
Tip:
It would seem that this is obvious, but many try to first put out small loans in order to pay off at least part. In this case, you overpay the interest for the service, so that the total amount is higher. For example, you have one loan at 13% per annum, the second - at 10%. With the same loan amounts, focus on payments on the 13 percent loan, paying a minimum of other payments.
You will have to pay interest anyway, but you’ll make them less.
If the amounts are different, then it is necessary to bring the interest rates in line with these amounts. Suppose that we have two credit cards: Alfa Bank, with a debt of 100,000 at 25.9% and Sberbank with a debt of 80,000 at 19%. We bring the Sberbank rate to the Alfa-bank rate:
19 * (100/80) = 23.75%. That is, the main efforts should be made to repay the loan in Alfa Bank.
If we assume that the amount of debt in Alfa-Bank is 50 thousand, then the Sberbank's reduced rate will be 19 * (80/50) = 30.4%, which makes the repayment of this debt paramount.
Tip:
Reverse method: if you have several credits with equal charges, extinguish the smallest. This is the so-called “snowball method”: repaying one loan motivates you to extinguish the next, while reducing their number. For most people, this is easier, and they unconsciously lean towards this method. Please note that if you are threatened with confiscation or there is clearly more accrual on one of the credits, this method is excluded, extinguish a larger loan, as described above!
Tip:
If you took a large amount to develop a business or buy an apartment, and paid at least a third, you can ask for restructuring. It is beneficial if the bank now provides loans for the same purposes at lower interest rates. You can meet, and you will receive not only a reduction in total debt, but also an extension of the term on a new loan. That is, you can use the restructuring to reduce the monthly payment by increasing the total loan term. Restructuring makes sense when interest rates are significantly different, since you will have to pay commissions and some other payments when making out, so carefully calculate the benefits.
By the way, not all banks agree to refinance their own loans, so you can try to sell a loan to another bank. For example, VTB24 and Sberbank are engaged in refinancing mortgage loans. Raiffeisenbank can refinance both its own and foreign car loans.
Tip:
If you want to repay a loan from another bank credit card, on which you have no debt and there is a certain amount that you can use, make sure that it is profitable. Even if you can use the amount at 0%, there are always commissions related to transfers, so you lose some of the money, but at the same time increase the number of credits that you have to pay at the same time. If you choose this method, to calculate the amount, divide the debt by the number of months during which an interest-free loan is valid, and make sure that you have enough money to pay off.
Tip:
Comparative table of American redemption methods:
These are simple techniques to help you avoid various unpleasant situations with loans. Credits are a very useful and correct tool, which expands our possibilities, the right attitude to loans is the key to success.
It is very easy to get a loan, but it is much more difficult to pay off creditors. As practice has, you can get out of the deepest financial pit, if not despair. Our tips and methods will help to pay even with large debts: competently repay debt, find money to pay, choose the best payment method.
How to repay credit card debt
1. Conversation with creditors
In no case do not need to disappear, drop calls and ignore email notifications. As soon as you feel that the situation is critical, and you will not be able to repay the loan on time - notify the creditor. Specify that you are not going to cheat the bank, regularly paid the loan until specific circumstances arose, and you are going to regularly pay what you can. No one is interested in long trials, on the contrary, surely they will meet you.
You may be offered a reduction in interest rates for a while, or even cancel some late fees, change the payment schedule. All this will help to move on, and as an option, your credit history will not suffer. Of course, you must stop using a credit card, fixing the debt so that it does not increase.
')
Tip:- Report that you can not pay more.
- Fix the debt.
- Try to soften the conditions.
The bank is not less interested in repaying the loan. There are cases where banks can close a loan even at a loss, while this does not affect the customer’s credit history - the usual cost management business process.
2. More than the minimum payment
Credit companies and banks are very fond of when you pay exactly what you need. It seems to you that you are repaying a loan, albeit little by little, but in reality your debt at the expense of interest only increases. If you pay a little more, it will be more profitable, as it will shorten the payment terms. As practice shows, approximately 10% of income is spent on random things, so try to immediately deposit them into a credit account.
For example, take a credit card with a spent credit limit of 100,000 rubles. The minimum payment table for this amount will look something like this:
Months | 1 month | 2 month | 3 month | 4 month | 5 month | 6 month | 7 month | 8 month | 9 month | 10 month | 11 month | 12 month |
| Min payment | 12 083.33 rub. | 10 875.00 rub. | 9 787.50 rub. | 8 808.75 rub. | 7 927.88 rub. | 7 135.09 rub. | 6 421.58 rub. | 5 779.42 rub. | 5 201.48 rub. | 4 681.33 rub. | 4 213.20 rub. | 3 791.88 rub. |
| Redemption | 10,000 rub. | 9000 rub. | 8100 rub. | 7290 rub. | 6561 rub. | 5904,90 rub. | 5,314.41 rub. | 4 782.97 rub. | 4 304,67 rub. | 3 874,20 rub. | 3 486.78 rub. | 3,138.11 rub. |
| Interest | 2083.33 rub. | 1 875,00 rub. | 1 687.50 rub. | 1 518.75 rub. | 1 366.88 rub. | 1 230,19 rub. | 1 107,17 rub. | 996.45 rub. | 896.81 rub. | 807,13 rub. | 726.41 rub. | 653.77 rub. |
| Loan body | 100,000 rubles | 90000 rub. | 81000 rub. | 72900 rub. | 65610 rub. | 59049 rub. | 53144,10 rub. | 47829,69 rub. | 43046,72 rub. | 38742.05 rub. | 34867,84 rub. | 34864.78 |
As can be seen from the table, the minimum payment does not pay off the debt for one calendar year, as many believe
by the end of the year you will be able to pay only 60.000-70.000, and interest will be charged on the balance of the debt. In fact, the minimum payment is arranged in such a way as to make your loan as long as possible and profitable for the bank. If the minimum payment is made even with small, but overdue, it can all go to the repayment of fines, overpayment interest, interest, current interest. You will pay, but the debt will not decrease at all.
Tip:- To close the card in less than a year, make x1.5-2 minimum payments
3. Plan a budget
Surely there are things that you spend more than you need, considering that this minimum amount will not work. What can change a cup of coffee, if you need to pay a loan for a car? It sounds naive, but write down all your expenses and you will see where you can save. No fiction, but even a small amount will be enough to cover interest payments, and besides, pay a little more than the minimum payment. This is exactly the money you spend on bullshit.
Tip:- Optimize costs
4. Try to increase revenue and prioritize
There are no general tips. Someone can take more working hours or days, someone can work longer and get a bonus. Some earn with the help of their skills and hobbies. Take up any temporary job, look for a part-time job, you need to improve your financial situation. There is a car - get a driver in a taxi. You can try to sell unnecessary things. You can buy anything from an old washing machine to a broken children's bicycle. What has been gathering dust on the balcony for years can bring you $ 20- $ 50. Already enough for the minimum payment.
If you save money on training, it may be worth spending it now, postponing plans for a year. If there are two cars in a family, you can sell one of them, so you will not only get a large sum, but you will not spend money on gasoline and maintenance, or rent a garage. Riding on public transport is uncomfortable, but cheaper. Try to abandon your hobbies and hobbies, it will release a certain amount every month and allocate time for part-time work.
Tip:- Increase cash: new income = new credit opportunities.
American debt cancellation techniques
1. First of all - with the highest reduced rate.
It would seem that this is obvious, but many try to first put out small loans in order to pay off at least part. In this case, you overpay the interest for the service, so that the total amount is higher. For example, you have one loan at 13% per annum, the second - at 10%. With the same loan amounts, focus on payments on the 13 percent loan, paying a minimum of other payments.
You will have to pay interest anyway, but you’ll make them less.
If the amounts are different, then it is necessary to bring the interest rates in line with these amounts. Suppose that we have two credit cards: Alfa Bank, with a debt of 100,000 at 25.9% and Sberbank with a debt of 80,000 at 19%. We bring the Sberbank rate to the Alfa-bank rate:
19 * (100/80) = 23.75%. That is, the main efforts should be made to repay the loan in Alfa Bank.
If we assume that the amount of debt in Alfa-Bank is 50 thousand, then the Sberbank's reduced rate will be 19 * (80/50) = 30.4%, which makes the repayment of this debt paramount.
Tip:- Consider loans: extinguish those that are profitable, and not those that you want.
2. If the accruals for several loans are approximately equal
Reverse method: if you have several credits with equal charges, extinguish the smallest. This is the so-called “snowball method”: repaying one loan motivates you to extinguish the next, while reducing their number. For most people, this is easier, and they unconsciously lean towards this method. Please note that if you are threatened with confiscation or there is clearly more accrual on one of the credits, this method is excluded, extinguish a larger loan, as described above!
Tip:- With equal debts try to close a specific loan
3. Restructuring and refinancing
If you took a large amount to develop a business or buy an apartment, and paid at least a third, you can ask for restructuring. It is beneficial if the bank now provides loans for the same purposes at lower interest rates. You can meet, and you will receive not only a reduction in total debt, but also an extension of the term on a new loan. That is, you can use the restructuring to reduce the monthly payment by increasing the total loan term. Restructuring makes sense when interest rates are significantly different, since you will have to pay commissions and some other payments when making out, so carefully calculate the benefits.
By the way, not all banks agree to refinance their own loans, so you can try to sell a loan to another bank. For example, VTB24 and Sberbank are engaged in refinancing mortgage loans. Raiffeisenbank can refinance both its own and foreign car loans.
Tip:- You can not pay - restructure: restructuring will collect everything in one payment order and reduce the monthly amount.
4. Repayment from another credit account
If you want to repay a loan from another bank credit card, on which you have no debt and there is a certain amount that you can use, make sure that it is profitable. Even if you can use the amount at 0%, there are always commissions related to transfers, so you lose some of the money, but at the same time increase the number of credits that you have to pay at the same time. If you choose this method, to calculate the amount, divide the debt by the number of months during which an interest-free loan is valid, and make sure that you have enough money to pay off.
Tip:- Avoid penalties: use other loans if the situation requires.
Comparative table of American redemption methods:
| Redemption method | Benefits | disadvantages | When fit |
| Every month you will save more | You need to make every effort, paying high interest on the main loan and the minimum payments on the rest | When it is important to save on interest, when there is a risk of confiscation of property | |
| Extinguish the smallest loan | The number of credits decreases, you see the result | It is not always profitable from a financial point of view; it is not suitable if the loans are at least approximately equal in terms of charges. | When you need to at least start paying loans and see that the result is achievable |
| Restructuring or refinancing | Allows you to significantly save when properly calculated: to extend the payment period, reduce the interest rate and monthly payments | Additional costs for re-registration of the loan and insurance. It does not make sense if the residual payment period is small. | When the period of residual payments is longer than that spent, and the loan amount is quite large. |
| Repayment from another credit account | You save on interest, so you extinguish the principal amount faster | The need to make monthly payments on an interest-free credit card. | When the validity of the interest-free loan is large enough, and you can pay this amount monthly |
These are simple techniques to help you avoid various unpleasant situations with loans. Credits are a very useful and correct tool, which expands our possibilities, the right attitude to loans is the key to success.
Source: https://habr.com/ru/post/219039/
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