Understanding different methods of loan payment

2개월 전

Almost everyone is into one form of debt or the other, research has shown that virtually almost every American citizen has a debt to pay off, not everyone is comfortable talking about the word debt because they feel quite uneasy about it.

How do we even get to pay off these debt when we do not want to hear it or talk about it, I think it is rather difficult to get a solution to something we do not want to talk about, when someone reminds us of the debt we owe we tend to fight back and resolve to conflict because we feel it is none of the person’s business and some of us even feel that everyone is in one form of debt or the other so there is no issue about it.

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When you have different debts in different credit cards that have different interest rates, where do you even begin? There are two ways to handle a situation like this, you know it all boils down to finance and the way to go about it is either through: Increasing your level of income or reducing your expenses. Increasing your income means you have to add more work to the one you currently have or you either watch the things you spend on, in some cases it is even advisable that you do the both. You increase your income level and also reduce the amount spent.

There was a pattern I learnt from a friend which may work well in paying off our loan, that method is gathering all our loan into one spot that makes a complete giant loan, it means rather than having several loans split into different bank accounts, the loans will be placed into a single account with the interest rate as well but this will take extra strength and motivation to pay off.

The second pattern is to arrange your loans in order of their amount, begin to pay them off gradually until you come to the point where you have nothing left to pay.

These two methods has its application on different people according to their abilities, remember that what works for your friend may not work for you, when you have all of those loans combined as a giant loan, it may appear too huge for you and even when you keep paying it keeps appearing as if it is not getting reduced and once you cannot pay you just have to dance to the tune of the creditors.
The two methods described above are really great it just has to do with your personality and what works best for you the most, you need to just stick to a pattern of choosing what is good and convenient for you instead of following other people’s opinion.

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"There was a pattern I learnt from a friend which may work well in paying off our loan, that method is gathering all our loan into one spot that makes a complete giant loan, it means rather than having several loans split into different bank accounts, the loans will be placed into a single account with the interest rate as well but this will take extra strength and motivation to pay off."

I understand that point but looking at it. Hope the coming together of the loan to make a giant loan will not scared the person off of paying. Paying in small and small loans could encourage one to pay more I must say or what do you think

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Hope the coming together of the loan to make a giant loan will not scared the person off of paying.

My opinion exactly, I feel it might just scare off the person and even lead to depression.

debts are like wild animals if one does not control them they end up devouring us, it is very intelligent to concentrate them all in one and reduce them gradually.

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Nice opinion, thank you for contributing.

I think that one or the other method will depend on the interest rate that you are going to pay in the end, perhaps it is more comfortable to pay a one loan to only one institution, but we would have to evaluate what interest rate would apply to the sum. In any case the most important thing is the discipline, when you acquire a debt you have a commitment, many get into debt to buy luxuries, those are the ones who do not want to talk about their debts, others get into debt to start businesses, for them loans are something routine.

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You are right, the interest rate needs to be highly considered thank you for contributing.

Loans are a good option for those who know how to handle them and who are aware of what they have to pay, while there are people who get into so much debt that they don't know what to do next. For me, the best thing is not to take on debt that we can't afford later, nothing like being debt-free.

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Being debt free is a great feeling that seriously brings amazing benefit.