By 
Nothing could be worse than having a zero account balance and an urgent need for money. Imagine how frustrated a student will feel when his/ her student loan is not approved after getting admission to a prestigious university. Individuals with low income often experience a financial crisis that not only halts their work but also mentally disturb them. Unexpected expenses, medical emergencies, has a severe effect on a person. So, it is better to be prepared.
Here preparation does not mean borrowing money from lenders at a high-interest rate, but carefully examining your needs and then coming to a decision. Your decision should not only be based on present situations but also consider future predictions. To avoid yourself from being in debt, look at all the scenarios and always choose a low-interest rate loan.
5 Smart Tips To Avoid Financial Loss
No Interest Loan
Yes, you read it right, most of the banks and lenders offer small amounts of money, and that is without any interest or processing fee. You only repay the amount you borrow without any extra charges. High-school and college graduates can enjoy the benefits of no-interest loans to meet education expenses at the start of the semester. These loans have certain restrictions and are only required to spend on selected services like education and medical. One can get $200 to $2000 on No interest loan, which can be repaid at a flexible period.
Payday Loans
Small businesses can online apply for payday loans if they are running through tight times. If it is difficult to manage the salary of employees or you need an investment in a project, then payday loans are the best option. Payday loans help in bridging the expanding gaps between operations due to finances and gives fast credit. They get processed faster with less documentation and removes the stress.
Say No to Personal Loan (If Possible)
Many of us opt for a personal loan as they do not require collateral and can be used for any purpose. But, it invites a high rate of interest. Applying for step-up loans or small loans is better than a personal loan, as one gets a desirable amount in a short time. Short-term loans have a low-interest rate and the overall amount paid is less in comparison to a personal loan.
Get Insured
You may have bought your new sedan on a car loan, but it is necessary to get it insured. You don’t want yourself in a situation where you will be paying EMI’s for years while the car got damaged after a month you bought it. The insurance company will give you the total value of the vehicle or buy a new one. The same is applicable for you and your family. Medical emergencies may lead to a financial crisis; having insurance will provide you timely treatment without worrying about medical costs.
Do Not Fall in Trap
Carefully read all the papers and documentation while applying for a loan. Many banks have hidden charges which are included when the loan gets disbursed. These charges equal to the amount that of a high-interest loan. So, be cautious and carefully understand each and every term in the paper. Above all, you should estimate the budget and design a financial plan before making any design. The above tips will help you to meet urgent needs without impacting your bank account.
Comments