How to Avoid Debt Accumulation

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					                           How to Avoid Debt Accumulation



We all have debts. If we get a home or investment loan, we're indebted. Each of our
credit card debts which might be outstanding may also be deemed as financial debt. Our
goal is usually to lessen those debts and steer clear of accumulating debt.


In this post, we will talk about some techniques to help you decrease and prevent
amassing loans and some other debts.


Help reduce mortgage by following these suggestions:


1. Lessen interest rates by dropping lump sums whenever you can. It also cuts down on
the time period (if you need to spend the money for mortgage loan).

2. Pay your monthly mortgage more frequently. If you pay every two weeks (which is
equivalent to half-a-month’s repayment) you'll have paid an additional monthly payment
each year.

3. Create a money buffer. Home loans can help you tie-up any savings account to your
mortgage and make use of the total amount in order to reduce the interest that's to be
paid. Retaining the $5,000 in an offset account (for a $300,000 bank loan) can result to
any reduction of time period by a couple of years. This allows one to save more than
$33,000.


To prevent acquiring financial debt:


1. We have to be strong in resisting the urge to buy things.. Avoid products which are
generally too expensive.

2. Avoid interest rates and late fees by paying your bills on time. It’ll help to set up
automatic payments through your bank.

3. Save for emergencies. This will help you pay out your loan and avoid fees should there
be an emergency or if the interest rates shoot up.

				
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Description: How to Avoid Debt Accumulation.