Friday, July 26, 2013

How to Deal With Mortgage and Credit Card Management

As we are all aiming to ride out the financial wave to safety, you may be currently facing issues when it comes to repaying on a credit card or taking out a mortgage. Thanks to the economic recession we have all be tightening our fiscal belts whilst taking out favourable terms with a number of different credit card firms or banks. Whether you are seeking alternatives or looking to control your personal finance, here are a few options on how to cope with managing your credit. 

Do your research


If you wish to keep a hold of your credit cards then it is essential that you scan a wide variety of companies on the net. This is in order to obtain the best interest rate or APR so your repayments or as low as possible. Different firms will charge different types of rates so it is essential you find the best deal where you can reduce interest rates and more. This includes;

  • Decreasing monthly payments.
  • Eradicating any charges.
  • Asking for a lower interest rate.

Settle debt immediately


Whether you have a credit card or are renewing an existing mortgage loan, it is crucial that you pay off the monthly debts in good time. This is because you may run into trouble in the long run when it comes to missed payments. Like a credit card, a mortgage payment is taken monthly so you should ensure;

  • Settlement of any outstanding monthly payments as soon as possible in one lump sum.
  • Ask to discuss how to pay less over the course of a month.
  • You have enough money to pay or your credit rating may be affected. 

Prioritise


Do you really need to take out a credit card or struggle with mortgages? If you really do not have enough funds to cover these monthly payments then you should draw up a schedule. Credit card repayment can be left to a certain extent while a mortgage needs to be paid off in full. Alternatively it may result in the loss of your home. Yet, if you speak to an independent financial advisor, they will be able to put you in the right direction as far as the best home loan rates are concerned. This will provide you with the opportunity to repay within your budget so that you are not short at the end of the month.

Little and often


If you choose to pay back the minimum amount each month, it will allow you to be in control of your personal finances. In this way, it may take you longer to pay the full amount back on your mortgage or credit card but paying in bite size chunks will ensure you don’t run into debt. By adopting a less is more attitude you will have the chance to;

  • Be in control.
  • Repay the lowest amount when necessary.
  • Not rack up any additional loans.

Seek help


If you have been unable to agree on reduce interest rate payments as well as reduced balance, then there are other solutions available. You can always seek approval from independent advisors or ask friends or family to cover you until you can repay them back. This won’t be as much of a burden especially as it will only be a temporary loan to tide you over until your next pay cheque.

If you are disciplined and keep a close record of all your outgoing and incomings then you will have the ability to manage your finances. By following just a few of these steps, you will be well on the way to financial freedom and taking control of your personal finances.

About the Author:
Westpac is one of the banks in New Zealand that offers the best and reasonable home loan rates. They also have credit card deals and more.


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