One of the concerns that overwhelms people the most is debt as much as an Uber without knowing where to pay their taxes . Before applying for a loan, many wonder how to finish paying a loan? It is not as complicated as you think. Just be organized and follow this series of tips.
How I Finish Paying My Loan Online – Cancel All Your Debts
Borrowing can be beneficial on certain occasions, an example of this is when starting a new business or buying a home. People even get impatient wondering how long does an online loan transfer take to my bank account?
However, if this practice is done compulsively it can lead to many problems. Therefore, it is necessary to understand what online loans are and how they work and thus cope with them in a better way.
The most advisable thing will always be to cancel all your debts before contracting a new one. Also, it is important to always keep a financial record. Organization is the key to repaying a loan.
How to finish paying a loan?
Finish paying a loan is to conclude a contract by returning the money that was given to you plus the interest percentage that was agreed with the financial institution. This can be done at any time within the time set for the return of the or even transfer the money by mercadopago from a bank account .
If you already have the money that was loaned to you, the best option is to pay it in a full prepayment. That is, do it in a single payment. With this you avoid having to pay a monthly payment, in addition, the interests are greatly reduced.
However, this operation has a cost, this cannot be greater than 1% of the total if there are more than 12 months to go to the end date, and 0.5% if the expiration period is less than one year . It may seem like little money, but it is important to consider it.
Another option is accessing the right of withdrawal of a loan. This is embodied in Law 16/2011. This appointment “is the power of the consumer to annul the contract entered into, notifying the other contracting party without having to indicate the reasons and without any penalty .”
This means that you have the right to cancel the requested loan within the first 14 days of the contract made. Appealing to this right allows you to return the entire money at no additional cost other than the interest that has been generated within these 14 days.
Tips to finish paying a loan
Having debt is something that burdens many people. And if you are not organized and develop a good payment plan, or you do not follow it to the letter, it can mean that your finances are seriously affected . For this reason, here are some tips to finish paying off a loan.
Focus on one debt at a time
If you have more than one debt, don’t try to pay them all at once, as that could ruin you financially . It is best to draw up a payment plan where you prioritize a single debt at a time.
It is best to start with the one with a higher interest rate. Thus, you would pay the minimum installment of each debt and you would focus on paying the highest interest first. Another option is to prioritize the one with the lowest balance. When you finish paying that one, you pay the next one and so on until you have no more debts.
Pay more than the minimum
Paying, even if it is a little more than the minimum fee each month, will subtract from the time you spend paying. Also, the interest will be less overall.
For this the first thing is to classify the necessary monthly expenses such as food, transportation, housing and entertainment . From there, check which of all can be reduced a little and thus, with the money that is free, be able to pay a higher percentage of the minimum monthly debt installment.