This is important because the smaller the deposit you pay on a loan, such as a property loan, the higher the monthly burden you will have to bear ach month and the higher the monthly burden you will have to bear each month and higher the amonu of interest you have to pay. Increasing you deposit on al loan reduces interest and your monthly financial burden significantly.
Do not over extend your credit
When you take a loan, it is not free money, you have to pay it back. I know people who have taken big loans to buy luxurious cars, and bungalows only to get into trouble because their income levels cannot service such a loan. Don’t over extend, borrow only what you can afford to pay back.
Staking too many properties and doing so on debt can leave you vulnerable in the event that cash flow constrained. I know someone who bought three properties on high loans, first of all, you do not own any property unless you have paid it off in full and had the charge on your property from the bank removed.
Imagine this scenario, if all loans are recalled, you lose everything at once. Imagine another scenario, if you lose your job and are unable to pay the monthly installments, you can also lose all your properties at once.
Therefore, pay off some properties or loans first before getting yourself into more debt with other properties.
Never take credit card cash advances
This is one of the most dangerous things you can ever do financially. Cash advances from credit cards have some of the highest interest rates around. If you need cash, then find some other source, better yet, do not borrow, but live a lifestyle below your means and save so that you can have access to cash when you need it.