Switch to a fixed interest lon during recession nd to flexi interest lon with a sliding scale interest rate during boom times to save you money on interest. Working on the type of lons you have t different periods will bring the cost of servicing your lon down.
Be proactive when caught in difficult times
when in extreme difficulty and you are unable to pay off loans, chase after the banks chasing after you.
This will how you are sincere bout clearing your debt. Talk to the banks about what you can afford to pay. Cancel your credit cards if you are in high credit card debt and convert them into a loan with lower interest rates and pay this off as fast as you can.
Get government approved help when in distress
Make use of approved government credit agancies when in financial distress. Incresingly, government are setting up agencies to help those with hight debt and also to negotiate on their behalf to repay those debt. In Malaysia there is a government agency clled AKPK that has an understanding with all bnks. When you approach them with credit crd debt, you are immediately put on a debt repayment plan that is pre-negotiated with the banks. You are given a debt settlement amount to pay off with a reduced interest scale, all your credit cards are cancelled and you are given a fixed time and payment amount to pay towards this settlement.
AKPK in Malaysia and similar debt management agencies in other countries are set up to assit who have fallen into bad debt. They have pre-negotiated settlement plans and other special authorities to negotiate with banks on your behalf in certain circumatances where interest reductions are needed.
Avoid living on debt and credit
Live on cash s much s possible not on loans and credit. I know someone who used to earn , most of it on his card. He is bankrupt today. The temptation to think that credit cards are extra cash for you to spend is causing so many young people across the nations to get into debt.
Credit crds, do you need them ?
One of the fastest wys our children can get into debt is throught credit cards. There are more people today getting banksrupt throught credit card misusage then ever before. In some countries, people are having five to seven cards and are in between in debt on average. With the advent of the internet and air travel being more accessible, credit cards offer a definite convenience.