The rapid development of the banking sector has led to massive demand for lending services. Now almost every Russian citizen has a bank loan. Typically, the conditions of credit institutions are so disadvantageous that after signing the contract, borrowers begin to look for ways to quickly pay off the debt. It is important to act consistently to understand how to quickly repay loans.
Effective Tips
There are several basic rules that should be followed by people who want to quickly say goodbye to debt:
- Break up with high interest. This advice is especially relevant for those who have several existing loans. First of all, you need to find out which loan was issued at the highest percentage. This loan is the most unprofitable for you. It must be paid first.
- Increase your monthly payments by only ten percent. This will not be a very large and, perhaps, not even a very substantial amount in monetary terms. However, such small streams make up full-flowing rivers. What does this mean for those who are interested in how to quickly repay loans? Just by increasing the monthly payment by the amount you can afford, you will not only pay off your debt more likely, but also reduce the amount of accrued interest.
- Do not take new loans. Some debtors, getting into a situation when there is nothing to pay the current loan, get into new debts. This is an erroneous path that drives deeper into the debt hole, and getting out of it is becoming increasingly difficult. That's why you should not build tricky schemes with credit cards, withdrawing money to pay off the main debt. Over time, you still have to pay interest to the bank. Only now they will become much larger.
Now you know some effective ways to quickly repay loans. However, this is not all the information that will be useful to the current debtor.
What will psychologists say
Having a loan turns a person into a debtor. This applies not only to financial, but also psychological discomfort. Agree, it’s unpleasant to be in a state where you need to give part of your own income to the bank on a monthly basis.
Moreover, psychologists believe that the debtor is a special social role. Not only the inability to handle money, but also special thinking drives such people into financial bondage.
For some reason, they are sure that they should. So in their life, loans appear one after another. And then the logical question arises, how to repay the loan as soon as possible. Advice from psychologists will be very unconventional. First of all, you need to get rid of the feeling of an eternal debtor. You need to accept the idea that you can spend all your income at your own discretion, without giving anything to anyone. Having got used to this idea, you can pay off current loans and no longer slide into the debt hole.
How to quickly repay loans?
Fierce statistics claim that, on average, there are three loans per citizen in the Russian Federation. Getting a bank loan is incredibly simple, much more difficult to pay with it. For some, debts begin to accumulate like a snowball, and the debt hole is getting deeper.
There are some tips on how to repay a loan faster if there is no money.
- Do not disappear.
- Budget out.
- Increase income.
- Increase payment.
These tips will also be useful to those borrowers who are interested in how to quickly repay a loan at Sberbank.
Do not disappear
If there is such a situation that you cannot make regular payments on a loan, do not ignore the calls of bank employees. In this case, you leave the credit institution in complete ignorance. Its representatives do not know why you are not paying the debt and whether you intend to do so in the future.
That is why it is important to inform the bank that you are not hiding, but are ready to continue to fulfill loan obligations if you have the financial ability. Believe me, the bank is absolutely not interested in going to court or transferring your debt to collectors. These are extreme measures. The primary task of the bank is to return its own money with accrued interest, so it will try to resolve the issue with the debtor peacefully.
Budget plan
Most likely, among your expenses there are those that you can do without. Even if we are talking about small amounts, do not neglect them. From the outside it seems that a cup of coffee is an insignificant trifle that will not affect the situation with car loans.
However, this is completely wrong. Even a small amount paid to the bank will reduce not only the main debt, but also the amount of accrued interest. Loan repayment is a monotonous action over a long period. If you manage to reduce your own expenses even by a small amount and send the money saved to repay the loan, this is already an achievement, which over time will become the answer to the question of how to quickly repay loans and close debts.
Increase income
This is one of the best ways that allows you to quickly pay off bank debts. The only drawback is that not everyone can afford to quickly increase their own income. And if there was such an opportunity, perhaps the loan did not have to be taken at all.
For those who are nevertheless considering the possibility of increasing their own income, the following options are recommended:
- Increase the number of working days or hours. This is true, in particular, for those who receive piecework payment. The more time you spend at work, the greater the amount you can get at the end of the month.
- Monetize your own hobby or skills. For example, someone knows how to bake cakes, someone knows computer skills, etc. It’s worth considering how you can earn money from your own talents and where to find potential customers. Thanks to the development of modern technology, you can promote products or services on the Internet. This is a quick, and in some cases also free way to find customers.
- Find a side job. When you need to establish your own financial situation, you can find additional employment. For example, motorists are advised to temporarily become cabbies in a taxi service. Moms on maternity leave can organize a small kindergarten in their own apartment, looking after other people's children.
This information will be useful to those who are interested in how to quickly repay a loan at Sberbank. Advice is also relevant for those borrowers who apply to other credit organizations.
Increase payment
The payment schedule in banks is calculated in such a way that first the client pays the maximum amount of interest. At the same time, the bulk of the debt is reduced extremely slowly.
The client can make a difference if he spontaneously raises his monthly payments. Fortunately, their size banks have no right to limit. The higher the monthly payment, the faster the principal debt will be reduced, and the less interest you will pay.
The following question arises. Where to find additional funds for loan repayment?
- Firstly, even small amounts aimed at repaying a loan will ultimately give good results.
- Secondly, according to financial statistics, each person spends about ten percent of his own income on something that can be abandoned. This additional amount will increase monthly payments. All this will help answer the question of how to quickly repay a credit card loan.
- Thirdly, as mentioned above, you can look for a way to increase your own income. For example, to sell unnecessary things, abandon the car in favor of public transport and even sacrifice your own savings, which depreciates inflation while you are struggling with paying interest on the loan.
Total
So, there are many ways to repay a loan as quickly as possible. Of course, they all require some effort on the part of the borrower. But otherwise nothing. Nothing happens just like that. Perhaps in the future you will no longer want to take unnecessary loans.