Debt Management: Strategies for repaying Personal
Loans
Personal loans (PLs) are very useful in easing unforeseen cash shortages, but
they need to be handled with caution as they charge very high interest rates that
compound quarterly and extract heavy...
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Debt Management: Strategies for repaying Personal
Loans
Personal loans (PLs) are very useful in easing unforeseen cash shortages, but
they need to be handled with caution as they charge very high interest rates that
compound quarterly and extract heavy repayments in the longer term.
This is
what personal financial planning experts have to say regarding the repayment
of PLs that can save considerable time and money:
Stepping up your repayment-Regardless of the repayment program
stipulated by the lender, prudent personal finance management
suggests that you fast-track the payment to save on interest.
Usually the
interest is calculated and applied on a daily basis in the loan amount, and
every pre-payment you make reduces the principal amount, and thereafter
the interest levied starts diminishing as you progress.
The problem with pre-payment is that lenders may levy a pre-payment
charge for every payment you make (to discourage you from adopting this
short cut).
If that is the cas
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