by suny » 13 May 2017, 02:54
Should I invest or clear my old debts?
It’s a frequent question from people willing to buy a home, especially if you are a first time buyer. What do you think you should do if you owe money to your bank against your personal loans whether you should clear all your debts first or you buy a property-
What do you think is better?
We know it’s not easy to answer because everyone has their own reason. Most of us would think in terms of paying their debt first in order to get rid of interest. Yes, that makes common sense but you must see and decide what would be a wiser step!
Get rid of Debt or take another loan
Most of us would not give a second glance, but would nod in favor of clearing off their personal debts before doing anything in the direction of investment especially in property. However, the way the rates of the properties are going-up then you need to look at interest rate. If the property appreciates at higher rates than what you are paying as interest.
What would you do for your first home?
If you feel that getting mortgage with bad credit rating is an issue, then you should consider paying your debts and apply for home loan at the same time but only if you feel you can manage both in your present income scenario. Of course your guarantor can help you in this matter at least regarding the initial deposit issue.
So what you should do to get rid of old debt
1-The best you could do is to find out the exact amount that you owe to different financial institutes. Collect all your data and statements from each creditor and check minutely what needs your attention first. The second step is to make a budget and stick to strictly. You can decide your priorities and see what needs to stay in that list what could cut so you have more cash to repay your debt quickly.
2- Stop using your credit card, yes that’s one of the best ways if you wish to improve your credit rating at least until your 60 debt is cleared. I don’t say you should cancel your credit but keep it out of your wallet and don’t use it unless must and make your transactions through cash-only.
How to maintaining a good credit score
We all know that there are certainly things that we can do to see that our credit rating allows us to apply for loans like open credit option related accounts or keep our existing accounts open while we are not really using them.
One good option is to move your high-interest debts a lower interest rate account by switching to other bank if possible but you will have to carefully check the terms and conditions and don’t forget to read the fine print when moving your loans to lower interest offer because some of them have hidden conditions which might even effect you adversely.
Conclusion
you should know better if some special changes are going on for you, but you have to grab them. You can't even imagine that a right decision in favor of investment at this very moment could bring wonderful future prospects.
Maybe some of the best future investment opportunities are waiting for you right at this very moment when you’re worried about your old debt.
Tags- Credit, Debt, Investment, Rating, Loan, Home loan
[b]Should I invest or clear my old debts?[/b]
It’s a frequent question from people willing to buy a home, especially if you are a first time buyer. What do you think you should do if you owe money to your bank against your personal loans whether you should clear all your debts first or you buy a property-
[b]What do you think is better[/b]?
We know it’s not easy to answer because everyone has their own reason. Most of us would think in terms of paying their debt first in order to get rid of interest. Yes, that makes common sense but you must see and decide what would be a wiser step!
[b]Get rid of Debt or take another loan [/b]
Most of us would not give a second glance, but would nod in favor of clearing off their personal debts before doing anything in the direction of investment especially in property. However, the way the rates of the properties are going-up then you need to look at interest rate. If the property appreciates at higher rates than what you are paying as interest.
[b]What would you do for your first home?
[/b]
If you feel that getting mortgage with bad credit rating is an issue, then you should consider paying your debts and apply for home loan at the same time but only if you feel you can manage both in your present income scenario. Of course your guarantor can help you in this matter at least regarding the initial deposit issue.
[b]So what you should do to get rid of old debt[/b]
1-The best you could do is to find out the exact amount that you owe to different financial institutes. Collect all your data and statements from each creditor and check minutely what needs your attention first. The second step is to make a budget and stick to strictly. You can decide your priorities and see what needs to stay in that list what could cut so you have more cash to repay your debt quickly.
2- Stop using your credit card, yes that’s one of the best ways if you wish to improve your credit rating at least until your 60 debt is cleared. I don’t say you should cancel your credit but keep it out of your wallet and don’t use it unless must and make your transactions through cash-only.
[b]How to maintaining a good credit score [/b]
We all know that there are certainly things that we can do to see that our credit rating allows us to apply for loans like open credit option related accounts or keep our existing accounts open while we are not really using them.
One good option is to move your high-interest debts a lower interest rate account by switching to other bank if possible but you will have to carefully check the terms and conditions and don’t forget to read the fine print when moving your loans to lower interest offer because some of them have hidden conditions which might even effect you adversely.
[b]Conclusion[/b]
you should know better if some special changes are going on for you, but you have to grab them. You can't even imagine that a right decision in favor of investment at this very moment could bring wonderful future prospects.
Maybe some of the best future investment opportunities are waiting for you right at this very moment when you’re worried about your old debt.
Tags- Credit, Debt, Investment, Rating, Loan, Home loan