Getting The Best Debt Deal

At some point in our lives, we are going to be in some sort of debt. It’s like a natural occurrence, a rite of passage, something that everybody experiences. Whether it’s through getting a mortgage, taking a car out on finance, or even just borrowing some money from your parents or friends, there is a degree where we will end up exchanging cash with those who have lent it to us in the first place. 

So with that in mind, how can we make this work for us? Debt is seen as a negative thing by society, but there are definitely ways that you can utilise it to your advantage. 

Your Credit Rating

As weird as it seems, you have to get yourself into debt to be able to give yourself a credit rating. This means that you are simply owing money, rather than being in situation that you can’t get out of; you could be in debt by an amount of money that wouldn’t make a difference to the way that you live your life if you didn’t have it, but it would still count towards getting a good rating. If you take out quick loans, credit cards and other forms of small finances, the repayment should be easy enough for you to do and be put towards getting you a good score. This is essential if you want to apply for bigger things in the future, such as a mortgage, or need your credit score checking against what you will be putting your name against, such as renting a house. A good credit rating is quite an important thing to have – it determines just how easily you are able to live the rest of your life. 

Pay Off Debt With Debt 

Although this may seem counterproductive, the best thing that you can do if you’re in debt is to pay it off with a loan. Stick with us – it makes sense eventually. If you are paying a high rate of interest on the loan that you have currently taken out, it may be worth applying for a credit card that has low interest or 0% APR on it for a set number of months. That way, you are essentially paying off your loan and making it more manageable for you to be able to pay off – the term is usually longer, and most finance companies give you a settlement fee which is how much you owe exclusive of the interest that would usually be applied. This can be an amazing saving in the long run, but you need to keep your eye on how long you have got the 0% interest on your credit card for – the amount of months that you are given may not necessarily be the same as the amount of months that are advertised on the website that you have applied through. It all depends on your credit score and how much the company are willing to lend you for the amount of time that they choose.