In conditions of low wages and a simultaneous rise in prices, large purchases are made mainly at the expense of credit funds. Banks, in turn, squeeze the maximum benefit from this, because where there is demand, supply is born. But what if the bank overstates the interest? How do I pay less? Is there a way out in this situation? Let's see …
The first thing to look out for is. Large financial companies always issue loans on more favorable terms, as opposed to smaller ones. Yes, they can attract a client at two, or even at one percent, but here you need to carefully study the contract. Most likely it will be a daily rate, and thus you will have to overpay at least 30% per month, but if you calculate how much it will be per year? This is not written in an ordinary font, so if you still decide to take out a loan from such a company, take a magnifying glass with you and carefully read the entire agreement …
The next important point is this. Yes, not many people know, but if you receive a salary on the card of a certain bank, then in the first turn go there and apply. Why? Because mainly for salary workers, loans are issued at a lower interest rate, since the bank knows that you are employed and receive a stable income. For the rest of the banks, you need to provide all kinds of certificates, copies of the labor and so on in order to confirm the solvency. However, dwelling only on your bank is still not worth it, there should always be a choice. Perhaps another bank will be able to offer the best conditions and the lowest interest - in any case, it is important to carefully read the agreement!
A well-known way to reduce the rate is to attract a co-borrower. This can be a spouse or spouse, relatives, etc. But it is important to know that not all banks and not for every loan can afford it. If this type of loan provides such an opportunity - use it!
A controversial way to reduce the percentage, after all, do you still overpay for insurance? Not. If calculated correctly, insurance can reduce the interest rate by 5% or even more. Again - with the correct calculations. Ask your consultant to calculate the benefit - how much you will overpay the interest on the original conditions and how much if you take insurance. Do not forget that insurance is not just a product imposed by the bank, but a necessity in case of unforeseen circumstances.
This method will help you if you have already taken out a loan and interest is charged to you on the residual amount every month. The easiest way in such a situation is to know in advance that you are able to pay more per month than the bank requires. The percentage will decrease depending on how much more you invest on the principal debt.
Let's take an example: Let's say you need 500,000 to buy a car, the bank calculated you 15% per annum, but you have an amount of 700,000 at 13% per annum (that is, the amount is more than you need, but with the lowest interest rate). In this case, it is better to take 700,000, buy a car for 500,000 and put the difference of 200,000 back into the loan. In this case, you will have a debt of 500,000 at 13% per annum. Here it is important to clarify with the consultant whether early repayment is possible and under what conditions.
All these methods will only be beneficial if you carefully read all the terms of the contract and discuss with your consultant. You should not be afraid to ask them questions - it is in their interest to clarify all the conditions to you, to dispel doubts.
