Want to pay off credit? Must Do The Following 5 Things
Relief in making loans without having to provide collateral makes many people interested in applying for a KTA. Usually those who apply for a KTA are those who really need emergency funds, for example for educational needs or venture capital because KTA tends to be more liquid than other loans. However, the disadvantage of this KTA is that the payment term is relatively short, which is a maximum of only five years. With a short tenor, monthly loan repayments can also be quite high. This will cause problems if you cannot pay it off within the specified time period. If you experience problems in paying off credit, the following tips might help you pay it off.
1. Don’t Choose Long-Term Loans
Short-term loans tend to provide high installment fees because the interest set is flat or unchanged. This will benefit you because the monthly installment fees remain stable. However, if you want to switch to long-term loans due to difficulties in paying off debt, you should think again. Long-term loans may provide lower installment fees, but the interest rate charged is effective interest. By switching to long-term loans, the interest you pay will be more expensive. Staying focused with short-term loans is a wiser choice.
2. Avoid using credit cards
One convenience of paying short-term personal loans is because you can use a credit card to pay installments. Paying with a credit card is the same as digging a hole for a hole because the credit card you use will later be charged to your bill. In other words, you are not free from the burden of loans, but you create another loan gap that must be paid off using a credit card. Worse yet, credit card loans can be more expensive because the interest charged is also relatively high. Instead of solving the problem, this will only add another problem, right?
3. Think Back Before Selling Investment Assets
Investment assets can indeed be the right solution to use if you have trouble paying for personal loan installments. However, what is not recommended to do is sell investment assets when you have both of these things together. Investment is a long-term product while personal loans are classified as short-term. If the investment is used to cover short-term loan payments, then its use will not be effective because there is no appropriate reciprocity considering the functions and objectives of the two products are indeed different.
4. Not Taking Top Up
This service is often used by those who have difficulty paying short-term loans because by taking Top Up, you can pay off old loans while getting the rest of the new loan. So not only cover the debt, you can also get money. The problem is that you have to repeat paying the installments from the beginning with the new agreement. So in essence, this does not solve the problem because you add a loan, not cover the debt.
5. Don’t Be Too Fast
Just because you have enough money doesn’t mean you can pay off your loan sooner than the specified time. If you do this especially in the case of personal loans, you will be charged with two additional types of fees, namely administration and penalties. The amount of the fee for personal loans is 5 percent. The considerable amount was considered because short-term loans have flat and fixed interest rates.
Better to Avoid Debt
If you avoid these things, then your efforts to pay off the loan well can be done. The most important thing is that you really pay attention to what needs to be done to cover the debt without giving you a loss. Closing debt by adding more debt is not a wise thing to do. It would be better if you do not need to owe from the beginning, so you do not need to be confused thinking about how to pay it off. Debt is indeed not prohibited, but avoiding it would be better, right?