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Cut Those Strings: On Handling Your Debt

Debt – whether you’ve got a mini instalment or you’re in up to your neck, it’s an important thing to keep an eye on, and in this current economic climate, it’s a priority more than ever. Let’s look at some useful tips on keeping in control of your borrowing:

1. Pay on time, no matter what

It’s easy to think “out of sight, out of mind”. But closing your eyes on bills and installment due dates isn’t doing you any favours. The money you think you have now by paying late is wasted on interest fees and late payment charges. Stick to a schedule – when the bills are due, pay them as soon as you possibly can.

TIP: If you have a mortgage with us, the Direct Debit service is an automated payment method that costs less than half the average standing order fee. It makes sure that your mortgage payments are made on time – no need to take time off from your busy schedule to come to the office to pay your mortgage. https://www.ttmf-mortgages.com/resources/direct-debit-authorisation

2. Your credit score matters. Take care of it

Think it through – do you really need that second credit card to pay for the first? The illusion of buying time can get you in hot water and the illusion of ‘available cash’ that more credit cards provide puts you at risk for overspending, bigtime. Treat your credit like a delicate plant – timely payments make it grow, outstanding payments make it wilt. Stay away from anything that puts your plant at risk needlessly. Bad credit affects your chances of making important financial advances, such as getting a mortgage.

TIP: Came into some unexpected cash? Don’t be so quick to spend it. Lump sums that take you by surprise like back-pay or a tax return can be saviours. If you use some of it to make an advance on your principal, you can save yourself months of interest fees.

3. Drowning? Build a raft. Consolidate it

It’s much easier to keep your eyes on one loan than trying to be a maestro of ten, especially when you owe large sums of money overall. Debt consolidation lets you combine multiple arrears into one, at the lowest interest rates you can get. List the loans you are paying, and you can consolidate the most important ones or those with the highest interest rates. Warning: debt consolidation should be used as more of a last resort than a default technique.

TIP: Your house can be used for more than just living in. Home Equity is a mortgage that lets you leverage the value of your property for acquiring the funds you need for major expenses such as debt consolidation. Our Home Equity loan rate is 7%, with a repayment term of up to 30 years. https://www.ttmf-mortgages.com/mortgage-financing/home-equity

Understand what Debt can do for you

It’s amazing to see what a well-managed loan can do for you. When used correctly, you can educate yourself, own your own home, travel and enhance your life in several ways. Don’t waste the credit available to you with frivolous borrowing and neglected payments. Getting in control of the commitments you have now, empowers you for the future, when strategic borrowing can make all the difference.