Increasing consumerism has given rise to the phenomenon of over
expenditure by even an average earner and in turn has resulted in more
and more people reeling under debt burden. The problem escalates because
people care little about key aspects of personal finance. One can in
fact benefit much if finance availing and management aspects of personal
finance are especially taken care of.
Both
finance availing and management of personal finance goes hand in hand.
Main sources of personal finance are credit cards and personal loan.
Credit cards have become most popular and easier way of both taking
finance and making expenditure. Every item purchased goes to the
cardholder's bill. Lack of cash often encourages consumers to swipe
credit card more. This only results in debt accumulation. To minimize
credit card debts, take precautions. It would save you lot of money if
you use credit card only when there is no other alternative to it
because if the dues are not cleared in time the credit card issuing
company slaps high penalties. This worsens the debt problem. Also, when
applying for credit card, make sure you pick up the company that charges
the lowest possible interest rate. Your interest outgo must remain
lower so that you save enough for other expenses and rainy days.
Another
way to managing Personal Finance is to prefer using debit card. You can
spend only up to the amount you have in your account. Thus debit card
keeps you away from overspending and resultant unnecessary loss of
finance.
Personal loan is an effective source of personal finance.
When opting for a personal loan, again, your concern should be to save
as much as possible on cost of the loan. Personal loan makes you
financially secure and stronger as you use the loan constructively.
Avail it at lower interest rate so that you do not feel debt burden. The
best way of bargaining for lower interest rate is to opt for secured
personal loan. In this type of the loan any of the borrower's property
is placed as collateral with the loan provider. With the loan well
secured, lenders are willing to reduce interest rate. Also, greater
repayment term is offered so that monthly outgo towards installments is
reduced to the comfort of the borrower.
Think of saving money
because this habit will help you meet finance in an emergency. Open a
wealth account where your money grows into your largest net worth as the
money is not spent and invested only. Make all efforts in lessening
debt burden. For instance, pay extra principal amount towards car loan
or credit card so that you do not accumulate debts and managing finance
becomes easier.