What about credit card payments?

If you use credit cards to finance the expenditure needs of the contents of the house and settle bills every month, this is not included in the payment of the loan .. If you use a credit card to have something that expensive with the intent to repay in the next few months, this should be included in the payment of the loan.

Due to high interest rates on credit card, you should pay back in full all the time. If your credit card balances are still standing, you should pay the balance within 3 months.

Although credit cards provide a variety of facilities, especially as a substitute for cash, it can easily be misused. In cases of AKPK worth more than RM 500 million number of consumers who incur debt, half of these values is caused by a failure to repay credit card debt.

Most importantly, avoid using short-term loans such as credit cards and overdraft facilities charge high interest, which will take a long time from 6 months to be funded again.

Make sure you choose wisely borrowing facilities available to you. This is because each loan product was designed for a particular purpose. Basically, if high-risk loans, the interest rate too high. Short-term loans and higher interest costs over the long term.

Loans that have property as collateral such as cars or houses, have a low risk to the bank, because the assets can be sold back to hold back the borrowed amount retained when failing to refinance the loan. That 's why the loan has no collateral, which has no assets, have higher interest rates, such as personal loans or credit cards. For example, interest on home mortgage loans can be as low as 6.5 percent per year, compared with an annual interest for credit cards stood at 18 percent.

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Long-term loans, such as buying a house, however, can expose borrowers to interest rate changes. This is because most home loans impose a variety of interest rates, which move together with the change in bank loans (Base Lending Rate, BLR). If you want to have home mortgages and think that interest rates will trend higher in the long run, so you better get a home loan at a fixed interest rate (fixed interest rate).

For the medium-term loans, usually the bank offering loans for purchase of transport such as cars. Most car hire purchase loans are made, is different from ordinary loan is found that the interest charged. Despite the interest calculations are made on the balance of the loan after the monthly payment loans, hire purchase loans charge interest rates are flat (a flat interest rate) on the basis of the number of loans for a term of the loan.

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So, if the hire purchase loans Which charge 5% interest rate for the past 5 years, significantly raise the total 25% interest loans from the base lending rate. If the loan is for 10-year time period, collect the 50% interest to be paid back. For the illustration, if you borrow RM 50,000 under the hire purchase loans at an interest rate of 5%, you have to pay back a total of RM 62.500 for a period of 5 years and RM 75,000 for the past 10 years - the difference RM 12.500.

In effect, this means that 5% interest per annum for 5 years of hire purchase loans compared with 9.15% interest per annum for loans that can be found.

At times you think to extend the loan for the payment or purchase to enjoy the low loan payments, to make you able to make monthly payments. But you must remember that you are actually in the end pay more total interest. If so, when dealing with the bank, ask how much the entire loan, including service fees and charges the cost of operations.

You need to take note of what you want to have to make it not be a surprise in the coming days. What happens is that you do not want to end up with still more borrowing to the bank, but you have to sell the middle of your vehicle loan payment period, because of porses sale of the vehicle, still could not accommodate the full amount of your purchase the balance of the loan.