Use a repayment calculator and effectively strategize your payments on loans

As you know, these days, Credit cards have become one of the most popular modes of payment. Yes, you buy now and pay later, and naturally, this is a wonderful mode of payment. When it comes to repaying the amount due on credit cards, simply make minimum payments and with that you will not be penalized. However, Ben Woolsey, Marketing consumer research unit, points out, if you continue to make only minimum payment on credit cards, then you will be paying very heavy interest on the outstanding balance. In order to avert such a situation you may make use of a credit card repayment calculator.

credit card repayment calculator

The darker side of making minimum payments:

In order to highlight the heavy interest you actually pay, Ben Woolsey gives an example. Presume that you have $16000 due on a credit card and start making minimum payment every month. According to Ben Woolsey, in such cases you will end up paying $11000 extra, which works about to about 68% more than what you actually owed. This could be called as the darker side of making minimum payments on your credit cards.

A unique tool to analyze your repayment schedule:

Now, before making payment you should understand how your payment is apportioned against the principal and interest. By doing so, it would be possible for you to reschedule your payments in such a way that bulk of the amount is reckoned against the principal.

The debt payoff calculator is an ideal tool which enables you to make such analysis. This unique calculator is so programmed, it helps you to make effective strategy in clearing the debts on the card.

Exclusively programmed calculators:

Now, you may wonder how to calculate debt repayment so that you do not end up paying a huge amount towards interest. As a matter of fact, the use of the credit card repayment calculator involves very simple steps. It does not require any training or experience. Just fill up the data required on the calculator and instantaneously the calculator will display the amount reckoned against the principal and interest. The entire process takes hardly few minutes.

Some of the unique features:

Some of the repayment calculators are exclusively programmed for calculating the monthly repayment schedules. This helps you to plan the repayments in such a way that you pay as less as possible on the interest. In such cases, the credit card repayment calculator will help to calculate the interest you will be paying on the card against the fixed amount you are planning to pay. This enables to effectively strategize your payment plan.

Apportion payments on varieties of loans:

There was a time when you would keep wondering how to repay debt on your credit card or on other types of loans like the car loan, house construction loan and so on. This is because there was no mechanism available for you to apportion the repayments between the interest and the principle.  In the absence of this information, you would feel it very difficult to schedule your payments. But, now there are exclusively programmed debt calculators which can apportion the payments between the principal and interest on varieties of loans.

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Loans for People with Bad Credit in Australia

Obtaining loans when you have bad credit can be incredibly difficult. Lenders are never willing to risk much and a bad credit history usually screams risk. The lenders will not feel safe about your financial situation and in order to protect themselves, they simply deny you loans. Sometimes, even if you have done a good job in repairing your credit profile, some lenders may still deny your credit based on prejudice on your past mistakes or circumstances. This will continue to haunt for a long time, sometimes for a lifetime. While there are chances for you to improve your credit profile and correct your bad credit history, these are still long term measures and may not serve you when you need urgent loans. Fortunately, there are loans for people with bad credit that you can opt for in case you find yourself in a similar predicament.

As the name suggests, the loans for people with bad credit have been designed for people who have poor credit. A poor credit history does not necessarily disqualify from accessing new credit and these loans ensure that your past credit does not continue to haunt your present. There are plenty of choices which are available in the Australian marketplace if you are looking for loans for people with bad credit. However, before you apply for these loans, there are certain issues that you need to consider.

loans for people with bad credit

For example, factor in the reasons why you need these loans for people with bad credit and whether it is worth it. Lenders are generally concerned that you may not be able to repay the loan based on your credit history. You need to begin looking at your loans from a lender’s perspective in order to improve your chances of approval. By getting a copy of your credit card report from the credit ratings agency, for example, you will be able to see what your lenders are seeing and this can allow you to tailor your applications to meet the specifications of lenders who would be able to accept your application in spite of your bad credit.

It is also important to ensure that you compare the various loans for people with bad credits in Australia. Just because you have a poor credit report does not mean that you do not have the freedom to choose. It is important to do some market research so that you can understand the various loans which are available for people with poor credit. You can choose either the secured loans or the unsecured loan options.

With a secured loan option, the lender will be able to seize your assets in case you are unable to keep up with the loan repayments. Secured loans generally have lower interest rates than unsecured loans but you still have to shop around for the best rates and give it a careful consideration before you decide to opt for this option. If you have a history of bad credit, there is a high likelihood that you will be offered a secured loan as opposed to a personal loan.

The other option available for you is that of unsecured loans or the guarantor loans aimed at those with poor credit scores. You can use an unsecured bad credit loan to pay off old debts. To qualify for these loans, however, you will need to have a guarantor. This will be a person who will be able to make repayments in case you are unable to. The guarantor must be a person who has a good credit score and is not linked to you. For example, your spouse cannot be a guarantor.

Other options that you can consider if you have a bad credit history include taking a debt consolidation loan where you can have a single monthly repayment to replace all other debt commitments. You can contact Debt Mediators for advice on the various bad credit loan options in Australia.