A loan can help out in case of urgent need. However, you will give the bank more than you took. If there is not enough money to repay, serious problems may arise. Our tips will help you not get into credit slavery, and if you have already taken out a loan, pay it off faster.
1. 📝 Keep a personal budget
Record all expenses and income every day. Indicate what you have spent even the smallest amounts on. It's difficult at first, but it will help you a lot in the future! This way you will pay off the loan faster and will be able to find sources to save money. For example, 1 cup of coffee for 50 rubles grows to 18,250 rubles if you drink coffee every day for a year, and in 5 years you will save 91,250 rubles on 1 cup of coffee.
It is better to record income and expenses in a table on your phone or computer. Soon you will understand what expenses can be reduced, whether there are enough funds to pay for the loan if you are going to take it out.
If you spend without frills, but you still don't have enough money, think about additional earnings or a new job.
Great news! Soon, the "Personal Budget" feature will appear in the SalamPay app. With the help of the app, you can control expenses and income simply and conveniently! Stay tuned for our updates.
2. 💰 Save money and create a financial cushion
Try to save money anyway, even if your salary is small. It is better to give up all non-essential expenses until you create a financial cushion. Unforeseen expenses are always possible, for example, for a doctor, gifts to relatives, moving.
A financial cushion is money in case of unexpected expenses. Financiers recommend that the money from the pillow be enough for at least 3 months in case of job loss. Moreover, this money should cover all your expenses (food, loans, rent).
To make saving easier, make it a rule to set aside an exact percentage of all earnings and a larger percentage of additional part-time jobs. For example, save 10% of your salary to a separate account, and if there is additional income, save 50-80% from it until you fill your financial cushion.
3. 📑 Do not sign the loan agreement immediately, take a few days to think about it. Read it carefully, do not trust the advertising
In any case, do not sign the contract if you do not understand some words. Take the contract with you, consult with friends and relatives. If the bank is in a hurry and asks you to sign immediately, this should alert you. Do not hesitate to ask questions to a bank employee, ask again if you do not understand something. Banks often go to great lengths, promising an interest-free period, but most often people do not have time to repay the loan and the interest increases.
4. ⏳ If you have already taken out a loan, then make payments on time or earlier
Try to pay on time, any delay can increase the percentage of payment, especially if you have been given a loan from a microfinance organization. In order not to miss the day after which you will be charged more, make a reminder of the payment date on your phone.
5. ❗️Beware of microfinance organizations, carefully count the percentages!
Microfinance organizations issue money more easily than banks. However, their interest can be accrued daily, and they often indicate the interest for the loan in terms of the day. Count the percentages carefully!
If it is indicated that the loan is only 1%, then "1% per day" may be written in small print. If there is 1% per day, then you will get 365% per annum per year. Although the percentage is currently limited to 292%, this is the maximum. However, you may also be fined for delay and even a large amount will be released! Even the most unfavorable loan conditions in a bank do not happen with such interest rates, more often banks provide loans at 20-50% per annum.
Please note that in some money transfer applications there is an opportunity to "borrow" money, take out a loan. However, most often the interest rates there will also be high. There is no way to borrow money in our application, because we are the first Halal application!
6. 💵 Increase loan repayments
If you have the opportunity, deposit more each month than the bank asks for. This way you will repay the loan faster and pay less interest. The longer you pay off the loan, the more money you invest. But it is necessary to clarify with the bank whether there is a possibility of such early repayment of the loan.
7. 💳 Stop spending on a credit card
Stop paying with a credit card, even if you want to buy something insignificant, such as a pack of cookies. Each ruble spent will gain new interest in the future, and your task is to reduce them.
8. 💸 Refuse new credit cards and loan offers
Do not apply for a credit card if you do not need a loan, even if the bank offers attractive terms. Many people complain that they fell into credit slavery by buying small things, but after a while they received large bills.
9. 📃 If you have several loans, start allocating a large amount to cover the loan with the most unfavorable conditions
Or, to make it morally easier, start closing the smallest loan. Progress will be seen faster this way.
10. ☝️ The golden rule is don't spend more than you earn
Think many times before taking out a loan or making a purchase with a credit card. Never make spontaneous purchases. Plan your expenses in advance. Most likely, you will be able to do without any purchases and avoid debt.
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