Monday, March 14, 2011
All over the country, students are preparing for the new Academic Year. Many of them will be starting University for the first time and face adjusting to University life and coping with their own finances for the first time in their lives. After the euphoria of exam results comes the reality. Student debts are something to be faced for a long time, even if they don't attract interest for the time being. They'll still need to be repaid in the end.
Most students, who took out loans after 1998 will be delighted to see their loan interest set at zero per cent. Some even luckier ones who achieved their loans before that date will have their interest rate reduced to -0.4 per cent. This means that even if no payment is made towards paying off their loan, it will have dropped by the end of the academic year.
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Saturday, March 12, 2011
Having your own house gives you a sense of security that comes with having the satisfaction, that you have achieve something, you can be proud of and share with your family. One thing to be thankful for, is the help you got from the home loan you took out, in order to pay for your new house. But as expected, home loan repayments are going to be a part of your financial budget, a necessary evil to be dealt with every month.
By managing your home loan repayments very well, you will be able to fit it right into your budget, and save yourself from stress and worries. The most important thing to remember is to never miss a payment, to avoid penalties and complications.
Here are some tips to help you through your home loan repayments. It is best to form your strategy on how to pay off your loan, so that you will be able to make adjustments and plan ahead in case any problems occur.
By making your first repayment as soon as you get your loan, can save you a lot of money. Your first payment on the settlement date reduces the principal before the first lot of interest accrues on the amount you have borrowed. Thus ,making your anticipated amount for repayment lower.
Choose a fortnightly schedule for repayments, instead of the usual monthly schedule. The difference here is that rather than make 12 monthly mortgage payments a year, you end up paying the equivalent of roughly 13 which of course speeds up your repayments.