• ParulB

MINIMUM REPAYMENT DEBT TRAP

On any loan that you have - car loan, credit card, home loan or personal loan - you should always avoid the minimum repayment debt trap. What we mean by this is that you should always look to pay at least 1.25-1.5 times your minimum scheduled repayments. You should also understand that interest is calculated daily therefore, if possible, you should try to pay all bills weekly or fortnightly. You should try to make slightly increased repayments as this will reduce interest substantially, save several years and potentially thousands of dollars across the term of the loan.


Courtesy: https://infinity.com.au/