How to Make a Good Use of Credit

Of you have some projects that you aim to realize you should deal with your credit wisely in order to get what you wish!


If you project is to buy a car 


The strategy to adopt: make a payment as high as possible to reduce the amount of your auto loan and the duration of your payments.

Ideally, you will save enough to pay your car in cash.


If your project is to buy a house Interest Rates On House


Here is a proven method to get pride and peace of mind: make an initial payment (down payment) as high as possible in order to reduce the amount of your mortgage and pay it as soon as possible so significantly to reduce the payable interest.


For maximum efficiency and minimum cost of interest, repayment schedule of your mortgage over a period of 20 years, but put all your energy to repay in 17 years.


Pay off your home in 17 years seems unrealistic? Look at it more closely, because you could save tens of thousands of dollars in a few years.


To pay off your home in 17 years, you must discipline yourself and follow these rules:


  • Save as much as possible in anticipation of the purchase of your home and aim to make a very high payment in order to significantly reduce the amount of your loan – if your payment is more than 20% of the house price you do not have to take additional insurance called “mortgage insurance” required by lenders;


  • expect to have saved money for a down payment before you start seriously shopping your home;


  • choose a home that you will be able to pay in 17 years, which probably means a house that will not fill all your dreams, but you will experience more relaxed instead of drowning in debt;


  • When you purchase your home, do not spend unnecessarily and put all your energy to spare for a successful challenge to pay your home in 17 years. The satisfaction that you get to see your debt melt day be worth much effort.