It’s imperative to plan for debt repayments early considering the fact your lenders often checked on your payment schedules before determining whether or not to pursue further legal actions your missed & late payments. Do not wait until those lawyer letters arrived at your mailbox as your creditors might have filed bad objects on your credit report.


Apply for a balance transfer account.

Plan for early repayments before approaching deadlines. If you’re facing difficulties in making prepayments, you might be in deep financial troubles. One way is to apply for a balance-transfer account. A balance transfer is an enabler to consolidate all of your debts into a single account, thereby lowering the risks of delinquency in multiple current accounts.


Here is an example of what a balance transfer account can help you in debt consolidations:

  • Credit cards – one good thing about balance transfers is that your credit cards and interests are being consolidated into an account.
  • Personal loans – payday loans and individual loans are being pooled into this account.
  • Mortgage debts – a major concern on everchanging prime lending rates causes disturbance among debtors, transfer your mortgages into a balance transfer scheme.
  • Unpaid interests – having unpaid interests that are charging interests on the interests, sent all unpaid interests into the account.
  • Other liabilities – facing issues in making timely repayments on other liabilities, this account does the “job”.

The beauty of a balance transfer account is that it helps consolidate all unpaid debts & interests into an account, killing other interest-generating liabilities that is lowering your personal savings and monthly income earnings.


Therefore, it’s crucial to understand the purpose behind using several balance transfers before applying for the accounts. Never assume all balance transfer accounts are created equally. Some accounts do have ongoing 0% interest promotion while others are at a fixed rate – regardless, transfer of balances is usually more effective for troubled debtors trying to make timely debt repayments.



Make full use of a 30-day creditor’s grace period.

Many people abused what is deemed as a “grace” period offered by financial institutions such as local banks and credit card companies. Do not behave like these financially distressed debtors. A lender often used a 30-day grace repayment period as a financial indicator to understand its client’s credit consumption behaviors, usually the key in deeming whether or not to issue new credit lines & debts.


However, it is not a bad decision in making use of the grace period when it comes to repaying a credit card bill, servicing off a mortgage, or any interest payment. Some consumers had no choice due to several factors; delayed in payday, salary schedule variance, or waiting for excess cash to finance the interests. A typical grace period ranges between 28 to 40 days and you have to make repayments to the principle amount while servicing interest rates.


Some common sights of failed payments are missed payments, late payments, or inability to continue making payments. Your creditors tend not to discharge lawyer letters initially & continue to charge rate of interests (as high as 24% yearly on credit cards). Do not give your lenders an opportunity to increase financing costs as you might not be able to finish debt repayments & incurred bad information being nailed down on your credit report.


Once again, do not use the 30-day grace period to only pay off interests. You should be dedicating ample cash to covering a fraction of the total outstanding amounts. A few debtors argued that consolidate your bills at the end of year before one-shot paying off all – an insane idea of recurring credit card interests within a 12-month compounding interest rate.


Enhance your credit utility ratio.

How do you improve your credit score? Diving into the intricacies of a credit score, your existing loan-to-value ratio has to remain unchanged and constantly with minimal fluctuations. This brings to the agenda of having a balanced credit utility ratio (usually under 30% of total cover limits).


Here are some debtor’s solutions that an aggressive credit repair company uses to enhance your credit utility ratio:

  1. Reduce outstanding payments – a simple trick is to reduce your existing debts.
  2. Pay to delete info – another quick way is to delete obsolete credit info.
  3. Segmenting of loan payments – a popular method many credit repair companies do.
  4. Debt snowballing technique – currently hot trend in reducing interest payments.
  5. Fix bad credit report – locating bad objects and tend to remove the info.

Evidently, you can perform these credit fixes on your own. An aggressive credit repair company does leverage on its expertise to do a clean clear up campaign. The outcome might differ slightly but the impact is significant as opposed to a personal credit repair.


An early decision to enhance your credit utility ratio is important. Do not wait until your credit limits went over-the-coverage, by then rectifying your mistake is too late. Time your debt repayments earlier and invest some time in managing unpaid debts.


Negotiate for in-house financing loans.

How much are you paying for your debts? Firstly, check your existing interest rate on your home mortgage, auto loan, credit card, personal loan, or monthly installment plan. Chances are you’re overpaying for these medium to longer term liabilities. Find out various ways on how to lower your current cost of financing now.


Below are some real-life examples on managing your debt repayments effectively:

  1. Ask for in-house financing rates – instead of paying for the bank’s interests, ask your auto dealer for direct financing packages.
  2. Seek financial assistance from credit unions – get debt reliefs directly from your local credit unions.
  3. Re-finance your mortgage loan – check out latest mortgage refinancing deals on online mortgage review websites.
  4. Terminate unused credit lines – prove to your lenders that you don’t need many lines of credit and re-negotiate on your rate of interest.
  5. Apply for balance transfer services – one probable way of securing lower financing rates upon transferring all balances over to a single account for payments.

A simple conversation with your financiers open doors to significantly lower interest rates across your credit lines, thereby improving your credit histories. It’s important to learn from these live examples as they’re proven to be successful in reducing your debt repayments over a period of time.


When you’ve taken care of the downside in streamlining your interest financing rates, you tend to be able to make repayments on time. In doing so, you are effectively managing a professional credit repair on your own & improving your overall credit report score.


Good to know about time: plan for debt repayments early.

A timely payment never fails to impress your creditors & lenders. It’s because the lender assumes lesser risk of delinquency and in turn offering better interest rates to you. An unsurprising fact of mutual benefits existed among debtors and creditors. You’ll receive many incentives near future upon paying off debts in an early fashion.


Quote of the Day: “Early human gets the best deals – KIG Hall [2013-2018]”


Relevant Topics

» What you need to know about a credit report: Beautify your credit report nicely!

» What you need to know about credit repair: Know whether a claim is right or wrong!

» What you need to know about a credit score: Check out local credit scoring models!

» Pros & cons of a credit repair: Advantages and disadvantages of credit repair!

» Dos & don’ts of a credit repair: Dos and dons of a credit repair!


This article was originally published on February 26, 2014. It has since been updated.