How to Manage Interest

Interest is without a doubt is one the worst wealth killers. Interest consumes up to 35% of our incomes. The subjects of credit and interest go hand and hand. 

There are 4 major types of loans: Signature, automobile, mortgage and credit cards. Loans have two major factors that greatly effect the borrower:

1. The interest rate
2. The length of the loan

The only way to win the loan game is to minimize the interest impact. The two ways to do that.

1. Gain and keep excellent credit (credit scores 720-850)

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2. Pay extra on your monthly payments

Excellent credit is the easier option. By managing your credit properly you can demand the lowest interest rates when you have to borrow, whether it is a mortgage, auto loan or credit card. 

Interest is determined by percentages and the length of the loan.

With excellent credit you may reduce your interest rate all the way to zero.

The best way to reduce or even eliminate the interest is to either pay extra on loan payments or make extra loan payments. Unfortunately the best way is not always the easiest way.

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