Tanner’s Tips – Loans

Tanner’s Tips comprises of a father and daughter team, an unstoppable duo fighting apathy in the world of finance.

Let’s talk loans… Loans can be very handy, but also very costly.

When you are looking at taking out a loan, ensure that you are getting the most competitive rate for your situation. It pays to shop around, some banks offer better rates than others in the same way that one shop might charge you €7 for your favourite coffee, while another might charge €4. Shop smart! With regards to mortgages, it is worth reviewing these every few years, as you might be able to switch your mortgage and get a better rate, but be sure to take into account the costs involved in switching a mortgage (e.g. Legal fees etc.) when comparing.

The worst part about loans is that you are definitely paying much more interest on a loan, than the bank is paying you for your deposits with them. You are better off clearing loans as soon as possible. If you have surplus income after your budget, devote some of it to paying your loan off early. The sooner you pay a loan off, the less interest you will be paying on it. If you have a lump sum sitting on deposit (aside from your emergency fund) earning little to no interest and you have a loan outstanding, consider paying off the loan.

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