Financing and Personal Financing

As the global recession continues to effect the nation stock market, local and global organization and etc. It has not yet really effect the banking sector tremendously, as you can see, as the banks are still promoting personal financing with handsome repayment scheme with a lower interest rate compare to a credit card.

Its not actually a bad thing, taking a fast cash scheme. In a way, it helps one clear any outstanding in a cheaper way. Some might have taken the cash to clear their heavy debts of credit card bills, but in common, all the ads that you come across are encouraging to take fast cash to buy anything you want, go for your dream holiday are the one in common. Having not enough flow of cash is bad enough, wouldn't it make it worst taking more cash and having debt? Who is to be blame, the individual or others? Firstly you cant really put the blame on the individual, partly because all the ads are encouraging and very the repayments are attractive . You listen on the radio, you see them on the TV, you also see them on your monthly credit card statements.

Above explain is what normally comes to anybody mind when you talk about Personal Financing. Not many would think that Personal Financing can be, an individual taking initiative to make sure they get maximum return in their cash flow. As I was writing this, I got an email from a friend and it ring a bell, one way where you might be personaly financing yourself and saving money.

With the reduction in BLR to 5.55%, banks will be reducing your home loan installment payments. You should take the first step as initiative to enquire or write to them.

One can actually request for a lower interest rate in addition to the reduction in BLR. For eg. if u are currently paying BLR + 0%, u can request your bank to reduce your rate to BLR of up to – 2.2%. Go to yr loan branch, fill up the mortgage reduction form and submit. Then wait for the bank to call u with their offer and decide whether to take it up or not.

If u are able to get refinancing at BLR – 2%, u are paying only 3.55% interest. What kind of savings can we get from the 2% lower interest rate?

If yr loan is RM250k for another 20 yrs, yr savings is abt RM271 per mth.

If yr loan is RM250k for another 25 yrs, yr savings is abt RM285 per mth.

If yr loan is RM400k for another 25 yrs, yr savings is abt RM455 per mth.

Now isnt that call Personal Financing in some way???