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Is There a Possibility of Extra or Supplementary Repayments?

Firstly, we will take into consideration what precisely a repayment is. Well, it is a borrower’s payment of a loan he took from a lender some time ago. This is, of course, based on interest, although that is not always the case throughout the world. The repayment can be on a mortgage loan, a car loan or even an education loan. As for the period in which to slowly repay the amount with interest, it could be ten years or 25 years. The former is on a short term level while the latter is on a long term basis. You as the borrower get to choose which one suits you.

If you choose a short term repayment schedule, it might be a little burdensome, yet it will be over in a limited time frame. On the contrary, if you decide to sit back and slowly let go of your hard-earned money, it may amount to less repayment per month. However, there is a catch to such a plan. That is the condition that you will have to pay extra interest. Now, it is up to you to calculate the cost/benefit analysis of this economic game. What you will want to go in your favour is the least amount of cost in return for the most significant amount of benefit. That is where you will have to hit the sweet spot. It is easy to make a profit by saving up on money provided you play your cards right.

You have three alternatives before you. Paying monthly in a simple enough manner is the first route. This is the typical run-of-the-mill sort of plan most people choose to adopt in case of repayments. Another road you can take is that of a lump sum amount that is paid to get rid of the debt that has been accumulating. You ought to take care lest your necessities get used up to pay for the luxuries. There should be bread to eat before you can afford cake. This is a reasonable strategy which is based on common sense. Finally, you may choose a mixed approach where you pay monthly part of the time, whereas at other times you choose the long-range repayment method. The man on the street may also entertain a couple of lump-sum amounts paid in between these twin strategies. It is all dependent upon the unique case of the individual considering repayment as a viable means of avoiding debt.

There is a saying which goes something like this: ‘Neither a borrower nor a lender is”. What this means is that by begging, borrowing and stealing you automatically destroy human relationships. While money opens up choice, it also ends up messing with the institution of the family in a hostile manner. Property and inheritance, which are nine-tenths of the law, take an excessive amount of time and money. They leave behind a trail of broken lives and misery, not to mention a lot of resentment.

If you find that due to failing health or accidental circumstances, you are unable to make a repayment, you have a range of choices set out before you. If push comes to shove, you may opt for the worst alternative by declaring bankruptcy. This is an extreme case. Usually, the banks and economic agencies have clauses built into their code of ethics. These allow for everything from forgiveness laws in case of heavy misfortunes to lowering the debt ceiling for the borrower’s benefit. Explore these lesser evils in-depth instead of rushing into the bony death-like arms of bankruptcy at the first sign of bad luck. While economics may have had the epithet of a dismal science once upon a time, such is not necessarily the case today. With the support system of a welfare state and many opportunities and options, one may find some wiggle room in making any repayments.

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