Home Loan Tips #4

Take out a line-of-credit loan and save
Let me first say that this option is not for everyone, but if your are disciplined with your money then this type of loan can save you a mini fortune.

Line of credit, salary account or all-in-one loans are the common names for a type of loan that makes every spare dollar work to reduce the debt. This type of loan allows your income to be paid directly into the loan account to reduce the loan amount, instead of waiting for the repayment due date. Effectively you are making bigger repayments because you only withdraw what you need from the account leaving all your savings in the loan to reduce the balance. By doing this your loan is paid off much quicker and you can save literally thousands in interest. However you must make sure you are taking out less than is going in and you need to make sure that the total left over is more than you would be paying on a normal loan.


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