103k views
3 votes
What is one strategy that can help a person avoid spending too much money

on interest when borrowing money?

User Thejh
by
7.7k points

1 Answer

3 votes
One strategy to avoid spending too much money on interest when borrowing money is to pay off the debt as soon as possible. By making larger payments than the minimum required, a borrower can reduce the balance and therefore the amount of interest that accrues. Another strategy is to shop around for the lowest interest rates available before borrowing. This can include comparing rates from different lenders or negotiating with the current lender for a better rate. Additionally, consolidating debt with a low-interest loan can help reduce overall interest costs.

No related questions found