Extra Funding, Positive or Negative?

When we talk about Extra Funding in any financial product (credit cards, personal loans, loans to small or long, etc..) Generally is regarded as an extra value that is there waiting to be floated need and make use of it.

There are two positions regarding Extra Funding , the first is to seek extra-financing in any financial product that I have, and I want to have the money or the limit (in case of credit card) because I can “financially” respond to this increase and I have it for “x” reason either this for emergencies, expenses, or just on a whim.

The second generally refers to need an extra-financing because my level of debt is too much and I can not respond as it should to the financial obligations that I have right now and not for the chance to get an extra-financing soon be paying interest on late payments or for amounts paid.

We are regularly between these two ideas and primarily is in the second position, when an extra-financing is what can stay afloat (financially speaking) for a while.

While it is true and when a user is against rock and a “rollover” of debt is one of the plays smart thing to do, always keep in mind that the future plan is to recover financially and control that debt to pay it off completely and that’s probably what many at some point we need. One must know how to budget debt, measure how much of our income will go to pay this debt (credit, loan or credit card) and how long we stay afloat.

While not a bad one “extra-financing” is not good you have to investigate everything to decide such questions as:

l Is there an increase of interest in making an “Extra Funding”?

l Is there a direct increase of quota by taking a “Extra Funding”?

l Are there any increase or decrease in my credit to debt?

l Existes additional charges for the “Extra Funding”?

But my best advice is if you can avoid the “debt refinancing” or “extra-financing credit card” do it, usually this type of financial movements lengthens the process to get out of debt and create a lot of personal and family problems.

From here my best wishes for success.

Comments are closed.