Remember I had learned about serviced apartments and then went on to write something about it a few months ago? Well I have recently learned about Insurance finance loan which in layman terms means getting a loan from (lets say) a bank to pay parts of your insurance (be in car insurance, home owners insurance, etc) that’s lets unpaid by you. Here’s an example from someone who clarified this term for me, “is when you need to buy (must buy) insurance (e.g. car insurance or fire insurance) but you don't have enough funds. So you pay let's say 20% of the premium (insurance cost) and the bank gives you a loan of the remaining 80%” Mak.
When I read that explanation, it gave me an idea. Since I am getting myself into this credit card world - why not have some backup funds just in case that way I don’t miss a payment. This is how it will work, instead of taking an actual loan from a bank, I am taking a loan from myself by putting aside a certain amount of funds into my savings, and when time comes to pay off my credit card I will first use funds on my checking account from my paycheck to pay off the credit. But if payment is due when there’s no cash in my checking account - my savings account will kick in and pay off the debt. I felt so financially smart when I though of that idea. Don’t laugh at me!!
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