Home Business Insights & Advice Ilia Zavialov shares five key strategies to avoid high-interest loans and consolidating debts today

Ilia Zavialov shares five key strategies to avoid high-interest loans and consolidating debts today

by Sarah Dunsby
18th Apr 23 2:49 pm

Managing finances is one of the biggest challenges that people face. Sometimes, unexpected expenses arise, and individuals must take out a loan to cover the costs. While taking out a loan may seem like a quick fix, it can lead to high-interest rates and a cycle of debt. However, there are strategies to avoid high-interest loans and consolidate debts. Ilia Zavialov shares five key strategies to achieve financial stability.

1. Consolidate, consolidate, consolidate

Consolidating loans is one of the best strategies for remaining in good financial standing. Rolling multiple higher-interest loans into one lower-interest replacement can make monthly payments more accessible and affordable.

Ilia recommends looking into this for anyone currently paying on multiple loans with higher-than-market interest rates.

2. Pause repayment if necessary

Kicking the can down the road could be better, of course. However, some people need help to pay their current monthly payments, incurring interest and falling even further behind each month.

In this case, Ilia Zavialov talking to loan servicers and putting a pause on payments until the debtor catches up. Combining this strategy with consolidation can offer a lot of relief.

3. Always shop around

Although federal rates and market changes set rates at a certain level, savvy shoppers can get considerably lower rates. Zavialov always recommends shopping around. He routinely provides this service in his own business, helping clients explore all options before signing on the dotted line.

4. Work on raising credit score

There is no “right” credit score. Lending institutions consider myriad factors when deciding whether to extend a loan offer and what interest rate to set. According to Experian, “We provide a score from between 0-999 and consider a ‘good’ score to be anywhere between 881 and 960, with ‘fair’ or average between 721 and 880.”

While one shouldn’t forego a loan application based on credit score, it’s always a good idea to check it before applying. That way, those who have a bad score can spend some time improving it beforehand. Ways to improve a credit score include paying down debt, making on-time monthly payments, and correcting past-due accounts.

Note that applying for loans does give a credit score a ding, no matter the result. Therefore, it’s best not to use it unless reasonably sure the loan servicer will extend an offer.

5. Avoid short term loans where possible

Short-term loans may feel necessary to achieve a goal, but high-interest rates for low loan amounts mean they’re rarely a good idea. Even those who have plenty of funds sometimes fall into this trap. Instead, always create a long-term financial strategy with the help of a professional before seeking a loan of any kind.

About Ilia Zavialov

Ilia Zavialov is a Financial Services Professional with over ten years of experience in the banking and financial services industry. Zavialov has held multiple leadership positions at major financial institutions and brings a wealth of knowledge to any project or organisation he works with.

He has worked with individuals, families, and businesses to identify their unique needs and develop comprehensive strategies to meet their financial goals.

Ilia believes in giving back to the community and strives to make a positive impact through his financial literacy courses. Additionally, he regularly mentors other professionals in the industry, providing valuable guidance and support to help them reach their career goals.


The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any finance decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.

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