Prioritize Loan Repayment
As a first step, focus on repaying your loans. Make a list of all outstanding debts and prioritize paying off those with the highest interest rates. Start by tackling the most expensive loan, as this will help reduce your overall interest burden moving forward.
Increase Repayments as Income Increases
A simple way to repay your loans faster is to increase your EMI (Equated Monthly Installment) as your income grows. For example, if your salary increases by 8%, consider increasing your EMI by 5%. For a 20-year home loan of ₹20 lakh at an 11% interest rate, the EMI is ₹20,644. A yearly increase of around ₹1,000 can make a significant impact over time.
Use Windfalls to Pay Off Expensive Debt
If you receive extra money, such as a bonus or a gift, use it to pay off your debt instead of purchasing the latest smartphone or TV. This approach can significantly reduce your debt burden.
Convert Credit Card Dues into EMIs
Credit cards offer convenience and interest-free credit for up to 50 days. However, if you don't pay the balance on time, the interest rates can become prohibitively high. Consider converting your credit card dues into EMIs to manage repayments more effectively.
Use Existing Investments to Pay Off Debt
You can leverage your existing savings if you are in debt. For example, you might be able to take a loan against your life insurance policy or Public Provident Fund (PPF). Borrowing against investments is typically allowed from the third financial year onwards.
Consolidate Debts
Managing multiple loans, EMIs, and changing interest rates can be challenging. Missing EMI payments can result in penalties and a lower credit score. In such cases, consider consolidating all your debts into a single loan for easier management.
Make Lifestyle Changes
Lifestyle changes are often necessary until your debts are repaid. This means cutting down on luxuries and unnecessary expenses. Often, it's the small expenses that can accumulate and strain your finances.
ജീവിതശൈലിയിൽ മാറ്റങ്ങൾ വരുത്തുക
എല്ലാ കടങ്ങളും തിരിച്ചടയ്ക്കുന്നത് വരെ ജീവിതശൈലിയിലും മാറ്റം ആവശ്യമാണ്. ആഡംബരങ്ങളും അനാവശ്യ ചെലവുകളും വെട്ടിക്കുറയ്ക്കുക എന്നാണ് ഇതിനർത്ഥം.
പലപ്പോഴും ചെറിയ കാര്യങ്ങളാണ് നന്നായി പോകുന്ന സാമ്പത്തികം വളരെ മോശമാക്കുന്നത്. നിങ്ങളുടെ ലോൺ തിരിച്ചടവുകൾ കൃത്യമായി പോകാനും ഉയർന്ന EMI-കൾ അടയ്‌ക്കുന്നതിന് ആവശ്യമായ പണം നിങ്ങളുടെ പക്കലുണ്ടെന്ന് ഉറപ്പാക്കുന്നതിനും ഇത്തരം ജീവിതശൈലി ക്രമീകരണങ്ങൾ ആവശ്യമായി വന്നേക്കാം.
