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HOW SMARTLY YOU CAN MANAGE YOUR LOANS?


Nowadays, life beyond means has become very common and getting credit to live an amazing life has become more convenient and easy. Most of the people want to live their life that their income don’t allow and overlook the dangers lurking behind their luxuries which results in taking multiple loans that can easily lead them into tricky debt situations. Well, now we will discuss some of the smart ways to manage the multiple loans at a time.

  • Follow ‘avalanche’ method: Layout the list of your debts according to their rates of interest. Make a plan to repay the biggest Emi of the loan whose interest rate is highest. Then after, continue paying regular installments on other loans. When the loan with highest rate of interest is paid off, create a plan to repay the next.
  • Increase your EMIs with hike in income: One of the easiest ways to manage your loan burden is to increase your monthly installments every time your income rises up. By increasing your installments, you are enable to cut the months or years off your loan tenure which saves a big chunk of money on interest too.
  • Extra income should always go towards repayment: In case, you receive any bonus or return on your investment, it may be tempting to spend it on bumping up your lifestyle but when you are already in debt, it would be a wise decision to utilize that money to reduce your loan burden. Many of the lenders in market allow you to pre-pay the loan without charging any penalty.
  • Consolidate your debt: These days, debt consolidation loans are one of the convenient methods to reduce your loan burden. Therefore, to pay off your existing multiple loans, consider taking a debt consolidation loan or "Apply For Personal Loan". Consolidating your debts not only saves the hassles of making large repayments but also reduces the interest outflow, making you able to pay off the loan faster.
  • Pay credit card dues in EMIs: Most of the credit card companies offer their customers a facility to pay their outstanding dues into easy monthly installments. Breaking your dues into smaller EMIs will provide you much needed breathing space to pay off your bills that suits your pocket. Moreover, interest charged on EMIs of credit card is lower compared to the interest rates charged on late repayments.
  • Ensure timely payments: Paying multiple installments to service your different loans at a time is bad enough and missing out the payments makes the matter worse enough and hits your credit score adversely. So, adopt a habit of making your monthly payments on time. You can also set up reminders on payments from your existing bank account.

With the smart ways mentioned above, you can manage your multiple loans better and can enjoy a debt free life. If you want to reduce your loan burden and considering a personal loan for debt consolidation, ShubhBank can help you. You can apply for any kind of loan at ShubhBank to fulfill your needs. 



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