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HOW TO MANAGE YOUR MULTIPLE LOANS EFFECTIVELY?



Nowadays, it’s common for people to borrow multiple loans to fulfill their different needs. An army of people acquires home loan with car loan as well as personal loan as borrowers have a wide range of loan options with number of lenders present in the market who offer competitive interest rates allowing the customers to avail loans easily and quickly.

Sometimes, multiple loans can be stressful but that doesn’t mean that you will end up in debt trap when you "Apply For Loan". You can keep your loan burden from spinning out of your control and gradually repay the all with good financial management. In this article, we will take a dig at some methods that you can use to manage the multiple loans.

  • Manage it properly: First of all, ensure yourself that all your monthly installments are on level that will not mess up with your other financial obligations. Be wise and never allot more than 40% of your earnings to your loan EMIs. One can make a use of online EMI calculators to plan their loans and their ability to manage them properly.
  • Timely repayments: Always remember that if you default on single loan or multiple loans, the consequences for both the cases are same which means your credit score suffers negatively. So make sure to pay all your installments on fixed date and never apply for new loan to pay a pending one as it will be a perfect recipe for debt trap. If you are having any trouble to repay the EMIs then ask your lender to extend your tenure and reduce the EMI.

  • Prioritize the EMIs with high rates: It is best to pay off the EMIs of the loans that come with high interest rates such as Personal Loan and then your credit card bills because defaults on credit card dues and personal loan can have significant effect on your CIBIL lowering it from time to time. Therefore, you must prioritize your EMIs with high interest rates.
  • Keep an eye on your expenses: It is good to watch where you are spending your hard earned money so that you can set aside the required funds for paying off the EMIs of your loans. Make a list of your expenses and plan a monthly budget and classify the list as essential and non-essential. It is best to meet your top priority expenses to save a lot of funds to repay your loans sooner.
  • Get a debt consolidation loan: Availing a debt consolidation loan and paying all your debts into a single source can be ideal strategy to get rid off debts from different sources. Thus, one can "Apply For Loan Online" or offline if you have good repayment history and high credit score. Lender will consider some factors such as employment status, credit profile and repayment history before sanctioning you a loan.

Hence, having multiple loans simultaneously can’t be a bad thing but following such strategies can help you to manage your finances in a better way. One can live a stress and debt free life with smart planning and little efforts to manage multiple loans effectively.


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