Skip to main content

WHAT REMEDIES TO FOLLOW TO SHED OFF THE DEBT BURDEN?


A debt trap is referred to a situation which is not a worth of its value and drains off all your money. It can also be termed on the basis of loans that have no real objective to avail for. Several times the loans you acquire have higher interest rates along with huge EMIs that lead you into debt trap. To illustrate, when you "Apply For Loan" for exotic trip, shopping, lavish party or purchasing expensive gadgets, sometimes these unnecessary needs may turn your loan into bad debt.

It is not often that every loan turns into a debt because some loans are worth to opt but the loan products that cannot be justified in the terms of usage, interest rates and tenure are said to be bad loan. For illustration, a loan of 2 year tenure to purchase the latest smart phone can be a bad debt as that handset would become outdated within these 2 years of repayment period and it’s just wastage of money.

An unsecured loan with high interest rate availed for a medical emergency is justified as no money can be bigger than somebody’s life. One would not feel this financial setback of repaying an unsecured loan in exchange for the life of himself/herself or his/her beloved one. Well, if you are also trapped in a debt anyhow and now you find it difficult to repay, we have mentioned few remedies that you can follow to get out of trap.

  • Go for Debt Consolidation Loan: If you are also feeling a sword lying on your head to meet the deadline of repaying the borrowed amount then you should go for loan refinancing. Refinancing refers to applying for a fresh loan with low rate of interest to pay off the outstanding amount of your existing loan. One can "Apply For Loan Online" whether its gold or loan against property with low interest rate to consolidate your previous loan.
  • Seek a help from your lender: If you are unable to repay the loan money because you don’t have ample amount of funds then go and seek a favor from your lender. You can ask from your lending institution to lower down your EMI and to increase the repayment tenure. It will help you to repay the amount efficiently otherwise delay in installments can be detrimental for your credit report as well as legal actions can be taken against you.
  • Talk for settlement: When you are in debt trap and unable to pay off the amount then it’s better to talk the lender for a loan settlement. You can ask your lender to accept the lesser repayment amount on total dues including principal and interest but more than principal. If a lender agrees with you, you can repay it easily and get relieved from the financial burden.

Hence, borrowing fund is a new normal these days but prior to that it is crucial to know the difference between bad debt and good debt because few of these debts can create a big financial mess for you in future.


Labels:

Comments

Post a Comment

Popular posts from this blog

A COMPREHENSIVE GUIDE TO APPLYING FOR A USED CAR LOAN ONLINE

In today's fast-paced world, possessing a car isn't simply an extravagance but a need. For many, a used car is a magnificent choice to satisfy their transportation needs without breaking the bank. Notwithstanding, financing a used car purchase could appear to be daunting. Fortunately, to apply for a used car loan online has become a convenient and accessible choice. Here is a comprehensive guide to navigating the process without a hitch. Understanding Used Car Loans Before jumping into the application process, it's crucial to grasp the fundamentals of used car loans. These loans are specifically designed for purchasing pre-owned vehicles. Lenders offer varying terms and interest rates based on factors like credit history, upfront installment, and the vehicle's age and condition. Preparing for the Application 1. Know Your Budget: Decide your budget by assessing your financial situation. Consider factors like a month-to-month income, existing expenses, and potential init...
Post a Comment
Read more

DRIVING TOWARDS APPROVAL: UNRAVELING THE CRITERIA FOR USED CAR LOAN ELIGIBILITY

In today's speedy world, possessing a car is, as of now, not simply an extravagance but a need for some. Nonetheless, buying a pristine car may not generally be squeezed into everybody's financial plan. This is where the choice of purchasing a used car becomes engaging. Used cars offer a more affordable other option, permitting people to claim a vehicle without burning through every last dollar. To work with the purchase of these pre-owned vehicles, financial organizations give used car loans. However, what are the " Used Car Loan Eligibility Criteria " for acquiring such loans? We should dive into the subtleties. Understanding Used Car Loan Eligibility Used car loan eligibility alludes to the arrangement of conditions that people should meet to fit the bill for a loan to purchase a recycled vehicle. Lenders lay out these criteria to survey the borrower's financial capacity and limit the gamble related to loaning. Essential Criteria for Used Car Loan Eligibility ...
Post a Comment
Read more

UNLOCKING THE BEST DEALS BY EXPLORING THE LANDSCAPE OF CHEAPEST LOANS IN INDIA

In the vibrant landscape of India's financial sector, finding the cheapest loans is akin to finding an unlikely treasure. With various lenders, products, and interest rates in play, navigating the realm of loans can be both daunting and rewarding. In this aid, we dig into the intricacies of getting the " Cheapest Loans In India " exploring key aspects and choices available to borrowers. Understanding the Dynamics of Cheapest Loans in India In the journey for affordable financing, it's essential to fathom the factors that impact loan costs. Interest rates, loan tenure, processing fees, and eligibility criteria all shape the affordability of the remainder of a loan. Borrowers should assess these components prudently to unearth the most financially savvy borrowing choices tailored to their requirements. Exploring Loan Choices ● Personal Loans: A versatile financial instrument, personal loans offer adaptability and comfort for various costs, ranging from medical emerg...
Post a Comment
Read more