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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illustration, a loan of 2 year tenure to purchase the latest smart phone can be a bad debt as that handset would become outdated within these 2 years of repayment period and it’s just wastage of money.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.


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