Prioritising your debts will help you manage them quickly. You can easily navigate the process with good planning in place and a few tips to better plan your loan repayment strategies.
Smart Ways to Manage Your Personal Loan Even Better
- Keep Track of Your Credit Score
To get a personal loan in India, your credit score is an important number. It ensures that your finances and your credibility are healthy. Making timely loan payments will help you save on late payment penalties and maintain a good credit score. Set reminders or have an automatic debit system in place to not miss out on EMI payments.
- Allot a Budget
Allotting a budget to accommodate your personal loan EMIs will help you plan your commitments efficiently. Make time to chart out a budget along with tax benefits to understand your obligations and your budget. Using a personal loan EMI calculator to select your EMI according to your budget will help you reduce financial stress.
- Debt Consolidation
Having multiple debts is confusing. It makes you not only pay higher interests but also you end up missing payments. Debt consolidation will help you pay off multiple debts with a single EMI making it easy and simple to manage.
- Increase EMIs
Increase your EMI with every salary hike or an increment. This planning will help you repay loans faster and bring down interest rates. Foreclose your loan when finances improve. Even though you will have to pay a penalty charge, you can calculate your saved interest and compare your savings to understand if pre-closing will save your money.
Managing finances is essential for you to save money and invest smartly. It is not possible to achieve your goals without financial discipline.
Must Read: 5 Costly Mistakes to Avoid Before Applying for a Personal Loan
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