Managing multiple loans might seem difficult, but there may be ways to make it more manageable. In this video, we’ll cover strategies that could help you handle your debt effectively.
We’ll begin by discussing the importance of maintaining a manageable debt level, with EMIs ideally under 40% of your disposable income. This may help prevent financial strain and allow you to meet other financial commitments.
Next, we’ll talk about how repaying your loans on time might be helpful. Missing payments could affect your credit score and lead to penalties. Additionally, you might face EMI bounce charges if any of your payments fail. Being consistent with repayments could help you avoid these issues.
We’ll also cover how prepaying high-interest loans first might save you money. Clearing personal loans before paying off car or home loans could make sense financially. This strategy might allow you to reduce your overall debt faster.
We’ll look at options for transferring high-interest loans to lenders with lower rates, potentially lowering repayment costs. This might reduce your repayment costs over time.
Finally, we’ll emphasise the importance of budgeting. Categorising your budget into essential and non-essential spending might help you focus on repaying your loans.
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