Tuesday, September 24, 2019

4 secret tips to manage your multiple personal loans EMI payments.

An individual may avail personal loans to suffice his urgent and as the name suggests, personal needs. Every person faces financial constraints in their life, be it for a medical emergency, child's education or any sudden personal need.
Money is needed in every aspect of life, and everything might not be solved through our savings. To meet their financial limitations, people take general loans like home loans to buy a house, car loans, gold loans, etc. These loans are specific and the amount disbursed can only be used for the purpose mentioned to the lender.
Moreover, these general loans require a guarantor or collateral to any of the borrower's asset as an assurance for failure in non-payment of the loan amount. Such loans are quite hectic to get approved and require tons of documents and procedures to be processed before your loan finally gets sanctioned. 
Personal loans are also known as unsecured debts are loans that help you meet your emergency financial needs as fast as possible. In this kind of loans, the debt is not protected by a guarantor, or collateralized on any asset of the borrower but in case of forfeiture; the borrower has to face the condition as set in the agreement.
A loan might get you out of that sudden emergency but repaying the EMI is monthly trouble. Payment of the EMI every month is absolutely mandatory and, your bank website from where you have taken the loan from provides a personal loan EMI calculator. A personal loan EMI calculator helps you calculate, considering the rate of interest, the EMI to be paid as payment.  Click here to know more about EMIs and how calculators can help you calculate the interest on your personal loans.
A personal loan is usually taken from a government-aided bank or a private financial institution to meet the personal needs of an individual like travel expenses, wedding affairs, child's education, etc. However, as an individual, you may face several problems at the same time. Therefore, you may require more than one loan simultaneously.
If you are thinking it is impossible, you would be surprised to know it is very much possible. To avail multiple loans from the very same account at the same time, you need to prove the lending financial institution that you have a steady income and the right amount of income to pay the debt off. You need to show the bank that you can fulfil all your debts within the stipulated time. But after availing all these loans, you need to put your attention in managing all the EMIs of your multiple personal loans. Here are 4 tips to manage your multiple EMI personal loans:
       Repay high-interest debts first:
It is wise to hit the rod which is hot. Keep your priority in paying the loans with high interest and have to be paid soon. Make a list of all your outstanding debts and identify the high-interest personal loans to be tackled first. This will decrease your interest burden. Pay the maximum amount you can while keeping enough to pay minimal for the remaining loans. This technique is called debt avalanche where you pay clear the loans from the costliestdebt to less costly ones.
       Opt for top-up plans:
Getting a new personal loan to fulfill the earlier one is never going to end the circle of loans. Instead, try and get a top-up plan for your existing debts. It is a good option to handle your multiple debts.
       Consolidate or refinance:
A number of debts are hard to keep track on due to the different interest rate changes in different loans. It is humanly possible that you might miss out on an EMI which means penal interest and a bad credit score. Consolidate the several loans into one. You can avail one loan in low-interest rate to pay off the existing ones. Keep track on the recent interest rates and consider getting your loan refinanced if you get better interest rates.
       Look for an extra source of income:
More resources can fill more pots. An extra source of income can help you save your money and pay off all your EMIs without degrading your lifestyle. Work harder to pay off your debt soon.
Manage your EMIs efficiently and carefully opt for loans only if you have the capacity to pay them back.

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