Debts are surely a burden that can curb your happiness and peace. Clearing your debts can allow you to increase savings and invest money for future expenses like a car or a home. Make a concrete plan today, to break free from the shackles of debt and live a peaceful and prosperous life.
Here are some quick tips that can help you become debt-free now:
High debts to be paid off
When you make a plan to clear your debts, list all of them down with their amount and interest rates. You should begin by clearing the debts with the highest interest first to avoid a further increase in debt.
Transfer Your Credit Card Debt
If you have credit card debt from multiple credit cards, you should consider consolidating this debt through your savings. This will help you keep easy track of debts, thereby ensuring your freedom.
Try Lowering Interest Rate
If you have long term debts like home loans, it is possible that the interest rates have dropped recently. You can opt for a home loan balance transfer to another bank or ask your bank to lower your interest rate.
Sell Unnecessary Items for Cash
You might have a lot of bric-a-brac like old furniture that can be useful for other people. While doing so, you can also sell your old mobile phone handsets for some quick cash to cover your debts.
Audit Your Incomes/Expenses
If you have a lot of accumulated debt, there are high chances of a financial burden. You can turn things around by taking account of all your earnings and expenses you incur. By doing so, you can find the root cause of heavy debts and you can plan accordingly. Once you have a clear picture of your income and expenses, set aside an amount for mutual fund investments. A mutual fund can help you create a financial buffer against debt. Mutual funds also give market-linked returns and can help you create a large corpus in the long run. You can invest in mutual funds on Finserv MARKETS in an easy and transparent manner. With Finserv MARKETS, you directly trade with the mutual fund company, which eliminates the broker and reduces the cost.
Formulate a Budget
After listing your income and expenses, you can plan your expenditure efficiently so that you can clear your debts conveniently.
Second income as an alternative
In case your current financial income does not prove to be sufficient to cover the current expenses, one can either look for a better alternative, like a salaried individual can opt for a better job with higher pay, etc.
Create a Savings Fund
After clearing your large debts, you should consider having a healthy amount of savings in your Savings Account. Also, investment options like Fixed Deposits and Mutual Funds are appropriate for taking care of your long-term goals. Invest in mutual funds on the Finserv MARKETS App in a simple and hassle-free process. The app offers transparent pricing, personalised offers and easy financial transaction.
Optimize Credit Score
When you start paying your debts, the most important thing is to consistently make payments. Defaulting on your loan or missing your payments can reduce your credit score.
You need to create an efficient financial plan by controlling your expenses. By being thrifty, you are not sacrificing your lifestyle but just ensuring that your future is safe.
Debt can derail your future. To ensure your bright future is not hampered by debt, following these simple yet effective tips can ensure you become debt-free and can focus on the more important aspects of your life – your health, your career and your family. Reduce your debt and simultaneously accumulate wealth by investing in mutual funds through Finserv MARKETS.
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.