Mr. Mishra took out a personal loan to fund a new business he wanted to start. However, the business did not take off well and now Mr. Mishra is left with a pile of debt on his head. This heavy debt is giving him sleepless nights and is a major cause for his anxiety and stress. Similarly, other people like Mr. Mishra have taken loans or credit from the market and are now caught in the debt trap. If you are one such person that is burdened with a string of financial liabilities, read further to get some tips on how to chip away at your debt-
- Do Not Pile On Additional Debt
- Cut Back On Your Expenses
- Create a monthly bill payment calendar
- Liquidate Your Assets
- Debt Consolidation
Do Not Pile On Additional Debt
The basic step that you need to start with is to ensure that you do not pile on additional debt. Doing so can help prevent the matter from getting any worse. Limit borrowing further credit from moneylenders and financial institutions. You can also try to limit the use of your credit cards for the time being.
Cut Back On Your Expenses
Many times, people find it hard to manage the EMIs on their loans because of their monthly expenses. However, with an effort to prioritize the debt payment on time, it could help if you try to cut back on some of your expenses. This does not mean that you have to compromise on your lifestyle completely. However, you can try to eliminate any unnecessary expenses in order to save for your monthly installments.
Create a monthly bill payment calendar
If you are using your credit card on a regular basis, make sure you do not fall short on clearing the dues on time. In order to keep a track of your payments, you can maintain a monthly bill payment calendar. This calendar can help give a clear idea when the next payment is due, as a result of which you can efficiently budget your expenses as well as the debt payments due for the month.
Also read how you can pay off your credit card debt with personal loan
Liquidate Your Assets
In case you are in dire need of credit to clear off your debts on an urgent basis or are caught in a situation where the accumulated debt has become too much to bear, the best possible debt advice would be to liquidate some of your assets. These assets could be a physical possession of high value such as a car, jewelry, furniture, or land. Liquidating such high-value assets can considerably bring down the debt amount, making your financial planning much more effective. Once the debt is clear, you can again start saving for buying any material assets.
Majority of the financial experts advise for debt consolidation as an effective solution to all your debt-related problems. In case you have several debts spread over multiple loans or credit cards, you can opt for a single loan that can consolidate all your existing debts. Most people prefer taking out a personal loan for debt consolidation as personal loans are available at much cheaper interest rates and flexible repayment options. For instance, the Bajaj Finserv personal loan comes with an interest rate of as low as 12.99% and zero collateral.
The Bajaj Finserv personal loans are tailor-made with exclusive offerings assuring flexibility in its repayment. You can enjoy unlimited withdrawals and interest only on EMI on your personal loan with no additional or hidden charges. To know more about the eligibility criteria and application process for the Bajaj Finserv personal loans, visit Finserv MARKETS today!
You can also read about debt consolidation at 45 for a happy retired life. on Finserv MARKETS. Also, get more information on top reasons why people take a personal loan.
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!