While repaying a loan against property availed by you is a very big responsibility, you must not forget the other expenses you’re likely to incur every month. These ‘other’ expenses are equally important to take care of and must not be ignored. Also, you have to devise a plan to comfortably manage the unexpected, high-end expenses such as medical expenses, health problems etc.
So, irrespective of how much you owe to your lender, here’s how you can streamline your monthly expenses, your debts, and future obligations easily.
Control your Expenses: First but the foremost is to control your expenses. In order to pay off your debt faster, you need a lot of money and the only way to do that is by controlling your expenses. Stop wasting your hard-earned money on things you don’t need and instead, use it elsewhere.
Start using your savings & extra income wisely: Given the fact every individual saves money, it is only worthwhile if the saved money is used for the right thing - to settle your debts.
- Channelise your investments in the right way: Given all of us have investments on our name, there’s no point in preserving them if the interest earned is lesser than the interest payable. Thus, channelise your investments towards debt repayment.
- Look for balance transfer opportunities enabling you to save money: Lastly, a balance transfer is a good way to save a large chunk of money; getting your loan refinanced by another lender offering the same amount of credit at a lower interest rate. So, keep looking for such opportunities but take the decision only after gauging the profitability of your decision.