Financial debts are always considered bad but having a minimal debt and paying it regularly can help you build a strong credit score. But if you have excessive debt it can be worst for your credit score also your personal and professional planning can be harmed. We always try to pay our debts on time but sometimes we miss on one EMI due to any apparent reason. Missing one installment creates a ripple effect and there are more chances of you might miss more. To avoid such mishappenings due to excessive debt we have come up with two easy solutions to get rid of your burdening debts.
Proper financial planning
Proper financial planning is a very important part when you take a loan. Many people make a plan when they take a loan and many don’t. If you did not plan your finances carefully before applying for your loan or while spending on your credit card, it’s high time you do so. Get a pen and paper or open your laptop and start adding numbers. Jot down how many EMIs you have to pay, what bills you have to pay, your rent, insurance premiums and other monthly personal expenses. Once you have the numbers in front of you, you’ll get to know what are the compulsory spends every month and exactly what amount goes into your EMI. Accordingly make some lifestyle changes and follow a strict finance diet.
Loan against property
When you have excessive debt the main reason of it is because you have multiple debts. Multiple debts mean multiple deadlines, multiple EMIs where you end up paying extra interest rate for each of them. Here you can get rid of excessive debt in one go by taking a loan against property to consolidate your debts. Loan against property is easily available, has quick approval and instant disbursal, has low interest rate, longer tenure and you can get larger amount by this loan so you can convert all your debts under one.