Effectively managing loan debt requires prioritizing high-interest loans, increasing income. |
Managing debt from different loans can be tough, especially when EMIs (Equated Monthly Installments) start to strain your budget. Here are some easy strategies to help you pay off your debt effectively:
Pay Off High-Interest Loans First
Focus on clearing loans with the highest interest rates first, like personal loans. This will save you money in the long run. You can also combine high-interest debts into a single loan with a lower interest rate to make repayments easier.
Boost Your Income
Look for ways to earn more money. This could be through a better job, a promotion, or even part-time work. Extra income will help you cover EMIs and give you room to save.
Use Your Gold Wisely
If you have gold, you can sell some of it to pay off debts. It’s a quick way to get cash and reduce your financial burden. Once your debts are under control, you can start building your gold reserves again.
Use Property Smartly
If you own property, consider selling it to clear big debts or using it as collateral to get a loan with a lower interest rate. This helps you manage your existing debts without taking on more.
Negotiate Loan Settlements
If you’re struggling to pay EMIs, talk to your lender. Sometimes, you can settle your loan for less than what you owe—usually around 50% of the total debt. This can give you immediate relief.
