Return to site

Getting Out of Debt: 5 Tips that Work

Getting Out of Debt: 5 Tips that Work

broken image

Loans are easy solutions to achieve life goals and manage your funds well, and paying them off need not be complicated. All you need to do is chip in some simple strategies and stick to them.

This includes the right combination of research, planning, having the right mindset and perhaps a slight push towards a simple lifestyle. Here are some expert tips to pay the dues till they are completely gone.

1. Take a Mortgage Loan

Consider taking a loan against property, for meeting emergency or short term requirements. Mortgage loans can be taken against commercial, fully constructed or leased property according to your convenience. Both salaried and self employed individuals like government employees, businessmen, doctors and lawyers can benefit from it. The mortgage loan interest rates are competitive and lets you borrow funds starting from ₹ 5 lakhs to ₹10 crores. A team of legal experts disburse the amount within 72 hours, so you can pay the debts on time and reduce your chances of penalties.

2. Balance Transfer

If your existing lender is not willing to cut down on interest rates, consider balance transfer to a more convenient bank. This will reduce the EMI burden and also offer tax benefits against the mortgage loan. The processing is quick and easy, which means you do not have to visit the bank multiple times. Once you are sure of what is mortgage, enquire about this particular facility to reduce the debts smoothly.

3. Take up Extra Income

Once you have settled the bank formalities; consider researching for a second source of income. This could include freelance content writing, data entry, home tutoring, selling stuff online, web designing, virtual assistance or delivering, among others. You can also take up seasonal works like summer sales consultant or personal assistant during grand festival shopping. If it sounds exhausting, try to work only on the weekends. While your regular job can pay your bills, the side jobs can help you to save for future.

4. Stop More Debts

It is one of the first steps to pull yourself out of the existing debt. Make the most of every rupee and avoid the temptation of splurging in online sales and offers. Begin by using 50% of your income in household expenses, 30% for your wish lists and 20% to pay off the loan. This will help maintain a standard lifestyle while preventing further debt. Try to reallocate the funds as and when required along with revising your budget from time to time.

5. Sell Unwanted Stuff

This is one of the quickest ways to acquire some money. Find out the products that are simply lying around without serving a definite purpose. This could be unwanted furniture, kitchen appliances, hammocks or swings, mattresses or an old collection of wall arts and frames. Consider online sales so that you do not have to pay any service charges. Reach out to prospective buyers and welcome them to pick stuff from your location. There are plenty of apps and online portals, where people look for essential items, second-hand.

By increasing the monthly repayment of the debt, when you can, the whole process will be completed quickly. Before you decide to invest in mortgage loans, be sure to research about the various options and interest rates to proceed further.