These days, people start borrowing at a very young age. In the beginning, the salary is low. There are plenty of spending options. From home to small things, they are being purchased on EMI. The vehicle is being purchased from personal and credit card loans. After paying all the installments after some time, there is no money left for necessary everyday expenses. Let us know here how one can be free from debt bonds. No other loan should be taken unless the first is paid. The debt net is created only when a new loan is taken to pay the old loan. It usually has higher rates. The loan is paid from income. No matter how painful and lengthy the process is. Therefore, the effort should be to increase income.
Consult to restructure the existing loan. Many banks get this kind of facility. Some external agencies also have the mastery of restructuring the debt. Take professional help on what is outstanding and how it can be repaid. In such a process, credit card arrears are converted into personal loans. Penalties are dropped. Re-installments are made as per the borrower's capacity. People generally hesitate to use assets like home, gold, etc. in borrowing. In fact, loan interest rates on assets such as home, investment, gold, Provident Fund balance are low. It may also be considered to sell an asset to repay the loan. If there are no loan repayment avenues, selling an asset may be a better option.
Curb spending and credit card usage until the economic situation improves. Stretch your legs according to the coverlet. After prolonged expenses, it becomes difficult to work. But, the emphasis should be on making lifestyle according to income. And always remember loans will be reduced only if it is repaid. It will continue to grow when it is not repaid. One day it will take the shape of the mountain. So insist on repaying the loan. As it descends, the load will be reduced.
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