Whether you have taken a loan to fund your education, buy a car, or invest in a commercial property, you need to have a strategy in hand to ensure timely payments of your EMIs. Repayment of loans is no cakewalk, and anyone who has applied for residential loans in the past or dealing with one right now can agree with me on this.
Managing EMI is an art, and you want to make sure that you ride through it without any pressure. You do want to sink in amongst a long list of debts that consume all your hard-earned salary and leave you with little to negligible towards your other priority expenses.
Generally, an appropriate amount of your EMIs is fifty percent or less of your disposable income. If you see that percentage rising, it is an alarming sign, and you have to either extend your loan duration or avoid applying for a new mortgage altogether. Using a mortgage calculator is quite helpful here – you can see how much you can afford.
Also, here are some expert tips considering which you can strategize everything more efficiently –
1. Start with Budgeting
To plan for a month and the way you spend, you can then think of setting aside monthly installments. You can budget manually or even use apps for that purpose. You can record what you earn and track where all your money goes. That way, you can know how much money you are left with and what you can direct towards loan repayment.repayment on time and without any default, you need to set a realistic budget for yourself. Depending upon how much you earn every
2. Compare Different Options
The internet has become a great informatory tool for all of us. You can search for variousand lending institutions in your city and see who offers the best prices and convenient terms and conditions. Besides, everyone has a different financial situation, and making the comparison can help to search for the one who has the desired knowledge and schemes to work for you. So, do not skip your online research if you want to make the best of your EMIs.
3. Do Not Delay
Although I don’t have to stress this enough, it is important to repeat that being regular with your EMIs is essential. If you happen to miss it by any chance, there are not only possibilities of expensive penalties but also your credit score going down. Thus, it is better to manage your monthly expenditure so that installments are on time and your loan tenure passes by like a breeze.
4. Try Using Debt Consolidation
This is for the ones who have plenty of debts on themselves. An easy way to handle multiple payments is to combine all the mortgages into a single loan by resorting to debt consolidation. It will make the repayment process much less complex, and if attained on the lower interest rate, your credit score would remain intact, and your debt to income ratio would be within the boundary.