Whether you have taken a loan to fund your education, bought a car, or invested in a commercial property, you need a strategy to ensure timely payments of your EMIs. Repayment of loans is no cakewalk, and anyone who has applied for residential loans or is dealing with one right now can agree with me on this.
Managing EMI is an art; you want to ensure you ride through it without pressure. You do not want to sink into a long list of debts that consume all your hard-earned salary and leave you with little to negligible for 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 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 commercial mortgage repayment on time and without default, you need to set a realistic budget. Depending on how much you earn every month and how you spend, you can 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.
2. Compare Different Options
The internet has become a great information tool for all of us. You can search for various mortgage brokers and 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 comparing can help you search for the one with the desired knowledge and schemes to work for you. So, do not skip your online research 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 possibilities of expensive penalties and 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 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 debt consolidation. It will make the repayment process much less complex, and if attained at the lower interest rate, your credit score would remain intact, and your debt-to-income ratio would be within the boundary.
