On India’s 75th Independence Day, free yourself from debt accumulation. here’s how
Free yourself from debt accumulation on India’s 75th Independence Day. Here’s how.
New Delhi: India marks its 75th Independence Day. This was the day that India finally escaped oppressive British colonial rule in 1947. It was a result of decades of struggle and sacrifice. You can work towards debt relief today, even as you celebrate India’s independence.
You will be more financially secure and less burdened if you can get rid of all your debts. It will take effort and time to get rid of all your debts, especially if you have multiple loans or pending credit card payments.
This is a must, as it will make your life easier and allow you to save and invest for your financial goals.
These are five things you should do to get rid of your debt:
1. Track income and expenses: Make a list of income and expenses to track your debt. Begin by listing fixed costs. These are the ones that can’t be reduced or avoided each month. It is important to realistically estimate what you will use each day with your disposable income. -live day to day—track variable expenses such as dining out, online shopping, and so on.
2. Reduce your expenses: To eliminate debt, you must reduce your spending. You should review your monthly subscriptions. Services like cable TV, gym memberships, and online streaming subscriptions can quickly add up and drain your funds. Keep track of how much you have earned and spent in the last 30 days. Analyze the financial activity for the month. If an expense is not necessary, you can eliminate it for the next month. You can do this by categorizing expenses into “Necessities” and “Extra.”
3. Automated payments: Make paying down your debt a top priority. You can do this without any delays. Direct debit: This will ensure that your credit card and EMI loans are paid on time each month. Avoid deferring payment of the outstanding credit card amount until the due date. This will only increase your debt and attract high interest.
4. A concrete repayment strategy: You have the option of adopting one or more repayment methods to get rid of your debt. You have two options: “Pay more than what is necessary” or “Debt Snowball.” You can make more than the minimum monthly payment to reduce your debt load if you have extra savings. Although you might end up paying more than the minimum monthly payment, this will reduce the interest you pay each month.
Another option is to use the snowball method, where you eliminate your least debt first, then the largest. You can then prioritize your payouts based on their amount. This will allow you to reduce your debt gradually and steadily.
Another option is to use the avalanche method. This involves paying off the card with a high-interest rate first, rather than starting with the lowest amount. This is faster and more cost-effective than snowballing.
5. Consolidating debt: This is a great option to consolidate all your credit card payments into one account. You will only have to make one monthly payment to pay off the balance. Lenders and credit card companies offer low-interest rates for debt consolidation plans. To see if this option is right for you, you can use the online debt consolidation calculator.
You should also remember that you can pay your credit card debt if you have paid your entire credit card bill on time. If you have a track record of good repayments, you may be able to contact the issuer to ask for a reduction in repayment terms. Most lenders will work with you if you have been responsible.