Are you worried about debt burden? Here are steps to clear them

Hyderabad: One should have discipline in every sphere of life, especially, in money matters. Or else you will end up in debt. If your expenses exceed your income, you will face problems. Unknowingly, the debt burden increases and interest rates go up .. you have to struggle for money. Therefore, it is important to maintain discipline when it comes to money and to get out of debt. Let's know how to clear loans without much problem.

Once our expenses exceed the income .. we will go into debt default situations. Before one loan is repaid .. another will continue to arise. In a matter of years, it will become an unbearable burden. A credit history report that has been built hard over many years is damaged. Interest rates have gone up. Therefore, it is good to know the ways to get out of this debt burden with discipline.

We should have a positive outlook and attitude hoping that there is a way to pay off debt. Similarly, it is a moral and legal responsibility to repay a loan, or else your CIBIL (Credit Information Bureau (India) Limited) score will be affected if you delay payment or try for evasion. To top it, it will be difficult to get loans, if you were sanctioned loans also have to pay a higher interest rate. So, be prepared to pay off all loans. If necessary, consult a personal finance professional and seek his advice.

Sometimes certain decisions made by an individual can cause financial loss. Other than that .. some have a habit of buying everything they lay hands-on and that would push you into a debt trap. Whatever the reason. If the debts are increasing .. try to tighten them, but should not worry. Even if you consult a financial expert, the result will not be visible. Give priority to clearing those loans, which have a higher interest rate than others. For example credit card bills. The sooner these are paid the better. There are some long-term loans. For instance housing. In addition to low interest, there are also income tax benefits. Such monthly instalments should not be stopped under any circumstances. Taking out a single loan instead of two or three can provide some relief.

For instance, a personal loan can be taken instead of having two to three credit‌ cards. If you have a home loan .. it is better to take a top-up loan and pay off all the loans. If you feel that the loan will be a burden to pay .. contact the bank and see if it is possible to reduce the instalment amount. In some cases, a debt moratorium may be possible. Utilising it will provide some relief financially. However, do not forget that deferring these instalments will lead to more interest.

Don't go for less than your full potential. But, all of them charge high interest. If necessary .. take a loan with gold or any other property as collateral. This will give you some low-interest money. This eliminates the need to borrow whenever necessary. Invest in investment schemes that create good returns in the long run. But, we should not pay interest on debts that make us financially bankrupt. This is the only thing to remember. So that you can stay calm without the debt burden.