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11 MARCH, 2020
A personal loan is a great source for gathering quick funds. The collateral-free loan can be used to fund a variety of different things that include a holiday trip, a wedding, medical emergency and much more. Personal loan applications are also approved quickly while involving minimal documentation. If you have applied or wish to apply for a personal loan, you should be well equipped with a repayment strategy. Mishandling your personal loan not only affects your credit score but can also take you down the debt trap.
Here are some hacks that you can use to be regular with your personal loan repayments and avoid being a defaulter:
Opt for a budget-friendly EMI – It is imperative to work out your finances before taking any kind of loan. Not being able to generate the given EMI can push you into the default list. Evaluate your available budget and consider the amount that you are comfortable with directing towards the monthly repayment. Ensure that the monthly personal loan EMI does not cause a disruption in your spending ability and saving power.
Stay disciplined – It is easy to lose guard and skip EMI payments. However, you must maintain the discipline and ensure that you follow the repayment schedule. Keep aside the required amount in the beginning of the month so you are not tempted to spend it on something else.
Automate the payment schedule – If you find it too hard to stick to the repayment schedule, it is best that you automate the repayment schedule. The automated monthly payments will leave you with no fear of missing out or delaying payments. Most banks offer the option of auto-deduction from your linked bank account. However, ensure that your funds in the account are not running low.
Always clear outstanding EMIs – Leaving your EMIs unpaid will lead to accumulation of debt and you will also incur late payment charges. If for whatever reason, you do feel like your will not be able to make the EMI payment, it is best that you get in touch with the given bank. Typically, the financial institute can help you with a solution for debt consolidation or loan transfer.
Fervently following the above listed tricks can ease out your pressure and ensure that you are regular with your personal loan repayment. Above all, you must keep the right attitude and maintain strict discipline so as to not slip off the endeavor to clear this debt quickly.
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