In today’s inflation, most of the people of the country are running their daily life with loans. This loan has to be taken due to sudden expenses and then many people often repay it by paying EMI every month, but many are unable to repay the EMI due to the loan amount being high. Then the bank or financial institution declares you a defaulter.
If you too are getting trapped in the web of loan and want to come out of it, then here we are telling you 3 tips to get out of it. If you follow these tips, your entire loan will definitely be repaid without selling any property.
Restructure the loan
Contact your bank or lender and tell them about your financial situation. Many banks and financial institutions offer the option to restructure your loan. This option can reduce your EMI and provide you more time to repay. There may be solutions like reducing the interest rate or increasing the tenure.
Loan Consolidation
If you have multiple different debts (like personal loan, credit card dues), you can consolidate them into a single loan. This can be a loan with a low interest rate, such as a home equity loan or gold loan. This will make it easier to manage your monthly payments and may also reduce the total interest cost.
Less expenses, new sources of income
Budget your monthly income and expenses. Cut down on non-essential expenses. Try additional income options like freelancing, part-time jobs, or making money using your skills. Whatever extra money you save, use it to repay the loan. Apart from this, you should contact a financial advisor, who can help you in making the right strategy.