There are the times when we get stuck in unplanned financial situations and end up getting a Personal Loan to meet our expenses. Applying and getting the approvals online has made things even more convenient. Given the minimal eligibility criteria and increasing expenses, most of us prefer to manage our finances with the help of personal loans.
Although getting the approval is not a tough deal but repaying it on time is very important. Dedicating the blog to this most important part of the Personal Loan process, here we are going to discuss how to manage the Repayments as a BOSS and save yourself from getting into any debt trap.
Pre-planning the Payment Strategy
Since you have got a personal loan, and still want to save your pocket from high interest rate, the first and foremost thing you need to do is Pre-plan the payment strategy i.e. how much you are going to pay in each installment and how you are going to manage that.
Pay it as quick as possible
Since the interest rates are high and loan tenure is low, try to pay it back as soon as possible. To do so, just take only the minimum amount that you necessarily need to cover your expenses.
Plan the EMI’s according to your pocket
Check with the automatic EMI calculator first that how much you will be required to pay as an EMI after taking a certain amount for a certain period of time. With the approximate idea, you can plan your financial life accordingly and can choose the plan with the most comfortable installments.
Stick to your budget
Try to stick to the pre-formed budget of daily expenses so as to not miss the EMI. This way you will be a disciplined candidate for lender and your credit score with also improve with the clean repayment history.
Avoid getting into new debts
If you are already having a personal loan on your name, than try to avoid getting into any new debts at all costs. Do not apply for a new credit card or do not try to get approval for next personal loan until this loan is sorted out. If you think you are capable enough to pay the EMI of two loans, just try creating a prepayment plan for your first loan, complete it and then move on to the next loan process.
Set the reminders
There are times when you have money in your pocket but forget to pay on time. To avoid any of these situations, you can set reminders on any of the digital modes available these days. You can also set the reminder a few days ahead that the payment is required to be managed and to be paid on a certain date.
This way, you can work out on the above suggestions and can manage the payment or prepayment of your personal loan like a pro. Try not to miss even a single EMI and enjoy your financial life in a better way.
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