Surefire Ways to Get Rid of Debt
Surefire ways to get rid of debt. When the borrower is on the head, the brain stops working. Traders in our country go into debt due to lack of financial planning and knowledge.
Friends, you have to understand that creating an account is not financial planning. Because, the job of the account is to make slips, bill and maintain transactions. It shows you the financial position of the business. Yes, it definitely helps in financial planning. You will not be able to do financial planning without an account.
The NPAs of banks are increasing to the present day. Because, traders are going bankrupt. They are unable to repay the loan to the banks. of billions rupees of banks have reached the verge of sinking. Bhushan Steel Limited and yes Bank Limited are vivid examples of this.
Not only this, apart from the promoter of the company due to the business loan, the employees working in it are also forced to face heavy pressure. Apart from this, banks are also going bankrupt. Due to this, the money deposited in the banks of the common man has reached the verge of sinking. All these reasons are troubling from the government to the public.
Friends, its side effect is that people are falling prey to many types of diseases. like –
- Hyper tension
- Blood pressure
- End of free thinking
In addition, 30% of diseases are increasing due to this loan. To Become Happy – You don’t need piece of finance, You need financial peace In other words, money will not give you happiness, you need financial peace.
Today, I am telling you some tips, so that you feel financial freedom. These measures are as follows:
1. Prepare a List Your Debt by Interest Rate:
All types of loans you have, such as – personal loan, home loan, education loan, car loan, unsecured loan etc. Write it down in decreasing karma or in increasing order. Also, prepare the list in order based on interest rate.
Now look at that list carefully and you will see which loan has the highest interest rate? Whose interest rate is the highest, end the same loan first. In other words, who has a low interest rate, at least pay the installments. Secondly, who has a higher interest rate, pay the maximum. for example:
Home Loan 8.5%
Car loan. 10%
Education Loan. 10.5%
Personal Loan. 13%
Unsecured Loan. 25%
Credit Card. 35%
2. Pay the first high Interest rate of loan :
You have prepared a list of interest rate sequences. Pay the most expensive, which is the most expensive. Which you will gain. That will be exponential gain.
Suppose you took a loan from the bank of Rs 2 lakh for 5 years at 14.5% interest rate.
We understand this in three scenes –
- You have been paying Rs 4706 in installments every month for 5 years. Thus, you paid Rs 2,82,360 to the bank. Meaning you paid Rs 82,360 interest. You paid 41.18% interest of 2 lakh rupees.
- If you paid Rs 9,650 every month. Then you pay a total of Rs 2,31,597 to the bank. In other words, you paid Rs 31,597 i.e. 15.80% interest to the bank. Thus, your loan will expire in 2 years.
- If you paid Rs 18,005 every month. Then, you paid Rs 2,16,054 to the bank. Your loan will expire in 1 year. Thus, you paid only 8.027% interest in 1 year.
Friends, you will see that in the second scenario, you gained two and a half times in the second scenario, while in the third scenario you got 5 times the benefit. Because you paid only 8.027% interest instead of 41.18%. In other words, make incremental payments and enjoy exponential benefits.
3. Sell Unnecessary Items:
If you buy things you don’t need. You have to sell the things you need. There are many accessories in your house that are not used. Such as – TV, microwave, heater, furniture, mobile, computer, laptop, motorcycle, bicycle, bag, car washing machine, camera, refrigerator
If you have not used any goods for the past 1 year. Then, it means that it is no longer of your use. Like, there are other items in the house, which are useless and suitable for anyone to use. Then sell it. In this way, the payment of 2-4 EMIs will be completed.
4. Control your expenses for paying Debt:
A wise person buys appreciating assets, while depreciating assets or liabilities. Evaluate some such things. For an examples:
- Gratification expense
- Entertainment expenses
- Unnecessary Monthly Subscription Services
- Depreciating Assets
- Non Value Adding objects
Thus, there are many things that you should control for some time. Then you will be able to save up to 30-40%.
5. Pay Debt from Additional Income:
If both the husband and wife have income in the house, then take home expenses and other expenses from the salary of either of you. Apart from this, save the same with this salary. Pay the loan with another salary.
If there is only one means of income in the house, then try to arrange additional income. You will find many resources nowadays. For example:
- Data entry operator
- Industry counseling
- Content writing
- Part-time teaching
- LIC Agent
- Freelance photography
- MLM Executive
- Tele Calling
Many people use home made cookies. You can also tour guide. Apart from this, part-time Ola or Uber can also be driving after the office is over. You should find your passion, which will build your profession along with extra income.
6. Prepare Emergency Saving Fund:
You do some financial planning that there is no need for a loan. For this, you will be able to prepare a big amount by saving a little bit. This amount will be useful to you in future.
You can invest the amount in the emergency liquid fund, where you will be able to withdraw money on a notice in 24-48 hours. In addition, invest in equity as well. Remove it wherever you want. But, the risk is very high in this. Do not invest in equity without the knowledge or help of experts.
7. Having of Budgeting is a Blessing:
Have a data approach to your spending. Keep your intelligence avoid emotion. If you make a budget, then it will control emotional spending immediately. Because, after making the budget you are within a certain radius. For this, you should check your expenses for three-four months. Then prepare the budget in the excel sheet and allocate it in how much to spend. For this, there is a very simple method.
For Example – In fact, you make four columns in the excel sheet to create a budget. Next, in the Variables column, type Category, Budgeted Amount, Spent Amount and Remaining Amount. Now, in the category column, type Grocery, Electric bill, Investment, Rent, Water bill, Mortgage, Food, Credit Card, Loan, Utility cable, Entertainment etc. Thus, make your budget.
Thus, budgeting will keep your spending under control. Friends, who do not take care of money, always do the job for them. And who knows how to take care of money, money works for him.
8. Pay Debt before excess cash:
If you get any extra amount, immediately use it to repay the loan.
for example: Tax refund, Car for sale, Property inheritance, Winning a bet, Bonus, Incentive, Variable etc.
Do not spend such money in traveling. Also, buy goods for home use. You use that money only and only to repay the loan.
Read our articles to understand the personal finance – How to Eliminate Your Debt