Freedom from your Loans helpfull points,

• Total loan payout /month. Should Not exceed 40-45 per cent of your net take home salary.


• “Take Good loans”. Go for home, home improvement and educational loans.


• Home loans. Prepay home loans either fully or in parts to contain total loan costs.


• Car loans. Take loans for the smallest possible amount and tenure. Go for fixed rates.


• Personal loan. Before opting for it, check whether cheaper loans against FD, home and gold are possible.


• Credit card. Always pay off dues on time. Never roll over outstanding balance.

Solve your debt problem by following these steps and solving methodically.

• 1: Reduce variable expenses. the expenses which you can cut down easily, the fixed expenses are one which you cant avoid. It’s the variable expenses which will give you room for reduction. Cut down on unnecessary spends, revise your budget and try sticking to it.


• 2: Prioritise and plan your loan retirement. If you are servicing multiple loans, prioritise the order in which you would want to clear them. Clear the costliest loan first. In order of rank, clear pending credit card dues first. Your personal loan dues come in next, followed by your auto loan. The home loan should be the last in the order because it is the cheapest among all the lines of credit and there are tax advantages on repayment that effectively makes it a cheaper than what is stated.


• 3: Negotiate with lenders. It’s always better to approach the lenders before they approach you. Approaching them first will hold you in good stead as it also reflects your intention to pay up. Also, these days most lenders are accommodating.


• 4: Take professional debt counselling.