It is often the little things that go a long way in keeping your finances in fine fettle. While so far we have discussed different ways in which you could reduce your loan burden, you may also need to make some lifestyle adjustments to accommodate your loan repayments and ensure you have enough money to pay higher EMIs. A lifestyle change is needed until all debts are repaid. This means cutting down on luxuries and unwanted spending. Go slow on movie shows, dining out and weekend getaways. Keep the credit card locked up when you go to the mall and try to make purchases with cash. This will automatically curb your propensity to spend. “Put everything else on the backburner. Your planned vacation or home refurnishing can wait. Focus on reducing your debt first,” insists Sadagopan.

In extreme cases, you could also get your credit card company to lower your spending limit. Most importantly, cut down on taking fresh loans unless these are taken to prepay existing, costlier loans. Automatically debit your repayment dues to your bank account. In this way, you eliminate the possibility of missing the payment by mistake. Remember, paying after the due date attracts late fee and impacts your credit score negatively.

Lastly, do not feel shy to cry out for help. If you are unable to figure out a way out of your debt hole, approach a debt counselling centre, such as ICICI Bank’s Disha and Bank of India’s Abhay, which offer free advice, or institutions like Credit Vidya and Credit Sudhaar, which charge a fee for their services. These are actively engaged in helping borrowers facing problems with their loan repayment by offering credible advice.

Thank you ...it is very encouraging .