Site icon BankBazaar – The Definitive Word on Personal Finance

Facing tough times and need to repay your loan?

Well, here are a few things that you should do in such times of distress :

1. Reassess your investments:

This step can increase the positivity within you since you will be able to analyze what assets are generating a return. Try saving enough such that you have at least 3 months salary in hand.

2. Make tough decisions:

Try to make a cut back on most of your expenses. Make a list of all the things you do in a month, from utility bills, electricity and telephone expenditure, shopping to travel, gifts etc. With this you will be able to analyze what are your priority expenses and what can be right at the bottom of your expenses list.

3. Be mindfull of your expenses:

Although your EMIs, of not only your home loan or any loan, should not exceed more than a maximum value of 50% of your take home salary, there seems to be a chance of a handsome amount left in your hand. But, with the turndown of events in your career, can bring a setback in your life.

In such crucial times, where your job might go under the knife, you need to keep a constant check on your expenses, so that you can have enough money to pay your EMIs on time. Make an effort to make a sincere cut back on your shopping sprees, fuel expenses etc.

4. Approach your bank:

Stay in touch with your bank, at all times, as this helps to build a sense of trust and loyalty between the lenders and borrowers. In situations where your income may be in a tight spot, inform your bank immediately, so that your lenders could come up with suitable solutions. Do not be panicked if the banks tell you to dispose off any of your assets. It is better than creating an ugly situation of recovery agents arriving at your doorstep. Apart, from the disposal, your lender can plan out for the loan tenure to be extended, making the EMI payments of the same amount for quite some time or paying a lump sum amount to reduce your principle and EMI payments.

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