How to get yourself out of debt trap?
It's not easy to
get yourself out of debt trap. Once the people are trapped in the mud of debt,
they go away. Arun Ramamurthy, the founder of credit reform, says, "As
soon as a person defaults, the debt trap is tightened and he does not get a
cheap loan to pay the debt, and the burden of interest increases. Like the debt
becomes a mountain day by day. " Of course it is difficult to break the
bars of debt. But, there are some ways that can prove to be helpful in finding
this difficult.
The first priority
should be to get rid of expensive debt. Such loans include credit card dues,
personal loans, etc. Interest is charged at the rate of 40 per cent of the
credit card arrears. It is rarely possible to generate such returns from any
investment. It is therefore good that such loans be eliminated by selling
investment in mutual funds or gold etc. Getting help from a family member is
another option.
Says Vineet Jain,
co-founder and CEO of LoneStreet, "It is a big problem to hide financial
status from family members. Join family and close friends and try to get
interest-free loans.
Finish high
interest loans with low interest loans
There should also
be an option to eliminate costly loans by availing low interest loans. For
this, your asset can be used. "The interest rates are high on short-term
loans, so long-term loans can be taken on the property, with the top-up of your
housing loan, the cost of the loan is over," says Rubyak Technologies MD
and CEO, Manav Vijay. can do."
All these steps can
help you in a short period. In the long term, the solution is to reduce your
expenses. Melvin Joseph, the founder of Finvin Financial Plans, says, "It
is important to change the lifestyle in order to be free from debt in the long
run, according to your bedroom, it is good to spread legs. It may be difficult,
but this needs to be done."
Focus on Increasing Income
The second
long-term solution is to focus on income increment. Joseph says, "To get
out of debt trap, family income should be increased. Those members who are not
earning should try to increase their income with the help of tuition, online
jobs etc."
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