Personal loans are expensive because their interest rates are generally a lot higher than those of other common loans, such as gold loans, home loans, and car loans. So, if you have a high-cost Paysense personal loan, you shouldn’t do anything wrong when you’re paying back your EMIs, right?
But what if you lose your job out of the blue? How to deal with the loan EMI in these situations?
Here are some smart ways to handle EMIs, so you don’t fall behind on your loan and protect your financial health:
Sell all fixed-income investments that aren’t tied to a very important goal.
Moneyview loan borrowers who are having trouble paying their loan EMI should first check to see if they have any fixed-income investments, such as recurring deposits, debt mutual funds, or fixed deposits, that are not being used for important financial goals. In general, the long-term returns on fixed-income investment securities are lesser than those on investments in other asset classes, especially stocks and bonds. Also, the rate of interest earned from these kinds of investments tends to be much lower than the interest rates that are charged on personal loans and even the cheapest loan options that lenders offer.
This is because investments like these usually have a higher return rate. So, if you are having trouble paying your monthly loan payments (EMIs), selling your low-return fixed-income investments would be a lifesaver. This could assist you in avoiding not being able to pay back the Paysense loan, which can be very expensive.
Ask your current lender to extend the time you have to pay it back.
When the Moneyview loan reset date comes around, a drop in the applicant’s income or an uptick in the existing loan’s monthly instalment payment (EMI) can make it hard for the borrower to pay the existing loan’s EMI. When this happens, the borrower can ask the bank to extend the tenure of the loan.
This is because if the loan term was longer, the personal loan EMI would be less, which could make it easier for the borrower to pay the new, lower EMI and make the loan remain away from going into possible default. When the borrower has extra money, they can try to pay off the loan early to save money on interest. Even though an extension of the loan period would mean paying more in interest, borrowers can try to pay off the loan early whenever they have extra money.
Use your savings for emergencies.
It is important to set up and keep up a good exigency fund for a balance that is at least six times your monthly fixed and recurring expenses, such as your Paysense loan EMI amount, rent, and SIPs. This will help you deal with unexpected financial problems when they come up. There are a lot of things that can happen in life that you can’t plan for, like losing your job suddenly or getting a serious illness. Because of this, this fund is a must. Any of these unplanned financial emergencies could affect a borrower’s ability to pay back the loan, which could lead to the borrower not meeting his or her EMI payments.
So, you will not have to worry about having a situation such as this if you have enough money set aside for emergencies. When you have a financial exigency that makes it hard for you to pay your loan’s monthly payments (EMIs), you might want to use money from your emergency fund to pay the EMIs. This will keep you from having to pay late payment charges and also protect your own credit score from damage that could come from late or missed EMI payments.
A balance transfer is a way to switch to another lender.
Borrowers who are paying off a Paysense personal loan EMI should look into the possibility of switching to a different lender and transferring their balance to a lower rate of interest with the new lender. This will help them pay off their debt faster and save money. Before choosing a lender, it’s a good idea to compare a few of them on a number of different factors, like the personal loans interest rates, tenure of the Moneyview loan, processing charges, etc. Then, switch to that bank that has a better loan service plan and a lower interest rate. If you did that, the monthly payment you have to make would go down, and you would be able to repay a lower monthly payment.
Combine the loans you already have.
When it comes to paying back the Moneyview loan EMIs, borrowers often have trouble, especially if they are already paying on more than one loan. When income changes or when there are immediate financial needs, Even having to pay back several EMIs on time and regularly with different rates of interest and due dates can be hard on the borrower at times. Those who are in this sort of category can consolidate their debts, which means they would only have to pay back one EMI with a lower interest rate instead of many EMIs with different interest rates.
A home loan top-up is one option for people who already have a housing loan but want more money. Borrowers who don’t have a home loan, on the other hand, may want to apply for secured credit facilities like a property loan or a loan against gold if they already own the required asset. No matter what the situation is, make sure to check all other loan facilities for debt consolidation. This will make it easier to pay off your debts because you won’t have to make payments on different dates and at different interest rates.
Last but not least, remember that a financial emergency can strike someday or the other, especially in uncertain economic scenarios like ongoing recession fears and slowdown wherein many companies have been doing job cuts/layoffs. If financially unprepared, these can be no less than a nightmare, especially if you have dependents like children and parents. In such cases, the above-mentioned tips can help you.