Tips to Manage Personal Loan EMI Payments when you're out of Budget

Tips to Manage Personal Loan EMI Payments when you're out of BudgetPolicybazaarAverage Rating / 5 ( reviews)
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Whether you have taken up a personal loan  to finance a purchase of the vehicle you have had your eye on for long, or to revamp your house by redecorating or reconstructing it, or merely for consolidating your debt, the repayment of the loan is done via EMIs. These can simply be calculated beforehand by using the personal loan EMI calculator available. Managing your EMI payments is an art and the trick behind successful repayment is to repay your loan amount without getting any financial burden on your shoulders.

Below are a few tips that will help you in managing the EMIs on your personal loan in UAE, or for that matter any sort of loan.

List down Your Debts or EMIs

Firstly, you should go ahead and make a list of all your EMIs or debts. You should be certain of this amount not exceeding half of your income. Once you have created the list, and if you come to notice that your debt exceeds 50% of your income, you should (if possible) consider increasing the tenure of your debt to reduce your EMI payments. A crucial factor in managing EMI is calculating the amount with a personal loan EMI calculator. Before you opt for debt, make sure to make use of this calculator to figure out your monthly payments and plan accordingly.

First Think, Then Borrow

These days, you can pay for almost anything with a personal loan in UAE. Be it revamping your house, paying for a vacation, or consolidating your debts, this unsecured loan is available for any of your needs. But, it is important for you to stop and think before you opt for a loan. You should try and avoid loans and EMIs. While it is easy to resort to debts such as personal loans and credit cards, especially since they have easier disbursals, they also have higher rates of interest. It is best to manage your funds in a proper manner so that you are not required to resort to any of these 2 options.

Opt for a Shorter Period

Considering the flexible tenures of personal loans, and of course, if your finances allow, you should try and opt for debt for a shorter term. Shorter debt tenure means that there is less money paid out in the form of interest. There are many providers that might allow the borrower to make extra or early EMI payments. If you find yourself with some excess funds, be it via a salary hike, as a gift, or via some fixed deposit maturing, use it to pay some part of your borrowed loan.

Make Sure to Have a Good Credit Score

Having a good credit score many times can mean you getting a better deal on both your loan amount and the interest rate offered on the personal loan in UAE. A credit history contains all of your past credit behavior via which a credit score is generated, and this three-digit score helps the lenders evaluate your creditworthiness before offering you a loan.

Compare Your Loan Options

The tool called the internet is available to almost all of us at our fingertips in today’s age. One should always use it to the maximum when it comes to searching for the best of tips to manage the EMIs on your debt along with generally managing your money too. It is good to look at all of the banks and what they offer while you choose a personal loan in UAE. Since everyone has different financial situations, there is no one size fits all method that works. Researching online will help you in saving the hassle of going through numerous conversations with different representatives of different banks without known the eligibility.

Once you are clear about what suits your needs and situation – the loan term, etc. – you will be ready to make the best strategy to manage your EMI payments successfully.

Do not Delay or Miss an EMI Payment

No one can stress enough on how important it is not to miss your payment when we talk about ways to handle your debt and tips for better management of the EMIs on your personal loan in UAE. If you end up delaying or missing any of your EMI payment, not only will there be extra fees and charges applicable to you in the form of penalties, your credit score will also start to drop.

To Further Conclude 

With the above-stated tips to manage the payments of the EMIs on your personal loan in UAE, you should be in a position where you are all set to manage your finances in a manner that your EMI payments will feel smooth and will or cause any burden on your monthly budget.

However, be on the safer end and always make sure to calculate the payments beforehand with the personal loan EMI calculator, so that you are not in a position wherein you cannot handle them.

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