There are few companies, who offer balance transfer on cards @ 0% for all their customers. So you can transfer your outstandings on cards and don't pay any interest on it but don't forget to pay atleast minimum due on card. There is one more catch in it that if you buy something on card on which you have taken balance transfer, than that every transection may attract interest from day one.
In case of loans other banks will also offer you balance transfer facility of your loan from other banks to them at lesser rate of interest and you can ask for longer tenure to get your EMI reduced.
On analysis, one may consider going in for a debit card (instead of a credit card), prepaid (instead of post paid) etc., A monthly review would certainly infer that you have your spending well under control.
today the most common reason for debt's is credit card and personal loan. my experience says this... guys stop using credit card if you cannot clear the dues which u have spent in one month flat. if u carry forward it... then god save you..
Hi The author is right.Take an example though.If I have a loan of 20 lacs for my house,instead of paying my loan faster, I prefer to save and invest in Mutual Funds which can net me around 30-35% in this booming market.What this does is if you have a loan of above amount, your interest itself is around 8k a month.Totalling 96k a year.4 lacs in MF/Direct equity will give you around 1.2 Lacs a year profit...tax free if you have a time horizon of one year and this will help offset your interest burden and make it essentially a soft loan... Think of it !!
The commonest reason for running up expenses is adopting a lifestyle inconsistant with your position on the ground. The circumstances for every individual are unique.You are what you are no matter what anyone may call you.There is no changing this fact. The reasons for deluding oneself could be many.Some may want to live like their rich neighbours or some have to handle liabilities that have been thrust on them real or imaginary. Most want to live a lifestyle either to show off or in the mistaken belief that people tend to size you up favourably by the way you show your self rather than by what you actually are. This leads to borrowing for expenses,hoping for money to finance it ultimatly ending in debt.
I should say that even though we are aware of few of the tips mentioned here, its always reminds us of these tips when we read them again. Excellent and useful hints and tips. Only problem is When there is a back-log of debts and you are repaying your debts because of loss in prev. small business maybe, your friends or known persons whom you owe few thousands are in deep trouble and ask for the money maybe 2 of them together, it is difficult, even though working in an MNC in Bangalore gives you an edge in repaying through bank loans, but sometimes you start to think where do I create the extra money from, coz you will have taken the maximum loan from the banks according to your eligibility. Hmmm.
