As the New Year approaches, one thing that will be talked about a lot is taking New Year Resolutions. Many people make resolutions for the new year – be it losing weight, following a strict diet plan, growing their business, or managing finances effectively. However, any resolution holds water only if it is followed through consistently and driven with an aggressive target for the same. For example, just saying “I will lose weight” does not become a resolution and will not materialise unless and until you have a full-proof plan to achieve it. Similarly, if you have to set a resolution to manage your Personal Loan smoothly, then you must have a well thought of plan. Personal Loan Borrowers will have to consider a few things to achieve a balanced financial life throughout the year.
Let’s look at 5 new year resolutions that every Personal Loan borrower should take:
- Assess your need before obtaining a loan: Every Personal Loan buyer needs to first assess the need to take up a loan before actually applying for it. Each loan is a promise to pay monthly equated monthly instalments (EMIs) for the stated period of the loan, which means that it will be an added expense in your financial plan. Assess if the loan you are procuring is actually needed or not. For example, you have due Credit Card bills to pay but you are applying for a Personal Loan to finance your holiday, which will only add up to your ongoing debt. Thus, make sure that you use your Personal Loan money judiciously. Keeping in mind the future income is also very critical in this aspect. It is imperative to chalk out your current as well as future income and expenses before applying for Tata Capital Personal Loan or any other loan. This could be one of your new year resolutions that you will go for a Personal Loan only if it is very important.
- Borrow precisely only how much is required: Just like you need to assess the requirement before taking up a Personal Loan, similarly you should make sure you borrow only that much amount which is required. Many banks and other financial institutions offer Personal Loans at Lower Interest Rate to attract customers; however, you should remember that only you are the one who will need to payback it. If you are aware of how much you should borrow as per your requirement, then you would also know how much EMI you would be paying and that will be a huge checkpoint for your monthly budgeting.
- Do in-depth research: A lot of times we take hasty decisions and apply with the first bank that approaches us for the Personal Loan. However, we need to be careful of selecting the right borrower after in-depth research. There are many discounts or fee waiver options also available these days, especially during the festive season. Do a complete research and comparison on each bank’s interest rates, their application fees, pre-payment fees, other charges and only then select the bank, which offers the best plan.
- Pay your EMIs on time: This is another resolution most Personal Loan borrowers must take. If you are a Personal Loan borrower, you would surely understand the criticality of paying the EMIs on time. Only if you have a regular paying pattern and you are paying on time, only then would you be able to get rid of the EMIs as planned. Else you would only call for more trouble as if you are not paying your EMIs on time. The banks will add further penalties and late payment fees, which will further reduce your finances and distort your monthly budget completely. The best way to go about handling this situation is to link you EMI payments to your bank account so that they could be deducted directly from your bank account at a stipulated date. This saves you the hassle of remembering multiple dates and manually pay for each of the loan accounts. Also plan to pay more than your EMI amount so that the repayment could be done faster than the loan tenure.
- Try to finish off existing loans: This could be one of your must-take new year resolutions. Only if you get rid of your existing loans faster, will you be able to look at your finances from a new perspective. You could also look at a debt consolidation plan this new year. If you have multiple loan accounts running, which is taking a lot of your money and efforts to pay them off, a better way to deal with it would be to consolidate all of them by taking up one big Personal Loan. That way you will be relieved of remembering multiple payment dates and also paying different interest rates to different banks. Here, you would get a single interest rate to be paid back to a single bank.
The above-mentioned resolutions would certainly be able to help you manage your finances in a better way in this coming year. Again, it is advisable to stick to the plan and set goals for each of the resolutions and keep monitoring regularly if you have been able to meet up to your set expectations. Regular reviewing and monitoring of your resolutions and goals would surely lead you to success.