10 TIPS on How to get rid of a LOAN

Dwelling on a debt can be very costly since you are giving interest which is, of course, extra than what you have borrowed. So, technically, we can say it's a waste of time, money and energy. There are many risks associated when you are on a loan. If you are not careful you might end up in losing the job or even worse making more loans from your friends.

But don't worry a lot, with right information and strategy you can get rid of it but may take time, you have to be patient.

TIPS AND TRICKS TO GET RID OF A LOAN / DEBT:

1 . KNOW ABOUT YOUR LOAN FIRST: 

 Yes, you might not have all the information regarding your debt and it could derail your strategies. So, approach the financial institution which has facilitated the loan and ask them about your queries regarding the loan e.g. how much you are paying for every month (installment amount including your interest), at the end of installment how much extra (interest) you are paying etc. Keep a list of payments (including interest) you made. This will help you to make adjustments in your plan.

2. MAKE LOAN YOUR FIRST PRIORITY: 

 When you get your salary first pay off the installment (including the interest) you are supposed to pay. Don't ever skip the repayment of loan installment because its gonna pileup to the next month only. And also if you can pay more than the monthly installment without hampering fueling your necessities, do it.

3. SELL THE ASSETS:

 Hold on for a minute you might be thinking "whats the point of selling assets if I have taken loan for the same purpose". There is a point what we are talking, if you can payoff your loan or at least big part of it by selling the particular asset that you may not need is generally a good idea. Remember, you are paying more than what you borrowed. Yes, the interest that you are paying is extra and its gonna pileup if you cannot keep up with the payment. 

4. ASK FRIENDS OR RELATIVES:

 It's not a shame to ask money from your friends or relatives when you are in a financial crisis. Approach to your some close friends or brother or sister and ask money in a polite way, of course, and do not approach to one person only. And make sure it's interest free or else there is no meaning in borrowing money from your friends.

5. CUT OFF THE EXPENSES:

 Cut off unnecessary expenses in your life. It might be your wife's shoppings, your kids' pocket money or fuel to your car (only if you can manage with walking). Yes, there is no shame in it, do it. You are on survival mode and you should do what is necessary but don't choke it so much that your own family gets against you. Make a list of all the expenses on daily basis and mark which of them is not necessary or which of them you can cut off. Know the side-effects of cutting the expenses and try to think of any counter measures you can bring in, if there are any.

6. ALWAYS HAVE EMERGENCY SAVINGS:

 It's a good idea to always have backup reserves. It acts as deficit supply when you are choking in life. Sometimes you might not get your salary - not at least on the date- and that might create problems for your payments. If you don't have emergency, create it. Give second priority to creating reserves for future uncertain events.

7. SIDE INCOMES:

 If you have extra time after your working hours, don't waste it on worrying instead invest it in earning secondary income. It may be anything for e.g any creative works like paintings, or working under anybody else. Try to do something you will enjoy while doing it. And remember don't avoid the sleep because of it. Sleep is very important as it will keep your brain healthy. Make sure you will have minimum of 6 hours of sleep.

8. INVEST SAVINGS IN SAFE PLACES:

 Deposit your savings in a trusted bank so that it is safe and grows with time. Don't even think about stock exchanges if you don't have the knowledge of it. Investing stock exchanges is very risky, and it is best to avoid it and relying on investment advisory company is not an option.

9. NEVER TAKE A LOAN AGAIN:

 Don't make the same mistake again in your life. Think on the alternative option before taking the loan. Human wants are unlimited, even if you satisfy some of your desires, new desires will emerge. It's never ending. So, it's best to limit yourself up to your financial capability.

10. BE POSITIVE:

 Everybody has a bad time in their life. As the famous quote says "Life is not bed of roses". We, Humans, make mistake and learn from it. There is no shame.