Many people take a home loan only to realize later that it is a big burden for them. Most often it’s not because of their low income, but, because they are not prudent when it comes to managing the money.
So, if you are riding on the same boat and finding it tough to manage your loan EMIs, it’s time to take things in your hand. And for that, we offer you some useful tips:
Eliminate Unnecessary Expenses
It’s possible that you are unknowingly spending money on things that are not useful. You need to monitor your expenses for some time. When you do that, you will definitely find some discretionary or non-essential expenses that can be eliminated. Find such expenses and stop making them.
Use Annual Bonus to Reduce your Outstanding Loan
When you get bonus, don’t spend it on other things. You are finding yourself in stressful financial situation and you need to make certain sacrifices. Use this money to part-prepay your loan and reduce your interest burden. Once you make the prepayment, you can even ask your lender to reduce your future EMI if that is possible.
With each Salary Hike, Increase Your EMIs
If you are decent enough employee, your income will keep growing every year. So when you get your next salary hike, make sure you start paying higher EMIs. This helps as you can then get rid of the loan quickly.
Ask Your Lender to Increase Your Tenure
If nothing works, then go and discuss your problem with your lender. Explain that you have tried very hard but it is becoming difficult for you to manage paying existing EMIs every month. Also tell them that there are chances that you may default in future EMIs if things don’t improve. So if possible, ask them to increase your loan tenure and reduce the monthly EMI.