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Here’s how you can manage your debts during COVID-19 crisis

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Moratoriums, which were extended to the citizens for their loans because of the COVID-19 pandemic, would be lifted by August 31. With job cuts, salary cuts and economic slowdown, paying EMIs or manage debts for most people is proving to be extremely tough. Have you thought about your debts and the repayment scheduleAmong the subjects that people like to talk about, personal debt comes last or it never comes into the conversation. 

Practically, we tend to avoid the subjects, which cause us stress. We are made that way. But on the other hand, not talking about any problem doesn’t makes it go away either. So, we must talk about the elephant in the room that has always been there but we chose to ignore it. This known ignorance is one of the reasons that make it difficult for people to get out of debt efficiently.

Let’s have a look at some numbers. Till January 20, 2019, out of total per capita household debt, approximately 52.40% was contributed by home loans, vehicle loan stood at 9.40%, education loan and credit card outstanding at 3.2% and 3.90% respectively. Other types of personal lending had a substantial contribution of 31%. The average household debt in India has grown at an annual rate of 16.9% p.a. since 2015. And this is going to grow exponentially. 

The COVID-19 pandemic has brought lives of common people to a standstill. It has taken a toll on everyone, be it financially or emotionally. All of us are affected by it in some or other way. And during these unprecedented times, we are realising the importance of living debt-free. The veiled support of easy available debt no longer seems that lucrative. The debt ridden man who sought instant gratification with easy borrowed money is riddled with the ultimate question- How to repay the borrowed money?? The moratorium has to end sooner or later!

Let’s see how we can face the undeniable. The solution here, like other things, lies in the basics. To start with, we have to make proper budgeting. A gap/spread has to be created between what you make and what you spend. Mind this, without this spread there would be no money available to proceed further. 

Naturally, there are two ways of widening this spread, either you earn more or try to spend less. Moreover, it will be the combination of both. Once this extra dispensable amount is left with us, we can start working on reducing debt. There are two methods commonly used for reducing debt efficiently: 

Avalanche Approach:

As part of this approach, you list all your debts, with the highest interest rate written on the top of the list and the lowest interest debt at the bottom. Here, you pay the minimum possible EMIs for all the loans except the loan with highest interest. You make all available monies as the additional payments in the loan with the highest interest rates.

Once it is paid off, then follow this through the top down approach. Thus, through this method, we save more on interest cost and save accordingly. Despite being most logical approach it takes a lot of efforts and discipline to implement it.

Snowball Approach: 

This approach is comparatively easy to follow and practice. In this method, you list your debts/loans by outstanding balance of the loan. The loan with minimum outstanding balance should be jotted at the top and subsequently all other loans should follow. Just like in Avalanche approach, you pay minimum possible EMIs for all other loans except the loan with minimum outstanding balance. Pay the available money as the additional payment in the aforementioned loan. Once the first loan is paid off, go for the others in similar fashion. This approach allows you to foreclose your loans early and motivates you in the long run.

If compared, the Snowball approach would increase the interest costs, but is easy to follow. A study shows that Snowballers are more prone to stick with the plan and pay their debts sooner than the Avalanchers. Rest said, both the methods would help you get through.

To conclude, the only inarguable point for repaying off the debt is that you must start paying it and be committed to the process. Every time a loan is repaid, it instills confidence, sense of achievement and satisfaction in you. Apart from achieving mental peace, getting out of debt saves a great amount on interest costs, which if invested wisely would help bring financial stability in your life.

In the financial world there is no ?one size fits all? solution. Apart from general conventions such as those suggested above, specific solutions differ for different people according to their different situations and conditions. So, one must do their own detailed research or better, talk to a qualified financial advisor.

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Anvi, Arav, Shaunak, Anavti emerge as champions at District Chess Championship in Nagpur

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Radhika Dhawad | Nagpur

Chess Association Nagpur had organised Nagpur District Under 9 and Under 17 Open as well as Girls Chess Championship Tournament in association with GH Raisoni Sports and Cultural Foundation and Kalpana Prakash Welfare foundation.

Under the Aegis of Maharashtra Chess Association held on Saturday, May 21 at Shraddha House, the prize distribution function was also held on the same day by Bhushan Shriwas, Secretary, Chess Association Nagpur. Earlier, the tournament was inaugurated by SS Soman (Working President CAN and Member MCA tournament Committee).

Tournament was executed by Chief Arbiter Pravin Thakare who was assisted by Deputy Arbiter Shiva Iyer, Prayas Ambade and Prathamesh Machave.

List of Selected players :

Under-9 Boys

1)  Arav Dhoot

2) Chirag Lahoti

Under-9 Girls

1) Anvi Vinit Hirde

2) Chaudhari Amulyaa

Under-17 Boys

1) Shaunak Badole

2) Dishank Bajaj

Under-17 Girls

1) Avanti Junghare

2) Shraddha Bajaj

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CAMIT delegation meets Devendra Fadnavis, thanks him for support to tenants across Maharashtra

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Nation Next Newsroom | Nagpur

CAMIT delegation during its meeting with Leader of Opposition Devendra Fadnavis

CAMIT delegation during the meeting with Leader of Opposition Devendra Fadnavis

A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by Chairman Mohan Gurnani and President Dr Dipen Agrawal recently met Devendra Fandnavis, Leader of Opposition, Maharashtra Legislative Assembly, to express gratitude for firmly standing with galedharak/tenants of municipal corporations across the state.

Expressing gratitude on behalf of tenants from Maharashtra, Dr Agrawal said that in 2019 injustice was inadvertently done to leasee/tenants of respective municipal corporations across the state. CAMIT had strongly protested the draft rules in 2019. Thereafter, CAMIT has been actively engaging with government and administration at all levels to bring relief to the small and marginal traders from the unilateral exorbitant increase in rent.

Over a period of times, CAMIT team met MP Krupal Tumane, Fadnavis, Transport Minister Anil Parab, Environment Minister Aditya Thackeray, Urban Development Minister Eknath Shinde, Nana Padole (the then speaker of Maharashtra State Legislative Assembly) and others to impress upon them to intervene in the matter so as to do justice with all stake holders.

CAMIT’s patient follow-up without missing any opportunity to highlight the issue before men in power, has borne fruits. In the budget session the house concluded to withdraw the notification dated 13/09/2019 and constitute a committee to review and fix the rent afresh. It was also decided that corporations will collect rent as per old rates with an undertaking from tenants that they shall pay the difference as decided by the committee, added Dr Agrawal.

CAMIT delegation requested Fadnavis to ensure that the authorities immediately issue necessary written guidance/directions to all municipal corporations to put in abeyance coercive action against the tenants who have paid or are ready to pay the rent as per old rates. The delegation also requested him to impress upon government to include minimum five representatives of trade associations across the state in the proposed committee to be constituted to study, review and fix the lease rent.

Fadnavis said that opposition is committed to the cause of traders and any injustice meted out to small and marginal traders who are struggling for their survival will be dealt with very strongly. He also welcomed the announcement in the assembly session by Eknath Shinde in regards to withdrawal of 13th September 2019 GR and fixation of rent of corporation shops around 1-2% of the ready reckoner price.

During the meeting, Hemant Parekh, Rikab Mehta, Mitesh Modi, Sandeep Jain and Mahendra Mehta were also prominently present. CAMIT has also sent letter of gratitude to Chief Minister Uddhav Thackeray and Eknath Shinde for their timely intervention and resolution of the issue.

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CAMIT delegation meets Aditya Thackeray in Nagpur, raise problems faced by Maharashtra traders

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Nation Next Newsroom | Nagpur

CAMIT delegation during its meet with Maharashtra  Cabinet Minister Aditya Thackeray

CAMIT delegation during its meet with Maharashtra Cabinet Minister Aditya Thackeray

A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by Dr Dipen Agrawal President along with MP Krupal Tumane met Maharashtra Cabinet Minister for Tourism Aditya Thackeray and Environment during his two-day maiden visit to Vidarbha in the presence of Nagpur Guardian Minister Dr Nitin Raut, MLA Ashish Jaiswal and MLC Dushyant Chaturvedi.

At the outset, Agrawal welcomed Aditya Thackeray with a floral bouquet and submitted memorandums highlighting the exorbitant hike in rent by corporations and their coercive action , harassment by local body tax department across the state under the garb of assessment and reopening of coaching classes in offline mode.

Wahab Parekh and Sanjay Nabira from NMC Market Federation said that unilateral steep increase in rent by municipal corporations for their bazar samiti properties is ranging between 100 to 1000 times and in some cases more than 1000 times. On failure of tenant to concede to this unilateral decision, authorities are taking coercive steps. This is adversely affecting the small and marginal traders already facing the heat of frequent lockdowns and restrictions due to covid pandemic.

Ashok Ahuja, past president of General Merchant Association, informed Thackeray that the then State Government had published draft regulations for transferring corporation property by lease or otherwise and renewal of lease. More than thousand objections and suggestions were submitted to UDD-2 from all over the state including from CAMIT with a request to give personal hearing in the matter. The administration without giving opportunity of hearing to anyone, notified the Maharashtra Municipal Corporations (Renewal of Lease or Transfer of Immovable Property) Rules, 2019 under notification dated 13/09/2019.

Dr Dipen Agrawal on behalf of galadharek across the state requested Aditya Thackeray to intervene and suspend the notification dated 13-09-2019 and suggested 1) in cases where only land is leased/licensed by Corporation the annual rent should be fixed at 1% of value as per ready reckoner; 2) in cases where shop/otta is leased/licensed by Corporation the annual rent be fixed at the rate of 2% of value of construction plus 1% of value of proportionate land as per ready reckoner; 3) 10% increase in lease rent/license fee every 3rd year; 4) Agreement should be valid for 30 years term; 5) the lease / license should be transferable and transfer fee to be charged equal to one month rent/fee for transfer within blood relation and equal to three months rent/fee for transfer outside blood relation and 6) the agreed new lease rent/license fee to be made applicable prospectively and not retrospectively.

Rajnikant Bondre President Association of Coaching Institute (ACI) and Sarang Upanglawar ICAD said that schools from class 1st to 12th and colleges have been permitted to reopen in offline mode from February 1, 2022 and at the same time coaching classes/institutes are kept close. The exam dates have been announced by education department. The guidance imparted our institutes in form of revision, doubt clearing and one to one interaction with faculty in this last month is crucial for the future for the students. This last month guidance can be effective only in offline mode. Further they highlighted that national level competitive exams like JEE, NEET, CA, CS etc., are also at doorsteps for which coaching classes is theonly option available for students. Hence, they requested to permit coaching classes to operate in off-line mode with immediate effect in the larger interest of future of our state, the students.

Aditya Thackeray and Dr Nitin Raut informed that the matter is expected to be discussed in next cabinet and suitable decision will be taken shortly. They further added that due relief to coaching classes will be extended.

Sanjay K Agrawal Vice President CAMIT and Ashok Sanghvi, President of General Merchant Association, on behalf of traders of Maharashtra expressed their gratitude towards SenaPramukh Uddhav Thackeray for extending his support to traders during their then agitation against Local Body Tax (LBT) and virtually abolishing LBT with effect from August 2015. Though practically LBT was abolished in 2015 but the ghost of LBT is hounding traders now and then, department in routine are passing ex-party (best judgement) orders raising inflated and fictitious tax demands and using them to justify continuance of LBT Department. Records from LBT Appellate Authority will evidence the correctness of our statement. They also informed that LBT Department in various Corporation indulged in issuing back dated assessment orders for previous financial years. The issue requires your attention, intervention and directions for closure of LBT Department in all Municipal Corporations with immediate effect to ensure ease of doing business in the state.

Aditya Thackeray admitted that he has received a mail from CAMIT on this issue and he is in knowing of the issue. He further said that similar representations have been received from other trade associations. He will discuss the issue with Nitin Raut, Energy Minister and KrupalTumane, Member of Parliament, and ensure that the issue is addressed.

Also present during the meeting were Prajakta Verma, Nagpur Divisional Commissioner, Nagpur collector Vimala R and NMC Commissioner Radhakishan B.

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