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

Representational Image

Representational Image

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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Nagpur News

RMBRCN celebrates Charter Presentation & Installation, Rina Sinha becomes Charter President



The Rotary Means Business chapter of Rotary Club Of Nagpur (RMBRCN) celebrated their Charter Presentation and Installation of Board on September 17, 2023 in a crisp official ceremony at Hotel Centre Point, Nagpur.

Rotary Means Business encourages Rotarians to support the success of their fellow Rotarians by doing business with them and by referring others to them.

Charter President Past President Rtn Rina Sinha presided over the ceremony. Renowned entrepreneur and Rotarian Aspi Bapuna, Chairman of Bapuna Group, was the Chief Guest and  Rtn Namita Sharma, President of RCN, was the Guest of Honour.

The Board of Directors of RMBRCN include Rtn Navneet Jain, Vice President, Rtn Mohammed Master, Honorary Secretary, Rtn Sanjay Aggarwal Treasurer, Rtn Rakhi Bhatia Director Chapter Service, Rtn Rahul Shrivastava, Director Vocational Service, Dr Ruchi Choudhry, Director Membership Development, Ranjana Duseja, Director Attendance.

Past Rotary District Governor (PDG) Shabbir Shakir, Past Presidents- Bharat Goenka , Khushnoor Chugh, Sanjiv Chugh, Akhtar Parvez, Tejinder Singh Rawal, Alok Goenka,  Jerestine Watchmaker, Sandeep Dhodapkar, Sanjay Arora, President RMB Nagpur, and Behram Patel and Amitabh Sinha were present.

President Rina Sinha informed that within a short period of its formation already 48 members representing various businesses  have joined the chapter and the numbers are increasing . The Chapter has already crossed 5 crores of business amongst their members and RMB will further strengthen Rotary in membership growth and retention .

Chief Guest Rtn Aspi Bapuna lauded the chapter’s success and reiterated that its comfortable and safe to do business among fellow rotarians as all follow the Four Way Test of Rotary. Jerestine introduced President Rina. Aspi Bapuna  presented the charter and installed President Rina Sinha . Rtn Namita congratulated the RMB chapter and informed that this is the new initiative at RCN.The Board was installed by Rina Sinha and all members were installed by the Past Presidents. An exclusive digital Monthly Magazine ‘Growth Engine’ was launched by Editor Niharika Chugh Vali.

 Navneet Jain and Rahul Choudhry conducted the referral and thank you session where enthusiastic members informed about their successful business details. Nishchay Sinha launched the social media and MYRMB app which connects members to other chapters digitally, Treasurer Sanjay Agarwal gave treasurers report, Rtn Rakhi Bhatia managed the event. Rtn Parag Datey and Niharika were the Masters of Ceremony (MOCs). Secretary Mohammed Master proposed the formal Vote of Thanks .

Also read: Jayaswal Neco group celebrate BL Shaw’s 90th Birthday, 50th Founder’s Day in a huge gala event in Nagpur

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Nagpur News

Nitin Gadkari inaugurates double-decker electric bus availed for senior citizens in Nagpur



Minister of Road Transport and Highways Nitin Gadkari, on Saturday, inaugurated the double-decker electric bus designed for senior citizens in Nagpur. The initiative has been undertaken in association with Ashok Leyland’s CSR (Corporate Social Responsibility) Committee and Jyeshtha Nagarik Pratishthan.

Executive President of Jyeshtha Nagarik Pratishthan Datta Meghe, Vice Chairman of Ashok Leyland Limited Yash Sachar, CEO of Switch Mobility Mahesh Babu, and other dignitaries were present during the inauguration.

“I am very thankful to Ashok Leyland’s electric vehicle arm ‘Switch Mobility’ for donating an electric bus for our senior citizens. The bus can hold a capacity of 65 people and will benefit a lot to disabled and senior citizens,” Gadkari said.

“We already have a green Electra bus available to us for the past five to six years. Krishna Reddy has taken the responsibility of repairing and providing air-conditioning to the bus, moreover, he is providing us with one additional bus. A Tata Motor bus will be arriving this month as well, giving us a total of four buses to operate. This will solve the issue of waiting list due to the lack of buses for senior citizens in the city.” he added.

With the help of these buses, senior citizens can avail the benefit of free trips to religious places like Ambhora, Adasa, Shegaon, Mahur, Dhapewada, and Kalamb.

Also read: NMC confiscates 117 PoP idols, collects Rs 10,000 fine from seller


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Nagpur News

Nagpur: Married man accused of girlfriend’s rape commits suicide on Facebook live



A 38-year-old married man named Manish alias Raj Yadav, on Sunday, committed suicide during a Facebook live-stream after allegedly being accused of rape by his girlfriend and her family in Nagpur.

During the live stream, Manish, who was married and a father to three children, stated that his 19-year-old girlfriend, Kajal, along with her family members demanded a sum of five lakh rupees and threatened to press charges of rape if he failed to do so.

On September 6, the situation became grave as the woman’s family accused him of eloping after Kajal went missing from her residence.

The deceased refused the claims of having any sexual relationship with the woman and identified her, her family, and a photo studio operator responsible for his condition. He, then, jumped into the river.

After the live video surfaced online, Kalamna Police launched a search operation and recovered the deceased’s body from the river. Four people have been detained in the case for questioning. Further investigation is underway.

Also read: NMC confiscates 117 PoP idols, collects Rs 10,000 fine from seller

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