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:
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.
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.
September 30, 2022 | Nagpur News | नागपुर समाचार | Hindi News Bulletin | Nation Next
Shashi Tharoor is capable of bringing Congress back in power, says Congress leader Ashish Deshmukh
Former MLA and Member of Parliamentary Board, MPCC Dr Ashish Deshmukh speaking about the nomination filed by Congress MP Shashi Tharoor for the post of Congress President on Friday, said, “Dr Shashi Tharoor is a popular Congress MP who has done remarkable work for the nation at the international level. It’s very welcoming thing that the election of Congress President is being done in a democratic manner. This is an important step for decentralisation in the party and the future of Congress is bright. Soniaji and Rahulji Gandhi contributed a lot to strengthen the party.”
Congress leader Deshmukh added, “This is an important step taken by the Congress elites for the elections in a democratic manner so that the party can take a higher flight. Dr Shashi Tharoor has cordial relations with everyone in the party; he has the ability to give a new direction to the party. I believe that he will be able to handle the responsibility of bringing the Congress to power in the country by taking the party forward with new strength. If he seriously deals with issues like unemployment, industry, agriculture, inflation then Congress will have fruitful days. By doing transparent politics, he will definitely convey the thought of Congress to the people at the grassroots level. If you want a rejuvenated, bigger and dynamic Congress party, Dr. Shashi Tharoor is the right candidate. He has the open support of Congress delegates in 12 states and is getting the support of Congress leaders and activists from all over India. He will be elected for sure.”
Deshmukh informed that Tharoor would be visiting Nagpur on October 1 and 2 to hear out all thoughts of Congress delegates.
Nagpur citizens to revel The Raaas Garba next year!
Since The Raaas enchanted and enthralled Nagpur with its quality garba in its first year in 2018, the demand for encore has been reverberating the city. To cater to the huge public demand, the organisers of the king of garbas have decided to continue The Raaas next year on. Like its first year, The Raaas Garba will be presented to Nagpur in association with Nation Next in 2023. Mahesh Kukreja, the key organiser said, “Because of some reasons, we, earlier, thought of giving the event a break.”
He added, “Then COVID-19 struck the world. Now we plan to continue it from next year onwards. While I express my gratitude to Nagpurians to make the event a huge hit, I request the city’s garba revellers to not get fooled as a few garbas are falsely claiming to be The Raaas. We’ll be back next year for sure!”