25 Years loan in just 12 Years

If you have any outstanding loan like credit card loan personal loan home loan car loan then it is for you and we know many people who have multiple loans personal loan car loan and home loan it is specially for them. In this blog we are going to share with you 12 powerful practical and easy to follow ways by which you can repay your loan quickly. 
All 12 ways are completely different from each other but are very simple and anyone can repay his loan quickly by doing any one or two of these. 

First understand what kind of loans you have. There are three types of loans - 

Loan taken for desires
There are loans for mobile phones for cars for holidays and for some such things which we take either to impress someone or maybe for show off or to make a status in the society you took this phone or branded shoes branded clothes your bike or cars which were probably above your financial situation today and you took a loan to buy those items.

Loan taken for necessity
These are education loan marriage loan home loan personal loan sometimes if not for your own then you took it for your sister's marriage for daughter's marriage for children's education to buy a house so all these are other types of loans which are need based loans.

Loan taken for necessity based loans for business
It is the necessity based loans for business you take loan either for real estate or any other business purposes so that you can run your company your business. Here we will not discuss the third one. Those loans are important and to start every business you need loans. 

Here we are writing about the first two. The loans you have taken for your needs or for your desires. So in this blog we are going to tell you ways by which you can repay your loan quickly. 

1. Prioritise all active loans - If you have multiple active loans. Then you have to prioritize which loan to end first and this is decided by you according to the amount and more importantly according to the rate of interest. The most dangerous loan is taken from a private lender. People take loans at 5% 7% 8% 10% per month. Reasonably those people are those who do not have a credit card their banking is not that good so they take a cash loan. These are very dangerous loans at 5% 10% per month. So if by mistake you have a cash loan which you have taken from a money lender then first of all you should end it. 

2. Credit card Loan - This loan is very dangerous and the most dangerous among the loans taken officially is the credit card loan. Rate of interest on credit card loan The interest rate is around 30 to 40% and apart from that there are some charges here and there. You should not take this loan at all and if you have taken this loan then you should pay it first by any means. 

3. Home Loan - Now comes home loan which is a long duration loan. Generally if you have a cash loan or personal loan or credit card loan along with home loan then let the home loan continue but finish all these three as soon as possible. So give priority to the loans which are paying higher rate of interest finish those loans quickly. The second thing is to prepare your monthly budget. You must make your monthly budget. If your situation today is such that you have to take a loan for your needs or desires then you need financial discipline. So you should make your monthly budget very clearly. 

4. Financial Discipline - At the beginning of the month you should decide how much money you have. In which things will it be spent and if you feel that here the expenditure can be cut there is power to cut wasteful expenditure if you go out to eat fast food once a week then what is the harm you can avoid it on smoking alcohol fast food. Many times in excitement or at that time we definitely needed something so we bought some things but in the last few months we did not use them but we did not throw them away thinking that maybe now it will be of use someday maybe one day it will be of use. If the thing which did not come of use in the last three six or 12 months then believe me if it is not of use then throw away your useless things which are of no use to you on OLX etc. or any other platform and whatever funds come do not waste them and use those funds immediately for their repayment. 

5. Work for extra income - If you have big desires and to fulfill them you have to take a loan then do you have to start any side hustle? You should start working for part time income. If your wishes are big then work hard to fulfill them. Other people work for 8-10 hours. If your wishes are big then you work for 14 hours. So you can start something on the side along with your job and profession. And at least you should work so much that you can pay one extra month of your loan from your side hustle. So if you are paying 12% from your regular income and salary then just reduce it so much from your side hustle that you can pay 13% extra. 

6. Use Credit card smartly - You must understand carefully is that you have to use credit card very smartly. Most of the people take credit card with great enthusiasm because annual is free lifetime is free this is free that is free. Every bank is ready to give you credit card but it is very easy to take it but it is very difficult to handle it because 90% of the people get entangled with credit card in the matter of loan. But we know some smart people who use credit card for loan payment also because in credit card you generally get 30 to 50 days interest free period so you can use that interest free period. You have made some small payments after that you have made them for loan repayment and when you have a big payment to make then you have made it there. Where did you pay the interest? So you get 30 to 50 days of interest free period. If you do it smartly then you can pay your loan as well. This is a very simple idea. 

5. Liquidate small investments having less interest - If you have such small investments where the interest rate is very low then liquidate those investments. You pay 12% interest on the loan you have taken. You get 6% interest on the HDD you have taken. You are paying 6% interest. What is the wisdom in paying 12% interest on it. So such small investments where you are getting less interest you should liquidate them and repay the principal amount within the repayment of your loan. 

7. New loan to repay the existing loan - You can also take a new loan to repay the existing loan. We are saying that whatever loan you have today you should evaluate how much interest rate you are paying on it. If you get any other loan at a lower interest rate than that then you can repair the old loan by taking this new loan but for example we are giving the interest rate on credit card loan of 30 to 40% but if you take a personal loan then you will get it at 12% so it is easy to handle a loan at 12% interest rate and repay the credit card and now your loan which was running at 40% has come down to 12%.

8. One EMI extra per year - You should pay one extra EMI in a year. Understand this carefully. We are saying a small calculation. It is very powerful. You should pay 1 extra EMI each year. Instead of 12 you should pay 13. And in a special way it will give you a lot of benefits. If you have taken a home loan for 20 25 or 30 years then for example if you have taken a loan of Rs 40 lakh and that loan is for 25 years every year you pay only one extra EMI. Suppose you had to pay 12 EMIs by rule you paid the 13th extra EMI by choice as we are saying here. So this loan which was for 25 years will end in 20 years. By paying 1 extra year your 25-year home loan can be finished in 20 years. You will get free 5 years early. 

9.  5 % extra EMI each year - You will become nova it is connected to this you should understand it carefully now what will you do read it carefully you will pay one EMI extra along with this do not keep your EMI amount every year just increase it by 5% if you If I have ?30000 per month then increase it by 5% next year means increase it by 1500 rupees. So how much you paid for the loan this year 30000? Next year you will pay 31500. Next year you will pay 3300075. Just 5%. After one year you have to increase your EMI amount. Just every percent extra. And now you have already paid 12 installments. So you have to muster courage to pay the 13th an extra installment. If you do this then the loan which was supposed to run for 40 years can be finished in 12-30 years. Just do these two things. You may face some trouble in maintaining day-to-day expenses. You will have to compromise a little. You will have to sacrifice something for the better. 

10. Settlement of Loan - God forbid you ever have to use this option. What happens in this? See whenever. When banks give loans they know that there will be 2-3% loans which will not be returned these will not be repaid. They are called NPA (non-performing assets). What happens in all these cases is that the customer goes to the bank and says that I have only this much amount to pay then there is some negotiation with the bank the bank people say something else and you tell the customer your amount in between an amount is settled and by paying that amount you can get permanently free from the loan but there is only one problem in this your credit score gets destroyed next time when you go to take any loan then no bank will give you loan easily so you have to choose this option when you do not have anything else left in life.

11.  Emergency fund - Whatever expenses you have in a month gradually you should collect the amount of 6 to 12 months of it that will be called emergency fund. If your monthly expenses are ?20 thousand that is the minimum you need then for 6 months it becomes 120000 for a year it becomes 2 lakh 40 thousand. So gradually keep collecting more and in the next few years you will create a fund which we will call emergency fund. Expenses for the next 6 to 12 months should remain with you in that fund so that you do not have to take a bad loan in such a situation. 

12.  Term & Health Insurance - You should definitely take term insurance for yourself and health insurance for the whole family. This term insurance is very important God forbid if ever you have to take a loan. If something happens then for the financial support of your family health insurance of you and your family is very important so that all your savings are not exhausted for medical treatment emergency and you do not have to take loan for them. So these were the 12 ways by which you can pay off your loan quickly and which of the 12 ways did you find unique today or which one do you think you would like to do do tell us in the comment and what kind of blog is this that you should definitely share with maximum people.