5 Tips To Get Out Of A Debt Trap

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hello and welcome to fondue burning your

24 into seven buddy for all money

matters we have all heard about the word

debt trap but what exactly is it

well debt wrap is a situation where you

have taken so much debt or loans that

you find yourself unable to even service

the monthly interest you actually need a

loan to pay the interest and hence end

up increasing your debt

this is a fishs cycle treated in the

first place due to excessive and high

interest rate boring you need to create

and work on a plan diligently to get

away from this financial mess shortly we

will tell you the essential steps that

you need to take in such a plan

be off hike was dead at the earliest

prioritize all your debts based on

interest rates get rid of highest cost

debt such as those of credit card

outstanding that typically charge 40

percent annually if the outstanding

amount is too large take a personal loan

or do a balance transfer on EMI on other

credit card this could bring the

interest rate to a more manageable level

of around 12 to 15 percent consolidate

medium costed if you have many small

value loans like consumer loans personal

loan or credit card views it would be a

better idea for you to bring all these

loans at one place by taking a personal

loan or a debt consolidation loan with a

low interest rate you can interact with

your lending institution for this look

for low-cost alternative if you have

high interest rate loan like a personal

loan you could take a lower-cost loan

they feel typically loans against assets

such as gold card or property to pay off

the high-cost debt try extending the

tenure if you are likely to find it

difficult even to pay off low-cost e/m

eyes consider extending the tenure of

the loan to manage the repayment

obligation secured loans should

typically allow you to have a long

tenure this will keep the EMI under

check once your income Rises or you get

any windfall gains you can utilize that

amount for foster requirement of your

loan liquidate investments if need be if

all of the above steps are not enough

consider liquidating some investments

such as idle gold or property try to

view this move without emotion consider

the loan repayment burden a cost of

retaining these investments with you

once outstanding loans are repaid you

could use the money to invest for your

future we hope you found this useful

do share with us and others on the

channel your tips for getting out of a

debt trap by writing in the comments

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