So you have taken a home loan but are really struggling to manage it? You are not alone. There are many people who are optimistic about their repayment capacity and take loans that are very large. At times they club their spouse’s income with theirs and take a big loan – only to see that their spouse has stopped working and they have to now repay the full loan on their own. So what should you do when you find yourself in a tight spot?
Tips to pay Home Loan
Rationalize your Expenses
It is tough but it is necessary. Monitor your expenses for few months; you are bound to find some discretionary and non-essential expenses eating away your budget every month. Find these expenses and put a plug on them. A few thousands saved every month can really ease your situation.
Ask your lender to increase your tenure
Go and discuss your problems with your lender. Tell them that you are genuinely finding it tough to pay the current EMIs and might even end up defaulting in future. So if its possible, get your tenure increased which will decrease your EMI. This will give you some breathing space.
Use your bonus and surplus income to make part-prepayments
Every year, you would be getting a handsome amount as an annual bonus. Use this money to part-prepay your loan and reduce your interest burden. It might not see like a good idea at first but if you do the maths, you will realize that even paying a few thousand can help you save lacs over the loan tenure.
As income increases, pay higher EMIs
Your income will not stay stagnant. So as and when your income increases, make sure that you increase or pay higher EMIs. This will help you in the long run as you will get rid of your loan quickly and also save a lot of money.
