A
costly lifestyle and sudden emergencies can put you under multiple debts. There
can be instances when you are ongoing a personal loan and a home loan. Probably
you have taken a personal loan to cover up an emergency, and a home loan to get
your first home. If you have got hold of some surplus amount of fund and
thinking of settling up one loan, then which one would it be? Prioritizing the
loan will be very important, and there are certain factors that you need to pay
attention to. You cannot simply say that you like the instant
personal loan, so you will finish it off first!
Finish
off the loan with a high amount: If the amount is the factor, then it has to be
a home loan for sure. The idea should be to finish off the costly loan first. A
personal loan is usually a low-budget loan, whereas a home loan is a huge
burden for a long period. If you have the fund to settle up one loan, then go
for the home loan. The EMI is always high and takes a good share of your income
monthly, so finish it off with the extra fund that you have. This will help you
with a good disposable income that you can save and invest in. You should down
your burden by finishing off the high amount loan at the first.
Finish
off the loan with a high rate of interest: Choose the loan that has a high rate
of interest. It depends upon your rates completely, because you may have an
affordable personal loan or vice versa. The loan with the highest rate of
interest should be finished off. Paying off a high amount of money as extra in
the form of a rate of interest can be very daunting. You must stop paying the
extra rate of interest for a long period. The loan with a low interest rate can
be easily given off once you are done with the high rates.
Finish
off the loan with long tenure: Long tenure loan has to be a home loan that goes
up to 15 years. Bearing a loan for 15 years with high EMI and rates of interest
monthly can be a huge burden. This is the best decision to finish off the instant personal loan with the surplus
fund that you have just got.
Wrapping up
A home
loan should be finished off first, considering the high cost and rate of
interest for a long tenure. A proposal loan is not a burden because it is a
low-budget loan with affordable rates. For your ongoing personal loan in Chandigarh, you can surely pay off your EMI with ease.
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