How and What to manage Loans for Salaried Employees in India
Now what to do to have less loans –
Take two credit Cards only-
- One shouldn’t apply or subscribe to more than two credit cards.
- These credit cards should be only used if you can pay 100% on payment due date.
- Never take credit card loans or pay 5% or minimum due as rest is payable at above 40%.
First Loan:
- It should be either education loan and that too if its for a premier institute or college.
- Education is must but not with loans of non reputed colleges.
- So if your family doesn’t have cash to get you a post grad degree from a Top MBA college, go for it.
Home loan:
- It saves tax and creates asset. Go for it but ensure your emi is less than 30% of your total income.
- Don’t buy an expensive house which takes 50-60% of your income. It will lead to a debt trap.
- Buy a home within your reach and EMI which can be paid easily.
Car loan:
- Car is needed by most but don’t buy Cars which comes with loans which are above emi of 10% of your income.
- Settle for less expensive car as car brings other expenses like fuel, Insurance and regular wear and tear.
Personal loan:
- Don’t take for Holidays, gadgets etc.
- Take only when required.Also Personal loans for investments hasn’t worked for 95% of people.
- So no personal loans for investment in property and shares.
Follow a life which gives u a credit card at 25, pay 100%, take a home loan when above 30 with a emi % of 35% and a Car with max 10%.
No more loans, have a health insurance for you and family and never get trapped in not required loans.
Life is yours and simple, just live a debt tension free life.
