Get Out Of The Minus

Do you have a loan going on? Or unpaid bills? Or old debts that you don’t even remember? Always remember this: ‘There is no credit in keeping credit’. Yes, that’s true and should be strictly maintained. The motto should always be to ‘Get out of the minus’.

Ever gave it a thought, that, what if you need another loan? What if a medical emergency stumbles on to you and you do not have enough savings to deal with it? And then when you apply for a loan, you get rejected just because you have a pending one already? On top of that, it would be really unfortunate, if that loan was not for any emergency.

It’s Not That Tough To Get Out Of The Minus

It’s Not That Tough To Get Out Of The Minus

It may look tough to repay all the debts that you have already, but do not give up. Cause a loan is a loan and the debt will be paid anyway. Either the loan amount will pass on to your successor or you have to lose the mortgage. Why do that, when you can easily repay the loan, just by being a little careful and attentive.

Now, it’s not possible to estimate the loan amount an individual can possess. But it’s repayable in this lifetime, only the time-frame to repay the loan will differ. There are few measures that an individual can take to effectively boost his savings and avoid staying in minus balance.

Get Out Of The Minus, Stay Out Of The Minus

The first and foremost rule for anyone in minus. Try to repay the loan as early as possible and try to avail loan only when you have no other options left. Do not take a loan just because you can take it. Always remember, it’s not free and comes with interest. So you not only have to pay the amount you borrowed but more than that.

Wouldn’t it be wise to save your money first for the item you want to buy, be it a house or a car or even a new phone? Rather than paying some extra money from your own pocket? So, if you have any loan ongoing, or you are under any debt, repaying that should be your first and foremost priority. Not only because you can avail of another loan later in case of an emergency. But also repaying your loan in time provides a better credit score that helps in getting further loans during the time of emergencies.

50/30/20 Budget Rule

Coined by bankruptcy expert Elizabeth Warren, the ‘50-30-20’ focuses on the expenditure of your earnings after deduction of tax. The rule suggests spending 50% of your after-tax income on necessities like groceries, healthcare, and repayment of loans. 20% should be spent on savings. And the rest 30% can be spent on the luxuries/wants like upgrading your car, the interior of the house, or a movie night. Proper usage of your earnings will effectively help you to get out of the minus.

Avoid Credit – Be It Card Or Cash

Avoid using credit cards just because you have it. Debit cards are a far safer option and the moment you are running out of money, they will stop you there. So you will have an update of your account balance every time you use it and will help you to plan your next step. Credit cards, on the other hand, will allow you to buy as much as you can, and then you have to repay the entire amount along with interest, even if it equals to your 3 months earning.

Credit – Boon Or Bane

Everything has its own good and bad impacts. So does credit. Credit is an option provided to people so that, in case they have no money during an emergency, they can borrow some and repay it later when they have it. However, due to unawareness, many people end up taking loans for unnecessary and luxury items and cannot repay them in time. And most of the time this happens, not because the owner couldn’t afford it. Rather he/she was not at all careful regarding the repay of the loan. One of the main causes behind suicides is ‘unable to repay loan’. So people should be made aware and properly educated before availing facilities, which are quite useful but may have lethal side-effects.

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