During Financial Crisis How To Manage EMI Payments?

Unlike our ancestors, who worked hard for years to buy their home are open to the idea of ​​purchasing their property for home loans. There is no doubt about taking home loans due to government policies. But at the same time, motivating oneself has made the youth tense and fearful about the unexpected future. Out of all the loans a person takes for a lifetime, the home loan is the most difficult to repay. A normal home loan is taken for a period of 5 to 30 years. EMIs are easier to manage when a home receives some rental income, but this is not the case with self-used property.

Well, we have never seen the future. But at least we can be ready to face it. In this writing, we have shared some great tips to help you manage the payment of EMI during financial stress.

1) Don't Overload Yourself - If you have invested in multiple properties, and repaying a home loan is a difficult task that makes you feel stressed, and then take action on time. Instead of living a stressful life, you should consider getting rid of the burden. These days, you can easily sell a property, even if it is under debt obligation. Alternatively, you can rent it to a suitable tenant or real estate company. By renting property or renting it to a person or business organization for a long period, you can earn a regular income that can be used to pay off debt.

2) Speak to the bank at the right time - Whenever you feel inability to repay a home loan, do not hide the truth from the bank by avoiding its message or call. Rather, you should be transparent about your position to the bank. In general, banks try to support their customers in adverse circumstances.

3) Maintain a contingency fund- To face the effects of adversity such as job loss or economic downturn; you should maintain expenses for about 6 months as a contingency fund. Due to low interest rates in savings accounts, you can keep this money in fixed deposits.

4) Get insurance - Does not come with a life guarantee card. In certain situations such as job loss, economic downturn or death, loan installments may not be paid on time. Failure to pay a home loan can lead to a situation when the house or its collateral will be confiscated. To prevent such situations in unexpected future, you should get home loan insurance.

5) Make quick payments - In some situations, it can be difficult to repay the EMI of a home loan. But reducing EMI payments every month will increase the outstanding principal amount. If possible, try to make a quick repayment of the principal amount as it will reduce the financial burden. Remember that repaying home loan should be your priority over other expenses.

Do You Know How to Set a Budget Before Buying a Property

Buying a home is really a big purchase for most people, so you should do a complete homework by thoroughly researching the house you are willing to acquire. India is becoming a big real estate market and due to this there is a glut of commercial units along with locations. Metro cities of India are one of the major places where people are taking interest and investing in property. If you also want to buy a residential flat in every city of India, then be sure to check your budget before signing any work. Once you find out your budget limits and other expenses, you will be able to buy your dream home and live happily there with your family. Therefore, some tips are being discussed below that will help you manage your budget and in this way you can apply for a mortgage and get a dream home in your preferred location.

1. What is your household income after tax?

You need to find out how much money you get after all tax deductions. To know about your expenses and savings, you can take help of online income calculator and know your salary stub. Finding out about the money left each month can help you a lot in the future.

 

2. Write down all monthly household expenses?

It would be great to note all monthly household expenses such as bills, utilities, insurance, as well as groceries. The amount you have will be expendable income. You can check some tools online and make a monthly budget plan, which monitors all expenses and savings. If you plan your personal budget, you will be able to buy a house of your choice.

 

3. Find out where you should cut back?

Once you know about all the expenses, you can find ways to cut it. Sometimes, people are unable to know how much extra money they are spending on other things that they are not going to do. For example, eating out, paying extra money for a service that you may not need further. By adjusting slightly, you can save so much money and pay all other outstanding credit cards and debts.

 

4. Payment of debt

If you buy a house on loan, and do not need to make any other payment, then paying EMI will be so easy for you. This will not only increase your CIBIL score, but also increase the chance of getting a home loan from the bank. If you have an impressive credit score, you will get some exciting offers from banks.

 

5. Saving

Savings are especially important for middle-class families. If you take a SIP scheme or other plans that are guaranteed to give you excellent results, then you are on the right track. It is a good decision to invest in mutual funds. Apart from this, you can find some other ways to save your hard-earned money. The more you save for today, the more you will have a good and prosperous future.

 

6. Do Market Research

It would be great if you examine the market properly before finalizing a property. There are many ways to know details about property such as checking on property portals, where you will get lots of information along with photos. Be sure to check out similar housing units in your area or you can talk to the person living there. In this way, you will be able to know the true value of the property and buy it after examining all the aspects.
 

Nothing is beautiful your home. Therefore, you have to find ways to set your budget so that you do not face any problem while buying a house. You need to know what you are spending your money on and how much you can save. If you make a reasonable budget plan, you will be able to buy your dream home with confidence.