│BEST│Trapped on Loan – “ Loan ka Chakkar"

Trapped on Loan – “ Loan ka Chakkar ?

“Money is numbers and numbers never end. If it take money to be happy, our search for happiness will never end”.  By Load Buddha.

Have you heard these songs “Baap Varda Na bhayia Sabe Varda Rupyaa….” or “Money Hai to Honey Hai ”. or  “ Ye Paisa, Ye Kesha, Ye Na Ho, To Kya Ho, O Musibat, Ha Musibat….”.

Desire is the main cause of most of the problems, when we fail to understand how to control our unwanted desires; we get into in the field of trouble. We forget to live life and working like a bull to paying off debt obligations.

When spending is more than earning, Loan is the best easily available product to full fill this gaps.  Loan is taken either deliberately or Un- internally.  People trying to create a fake perception in front of other people and spends more than their  budget in marriage ceremony, purchasing of  huge house, buying of Big Car, Expensive Mobiles, Computers, Home decoration,  Jewellery, Furniture, TV  and what not ?. On the other hand loan taken due Medical emergency, child education is Unintentional in nature which cannot be avoided.  

Variety of loan products available in the market, which can fill abounded of money into your pocket & fill your mind problems in just “click”.

How people get into Loan Trap.

Basically, calculation is clear, Spending more than Income = LOAN.

With intention to pay off high rated interest loan instantly and create some cash flow, person apply fresh loan (like TOP UP on existing loan or apply for Low Interest rate Loan from another bank) and get trapped, because additional cash flow will never use to pay debt.

Borrowing from bank mean, burden of interest also. if you look into the loan repayment schedule; it will reflect the amount of  Interest and Principal. During the first year of loan tenure, most of EMI part is related to Interest only (around 60%-70%) and minimal amount of Principal outstanding.

Credit card debt plays a big role for creating financial problem, because it’s easily available in marketplace without any cost but they charged High Rate of Interest on amount outstanding.       (approx. 38% annually), if you defaults to pay, you cannot get cheaper loans to repay debt, your interest burden increases.

How to Come Over Loan Trap

Avoid taking loan & Credit cards, if necessary, borrow low rate interest loan and pay credit card bills timely.

Beware of these words “Interest Free EMI”  “0% cost EMI” “Low Interest EMI” “Free Credit Card offer”. Have Cross check all calculation before go for this offer. It can be a TRAP.

First of all, list out debt obligation from High to low rate of interest, so that you can make mind cessation loan which have high interest. Than target the second largest interest rate debt and make payment as per your convenience and follow the same procedure to till the end of the loan.

You can generate an Idea to earn an extra source of Income or arrange interest free funds from friends or relatives. If not possible you can opt for sale out some Jewellery to pay out Credit Card debt first, because it eats more than 35% of your income.

Control over spending, make a habit to save money and keep aside at least 10% to 15% of monthly Salary. Goal must be very clear to have “Financial stability”.

Be clear in your mind “No THING IS FREE in this materialistic world, each thing has a value and cost, which you have to pay either directly or indirectly. Finally, save money first than spend to come out of Loan Traps.

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