Tips to Manage Your Home Loan Emis during Financial Crisis
Jun 12, 2018 Home Loan
Home loan is an essential factor to consider while purchasing a home. Apart from home loan, there are other expenses also that you need to handle. And due to all these, you ought to come under financial pressure and might find yourself in financial crisis at a later stage.
During a financial crisis, you can avoid several expenses, cut down your luxuries but what about EMIs. You cannot ignore or fail to pay the EMIs as then you will land up yourself in more problems such as the bank might send you legal notice or mark you as a defaulter. Then it will naturally affect your credit score. This might create difficulties for you to avail the loan in future. Banks usually wait for 2 months then start chasing you, Defaulting on your home loan EMIs can put you in serious implications like legal proceeding followed by auctioning off the house, so it is better to be avoided.
But still, there is certain situation which no one can control like loss of job, prolonged illness and much more that can put you in financial stress. However, experts always advised that you should only take a loan when you know you are capable to repay it, after calculating the savings and monthly expenses. Although by proper planning, saving wisely and managing credit records efficiently you can easily sail through tough times.
So here are some tips that can help you in managing your home loan EMIs when you are in financial distress.
During a financial crisis, you can avoid several expenses, cut down your luxuries but what about EMIs. You cannot ignore or fail to pay the EMIs as then you will land up yourself in more problems such as the bank might send you legal notice or mark you as a defaulter. Then it will naturally affect your credit score. This might create difficulties for you to avail the loan in future. Banks usually wait for 2 months then start chasing you, Defaulting on your home loan EMIs can put you in serious implications like legal proceeding followed by auctioning off the house, so it is better to be avoided.
But still, there is certain situation which no one can control like loss of job, prolonged illness and much more that can put you in financial stress. However, experts always advised that you should only take a loan when you know you are capable to repay it, after calculating the savings and monthly expenses. Although by proper planning, saving wisely and managing credit records efficiently you can easily sail through tough times.
So here are some tips that can help you in managing your home loan EMIs when you are in financial distress.
It's better to inform:
Whenever you face a financial crisis, always inform your lenders first about your situation. Your lender will definitely try to find out some ways to help you out of the situation without being marked as a defaulter.
Plan your expenses
If you plan your expenses at a very early stage, then a financial crisis might never come. Managing credit as well as spending wisely is a crucial step for handling difficult times. You can also save some money for your crisis times.
Consult financial advisers for advice
You can always take help or consult financial advisers if you find it tough to manage your finances. They are the experts in the field and best people who can guide you on how to maintain your finances, good credit score and manage your debts.
Early repayment
Experts always advised to either increase EMI payment every year or make sure you do quick repayment of the principal amount with a view to reducing your financial burden. This will automatically help in decreasing the outstanding principal amount thereby further lowering the burden of interest on you.
Home loan insurance
Experts also suggest that the borrowers should take insurance along with the home loan. As these policies take responsibility on the behalf of the borrower such as in case of death or you lose your job these policies help in paying up to three EMIs.
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