Debt is bad. Loans are bad. That’s what we are fed religiously on various social media channels as well. That’s correct to an extent too, especially for personal balance sheets. If debt is not managed well, it will lead to big problems. However, things are not always black and white. Debt, if taken within limits… Continue Reading
Debt is not evil. In fact, if used responsibly, debt can be extremely useful. Yes, taking on debt involves additional cost in the form of interest. Clearly not desirable but that’s just the cost of capital. If you are using your own funds for purchase, consider the possibility that those funds could have been invested… Continue Reading
For many of us, a new year starts with resolutions. And these resolutions can encompass a wide range of areas such as physical health, financial wealth, personal spirituality, and relationships. What are your resolutions for the new year? Well, you don’t have to tell us but make a concerted effort to see them through to… Continue Reading
It is a new year. A chance to look back at how the past year went by. Achievements, setbacks, things that went right and what could have been. And an opportunity to welcome the new year. Make new resolutions and set out to achieve with loads of optimism. We will leave your life resolutions to… Continue Reading
You have Rs 4 lacs in your bank account. You have 3 loans running and a bit of credit card debt. Home loan of Rs 20 lacs (Remaining Tenure: 17 years, Rate: 8% p.a., EMI: Rs 18,000) Personal loan of 5 lacs (Remaining Tenure: 3 years, Rate: 13% p.a., EMI: Rs 17,000) Personal Loan: Rs… Continue Reading
Your net take-home pay is Rs 1 lac. Your expenses range from 50-60K per month. You invest Rs 40,000 per month diligently. You have automated your investments through SIPs, recurring deposits and setting up auto-debit. You want to purchase a laptop costing around 45,000. What are your options? Break/redeem your existing investments and pay for… Continue Reading
A good debt is used for purchase of productive or appreciating assets or useful services. Thus, a home loan, an education loan or a business loan can be considered good debt. A housing loan gets you ownership of the house while an education loan or a business loan can improve your employment and income prospects.… Continue Reading
It is a new year. And A new year brings new resolutions. Let us look at some of the credit resolutions for 2021 you can consider. # 1 Reduce Debt This applies to those who are currently struggling with credit burden. There are only two ways to reduce credit burden. Reduce the quantum of debt (Possible… Continue Reading
Getting loans is easy these days, especially if you are salaried and have the right credit profile. And there are loans available for everything. You can easily get loans for travel, home renovation, wedding, medical treatment or anything under the sun. You can get these loans quickly too. A few platforms claim to provide loans… Continue Reading
That’s right. You just need to think of the bank as an investor. For the bank, a loan is an investment that it earns interest (return) on. You take a loan of Rs 50 lacs at 9% p.a. for 20 years. It is a bullet repayment loan. You pay the entire amount at the end… Continue Reading