Want to get back in financial control? There is no better option than to consolidate your debts. A lot of individuals are unaware of the debt consolidation plan. This is due to a lack of awareness among people. People sometimes consider taking a personal loan to consolidate their unsecured loans.
Debt consolidation approves only unsecured loans. Secured loans do not fall under the category of the debt consolidation plan. First, let us educate you about what is debt consolidation. Debt consolidation is the process of mixing all the unsecured loans. The financial institution combines all the unsecured loans of an individual into one single loan. This is mainly done to reduce the burden of an individual.
Debt consolidation is not given to everyone. This is because of its long process and analysis. Under debt consolidation, the debt consolidation institution clears your unsecured loans. This is done by first piling up all the unsecured loans together. When the unsecured loans are piled up together, they find various ways to pay back the loan. The institution pays back the loan along with the interest rate. On the consolidation of debts, the individual is supposed to decide on the tenure of the loan.
STEPS TO GET BACK IN FINANCIAL CONTROL
There are various steps an individual can take to get back in financial control. A lot of people think that it is not easy to get back the financial stability in the hand. But this is not true. You can bring back financial security if you make the decisions wisely. Act wisely while making a decision is an essential part of the decision making process. Let’s study a few points that will help back bring back your financial stability in your hand. This might take some time, but it is beneficial.
ESTIMATE YOUR TOTAL INCOME:
The first step in getting back your financial stability is to estimate or total income. You half to sum up and analyze the total income from various sources of business. All you are supposed to do is sit down with a pen and paper to draft a plan. It becomes quite easy if you do it with the help of a financial advisor.
Financial advisors are individuals who are experts in this field. They can analyze and tell you the steps you can adapt to get stable. With the help of a financial advisor, make a plan of your total income. Write down the modes of earnings you have. Also, write down the amount you procure from each medium. Now sum up all the gains together in a single amount. By doing this, you will arrive at your total revenues annually.
ESTIMATE YOUR TOTAL EXPENSE
Once you have successfully estimated your total income, the next step is to evaluate your overall expense. This step is similar to the previous step. Again take a pencil and a paper and sit down with your financial planner. Now jot down every expenditure you will be facing annually. This is a crucial step to complete before getting into any financial plans. You can even reduce your expenses by taking the advice of your financial planner.
The financial advisor will help you to cut down on the amount of tax by creating various modes. You can cut down on the amount of that’s by doing CSR activities. But this is not possible when you are under debts. Your financial advisor will find some of the other ways to cut down your expenses. By doing this, you can save a lot of money annually. The money saved can be used to repay the loan in huge installments.
WAYS TO MAKE MORE MONEY
The third crucial step is to analyze different ways to make more money. This is a challenging step. But if you ace in this step, you can probably come out of the financial crisis—these steps and valves used in those studies. Without making an intensity, you cannot find the other modes of income.
The other modes of income can be easily estimated with the help of your financial advisor. Financial advisers know the complete trend of the economy of the current period. This is because they study the economy in depth to understand the following situations. You can take the advice to know the sources you can adapt to earn more money.
SOURCES TO CLEAR THE LOAN
The other step is to find out the sources to reduce the loan amount. This is a significant step you can follow to reduce down or come out of debt. Not everybody considers this step as necessary. If you are smart enough, you will consider this step to come out of your loan.
CONSOLIDATE YOUR LOANS
Debt consolidation is the most popular method taken by various individuals in Singapore. This is the method made only for the citizens of Singapore and its permanent residents. All you are required to do is collect or unsecured loan documents together and pile them up in a single file. Now do in-depth research and find out the best financial institution to select the best debt consolidation plan.
PAYBACK THE DEBT CONSOLIDATION AMOUNT IN SMALL EMIs
If you are an individual in massive debt, then small EMI payment is the best option. All you have to do is select a plan in which you must pay low EMIs every month. This will help you reduce the financial burden you are facing until now.
CHOOSE A LONG TENURE OF DEBT CONSOLIDATION PLAN
To reduce the financial burden, even more, you can choose a long tenure loan. This is mainly done to reduce the payment even more. Instead of paying 50000 every month for five years, you can pay 30,000 every month for seven years. This will reduce your overall financial burden for a longer period. A lot of financial debt plans last for 7 to 10 years. Now it is entirely up to you for how many years you would like to go for. There is also a money lender debt repayment plan, but it is always safe to stay out of this plan.