I’VE A DH200K LOAN TO REPAY
QThe value of my total outstanding loan is Dh200,000 that I am struggling to repay since I lost my job in 2016. I’m working in the insurance sector at the moment but I’m not earning enough to pay my dues.
ABorrowing beyond what you can repay can create unnecessary debts. The first thing you need to do is rethink your present lifestyle to meet your expenses and improve your credit. Since you have some source of income, tactically plan your budget and work towards settling your debt.
In case you are not able to ascertain where and how to start with, you can begin by consulting with your creditors or a financial advisor and let them handle it smoothly for you.
Ideally, in such state, try to sequence your high to low or low to high amount debt and calculate the (EMI) estimate monthly installment on each. Identify which you can resolve first, generally, the smaller one can pay off faster. Furthermore, while identifying you need to maintain a close watch on the interest rates. If you are paying higher interest on one of your debts, that’s the one you need to pay off first, as that individual debt will ingest maximum of your income while resolving your existing credit.
In the case of a personal loan, discuss your situation with the creditors. They might be ready to restructure your request which might conclude to a way out. They would reform your repayment amount as per your feasibility or if possible give you holiday payment considering your previous repayment history. However, openly keeping your points in front of your creditors (if they are cooperative) would be the best way to plan your repayment again.
In the case of credit cards, you could place a request for installment plan which might be a relatively better way to settle your outstanding liabilities.
Debt consolidation is another approach towards reducing fiscal obligations. It benefits to ease ballooning financial debt worries by grouping all pending payments into one combined loan. Nonetheless, before considering the consolidation decision, you need to make sure the deal you received is more feasible than the present situation. Consolidation of payments may seem a good choice but it entails a strict financial approach to uphold the balance and one should not end up with more debt.