Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Manage your debts with the onset of 2014!

Dec 25 2013, 12:04 IST
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The larger the debt, more cash flow is involved into paying off the underlying interest. (Thinkstock) The larger the debt, more cash flow is involved into paying off the underlying interest. (Thinkstock)
SummaryThe larger the debt, more cash flow is involved into paying off the underlying interest.

better interest options in the market. If you find a better deal, it is usually a good idea to switch over the home loan as it can help reduce the total term and help save on interest costs substantially.

Cut out on Unnecessary Cards: In this day and age of plastic money, people sometimes tend to go overboard and have multiple credits and debit cards in their possession. The more the number of such cards in one’s possession, the higher is the chance of unnecessary spending. The more number of credit cards, the higher is the chance of missing the deadline for free payment limit. Once you get into the territory of compound interest for credit card dues, the debt can rise exponentially in a short period of time. A lot of people falsely equate financial standards by the number of credit cards in one’s possession. While credit cards have their intrinsic advantages, holding multiple credit cards is a sure shot remedy to financial debt tarp at some point in time.

Invest More of Your Income: Cutting off old debt is one thing but it makes a lot of sense to invest some part of your earning in a contingency fund. Such emergency funds can be useful while paying back old debt and nipping the debt devil in the bud. Investing is a good habit that one must cultivate to make sure the overall financial health of a person and his or her dependants is never compromised possibly due to bad debt traps.

Hire a Debt Counselor: If the quantum of your debt is substantially high, it is essential to hire the services of a professional debt counselor. A debt counselor specializes in resolving all debt related issues by considering multiple options. Walking all alone while facing a debt trap may not be a good idea. If spending the consultancy fee for a debt counselor is an issue you can check out various free advisors. A number of banks and non banking financial companies have Financial Literacy counseling centers which help consumers in credit and debt management without charging any consultation fee.

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