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An Ultimate 5-Step Guide to Budgeting to Pay Off Debt

Clix September 20, 2021

 

Quick personal loans can be your best source of finance when you require funds to cover your planned or emergent expenses. Online loan application and instant loan approval have made personal loans extremely popular and easily accessible these days. Most lenders offer personal loans at competitive interest rates with easy eligibility conditions and minimal documentation requirements. However, once you receive the loan amount in your bank account, the countdown begins to pay off your borrowed amount within the set repayment tenure.

Whether you apply for a personal loan to cover the expense for a wedding, vacation, education, home renovation, medical emergency, or debt consolidation, you need to create a budget for effective debt management. Go through this ultimate guide to budgeting to pay off debt.

1.    Set a Schedule

Debt management would be incomplete without efficient time management. You need to set a schedule to pay off your debt. Fix a date and set the alarm when you will pay your EMI every month. Set a reminder a couple of days before the due date so that you can arrange funds to pay the EMI. Another way to set a schedule is to activate e-mandate. With this facility, you allow the EMI amount to be deducted from your bank account automatically every month. Once you start e-mandate, you don’t need to remember the EMI payments. However, ensure that you have a sufficient amount in your bank account for the EMI payment.

2.    Make a Budget

Making a budget is one of the most crucial steps towards debt management. You may maintain a spreadsheet or use technology to categorise and track your expenses and make plans for your savings and debt payments. The key is to reduce your monthly expenses and maximise your earnings. Prioritise your resources to pay off your debt and evaluate your savings to maximise your efforts.

Start with calculating your total income and deduct essential bills that you have to pay, such as your utilities, rent, credit cards, and EMIs. Record every rupee you spend, whether by cheque, cash, net banking, credit card, debit card, e-wallet, or any other format. Make a column for regular expenses you can’t avoid and another column for irregular expenses like birthday gifts, medical bills, and others. This kind of budget gives you an idea of where your money is going so that you can control your expenses and be more regular with your EMIs.

3.    Adjust as Needed

Categorise expenses like groceries, utilities, EMIs, credit cards, and entertainment. Budgeting does not mean eliminating all the entertainment from your life. If you can manage your expenses well, you can have your fun stuff at times as far as they do not mess up with your other expense categories. Making adjustments to change your spending habits helps you save money and makes EMI payments easier for you.

4.    Create a Plan

Getting used to accounting each rupee you spend may take a few months’ time. During this time, keep assessing your income and expenses and try to work efficiently within your budget. Remember, you need accurate information before making any informed decisions, and no one can judge you better than yourself. Over time, you will start making meaningful changes in your spending behaviour and be responsible for your EMI payments. The ultimate aim is to have less guilt and stress and more money to pay off your debt conveniently.

5.    Proceed Swiftly

Once you figure out your personal and household budget and know where your money is going, you are on your way to scheduling your efficient debt management and payment. To be on the right track, you will need accurate information and change a few habits. Within a few months, you will lay the perfect foundation for your debt payment.

Consolidate Multiple Debts

One crucial step you can take is to consolidate your multiple debts into one using a personal loan. You will find many financial institutes out there offering quick personal loans for debt consolidation. These are unsecured personal loans that you can avail of without any collateral, security, or guarantor. So, you don’t need to put any asset at stake to avail such a loan.

Debt consolidation is one of the most beneficial steps you can take for your debt management. If you are indebted under multiple channels, you can pay them off using a personal loan. Once you do that, you are left with only one single personal loan EMI you can pay at your convenience. Most lenders offer flexible repayment tenures these days, which means you can select a loan tenure with EMIs you can easily afford within your monthly budget. A personal loan EMI calculator comes to be of great help while deciding your repayment tenure.

Who Can Avail a Personal Loan for Debt Consolidation?

To apply for a personal loan from Clix Capital, you need to fulfil the following eligibility conditions:

    • You should be 25 to 58 years of age
    • You must be a citizen of India
    • You should be a salaried individual drawing a salary of at least ₹ 25,000 every month
    • You should be working with your current employer for at least 6 months, and you should have a total work experience of at least 12 months

Besides these, you must have a credit score of 725 or above that lenders use to determine your creditworthiness.

How to Apply for a Personal Loan?

These are the steps to follow to apply for a personal loan from Clix Capital:

    • Visit the Clix Capital website
    • Check your credit scoreand ensure that it is more than 725
    • Fill up the Online Loan application form
    • Get your personal loan documents verified online, which takes just a few minutes. However, if your KYC is not updated, you will have to provide some necessary details
    • Once you receive your loan approval, accept the loan offer
    • Activate the e-mandate for regular EMI payments on time

Clix Capital is a reputed NBFC offering personal loans of up to ₹ 25 lakhs for debt consolidation and several other purposes. Consolidating debt with a personal loan is one of the most excellent methods of debt management and timely repayment. If you need funds, apply for a personal loan at Clix Capital and get instant loan approval within 15 minutes*.

For any queries, find us on Facebook, Instagram, LinkedIn, Twitter, or WhatsApp

You can also reach out to us at hello@clix.capital or call us at 1800 200 9898

* T&C Appl

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