Managing multiple loans can feel manageable at first, but EMIs, credit card dues and high interest can gradually strain your finances. A few smart steps can help you control debt, protect your credit score and build financial security.
Start by adding the EMIs of all your loans along with minimum credit card payments. Ideally, total monthly debt payments should not exceed 40–50% of your monthly income. If they do, take corrective steps early. (Image: File Photo)
Prioritise loans carrying the highest interest rates. Credit cards and personal loans are generally more expensive than home or education loans. If you have extra cash, paying off costly debt first can provide faster financial relief. (Image: File Photo)
Paying only minimum credit card dues can keep you compliant while allowing interest to accumulate. Try paying more than the minimum. If you have multiple expensive loans, consolidation into one lower-interest loan could simplify repayment. (Image: File Photo)
Missing even one EMI can affect your credit profile. Set up auto-debit payments and maintain sufficient bank balance to avoid missed instalments. Staying consistent with repayments is essential for maintaining a healthy credit history. (Image: File Photo)
An emergency fund can protect you from taking fresh debt during unexpected situations. Aim to save at least three months of expenses. A sudden medical emergency or employment disruption can otherwise force you to borrow again. (Image: Canva)
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