Overcoming debts

Over board ?

Abu's space

Step 1: Take stock of all your credit outstandings

The best way to get started is to take stock of what you’ve been doing with your credit status. Classify your debts. Debt is either good or bad debt. Good debt is something like your home loan or an education loan. It’s good because interest rates are relatively low, you get a tax benefit and the loan goes toward making a useful investment. Credit cards and personal loans are bad debt because they are very expensive. They are also easily available these days and could tempt you to spend beyond your means.

Step 2: Rank debts in order of cost

Interest rates vary largely across loan categories. The rate of interest is attached to the risk involved in giving out the loan. A loan with relatively lesser requirement of collaterals and security will be more expensive than a loan that is…

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About abubucker4600

Gentleman, so passionate with great vigor of optimism, soaked with love and compassion for the living beings, whatsoever, as created by Almighty GOD, who is merciful and benevolent as well as the benefactor to the fullest degree...
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