Over board ?
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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