Repaying loans is a tough task but planning it in appropriate manner will ease the burden. Here are some interesting tips to it:Repay costly loans:Pay all the dues which charge you high interest they are mostly credit cards and personal loans. This is nothing but prioritizing loans while doing this consider the tax benefits associated with the interest. For example, interest paid on education loan is tax deductible. Rise the EMI paid.Whenever you have an appraisal try to increase the EMI paid. This will effectively reduce the time period of re-payment and also the total amount of interest. On an average an increase of 5 percent in EMI will reduce the 20 year time period to 12 years and saves interest amount up to 12 lakhs.Use windfall gains:
Whenever you receive fat bonus or returns from your investment try to use it to repay loans and do not waste the money over other things. Effectively channel your monetary resources to fill the loans. Credit card dues:Change your credit card dues to EMI to reduce the interest charged over them. Up to 50 days repayment is not an issue but exceeding it will lead to 3 to 4 percent interest.Refinance:Take a personal loan; though it is costly it is definitely lesser than credit card interest. In case of huge credit card interests try to repay it with personal. Loans against assets have lesser rate of interest compared to other loans.Finally the most important aspect:Lifestyle changes:Try to make minor changes to your lavish expenditure and cut down throwing money on unnecessary things.