Top News

Often, when we're financially short, we think, "I'll skip one EMI and pay it next month." But this is where the real stress begins. Delays lead to penalties and late charges, and you never know when a small loan can become a major headache!

As soon as your EMI bounces, the lender (bank/NBFC) immediately reports it to credit bureaus (like CIBIL). Just one default can drastically lower your credit score. A low score makes it nearly impossible to get a new loan or credit card in the future, and even if you do, it comes at a very high interest rate.

Debt is not just a financial burden but also a mental burden. The stress of late EMI payments can rob you of sleep. The worst part is when you start receiving repeated calls from the bank or recovery agents. People start feeling embarrassed, even if the loan was taken for something important (like medical treatment or education).

Most people get stuck because their expenses suddenly increase (such as a medical emergency) or they use credit cards irresponsibly. Many people don't understand the interest rates on high-interest personal loans. Poor planning can turn even small loans into significant problems.

The first step to avoid this is to acknowledge your situation and immediately talk to your lender (bank/NBFC). Don't panic; discuss EMI restructuring (e.g., extending the loan term to reduce EMIs). Most importantly, avoid taking out a new loan to pay off old debts; this often only exacerbates the problem!

Now, it's important to tighten your budget. Stop unnecessary spending and pay off the most expensive loans first. If you're unable to plan on your own, seek help from a financial counselor. Try to get rid of high-interest EMIs as quickly as possible.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.