Here's a quick way to manage your personal finances more effectively

Although there are many ways of consolidating one's finances, here are some of the easier and effective ones:

1. Going for a low-cost loan: If you have availed multiple loans at higher interest rates and the installments are eating into one’s income, it’s time to consolidate the debt by: 

• applying for a larger loan for a longer tenor and lower interest rate. In this process, the installment gets reduced and thus becomes affordable.

•  easy management of a single loan account instead of multiple loan accounts with multiple/same financiers.

2. Managing the Credit Card: Often, credit card users face issues of higher interest rate, late payment charges, insufficient card limit, the outstanding amount being too high, etc. One can consolidate his/her financial position in any of the following ways:

• availing a low-interest personal loan from the same lender or others and repay the overdue outstanding.

• converting the large purchases or outstanding balance into easy installments with the same credit card provider.

• transferring the outstanding balance to another credit card provider offering a lower interest rate and same or higher credit limit.

• Redeem the reward points for adjusting the dues instead of making additional purchases.

3. Getting the most out of the home loan: If one’s existing home loan is at a higher interest rate, he/she may feel the burden of a higher installment amount. This situation can be handled by:

• Asking the existing home loan provider to reduce the installments by paying some nominal interest reset charges.

• Taking a transfer of home loan to another lender for benefits of lower interest rate, higher loan tenor, higher loan amount, etc. 

More importantly, it is critical to review one’s liabilities on a periodic basis and plan for an appropriate course of action. For this, one may visit various financial websites and online/offline content and make use of the tools to analyze their current financial position. Approaching a financial advisor, banker or a learned friend/colleague is not a bad idea either.

Stay safe, happy, and healthy!!!!