Did you know that the average Indian citizen is in Rs 58,969 worth of debt as of January 2018? Around 12 million people join India’s workforce every year but many of these people are also struggling to make large purchases due to mounting debts. So what can you do if your car is no longer usable or you are desperately in need of a new sofa?
Put in More Hours at the Office
Should there be more hours offered, why not try to save the money yourself? Large household purchases such as sofas,beds or a new kitchen or bathroom can be affordable within a year if you are able to put the money away. If you already have some savings, it may be worth putting these to your debts first and then working more hours at the office to save for your large purchase. There are also ways to save money if you are remodelling your house which don’t necessarily mean you have to save too much.
Finance When in Debt
You may still be able to take out a 0% interest credit card depending on how much you already owe. Creditfix – Debt Management suggests that you check your credit score to ensure that any debts under your name are actually your own and to determine whether there is anything you can do to improve your score. Ask yourself if more debt is really sustainable and if you can afford it. If you can, there are some companies which will take those with a poorer credit rating but some research may be required.
Downsize and Cut Costs
Is it really necessary to get a brand new model of car? You may need a vehicle to get into the office and may work long hours so don’t like the thought of public transport. There are plenty of websites selling vehicles that are a few years old so you may not have to spend as much as you first thought. It is also wise to research fuel efficient cars ensuring you do not overspend on petrol or diesel. Trade in your old vehicle or sell parts to add to your savings.
If your debts become too much to handle, it is not a good idea to take out further debt for purchases that can wait. Ask friends if they know anyone who is selling an old car or get friends and family to help you find second hand items in good condition.