Whether you are planning to restart your school or settle down, installment loans always come in handy.  While they save you from bulk payments, they also give you ample time to repay them. However, the same installment loans become a headache when payments lapse. Also, you need to be attentive to the financial policies of the bank. The interest rates fluctuate. There are numerous terms and conditions which you should be aware of before signing off the documents.

While taking zmarta loans, people forget to analyze its purpose. The most common mistakes committed by people are:

• Taking loans for material goods like a new sofa or a new phone.
• Taking a loan for show-off like to fund a new year’s party. Seriously! You are ready to go into debt for a party!
• Skipping EMI repayments thinking they will make up for all at once. This never happens.

Here we are going to throw some light on the best 5 ways to smart living with installment loans:

1. Prioritize your needs: Yes, you need a house but that can wait till you finish your education. If you are one of those who have a long to-do-list, sit down, think aggressively and prioritize your needs. Do not confuse your wishes with your needs. Installment loans are not a child’s play. They can be a real issue when not repaid on time.

Always put the real need first. Like if you need to finish college, do it first. Your world trip needs you to save your money. Do not take a loan for that. This way, you will have a lesser financial burden. Otherwise, the bulk of your earnings will go into clearing the EMIs.

Always invest in things that you need. Taking EMIs for a new TV is stupidity. The TV will get outdated with newer technology. Instead invest in your education, some real estate, or mutual funds. You can also get some comprehensive medical cover for your family.

1. Look for interest rates: Simply planning anything on EMIs is foolishness you will always repent. Be a smart planner. Compare EMIs interest rates of different banks. Take into account your daily needs, and emergencies. However, do not fall prey to the fake banks who promise ridiculously low-interest rates.

If you have multiple loans already in your pocket, then keep track of their current interest rates.

You should be market-ready to utilize the best opportunity. If you are looking to buy a house and the interest rate has slipped a few notches, go for it. Investing on time saves big bucks. Likewise, if the bank is offering some relaxation if multiple EMIs are paid together, do so.

1. Be punctual: Do not wait for that perfect balance of your income and expenditure to start repaying the loan. Your lifestyle should strictly be in accordance with your pocket. You took a loan because you desperately needed that thing. So start repaying as soon as possible even if it means cutting down on some of your spendings. The thing is sooner you start repaying, the sooner you get rid of it!

If you have got to repay multiple EMIs, start with the one with the highest rate of interest. This will ease off the financial burden. Go for the pre-payments of the EMIs. This leads to a reduction in the principal borrowed amount and hence the interest amount reduces. If you are yet to start a family, this is easy to do. It is wiser to get high-interest rate loans before starting a family. This ensures minimum financial stress on your family.

1. Make a target age of repayment: You should not retire with EMIs at your hands. Decide on a target age before which you have to clear all your debts. The fact is, after you retire, you do not have a fixed income. All you have is your pension. Moreover, you should not be spending all your life repaying for the things which you probably don’t even need in your later half.

While doing this, also make sure that you have enough for the post-retirement age. Invest in medical insurance and mutual funds. If you have a huge outstanding loan but good savings, clear your debt with the savings. This may sound inappropriate but how are you going to pay your EMIs post-retirement? You may lose out on your savings but at least you don’t give loans to repay!

1. Get financial education: EMIs are not all about the bank and your financial advisor. You need to educate yourself. So instead of relying solely on the advice, educate yourself. The younger you begin, the better you get. You should learn about investment options and tax rebates. Many clauses allow you tax exemptions. If you invest accordingly, you will be saving big as well as making your retirement age more secure.

You should keep an eye on your credit score and try to maintain it positive. Skipping installments may cost you a negative rating. So when you desperately need a loan, it can create issues with the bank.

Try not to spend more than 30% of your income on the credit cards. Another way to save smart is by refraining from taking multiple loans at the same time. This puts undue pressure. You can take another loan when the preceding one is repaid by about 75%. Your credit score remains positive while you can invest.

Conclusion

Taking Installment loans online are an excellent and easy way to lead the life of your choice. However, you need to be smart so that it does not overburden you. Investing properly and timely in loans allows you to meet demands and necessities. Being aware of the financial terms and its details allows you to keep track of your loans without anyone’s assistance. Being a smart investor is more important than being a saver. Easy installment loans online by Personal Money Network allow you to meet the major financial needs with minimum expenditure per month. It is important to judiciously use this rather than being someone who spends unnecessarily.