Juggling several personal loans is tricky—different due dates, rates, and tenures leave plenty of room for mistakes. Miss one EMI and you risk penalties, higher interest, and a dented credit score. The fix isn’t flashy: organise your loans, automate the basics, and apply a few smart levers. Here’s a clean, step-by-step plan.
1) Automate every EMI
Set up auto-debit for all loans. Wherever possible, align EMIs to 1-5 days after salary credit so cash is in the account and failures are unlikely.
2) Make a one-page debt map
List lender, rate, EMI, outstanding, remaining EMIs, and prepayment charges. Seeing everything on one sheet reveals which loans are truly expensive and where small wins exist.
3) Pick a payoff strategy you’ll stick to
· Avalanche: Prepay the highest interest rate first (saves the most interest).
· Snowball: Close the smallest outstanding first (quick wins keep you motivated). Choose one and commit.
4) Build a one-month buffer
Keep at least one month of total EMIs in a separate account. This shields you from auto-debit fails due to timing or temporary cash hiccups.
5) Use windfalls surgically
Direct bonuses, tax refunds, and variable pay to part-prepayments on the costliest loan. Ask the lender to reduce tenure (not EMI) so you lock in interest savings.
6) Refinance or balance-transfer with care
If you can cut the rate meaningfully, consider a refinance. First, total up processing fees, foreclose charges, and fresh mandates; switch only if the net saving over the remaining tenure is clear.
7) Consolidate to simplify
Multiple small loans can be merged into a single, lower-rate loan with one EMI. This works best if your credit score is healthy and the new rate/tenure reduces total interest—not just monthly outgo.
8) Kill high-cost revolvers
Credit-card revolvers and small app-loans often cost more than 30-40 percent. Prioritise closing these first, even if it means only minimum prepayments elsewhere for a few months.
9) Protect your score while you repay
Avoid new credit, keep card utilisation under 30 percent of limits, and never miss an EMI. If cash is tight, talk to lenders early about restructuring; proactive requests beat late penalties.
10) Review quarterly and tighten
Every three months, update your debt map, re-rank loans, and schedule the next prepayment. Small, regular course-corrections compound into big savings.
Bottom line
Multiple loans don’t need to run your life. Automate payments, keep a buffer, focus repayments where they save the most interest, and simplify wherever you can. Stick with the plan, and you’ll move from juggling EMIs to finishing them.
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