All of you have various ways to make sure that you tame this rising interest rate. Like some of the readers I had taken the HSBC Smart Home loan policy that works exactly like the SCB Smart Loan. Before this I was on a standard home loan polity and the various thing I did to take into account the EMI was the following. 1. The bank advised to increase the tennure and hence reducing the EMI to where it was earlier - This is a dumb move and should never go for this. 2. Reduce all your outing expenses like eating outside / travelling / vacation. Make sure that all house members are aware elese they would think that something fishy is going on and you are not letting the money go. If all the members are aware of this it makes your life easier. 3. Avoid making late payemnts on your bills as that would be excess money paid as interest like credit card / electricity 4. Put your credit card in a safe place and use only cash, that way you know what you are spending all the time. 5. Cut on the electricity bill by shutting off all appliances that uses electricity than the bare necessity. 6. Try and save money on petrol and try car pooling or using public transport. Public transport can be a pain yet in the end you will be a winner 7. Always eat healthy home cooked food, this will maintain your mental stamina and will keep you healthy as well. 8. Quit investing in any funds that are directed by the markets. 9. Do not switch any Mortgage plans as such. Every thing runs in a cycle and what goes up will come down says Newton. 10. Get rid of stuff in the house that you don't need, you will be surprised how much junk you have collected and the money that comes out of it helps run the show for a few days. 12. Give more time to the family and always keep them telling how you are progressing - be a team leader. Sometime your family memebers may hear your stroy and do all that they can in their power to help you. Especially your kids who with your experiences will learn to be cautious with your money.
I am in the same boat as the other million of us who are suffering from this rise in interest rates. So be brave. Failures do happen but its the courage that keeps you standing tall. All the best
RE:Rising Interest Rates
by Kartik Patel on May 02, 2007 07:24 AM Permalink
Nicely written article. Though am not in the same boat as i live almost zero debt life, a similar situation came into my face 8 years ago and i started cutting down the expenses and at the same time paying off the high cost debt at the earliest. if not used with prudence credit card proves a very costly tool.
RE:Rising Interest Rates
by Sachin Rastogi on May 02, 2007 12:39 PM Permalink
Instead of cutting down all our necessary expenses , why can't we sell our home and stay in rented home?
