Handling a single loan can be manageable, but when you’re repaying multiple personal loans simultaneously, it can quickly become overwhelming. Between EMIs, interest rates, and due dates, it’s easy to lose track — leading to late fees and credit score dips.
However, with smart financial planning and discipline, you can streamline your repayments, reduce interest outgo, and even close loans faster.
Here are 10 practical strategies to help you take control of your personal loan repayments.
1. Prioritise High-Interest Loans First
Start by identifying loans with the highest interest rates and focus on repaying those faster. This approach — known as the avalanche method — helps reduce your overall interest burden and long-term costs.
2. Automate EMI Payments
Set up auto-debit instructions or standing orders for all your EMIs. This ensures you never miss a due date, preventing late payment penalties and maintaining a healthy credit score.
3. Consolidate Loans Where Possible
If you’re handling several loans, consider loan consolidation — combining multiple debts into a single loan with a lower interest rate. This simplifies repayment and reduces financial stress.
4. Track Due Dates and Payment Schedules
Maintain a simple loan repayment tracker — either digitally or on paper. Recording each EMI’s due date and remaining tenure keeps you organised and avoids missed payments.
5. Use Windfalls Wisely
Received a bonus, tax refund, or inheritance? Use part of it to prepay high-interest loans. Even small lump-sum payments can make a significant difference in cutting down interest over time.
6. Avoid Taking New Loans During Repayment
It’s tempting to take another loan to cover expenses, but that only adds to your debt load. Focus on closing existing loans before applying for new credit lines.
7. Refinance Loans with Better Terms
If your credit score has improved since you first took the loans, you may qualify for refinancing at lower interest rates. Approach your lender for better terms or consider switching to a bank with competitive offers.
8. Build an Emergency Fund
Unexpected events like job loss or medical emergencies can derail repayments. An emergency fund covering 3–6 months of EMIs helps you stay consistent without borrowing again.
9. Adopt a Budgeting System
Use the 50/30/20 rule — 50% of income for needs, 30% for wants, 20% for savings and debt repayments. Budgeting ensures loan EMIs fit comfortably within your monthly plan.
10. Seek Professional Debt Advice if Needed
If managing multiple loans feels unmanageable, consult a financial advisor or credit counselor. They can help you restructure repayments or negotiate terms with lenders.
Conclusion
Repaying multiple personal loans requires a blend of strategy, consistency, and financial discipline. By prioritising high-interest debts, consolidating where possible, and tracking repayments, you can regain control over your finances and move towards a debt-free future.
Remember — financial freedom isn’t about avoiding loans altogether, but about managing them smartly.
❓ FAQs
1. What is the best way to manage multiple personal loans?
Prioritise high-interest loans first, automate EMIs, and consider loan consolidation to simplify repayments.
2. Does prepayment help save interest on personal loans?
Yes, prepaying or part-paying loans reduces the principal faster, leading to lower interest outgo over time.
3. Should I take another loan to repay my existing ones?
Generally, no — unless it’s a consolidation loan with a lower interest rate. Avoid adding new debt while repaying existing loans.
4. How does missing an EMI affect my credit score?
Even a single missed EMI can lower your credit score and lead to penalties or higher future interest rates.
5. What is the ideal debt-to-income ratio?
Try to keep total EMIs under 30–40% of your monthly income to maintain healthy finances.
Published on : 27th October
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed
https://play.google.com/store/apps/details?id=com.vizzve_micro_seva&pcampaignid=web_share