6 ways to repay your debts

How to repay your debts?

When you know that your debt is now out of control, whether from medical bills, shopping sprees, or unwanted expenses, it causes problems that affect your emotional as well as physical health.

Though you might feel stressful about tackling any debt in same way: one step at a time: Here’s a guide on how to repay your debts, or any kind of debts, even when it seems impossible.

It begins with learning how your credit rating works, and why debt can be particularly damaging.


How debt affects your CIBIL score?

The first thing you should understand is that debt has a ripple effect across your entire financial life, including your credit scores.

It is essential to make your loan payments on time. When you miss even a single payment, your bank associates will report the credit bureaus. A small mistake in missing your monthly payment will affect your CIBIL score adversely. A bad CIBIL score means you will be ineligible for a new loan, or the bank will reject your application.

If you are one of those who is stuck in a debt trap, the first step to resolve the issue would be to acknowledge the problem. Make a list of your outstanding loans and begin managing your finances. This would help you to strategize better and pay back your debt faster.

You should follow these strategies to pay off debts smartly if you feel stressed about outstanding payments


6 ways to repay your debts

  1. Repay high-interest loans early

If you are holding too many loans, identify the loan that needs to be tackled first, such as credit card or personal loans. This type of strategy help you minimise overall interest paid on all loans. There are some loans that may offer you few tax benefits bringing down the actual cost of that loan. (Specific in education and home loans)

  1. As income rises, increase repayments

This is the most effective way to repay your debts faster. If your source of income increases, you can easily increase the EMIs by 5 percent. By increasing your EMI payment as soon as possible, you are saving a great deal in interest charges.

  1. Convert to EMIs

Credit cards are the easiest way to pay for expenses. But credit card bills can burn up a hole in your wallet if you spend recklessly. Although many credit cards offer interest-free periods for almost 50 days. But if you roll over the dues, the interest accrued could be as high as 35% a year. If you are finding it difficult to pay your credit card bill, convert the amount into easy instalments. Make sure you don’t miss any of the EMI then.

  1. Take professional help

If you are not able to resolve your debt issues and it is becoming difficult to cope with it, do not hesitate in seeking professional help. If you are in major financial crisis, you can always approach a debt management advisor for consultation. A debt management counsellor will make an agreement with your creditors to accept a single lower monthly payment to clear your debts on your behalf.

Such negotiation usually pertains to lower interest rates, waiving your late payment penalties and even restructuring of your loan.

Usually, debt management agencies charge a low amount of service fee for resolving debt. The amount depends on your loan amount.

  1. Make lifestyle changes

You are suffering from the burden of repaying your debts due to overdue credit card expenses. By eliminating or reducing your expenses, you will be able to repay your debts more easily. Avoid regular waste of money like movie shows, dining out and weekend parties.

  1. Consider debt consolidation

Debt consolidation allows you to combine multiple small debts into one single loan. With debt consolidation, repayment terms are more favourable, including lower interest rates and affordable EMIs. It also allows you to keep a tab on your overall debt efficiently and simplifies your repayment process as there are fewer payments to track and repay.


At the end, there’s nothing embarrassing about carrying a debt burden. Debt traps cause stress and can negatively affect your mindset. But a bit of smartness and honesty can save you from the clutches of creditors and help you live a stress-free life. Consider consulting a debt advisor to help you repay your debts from your income and become debt-free.

If you are struggling with repayment of debts, the last thing that will hit the course is to stop paying them. This can lead to recovery agent harassment and severely affect your credit score. If you feel you are not in a position to repay your EMI’s, a debt solution is always available. A debt solution program with us will give you an affordable Debt Management plan so you can repay your debts and live stress-free. Contact SingleDebt on +91 961 910 3594 or fill out the form either on the home page or contact page

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