Thu 21 Jan 2010
You have every reason to feel thrilled over learning that a meticulously planned debts repayment program such as a snowball approach can wipe out your debts, of course, gradually over a period of time. An authentic snowball approach demands that you pay the minimum amounts due to the low interest debts and repay the highest possible amount to the high interest debts so that you can eliminate these debts first. During this period, though, you mustn’t slack off on your effort by adding new debts to your problems.
It is never possible to strictly follow this pattern of repayment all of the time because sometimes, your kin may come forward to help you financially. This is an emotional response and a spontaneous reaction to your precarious pecuniary circumstances. This financial help may not carry any interest and even if they do, it’ll be very minimal. For them, there’s no involvement of any credit agency for reporting about any delay or default from your side so it’ll be best in the interest of preserving relationships to give due importance to these debts and pay them back at the right time.
Any purposeful delay or default in payment will be tantamount to exploiting their goodness. They may not react negatively for a behavior like this but their displeasure can become obvious once relationships start to get strained.
If you’re prepared to make monthly payments but you don’t know by how much, you can view the clauses of similar personal loans you’ve availed of from external sources. You can plan the monthly payments for your personal debts in the same fashion.
In cases where lump-sum repayment is involved, you may not know the exact time when the relative or friend who has lent you the money may need it for certain exigencies. Since you have been helped when you needed money, it’s imperative that you should also rise to the occasion when they have an emergency. Sometimes, they may hesitate to tell you that they need the money back but body language and the way they behave around you may lead you to awareness. You should immediately arrange to repay the money. This will pave the way for better, longer-lasting relationships.
