Debt Combat Strategy




With little planning you can get rid of your outstanding debt. You need to understand debt management in order to reduce it to Nil. First, you need to develop spread sheet that enlists all your outstanding debts. Second, align the most expensive debt to the most cheap debt in your books. You need to ask following questions in order to make plan to combat your outstanding debt:

• Analyze how much of your monthly installment contributes to principal payment

• How much of your current monthly income contributes to markup servicing?

• Debt Consolidation into a single cheaper loan is the best way to convert smaller loans into big one.

• Remember credit cards are more expensive than personal loans

• Never delay your minimum payment as some banks usually charge double the markup after the due date along with late charges

• Use as much of RF facilities as possible as you can deposit your monthly salary for a few days in the account to avoid markup

• Seeking divine help from God. Recite Ayat ul Mulk (Surah Imran(Ayat-26-7). Muhammad (PBUH) said that with Ayat ul Mulk, debt equals to entire land will be repaid.

• Learn to live within you means to avoid any financial problems