Debt: Repayment
Things to keep in mind wrt repaying your debt:
- Make the down payment as large as possible. This will reduce the interest on the cost of purchase,
- Debt repayment per year < 20% of annual Post-tax income,
- Monthly installments < 10% of Monthly i-hand salary,
- Use "the Avalanche method" or "the Snowball method" while repaying.
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[2/4] Personal Finance is a very crucial concept that is often ignored. This is an attempt to spread awareness related to personal finance.
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Good Debt Good, Bad Debt Bad
Is debt acquired to purchase something that is going to benefit you financially in the future, usually with low interest. That means it's either going to generate income or allow you to make more money in the future.
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