INCOME TAX25 Sept 2026
Stuck in a debt cycle? 5 ways to get out of EMI trap and regain control of your finances | Mint
Multiple EMIs can quietly eat into your monthly income, leaving little room for savings. If your total EMI outgo crosses 40% of take-home pay, experts say you are over-leveraged. Tackle this by listing every loan, prepaying the costliest one first, and avoiding fresh instalments on new purchases. Speak to your lender early if repayments get difficult, and pay your credit card bill in full each month.
Key Statutory Highlights
- Adding up every active EMI and comparing the total with your monthly take-home pay shows whether you are over-leveraged.
- Experts suggest prepaying the highest-interest loan first, after checking for prepayment charges.
- Speaking to your lender at the first sign of difficulty leaves more room for a workable solution than waiting for a missed payment.
Actionable Advice for Taxpayers / Founders:List all your EMIs, rank them by interest cost, and put any surplus towards the costliest loan first. If stress continues, speak to your lender or a certified financial advisor early rather than waiting for a missed payment.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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