In modern times, credit is not a despicable word. It indeed is a powerful tool that can help you manage your sources more efficiently and realise your dreams early in life. Indeed, it is not uncommon for a person in his 30s to have multiple credit products in his bag, such as Personal Loan, Car Loan, Home Loan, and Credit Cards.

While having Multiple Personal Loans and Credit Cards simultaneously is not folly but failing to manage them properly is something you should avoid at all costs. You require a bit of financial discipline and persistence to handle multiple forms of debt.

Here are some useful tips to help you manage multiple Credit Cards and Personal Loans like a pro & never let a bank debt ever hurt your financial health:

• Set reminders for due dates: One of the most significant issues that you will face while managing multiple forms of liability is to keep track of repayment dates. If you miss your payment due dates, it will not only reduce your Credit Score, but you will also have to incur significant penal charges. It is advisable that you set automatic reminders on your smartphone for the due dates for the Personal Loan EMIs. For the Credit Card bills, set them on auto-pay for at least the minimum amount due, and then you can make additional payments during the month according to your finances. Timely repayments must be your utmost priority.

• Avail a Top-Up Loan: If you already have an active Personal Loan account, then you should opt for a Personal Loan Top-Up instead of availing new additional loans. Availing separate loans will only increase the problems that you are facing to manage the repayments. Top-Up Loans are extended by various financial institutions to help their customers with additional money during times of need and come with features like quick approvals, high-value amounts, instant disbursal, etc. For instance, if you have an active Indiabulls Personal Loan, you can avail of a Top-Up of up to Rs. 15 Lakhs instantly. Opt for a new Personal Loan or Credit Card only if the top-up amount is not sufficient for your purpose.

• Opt for a Debt Consolidation Loan: Another option that you can explore is to avail of a Debt Consolidation Loan. Numerous financial institutions offer loans for consolidating various debts into a single EMI to help customers manage their liabilities more affordably. This will ensure that instead of focusing on managing multiple repayments, you only have to repay one EMI. For instance, you can avail of a Citibank Personal Loan up to Rs. 30 Lakhs for debt consolidation. Though, to be eligible for debt consolidation, you must have a good repayment track record and a robust credit score. Alternatively, you can also explore the possibility of a Personal Loan Balance Transfer and Credit Card Balance Transfer to reduce the interest and EMI burden.

• Manage your Credit Card spending: During financial problems, it has generally been seen that people end up creating more Credit Card bills than what they can afford to repay. You should be wary of this debt trap and be more aware of your Credit Card usage habits. In the case of credit outstanding, It is advisable to put-off spending on luxury items or big-ticket purchases until your financial situation improves. Avoid spending on dining out or traveling for the time being. As a matter of fact, avoid using your Credit Card altogether and try to repay as much of the outstanding dues as possible. This will help you minimize the interest cost that you will otherwise have to bear.

• Increase your income sources: This goes without saying that the only way to free yourself from the burden of multiple debts is to control your expenses and increase your income. You and your family members should all pool in the income together for better management of funds. You should also strive to increase your sources of income as and when you get the opportunity. This can be done by leasing out spare space in your home, taking up a part-time job, working as a freelancer, availing work from home opportunities, etc.

• Don’t take debt to repay debt: You should never take up a new Personal Loan to repay the EMIs for the other Personal Loan or Credit Card bills. This will further mount up your liability. As a matter of fact, avoid taking loans from family and friends as well because you will find it rather difficult to repay. Instead, try to reduce your expenses as much as possible to generate enough funds to repay on time.

• Try to prepay one loan at a time: You should attempt to pre-pay your Personal Loans as and when your financial situation allows. Prioritize the debts according to the interest rate, i.e., the loan with a higher interest rate should be repaid earlier. If you can’t foreclose the loan entirely, try to make prepayments towards the loan to reduce your interest cost. Once you have repaid all your Personal Loans, shift your attention to the Credit Card dues.

• Prioritize Personal Loan EMIs: Your focus should be on repaying your Personal Loan EMIs on priority. Failure to repay Personal Loan EMIs on time will lead to a significant reduction in your Credit Score. With Credit Cards, you have an option to pay the minimum amount due and roll overbalance to next month. This will keep your card active, and you get additional time to repay the extra amount later on, but no such facility is available with Personal Loans. However, your card outstanding will attract interest costs.

Keeping these tips in mind, you can successfully tab the true potential of your creditworthiness and realise all of your dreams in time.