This is the archive of all our articles related to debt, loans and credit including credit cards
Home loan borrowers make this common mistake. For a Rs. 50 Lakh home loan payable over 20 years at 8% interest, the EMI is Rs. 41,822. As is well known, much of the EMI initially is interest. It is incorrect to sum the total interest paid (Rs. 50,37,281 in this case) and claim that as…
Continue reading →A reader asks, “Sir, I have just turned 25 and started working since November 2021. I see many of my peers using credit cards. Somehow I am not comfortable with them. Do they really have a use? Can you please an article about this?” A credit card is one of those things that is neither…
Continue reading →It turns out that there is a close connection between investing and borrowing (getting a loan). Those familiar with the formulae would tell you that they are identical! Here is how a home loan EMI can be understood in terms of a lump sum and monthly SIP investment. Suppose we want a loan of Rs….
Continue reading →A reader says, “I have an ongoing home loan. The EMI is about 25% of my take-home pay. I cannot be at peace because of this home loan and wish to pre-pay the loan as soon as possible. Am I right?” It turns out that that reader had sold all existing stocks and mutual fund…
Continue reading →A reader who prefers anonymity asks, “Sir, I am a big fan of your articles. Thanks to you, we have started investing in a goal-based manner. We are not yet investing as much as we should for these goals. We live in rented accommodation. My husband wants us to buy a house as soon as…
Continue reading →With consumer inflation close to 7 %, the reserve bank increased the rate at which it lends to banks from 4% to 4.4%. Why was this done and what are the implications for us? A simple explanation. When inflation increases it typically means, the demand for goods is higher than the supply. For absolute newbies,…
Continue reading →In this article, Gaurav shares his experience procuring the BOB Home Loan Advantage. Gaurav shared this in Facebook Group Asan Ideas for Wealth and upon the suggestion of group admin, Ashal Jauhari has agreed to share it with freefincal readers. About the author: I am a 38 yr old upper-middle class HR professional with an…
Continue reading →A reader who prefers anonymity asks, “I am planning to buy a house in the next few months. I have narrowed down on the property and locked in a price with the seller. I am using the proceeds of the sale of a property which was owned by my mother”. “I have to arrange around…
Continue reading →A reader who prefers anonymity asks, ” I’m 33 yrs old; salaried; married with 1st kid due in Mar’22; living in Delhi NCR. I bought a house where I intended to live originally, but due to the extreme distance from my workplace (60kms distance one-sided), it does not seem to be feasible for me to…
Continue reading →I am writing this after learning of two incidents where credit card payments for emergencies resulted in more expenses (interest payment). What is discussed is quite basic and should sound trivial for experienced money managers. You could then share the article with someone younger. Let start by appeasing children from the reward point gang that…
Continue reading →IDFC Bank Credit Card is a new offering from IDFC Bank. Just like the pricing of its Savings Account, i.e. 7% for all balances less than INR 1 Crore, it appears IDFC Bank is planning to disrupt the unsecured lending space in India as well – through its business model for credit cards what you…
Continue reading →In this article, Pranav gives an account of his lesson from repaying credit card debt. Regular credit card users who excel in reward point accumulation or those who do not like debt, in general, might ridicule such accounts with a, “isn’t it obvious one must pay all dues in full, before the due date”. We…
Continue reading →This is a review of American Express Platinum Charge Card. This premium card offers a no “pre-set spending limit” providing greater flexibility as per the user’s need (but not unlimited spending). About the author: Arjun is a financial services professional, keen about personal finance and special enthusiasm about Credit Cards and the points and rewards…
Continue reading →In this article, we discuss how to derive maximum benefits from credit cards. A credit card is a double-edged sword. If used wisely, it can be beneficial, particularly when faced with a sudden emergency: for example, unplanned hospitalisations. If used without appreciating how interest is charged, it can make our lives miserable. There are two…
Continue reading →Taking a student loan is a difficult decision. At the same time, the most common question that students ask us if they should take the leap or not. Several aspects should be considered. Here is a summary of FAQs (please note, this applies to Indian students taking loans for domestic education) that should help you…
Continue reading →