Your Questions Answered: I work for an IT firm, how can I pay off my personal loans and credit card debt on time?

livemint.com:

Personal loans and credit card loans are both high-interest debts. If there is any delay in paying off an equated monthly instalment (EMI), you will end up paying penalties and it will also have an impact on your credit score. So, Namrata, it is very positive that you're taking proactive steps to manage your credit card debt and personal loans.

Creating a workable repayment plan is a crucial step to achieving financial stability. Let us see how you can make this happen.

There is a thin line between what you need and what you want. Sometimes people confuse wants and needs to be the same, which isn’t true. Having a roof over your head and food on the table are examples of needs. Though your employer is providing a bus service, if you want a car to commute to work, it is a desire rather than a necessity. It is something that you can do without. Be very clear about the difference as there will be many occasions when you may need to decide on the spur of the moment before you swipe your card. Of course, if you budget and save properly, you will be in a better position to both meet your needs and also enjoy at least some of your wants.

Planning is an important component of almost every aspect of life at work and at play. Jot down all that you need for the month. Check if you have enough funds to buy all those. This will help you budget and keep track of your expenses. Keep an eye on your plan to ensure it is always on track. Remember, it is more than a list on a piece of paper.

Banks and financial institutions use credit reports to gauge your financial credibility. Your credit score must always be good. A good credit score will make it easier for you to secure a loan, get a job, buy a house and so on. Just one bad decision,