Talkback

Debt Strategies

The article, Sky-High Interest Rates: Strategies for Borrowers (June 2023 issue), provides a comprehensive view of how to deal with various loans. I used to think people have stopped taking loans due to high interest rates, but the reality is different. The credit market has been growing despite rate hikes. The strategies described in the article with examples like increasing the EMIs, prepaying them, or refinancing the loan at lower rates reminded me of my loan and helped me get more clarity on how to handle it better. My takeaway is that timely debt repayment is vital to avoid penalties in a high-interest-rate environment.

Amit Rai, email

Money Relations

Why We Spend The Way We Do by Larissa Fernand (May 2023 issue) is a refreshing read, highlighting people’s perspectives towards money. For example, one person may want more money but, at the same time, the other may feel guilty about having more money; accordingly, he may satisfy his conscience by giving a generous tip, say, to the delivery person. The article pushed me to contemplate on my own relationship with money; how I may have got carried away and spent on items that weren’t needed so much. It pushed me to dig deeper to learn and improve my relationship with money.

Pragya Singh, email

Travel Debt

Travel-now-pay-later (TNPL) loans may be gaining popularity these days, especially among young travellers, but don’t forget that it is a loan ultimately, no matter how it is marketed or how easily it is available. Travel Now Pay Later: Could Your Dream Holiday Become A Debt Trap? (June 2023 issue) highlights how more and more young travellers could get into a debt trap due to lack of planning or not knowing the consequences. TNPL cards or credit cards could land you in serious trouble if there is delay in repayment, as charges could rise significantly. The story reminds us to live within our means.

Umesh Prasad, email

Portfolio Review

I can now see portfolio review in a new light and that it should be purpose-oriented. When, Why, How Of Portfolio Review (June 2023 issue) amply makes that point clear. We must be mindful of the review timing and how we do it. It was informative and easy to understand. Indeed, market events may affect our portfolio, but these are less significant than circumstances like a job change, marriage, etc. The interesting cricket analogy made it clear that various factors could affect our portfolio and the key should be to optimise and not maximise returns.

Shashank Bhosle, email