| ON EMI/CREDIT CARDS
1) EMI is the best way of comparing the effective rate of return charged on loans. Moreover, if the interest rate goes up by 1%, EMI can go up by as much as 2% to 7%.
2) If your EMI payments exceed 40% of your income, you are most likely to face difficulties in meeting your EMI payments in future.
3) You are in a danger zone if your credit card life style payment exceeds 40% of your income. |
