Financial Stability 5 Steps to Living a Financially Healthy Life

We have endless ways to splurge on our daily necessities, entertainment and lifestyle needs. To be able to meet these needs, it is important that we have steady disposable income and the ability to manage our existing debts. We often find it hard to manage our debts, be it monthly installments on personal loans/car loans or maxing out our credit card limits due to large expenses. If we are not smart about our finances, we could ultimately end up in a spiral of debt.

Here are 5 tips that will help keep your debts in check:

1. Consolidate your debt

If you are burdened with multiple loans, and spend most of your salary paying off instalments, you should consider consolidating your debt. Consolidating your loans into one loan has benefits. You can pay smaller instalments that are affordable and pay your loans over a longer repayment period. When you apply for a Deem Personal Loan, you can find out if you are eligible online within a few seconds and don’t even have to worry about salary transfers! Want to know if you are eligible for a Deem Personal Loan? Apply online to find out.

2. Maintain a good credit score

Being diligent with your finances is essential to maintaining a good credit score. Your credit score a three-digit number ranging from 300 to 900, that predicts how likely you are to make your loan and credit card payments on time. A low credit score tells financial institutions that you are a higher risk when you borrow money from them. When you have a high score financial institutions perceive you as a lower risk customer who is trustworthy when it comes to repayments. You can check your credit score with the Al Etihad Credit Bureau (AECB).

The Credit Score is calculated using information from various sources, like financial institutions and telecom companies. Your Credit Score is dynamic, and changes according to the most recent information in your Credit Report. Missing or delaying a payment beyond the due date, frequently utilizing all your credit card limits, or taking on additional loans or credit cards beyond what you can afford may lower your score.

Keeping a tab on your credit card expenses and paying your monthly bills and loan instalments on time is really important for maintaining a good credit score.

You can easily keep track of your monthly expenses using the Deem Mobile app. The app allows you to track your transactions on the card, view upcoming monthly loan instalments and account statements at the touch of a button. 

3. Get a card that saves you money

One of the best ways to save money on your regular expenses is to apply for a cashback card. With credit cards like the Deem Cash Up Cards, you can earn up to 10% unlimited cashback on categories that you would like to spend on such as groceries, in-store and online shopping, dining, entertainment, fuel, and more. Plus, you benefit from other offers such as free Zomato Gold membership, discounts on dining/wellness/leisure on cards that have no annual fee helping you save even more. Find the Deem Credit Card that suits your lifestyle and gives you the most savings.

4. Pay your bills on time

It might be one of the simplest things, but even the best of us forget to pay our monthly bills on time. Having lots of bills with different due dates doesn’t make it any easier as we incur late payment fees and need to pay additional interest on our balances when we delay our payments. To avoid this situation, you can set up auto-payments for recurring bills on your credit card, and then an auto payment for your credit card bill through a direct debit instruction to your financial institution. Just make sure you have enough balance in your bank account.

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