Terminology - Financial Planning:
Debt
Restructuring
Normally
personal finance portfolios have various liabilities - housing loan, personal
loan, mortgage loan, credit card loans.
They
all have different rates of interest, diminishing balance versus (Vs) compound
rates, fixed rates Vs floating rates, tenure of repayment, norms for
pre-closure.
They
vary with changes in interest rate. Finanial planners take a view on your
situation to minimize your outgo of interest payment which helps in building
your savings. They may also recommend closure of some loans immediately or /
changing the tenure.
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