It happens that the availability of credit products play a trick for people who do not know how to spend money and plan spending. The consequences – debts, negative credit history, frustrated nerves and the question: “How to get rid of debt?” However, there is a way out of any situation. Let’s take a look at the process of repeated lending.
First, make a list of your responsibilities: whom, how much, and when to return. The item ‘total’ is likely to be frightened, but the first step has already been taken.
How to get rid of credit debt if there are plenty? Start to pay your debts competently. If there are a lot of loans, you have to pay the “most expensive” (with a high interest rate) first.
At the same time, you should not be allowed to delay the remaining ones, at this time you can pay by making low payments on cheap credit cards.
If you have a low interest credit card, pay it off with higher interest debts.
As soon as you repay the most expensive loans, start extinguishing “small” debts to the maximum. You will see that the number of loans is falling, which will positively affect the mood to win over other liabilities.
If possible, try to pay more than the minimum credit card payment, as they accrue interest every day. Do not try to pay your credit card with the least payments, as they fully include commissions and interest. The main debt in the minimum monthly payment is a tiny fraction, which extends the use of money and increases the overpayment of the borrower.
If you see that you cannot do without delay, please inform your bank. Attempts to hide and disappear are unnecessary because you and no one else will have to get rid of debt. Today, many banks will encounter a debtor if they warn in advance of this situation and refuse to repay their debt. This process is called debt restructuring – a reduction in the amount of monthly payments due to an increase in loan duration or interest rates.
Another answer to the question of how to get rid of debt is to put the budget in order. The main principles of personal finance management are lower costs, higher income.
Start by recording your expenses. Create a spreadsheet in Excel and save each dollar spent daily, grouping your expenses (such as “products”, “clothing”, “entertainment”, “kids”, “mobile communications”, “gadgets”, “rent”, etc.) . A few days after the start of maintaining a financial journal, it seems that it will not spend too much. Calculate how much money you spend on each item per month, and how much it’s spent on your total spend. Think about whether it was possible to reduce it, determine savings reserves.
Avoid accidental and unplanned purchases. Think for a few weeks, let the emotions calm down. If you make an informed decision that things are still necessary, compare prices, read reviews, and buy.
How to get rid of debt?
Live in your means, spend less than you earn. Exchange pizza delivery and rolls for home dinner, fitness club membership with gymnastics or jogging, and night club trip to the club. Stop drinking and smoking – save more medication.
Increase your income: find a second job or part-time job, do your job in your current job to get a higher salary, accept complex projects, be active and hardworking.
Sell unnecessary or redundant items.
After depositing your last debt to the bank. In the way you take loans for dollar, because debt relief is a long and difficult business and the pleasure of obtaining takes less than a repayment schedule.
Yes, loans are needed. For large purchases, you can save up to old age, but now you want to live. A loan is eligible if it is aimed at a long-term improvement of the material situation or the acquisition of vital assets. For example, a mortgage instead of monthly rent payments and a car loan for work and daily family transport.