Having accumulated debt can be such a headache. Those who can not pay off their financial commitments see themselves suddenly in a black hole: they can not afford essential bills like tuition and tuition from their children’s college and are a step away from getting their name dirty. The most important thing is not to lose control and go for action. Check out 10 tips not to despair of debt, to have greater financial control and to avoid getting in the network:
Write down all your expenses
To get rid of debt once and for all, it is important to know exactly what your spending is and what areas of life money is going. Start by writing down all your expenses, however small they may be. Even a chewing gum or juice after work can make a difference in the budget at the end of the month.
Buy only cash
Buying cash only keeps you from falling into the trap of installment payments, as well as helping you get a sense of how much you are actually spending each day. Create a weekly withdrawal routine and use only the amount booked for that week.
Avoid Unnecessary Spending
Unnecessary spending is one of the great villains of a healthy financial life. After you write down all your expenses, analyze your expenses and see where you can cut, starting with the superfluous and expenses related to the lifestyle, such as leisure and shopping.
Calculate the total amount of debts
To clear your debts and balance your finances, you need to know exactly how much you owe and for whom. Therefore, it is important to put on paper the value of each debt (including interest), the respective creditor and, ultimately, the total amount you owe.
Pay the highest interest debts first
With the raising of your debts at hand, it is time to decide which ones will be paid first. Privilege the ones that charge higher interest, like credit card rotary and overdraft.
Give up some goods
One of the ways to get the money needed to pay off your debts is to give up some assets, such as a car or apartment. The advantage is that you get the amount relatively quickly and do not need to pay interest like you would if you took out a loan.
Know Where You Can Save
In addition to cutting spending, to get rid of debt, it is important to identify where there is potential for savings within your budget. Consumer accounts, such as light and gas, can be reduced with habit changes, for example.
Ask for a loan
Borrowing a loan can be an outlet for those who do not have an emergency reservation and need to keep the name from getting dirty. It is also a way to quickly pay off more expensive debts like card and overdraft. The consigned mode is the one that offers the lowest interest rates.
Negotiate with lenders to find a settlement of debt
Contacting lenders is an effective way to find a solution to your debts. Before leaving for negotiation, it is essential to have a debt survey ready and what your payment availability is.
Avoid getting your name dirty
Having the dirty name on the square can be a big problem. Credit restrictions can have a big impact on the day to day, preventing you from renting an apartment, making long-term purchases and opening a credit card, for example. So, avoid getting your name dirty by contacting lenders before that happens.