Having accumulated debts can be quite a headache. Anyone who cannot repay their financial commitments suddenly finds himself in a black hole: he cannot pay essential bills, such as rent and tuition, and is about to be with the dirty name. The most important thing is not to lose control and move on. Check out 10 tips for not despairing in doubt, having greater financial control and avoiding getting in the red:
Write down all your expenses
To get rid of debts once and for all, it is important to know exactly what your expenses are and what areas of life the money is going into. Beginning by writing down all your expenses, however small they may be. Even a gum or juice after work can make a difference in budget at the end of the month.
Buy only in cash
Buying in cash alone keeps you from falling into the install trap, and helps you know how much you’re actually spending each day. Create a weekly withdrawal routine and use only the amount set aside for that week.
Avoid unnecessary expenses
Unnecessary spending is one of the great villains of a healthy financial life. Once you’ve written down all your spending, analyze your spending and see where you can cut it, starting with lifestyle-related surpluses and expenses such as leisure and shopping.
Calculate the total amount of debts
To settle your debts and balance your finances, you need to know exactly how much you owe and to whom. It is therefore important to write down the amount of each debt (including interest), the creditor and, in the end, the total amount owed.
Pay higher interest debts first
With your debts raised in hands, it is time to decide which ones will be paid first. Favor those that charge higher interest, such as revolving credit card and overdraft.
Give up some goods
One way to get the money you need to settle your debts is to give up some assets, such as a car or apartment. The advantage is that you get the relatively fast amount and you don’t have to bear interest as you would if you made a loan.
Know Where You Can Save
In addition to cutting spending to get out of debt, it is important to identify where there is potential for savings within your budget. Consumption bills, such as light egs, can be reduced with changes of habit, for example.
Get a loan
Applying for a loan can be an outlet for those who do not have an emergency reserve and need to avoid getting the name dirty. It is also a way to quickly pay off more expensive debts such as card and overdraft. The payroll-deductible modality is the one with the lowest interest rates.
Negotiate with Creditors to Find a Debt Solution
Contacting lenders is an effective way out to find a solution to your debts. Before leaving for the negotiation, it is essential to already have in hand a debt survey and what is your availability of payment.
Prevent your name from getting dirty
Having the dirty name on the square can be a big problem. Credit restrictions can have a major impact on everyday life, preventing you from renting an apartment, making term purchases and opening a credit, for example. Therefore, avoid getting your name dirty by contacting creditors before this happens.
Follow these steps and start taking action to get rid of your debts. Be sure to check out 10 sites that will help in personal financial control!