When you have fallen into the temptation of “ immediate loans ” without thinking about what these can mean in the long run for our economy, we can end up reaching a point where all we can think about is how to get out of debt now .
This is not the only situation that leads you to ask yourself this great question. Therefore, in this note we show you the steps so that you get out of debt and own your finances.
That the well does not increase
A debt is increased in two ways: the first if you delay payments, which causes late payments to come on the statement of the following month. Another cause is the fact of continuing to borrow, either to pay past debts with new loans or to misuse the credit card .
Ideally, do not use your credit card or request new loans , at least as long as you have an outstanding debt that imbalances your economy .
Prioritize the payment of your debt
In order to prioritize the payment of your debt, you need to perform an analysis of your current financial statement . That way you can be aware of your expenses and income and eliminate superfluous expenses and ant expenses to prioritize paying off your debt.
You can do an analysis writing down absolutely everything you spend in the month, so you will realize that you can be spending more on outings to eat at expensive places than on strictly necessary expenses. A homemade meal instead of a restaurant can help you save a lot of money .
Never pay the “minimum amount”
When you have a debt on your statement, the fixed amount to pay and the minimum payment amount usually come. Ideally, you should never pay the minimum payment since in many cases it represents less than 10% of your debt , not counting the interest and commissions that the bank or entity to which you owe will continue to charge.
Be aware of the magnitude of your debt
You cannot pay a loan blindly. You should be aware of the total amount you owe to the bank or to the different entities that have lent you money or have given you credit. Only by being aware of this figure can you avoid increasing it and adjusting expenses to prioritize payment. Set your goal to pay your debt in a realistic time, it will be worth the sacrifice!
Evaluate the purchase of debt
When you have many debts it is difficult to sort. Buying debt is a solution you might think about if you have acquired debts that you cannot handle.
With consolidation, a financial entity buys all your debts . That way interest and commissions are reduced and you start paying a realistic monthly fee.
Follow our advice and soon you will get out of your debts. Remember, you should not increase the amount so say goodbye, at least temporarily, to your credit cards!