Even the most organized people are subject to being in debt, just make a wrong choice or go through something unforeseen that disrupts your budget. Still, it should be noted that most of the debts are due to excessive consumerism and lack of financial organization. Regardless of the reason, late debts always generate a lot of stress as well as compromising credit on the square.
If some measures are not taken to alleviate this problem, the situation is more likely to become unmanageable and result in a snowball. With that in mind, we have listed some effective strategies to put so that you can get your finances in order, achieve more peace of mind and consequently, a better quality of life! Are you curious? So come with us!
Doubts on the tip of the pencil
You will never be able to come up with effective debt settlement strategies if you don’t know exactly what you owe and how much you owe. You need to have a (and real) overview of your financial situation and that is why it is essential to raise all debts. Make a spreadsheet, write it down in a notebook or use good software to record the amount of the debt, the name of the lender and the due date. Only after doing this do you have grants to negotiate debt.
Essential Set Priorities
With the debt lift in mind, it’s time to set priorities. It gives preference to debts that charge higher interest rates, then higher and older ones, as they are usually easier to negotiate and to get a good repayment of interest. Another important point is to cut back on unnecessary spending, after all, it is time to get out of the red and not make new accounts.
Understand that while you are in debt, your standard of living cannot be the same and nonessential spending needs to be cut. Remember that leisure and social life are important, but not a priority. Stop enjoying them when your financial life is quiet!
When negotiating, take expenses into account
While you are regularizing your financial life, the essential expenses will continue to exist, so in the debt repayment schedule you cannot disregard the basic expenses such as food, transportation, education and housing. It is necessary to take this into account at the time of the negotiation, ie only make a commitment that does not affect basic spending. You need to keep working and eating well to honor your commitments. Stop buying groceries, locking up college, or delaying the electricity bill are not smart steps to get out of the red.
Swap a bigger debt for a smaller one
Depending on the amount of debt and interest charged, a good alternative is to opt for a lower interest credit line. Normally, the best option is payroll-deductible credit, as it is directly deducted from the payroll, its leasehold is bureaucratic, the installments are smooth and the interest rate is small. Consider this type of loan, but nonetheless research other outlets and compare the conditions offered by financial institutions.
Create your payment proposal
It is common for indebted people to go to their creditors (bank, finance, company, individual) and see what they have to do. However, the ideal is to seek negotiation with a pre-made proposal, after all, you know how much and how you can afford it. Possibly the lender will make a counter proposal, which will be based on your terms. Be sure to be frank! Expose your situation, talk about the limit you can compromise on your budget and surely you will come to a good agreement for both parties.
Get out of the ordinary and get some extra income
If it is difficult to settle your debts with your salary, how about seeking extra income? Use your gifts, skills and knowledge to do sporadic work, freelance on your free time and weekends, make catalog sales, consult or promote a bazaar with furniture and clothing. that you don’t use anymore. Any money is welcome and can make a difference to settle debts faster.
So, did you like these suggestions? What strategies do you use to pay debts? Share them with us!