This is a complicated issue that many prefer to keep, but it is certainly better to know if you are in a safe area or are in a situation of over-indebtedness and you have to act now. If you don’t know what your case is, at the end of this post you can determine it. And if you are sure that you need help to overcome this bad drink, I leave you the process that you must follow so that paying off your debts is as bearable as possible:
Anyone could have debts, seriously. On the surface we can say that the reasons for the lack of payment to the banks are bad administration, unemployment or others, but the history of each of these people is totally different.
Admitting that you have an obstacle to overcome is not bad at all, on the contrary it is the first step towards your financial freedom and a debt-free life.
Forget about blaming
Here the most important thing is to learn to recognize what the real problem was and speaking of debts it is common to blame the bank because we believe that it did not explain to us or that something they did wrong (happens, but not always). However, our database tells us that 30.64% admit that mismanagement and excessive use of their plastic is the main reason for indebtedness.
How to get out of overindebtedness?
There is a phrase that I like very much and applies to this situation: “don’t worry, you better take care”. You will not earn anything if you are only thinking about how bad you are going through it. Get down to work and start taking charge of the situation, here are some tips:
- Learn to make a budget. The word “budget” sounds extravagant, but it’s really just a way to find out where your money is going. It’s as easy as taking your notebook from the phone and starting to place your income and expenses, if you want you can learn how to do it here. Bonus: recapitulates the previous month and records all purchases and payments made
- Cut expenses. The magic of the bonus that I mentioned is that you will surely find things that you do not know why you paid for them, the goal is that all those red dots eliminate them so that you occupy that money in the debt or savings item.
- Do not remove all your fortnight. This is recommended if your payroll and debt are in different banks. The idea is that you only have the money you need, so the surplus that stays in your account will help you as savings to settle your cards faster.
- Credit is definitely no longer an option. Don’t make the snowball bigger. I know that it will be complicated at the beginning since it has become a bad habit, some things that will help you get off your cards and avoid unnecessary expenses: -Check what you have domiciled to your cards and cut expenses.
-Don’t take them with you.
-If you can’t pay it with your money, don’t buy it.
- Choose the best option to pay faster.
If what you owe is little or a lot, if you have made all the payments in a timely manner, you have a very attractive solution: consolidate your debts.
This method will benefit you since it gives you the opportunity to readjust the time to pay, but what you should pay attention to is the interest rate, ideally, it is less than what your bank usually offers you. We recommend The Rate, since its interest rate is better than the market.
If the level of over-indebtedness that you have exceeded your ability to pay for a long time and you have definitely stopped paying or are paying less than your statement says, I recommend you consider the benefits of a credit repair company.
Several have told us that they had no idea that they owed the bank so much money because they did not review their statements or plans or had seen them in years, if you want to know how you are with your debts and if you present an over-indebtedness problem, I leave you The following calculator: