10 steps that will help you to get rid of debt

Sunday, October 12, 2014

10 steps that will help you to get rid of debt



In order to pay back the debt, the first step is an objective problem analysis. Stop ignoring the debt and stop throwing away the bank notifications about your account balance. In order to get more clear picture have a meeting with your whole family and write down how much do you owe and to whom. If monthly rate for debt payment is larger than 30% of your income, then you should probably consult a professional, so go and check Top 10 reviews for debt consolidation right now.
get rid of debt


On the other hand if you have below 30% then it’s not that bad. Firstly, it is important to mark what debt has the most significant interest, because the most significant debt requires your immediate attention. By solving the debts with higher interest, you will solve the biggest financial problems for a long term. It is imperative to create household costs and to determine what are the exact monthly costs of your family. You need to know exactly how much your family is spending on food, basic clothes, house costs, services, education, entertainment, culture and more.


Also think about what are some of the unnecessary things you are spending your money on and whether you have some luxurious habits you could get rid of. The best way to deal with this is to write down each and everything you spent your money on in the period of two to three weeks. That is the easiest way to determine what are you spending your money on, and can those costs be cut somehow.

Get rid of your credit and debit cards and pay with cash

It is better to start paying cash, because that way you have a real feeling how much money you have been spending.  The best would be to completely turn the cards off,  but if you can’t, try giving them to a cousin or a friend for holding.

Ask the banks and financial institutions for debt payment delay

Talk to your debt provider and tell them about the situation you are in. You need debt consolidation. They will probably offer you a way to delay your payment. Don’t worry that is just one way they could insure the debt payoff.

Study the costs of your monthly services

Check your bills for cell phones, home phone, cable and internet and then check whether the competition has better offers available.  Try paying other living costs in the institution where the fees are smallest or non-existent.

Do not cover your debt with another credit card

No matter how big is your credit card debt; in any case do not open another credit card account in order to cover the former. That will only lead you to even bigger problems and you will be compelled to pay higher interest. It is better to find out which bank offers the lowest interest on money loans and offers the longest repayment period.

Save the money on car costs

Instead of going to work by car, think about public transportation, bicycle or carpooling with your neighbors and co-workers. Also, when it comes to sports activities, try avoiding the gym and do free sports activities such as running or hiking. Also, another great way of saving money on your car is changing it to another model that uses less gas and has lower maintenance costs.

Be more ecological

Turn the lights off regularly and use less heat  during the winter or using less air conditioning during the summer, not only you are saving the environment, but you are also saving money. 

Try paying more than minimal credit rate


 That way you will shorten the period for debt on your credit card and at the same time save some money by paying a smaller interest. The sooner you start doing this, the sooner the positive effect will be felt.

Sell stuff you don’t need anymore

If you have an extra room, try renting it. It would also be good to sell all the things you do not use anymore – from clothes to home appliances. Apart from the money, you will get extra space in your apartment or house. You can create a garage sale, or you can auction your things online. Put them on Craigslist, it’s up to you. However, it is known that the best prices could be achieved by auctioning your things online on websites such as eBay.

Ask somebody for help if you cannot get rid of the debt by yourself

If you cannot manage your debt by yourself, try asking a financial consultant to help you. Try asking your bank operator or visit a social security center. You can also try looking for help in non-governmental organizations that deal with problems of citizens in significant debt.

It is definitely better to use general  credit

It is better to look long term future costs and then save money, rather than picking up a new credit. If you really need to take another credit, it is better to use general credit rather than new credit card.


No comments:

Related Posts Plugin for WordPress, Blogger...
UA-24898320-1