How to keep your debts under control | Loan Consolidation
Financial problems are more common than people think. It is certainly not just a problem for people with a minimum income. People with a high income and two-income households also often have trouble making ends meet. Often there are
personal loans in play, or revolving credit, or have you fallen behind in paying bills.
People often end up in a negative spiral, which seems to have no end. However, the situation is not always hopeless as one might think at first glance. However, it is important not to wait too long and tackle your financial problems as quickly as possible.
Pay attention with credits
One loan is not the other. A car loan is a totally different loan than a loan to quickly bridge deficits. It is not only the difference in interest which is important but also the duration and the monthly repayment amount is important. A loan is rather an extra monthly expense than a source of income.
Under no circumstances sign a contract that is not fully understood. Many people have different credits running simultaneously. Never view those amounts separately, but add them up and always take the total amount into account. Taking out a second loan to be able to repay the first loan often makes no sense at all. If one finally starts calculating the total interest, one will find that it is even better to sell all its assets in order to be able to repay the loan on time.
Pay off debts
It is best to first make an inventory of the debts. See what one can sell to get rid of all debts in the short term
to get to. You may need to get rid of the car or start living smaller, cancel subscriptions or sell furniture. After all, the furniture itself can be sold more expensive than the bailiff.
Play an open card with the creditors. Try to make a mutual arrangement whereby, in exchange for a small additional cost, you can buy time to repay debts. Under no circumstances does it make sense to run away from creditors.
If you have debts, there is no alternative but to strict budget management. This means that on the basis of the fixed monthly income you will have to check how much money you can still spend. First, there are the fixed costs, such as the loans, the rent and the energy costs.
Of the amount that one can still keep monthly in addition to the fixed costs, one must draw up a budget with which one must eat and live during the entire month. It is best to keep this amount in a jar and to divide it by the number of days per month. People try to spend less than what is provided for the budget, since there are always unexpected costs. One month is also more expensive than the other.
If one has debts, this always means that one has lived beyond his means. It is best to step out of the daily routine and it is better to try to live as simply as possible, even if that is only for a few months or years until the financial situation has stabilized. If the car is disposed of, the associated fees for maintenance, insurance and insurance will also be lost.
It is not always useful to take on an extra job, because people often serve to pay more taxes as a result. It is better to invest more time in saving money than in earning extra money. With some creativity you can always save a lot of money in every area. Just think of meals, clothing and the careful use of energy.