Being in debt is not good for anyone. The good news is that settling your debt can be less complicated than you might think.
To solve the problem and return to a healthy financial life, it is necessary to determine, organize and especially financial planning.
Check out some tips that will help you pay off your debt and balance your financial life:
List and renegotiate your debts
The first step in debt settlement is to raise the value and the lender. From then on, it is time to leave for debt renegotiation. Before you even sit down at the table to negotiate values with the lending company, it is important to take into account not only the total amount of debt, but also the interest charged. Another important point is not to accept a negotiating proposal that you will not be able to comply with in the future.
If you have money saved, see the possibility of paying off at sight, at a discount. If this is not possible, consider whether the parcels first fit in your pocket. Otherwise, the chances of you getting into debt again are great.
Start with the most expensive questions
Credit card, overdraft and financial loans are some of the most expensive debts on the market. If you have any of them, start there at the time of renegotiation. After renegotiating these, move on to minor debts.
Rearrange your accounts
Getting a renegotiation is essential to clear debt, but that alone is not enough. In addition to solving the problem, it is important to be careful that it does not happen anymore. This requires knowing the real situation of your finances: do you spend more than you earn? In which areas of your life do you have the most expenses? Where is it possible to save?
Start by writing down all your expenses and fill out a daily spreadsheet or, if you prefer a faster, simpler way, use an automatic financial control tool like GuiaBayment, which organizes your revenue in less than two minutes and expenses.
Plan your expenses
Organized Expenses and Expenses, It’s Time to Go Beyond Start planning your expenses to pay off debt once and for all. See how much you can spend on each category of your life, such as Housing, Food, and Leisure, and set aside an amount in your monthly budget that should only be used to pay off debts like, for example, 10% of your income . It is important to be controlled and not to use this value for any other area of life.
Create an emergency fund
In addition to planning part of your monthly income to pay off your debt, it is important to also invest in creating a financial reserve for you to hand in case of emergencies. Ideally, save at least 15% of income per month.
Those in debt, however, often fail to reach this value. Then save at least part of your income for the purpose of setting up an emergency fund. Otherwise, when going through an unforeseen event, you may not have enough money to remedy the situation and end up in debt again.
Paying off your debt is possible. The important thing is not to delay the problem and organize your finances in order to solve it.