Guide to get out of debtUncategorized
There are different reasons that could lead you to a moment of financial instability. Either a bad administration of your income; The improper use of credits, or unforeseen, having multiple debts imbalances your variable expenses and can put your family economy in trouble.
We tell you how to avoid it, and if you are already in that problem, how to solve it.
Step 1. Have control of your money
- Define financial goals. Focus on what you want to achieve in the short, medium and long term. With clear objectives, you will avoid making unnecessary expenses.
- Make a written budget . Record your daily expenses, so you can easily realize what you spend your money on and that you could use it to save.
- Good financial habits Saving does not mean putting in a piggy bank the excess backpack, but defining a fixed amount. Another good habit is to have a financial cushion equivalent to 6 months of your fixed expenses.
Step 2. Before acquiring a new debt
- List the current ones. Make a list where you include amounts, terms and interests. This will give you a clear picture of your real level of indebtedness and ability to pay.
- Reduce your expenses. You have to make a proper calculation and eliminate from your budget the ant expenses (coffees, sweets, taxis, etc.).
- Build your payment plan. Remember that the important thing is not to stop paying. To the debt that you marked as a priority, you must pay part of the money saved to start paying capital and not generating interest.
Step 3. What to do with your current debts
- The masks. Detect which are the debts with the highest rates and put them in the number one payment.
- Those of greater amount. If the interest rates are similar in your credits, start paying as much as possible, as it is where you are generating the greatest amount of interest.
- Debt Consolidation You can transfer the balance of several credits to one. The key is to contract the loan that offers better conditions than the current ones. Meet the consolidation alternatives of Fastjoy Finance.
Keep a good credit history, as it is the key to future credits. Remember that well used financing is an excellent tool to grow your assets.