Debt pit - one of the bad events that can happen to a man. In this case, credit commitments and loans fall on our neck like a noose, slowly puffing in the form of interest, increasing fines or penalties. But the way out is always there, and these tips will help you to breathe easy again financial breast.
So, climb into debt is usually obtained very easily: attractive conditions on the mortgage and car loans, some credit card with a high limit allow at some point feel financial freedom through debt funds. And at this moment the human mind is eclipsed, and the consequences of ill-considered expenses or the inability to plan their spending accounts to pay for a long time in advance, denying themselves many benefits and sometimes reaching depression. But there are no unsolvable problems and we show you how to get out of the financial abyss and become richer.
1. Try to use the early repayment
Banks are interested to you as long as possible to pay them credit: it increases your expenses on its service and interest. Therefore, to save a decent amount of money, try to repay the loan as quickly as possible. But before that, carefully re-read the conditions of the loan agreement: sometimes stipulate penalties for early repayment. If they are not profitable, or if you pay the loan before the due date, do everything possible for that.
2. Do not take a loan against the deposit, and do not make contributions, not to pay off debts
As silly as it may sound, many people make this mistake. For example, put money on deposit, not paying installments on a car or home appliances, believing that they will benefit from this, because the installment plan "interest-free" and will increase the accumulation of deposits. In fact, no bank will not operate at a loss, and all installments and loans are provided at the expense of deposits of other citizens. Therefore, make your savings really grown, first extinguish all consumer installment and credit cards, and the rest of the money already can safely be placed in the form of a contribution.
3. Use the methods of avalanche and refinancing
Analyze all your debt: Hire purchase, loans and credit cards. Then determine what the real interest rate on each of them, and "unfold" them descending rates and commissions. The most "expensive" need to pay as soon as possible, and if you can pay them at the expense of loans with a lower interest rate, it did so. This will reduce your monthly spending on debt service.
4. Borrow money from family or relatives
The main condition for the loan in this case: the money should go only to repay existing loans and debts on which you pay interest. Otherwise, your financial situation will only grow worse, and the probability of non-payment of debt will increase. As a result, relations with loved ones are pretty spoiled, and it is not worth any money.
5. Hawk property
Sale of personal property to repay the debt - this is an extreme tool to exit the debt trap. And no matter how hard it would be to recognize that you have to part with a favorite car or move to a smaller apartment, it is better to evaluate all the risks and slightly cut their own benefit, but to get out of debt. Otherwise, interest, penalties and fines for delay will grow like a snowball, and the bank can take away from you all this for nothing. Therefore, such a situation is better to prevent immediately.
You will also be useful to know how to control the household budget, so that accumulation increased.
