Sometimes having debts is necessary. Well planned have helped many people start their own business, have a house, buy a car, etc.
But what happens when debts are obtained without planning and they accumulate? Headaches will be constant and there will be no money at all. If the latter is your situation here I show you how to get out of debt without dying in the attempt Take note!
Don’t expect miracles, follow a method
If you are one of those who say “God will provide” when you make yourself unnecessary debts, then give it back and take the idea off your head. Do not get out of debt for miracles, nobody will go and tell you: “I give you so much, pay your debts”, so that you do not grow old waiting for another to solve your problems follow a method.
Start by making a personal budget, then cut unnecessary expenses, pay as much monthly amount of your debt as possible and if you have an extra to save do it!
Order and prioritize
If you have more than one debt it is better that you take the time and add how much you owe in total. If you have to decide which one to prioritize (be careful, I’m not telling you to stop paying any!), Always opt for the one that costs the most (the biggest debt).
Do not spend more than you earn
This is easy to do if you have a personal budget and you know how much money you can “play” per month. To avoid having extra expenses I will always advise you that when you leave you forget your credit card at home, so you will avoid compulsive purchases.
Save for the future
No one is safe from what will happen tomorrow. You can run out of work, get sick, etc. Given this situation, having savings will be your weapon of salvation. I know that saving is not easy and worse if you have a debt, but there are always some soles that will be extra (yes, those you did not spend on the dessert of the day, for example). Become aware and save the extra money for tomorrow.
Pay more than the minimum amount always
I have told you above that you prioritize the biggest debt, so what do you do with the others? It does not mean that you pay the minimum of the others but that you distribute the money for the payment of debts, so that you never pay the minimum. The minimum amount only leave it for when there is no other option or you will end up paying more than double the value of your debt at the end.
Here are some tips that will help you end those debts that cause you headaches. Keep the debt from growing and don’t use more plastic money for your purchases.