Millions of people sooner or later find themselves in a situation where it becomes difficult for them to get out of debt and breathe freely. As a rule, debts accumulate gradually and over a long time, but a difficult financial situation often occurs suddenly. It is difficult to foresee everything that can happen to you in life. And therefore one small miscalculation can lead you to a big problem. http://certtopper.com/shocking-truth-about-how-to-lose-weight-naturally/ for clarification
In this article we will look at the steps that will allow you to get out of debt. Instead of a long, protracted process that takes forever, before you see the results, these methods will show that you are on the right track very quickly. This means that you can be free from your debts earlier than you thought.
You need a plan
Any financial expert will tell you that to improve your financial situation you need a specific plan of action. You will not be able to get out of debt if you do not have a roadmap. The first thing you need to do is find out where each earned ruble goes. And what costs can be reduced in repayment of debt.
Let’s start with the most important first step …
1. Find out where your money goes.
First, you should look at all the finances available to you. What is your income? Where does all this money go?
The key to finding out where each of your ruble was, is an indication of the interest rates on all your loans and borrowings. When you create a list that shows your interest rates from highest to lowest, you can clearly see which credit card or loan you need to repay first: with the highest interest rate!
Write down all your monthly income and expenses. If they are not constant, try to calculate the average for the year for each month. You can use a notebook or spreadsheet, but you need to write down how much you get and how much you spend each month. Answers to these two questions are crucial for all further actions.
2. Calculate your debt
As soon as you take a good look at how much money you receive and how much you owe, your ratio of debt to income will become crystal clear. It is at this point that you need to make a key decision to get out of debt.
Think of a plan based on the debt that you have.
This is not a rhetorical question. You need to literally create a schedule for yourself that will show how many months or years it will take to pay off your debts in full.
3. Set a goal
Now you need to come up with a goal. Each person’s financial journey is different, so everyone’s goals will be different. The key to everything is to be realistic. Take the situation seriously and set a particularly strict criterion that will deprive you of delicious dishes, and maybe even some essential goods.
Goals are important because without them there is no accountability either to oneself or to anyone else.
4. Get a consultation
At the moment you may be stunned by what you learned about your financial situation. You, most likely, already knew, but now you wrote out everything on a sheet of paper and saw that in the near future you will have a hard time. You must be reassured by the fact that millions of people are currently in the same situation.
How can this help? If there is a demand – there is a proposal. If many people are looking for a way out, then there is a mass of means to find it. Start by reading articles on the Internet and discussing on social networks. Consult a consumer credit specialist. Talk with your lenders to refinance loans.
Think about how you can reduce your monthly loan payments. It may be right to take a loan again to pay off the old one This can help if you understand that you do not have time to make a mandatory payment, because of which you will receive a penalty or a higher rate until the end of the contract. Or in the case when the new loan will be on more favorable terms than the old one.
It would also be good to discuss with your current lender about the possibility of refinancing a loan on more convenient terms.
6. Boost your income
When you have a specific plan of action, it is much easier to make yourself save more and earn more to follow the plan. There are many ways to increase your income. This may be remote work or an increase in duties in an existing position. You can make an audit on your old things at home and earn extra money on their sale. Update your resume on the site of applicants, perhaps someone is looking for a specialist like you right now! And he wants to offer you a high-paying job.
7. Create an emergency fund
Finally, it’s time to think about what you will do if the economy declines or you encounter unexpected expenses. In such a situation, personal savings will help best. If you do not think about such things, then you will be completely unprepared for an emergency situation that could happen to each of us.
Statistics show that if you do not postpone at least a very small amount, the risk of financial collapse increases. Set aside every month at least two or three thousand rubles. And this amount will grow smoothly and will help you not to overdue loan payments in case of financial problems.
No one likes to think about their debts, even if it sometimes keeps us awake at night. Debt will not disappear on its own, so you should do it face-to-face as early as possible. This is important for your peace of mind. Follow the instructions above, and you can be in the club of people without debt before you learn about it!