We are drowning in debt day by day.
If you want to have a better life free from this burden, then you must follow certain steps. Your consolidated debt will find a way to get out of your life forever. On this journey, we are going to find out the way to solve our typical problem with lenders. You will find the procedures of paying those debts as well as how to fight against consumerism.
Life sometimes puts us very difficult tests and one feels many times in dead ends. Personally I think that there is absolutely nothing that we can not overcome.
Generally the main obstacle to face any problem is ourselves. As long as you believe that your problem does not have a solution you certainly do not have it (read the Law of Attraction article).
Perhaps one of the most common problems that clashes in life is the thought that there is no money or that you are drowned in debt and that you can not get ahead.
It happens that nobody teaches us how to handle our money (at least to me nobody taught me). I think now in some schools and schools have incorporated courses on business and finance but the same then no son followed by anyone.
One sells to productive life and finds itself bombarded with publicity that incites consumption and with a number of opportunities to spend money that one does not have. Young people who come of age are the target market of several banks and financiers to virtually give away credit cards.
Over-indebtedness arrives and debts begin to become a serious problem that one may be in the abyss (of course one can also reach that situation by a personal emergency like the costs of an illness). Obviously the first thing that has to be done is to attack the causes that led to this overrun. Although it seems absurd and simple the main cause of this situation many times is that one spends more than he earns.
But regardless of examining the causes that led us to that problem, the fact is that we already have a real problem is that you have a debt to pay.
How can I get rid of those debts?
Here are two methods recommended by the personal finance experts below.
One the traditional one that is totally valid and recommended by several experts in personal finances and consists of doing the following:
1. Order your debts starting with those with the highest interest rate and end with the lowest interest rate.
2. Separate from your budget a sum of money to pay your debts each month.
3. Pay as little as possible on the lowest interest rate debts and pay as much as you can for the highest interest debts.
4. Any extra money you can get is used to pay off the highest interest debts.
5. When you finish paying the highest interest debt follow the process without decreasing that monthly amount destined to pay your debts.
This system is mathematically the best but often does not work because there is a psychological factor that must also be attacked.
If the highest interest debt is too high to you this system may seem infinite psychologically speaking.
This is where an alternative method called the Snowball Method that Dave Ramsey exposes in his book The Total Money Makeover and which aims to attack the previously noted psychological problem.
According to this method the following must be done:
1. Order your debts starting with the ones you owe less than you owe more.
2. Set aside a monthly sum to pay your debts.
3. Pay the minimum amount on all your debts except the one you owe less.
4. Any extra money that you have destined to pay the debt where you owe less.
5. When you finish paying the minor debt follow the process without reducing the monthly amount destined to the payment of your debts.
As you will realize by putting our effort to pay off the debt where it is due less very quickly I will end up with this and that will have a major psychological effect.
You should see which of these two methods is best for you … but follow one if you want to get rid of your debts.
Do not forget also to attack the causes that took him to the situation in which he is. It is essential in this process to make a monthly budget.
Lots of the Method, Less Are Important
Well, first of all you should be aware that not all the paths are friendly for you. Some of the method will lead you to further loans and debts. Consolidation will keep a better situation in the end. You must care about your own sake. No matter how you have taken those credits and loans. Now it is the best time to repay them as quickly as possible.
People love to take the decision by considering expert opinion. This is why some counsel and attorneys may be helpful for you. Most of them have the closest relation to this type of problems. Again, there are some firms who can lend you money so that you may give the money back to the banks and lenders in the conditional period. All of the way are available for you. Any of these approaches will remove a big burden of debt from your shoulder.
Personal Loan from Relatives
This is the finest way. Your friends and family are concerned with your problem. So, they will understand your helplessness. On the other hand, they will not charge you a high interest rate for their money. They will give their money just to save you from bankruptcy. Consult with them as soon as possible. Then make a deal.
The Credit card is a regular basis way to pay your consolidated debts. Just pay the credit after you get the proper salary from your working place. If you can manage a loan from the firms with low interest rate, it will save you from the future problems.
Manage a Monthly Payment Method
To pay your consolidated debt, you can make an affordable payment system. This will be much helpful to create a regular paying system. You will not feel extra burden and eventually you will be at the edge of full payment.
These are the basic theoretical and practical parts of paying consolidated debts.