We are drowning in debt day by day
If you want to have a better life free from this burden, then you must follow specific 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 for paying those debts as well as how to fight against consumerism.
Life sometimes puts us in challenging 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 question does not have a solution you indeed do not have it (read the Law of Attraction article).
Perhaps one of the most common problems that clash in life is the thought that there is no money or that you 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 a productive life and finds itself bombarded with publicity that incites consumption and with some 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 give away credit cards virtually.
Over-indebtedness arrives, and debts begin to become a severe 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).
The first, thing that has done is to attack the causes that led to this overrun. Although it seems absurd and straightforward the main reason for 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 the 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 valid and recommended by several experts in personal finances and consists of doing the following:
- Order your debts starting with those with the highest interest rate and end with the lowest interest rate.
- Separate from your budget a sum of money to pay your debts each month.
- Pay as little as possible on the lowest interest rate debts and pay as much as you can for the highest interest debts.
- Any extra money you can get is used to pay off the highest interest debts.
- 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 also attacks.
If the highest interest debt is too high to you, this system may seem infinite psychologically speaking.
This time 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 follow this steps:
- Order your debts starting with the ones you owe less than you owe more.
- Set aside a monthly sum to pay your debts.
- Pay the minimum amount on all your debts except the one you owe less.
- Any extra money that you have destined to pay the debt where you owe less.
- When you finish paying the minor debt to follow the process without reducing the monthly amount destined to the payment of your debts.
I will end up with this, and that will have a significant 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 also forget 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 methods 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 decide 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, some firms can lend you money so that you may give the money back to the banks and lenders in the limited period. All of the ways are available for you. Any of these approaches will remove a significant burden of debt from your shoulder.
Personal Loan from Relatives
This way is the most elegant. 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 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 the 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 help to create a regular paying system. You will not feel the extra burden, and eventually, you will be at the edge of full payment.
These are the essential theoretical and practical parts of paying consolidated debts.