Start getting out of debt with these tips

Admittedly, debts are virtually inevitable; If you want to buy a car or a house, you necessarily have to borrow. But when they are due to unemployment, unforeseen expenses, or that you simply do not have control of the money and spend more continuously, they can hang you and will not leave you alone until you pay everything you owe.

If you have already borrowed and you feel that it is the end of the world, you should know that getting out of those debts is not impossible, as long as you are willing to reduce unnecessary expenses and follow some advice provided by Protect your Money:

Know your debts, list them and sort them by priority

If your debts exceed 30% of your net income, you could eventually go bankrupt, since it would become virtually impossible to settle them. We don’t want you to come to that.

The first thing you should do to get out of debt is to know their status and list them by priority. Put first the higher balance, or those with a higher interest rate, and do everything possible to cover them before. This way it will be easier to pay the rest.

Prepare a budget

You must know how much you earn to define how much you can allocate to the payment of your debts. List your expenses for the month and determine what you can cut; the coffees that you buy in the morning, the cigars and this type of expenses that are not really necessary to live, you can leave them aside, at least while you solve your debts. In the same way, you can reduce expenses in your mobile phone plan and in your departures of the month.

Stop paying only the minimum

Stop paying only the minimum

The more money you put into debt, the less time it will take to cover it.

Use cash and leave the cards

If your goal is to stop continuing to borrow, avoid using credit cards at all costs. Leave plastics stored in a safe place, or if possible, destroy them to eradicate the temptation to use them and get used to making all your purchases in cash.

Refinance your debt

If you have this option available, a refinance will allow you to pay lower fees over a longer period. The only disadvantage is that, eventually, you will pay more money.

In Good Finance we understand our clients and offer them options so that they do not delay payment of their loans. Know us!

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