I want to pay off my debts but I don’t know where to start

Are you willing to get rid of debt and get out of the red? Congratulations! The most important step you have ever taken is to decide to take a turn in your own financial life. But it doesn’t stop there! Debt settlement requires willpower, discipline, commitment and a good deal of maturity and wisdom to make the right choices.

If you are determined to clear your doubts but don’t know where to start, keep reading our article and find out what the next steps are. 

 

Take on your debt

Take on your debt

Being owed on the market may indeed be embarrassing, but as long as the shame speaks louder, you won’t be able to get rid of debt. Take your doubts and take responsibility for them. Do not assign third parties to negotiate a debt that was made by you. Go to the lender personally and try to solve the problem as best you can. This is not shameful. On the contrary, it is very worthy.

 

Map your real situation

debt problem

To get rid of your debts you must first make a realistic diagnosis of your financial situation. To do so, you must map the debts, raising how long the debt exists, to whom you owe, what the amount of debt and also the interest rate. Doing this mapping is critical to setting payment priorities.

 

Plan the payment

debt payment

Analyze your ability to pay and plan to pay off your debts. You must prioritize the payment of the most expensive and eminently registered credit protection agencies.

More expensive debts, such as credit cards, should be settled as soon as possible because of the high interest rate. Portions of mobile or real estate bank financing should also be guaranteed, as nonpayment may lead to the house, apartment or vehicle being auctioned.

 

Forget (at least for a while) new acquisitions and investments

investment loan

It is critical that you control your finances to the maximum and avoid unnecessary purchases. Note that repayment of your debt needs to be a priority at this time and until your accounts are fully up to date, do not invest time or money in new purchases. You better fasten your seat belt!

 

Save on everything you can

Save on everything you can

Try to reduce household budget expenditures and try to reduce expenses even on essentials such as energy, fuel, food and water. Involve all family members in this economy process, enjoy weekly market promotions, bargain, cut the treats list and so on. Remember that every penny saved can be reversed in the payment of bills.

 

Give up goods (if necessary)

debt payment

If there is no other way, give up some of your assets to settle the debts. Often this is better than taking a loan. You can sell large goods such as a car or a site. But if your debts are small, selling antiques, shoes and used clothes can also be an excellent measure. Only resort to a loan in the latter case and still always rate interest rates.

 

Negotiate Directly With Lenders

Negotiate Directly With Lenders

When you have a proposal to make, negotiate with the lenders. Only look for the company when you have in mind the exact amount you can afford. If possible, try to repay the debt interest by negotiating the payment in less installments. That done, you should strive to honor the deal and pay the bills on time. As soon as it is cleared, you should take steps to remove your name from the SPC or Sarosa if it has been included in these protection bodies.

Now that you know what to do, settle your debts and reorganize your financial life. Count on us in this task! Have Still Have Any Questions Or Want To Leave Any Other Tips? Leave a comment below.

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