Be Honest With Your Finances
The first thing you have to do, and that is a great help to start improving your finances, is to allocate only part of your income for the payment of debts. It is advisable that you consider 30% of your income for that concept. You never have to get into unnecessary debt, just as a debt can come from any side and not be prepared in advance we must all have money saved emergency, like for example a dentist in Tijuana if you need root canals. Paying a larger amount will generate economic difficulties, restlessness, anxiety among other health problems. Remember that it is very important that you stay healthy, both physically and mentally, so that you can produce the necessary money that allows you to get out of your complicated situation.
Order Your Debts
Once you have decided the amount that you will allocate for the monthly payment, you must order all your debts. It is very likely that you are indebted to different banks, credit cards, personal loans or any other kind. Order the data, be clear to whom you owe and how much. With this information it is advisable that you ask a financial institution to help you unify loans. This means that the bank generates a new loan to pay all the debts contracted and only one obligation that can even have a longer term, a fee that adjusts to what you are earning for the payment and a better rate is pending. of interest.
If necessary, refinance
If you have not been able to unify the debts with a bank, another viable option is to refinance each of them independently. In general, creditors are interested in paying them, so they are the first interested in helping you improve the conditions so that you can pay without problems. Explain the situation and negotiate longer debt terms, whose installments are adjusted to the amount of 30% of your income.
Focus on amortization, not interest
Many times, people make the mistake of paying the minimum fee of a credit card, in order to obtain greater availability of cash in the month. Tremendous error. By paying the minimum fee, we are only paying the interest incurred, so the debt remains the same month after month. To get out of debt it is necessary that the greater amount of the quota is destined to the amortization of the debt in order to reduce it in the shortest time.
Limit your expenses
Learning to prioritize expenses is vital to enjoy good financial health, in this sense, learn how to calculate your monthly expenses. You have to be very disciplined in handling your money and make the necessary effort that allows you to have a greater availability of cash to cover your monthly budget. Prioritize your purchases, spend less and decrease your exits and leisure expenses.
If you put these tips into practice to get out of debt, I assure you that your financial situation will improve in the short term. Learning how to get out of debt requires you to achieve a series of financial habits, a little patience and a lot of discipline so that you can achieve your goals.