Are you in debt and do not know what to do to pay off your debt? It is normal to have the feeling that debts have no solution when you have no money. But contrary to what you imagine, paying off debts even in a moment of tightening is possible, yes!
To make matters worse, look for solutions to pay your debts as soon as possible, as they grow quickly and you run the risk of getting the name included in credit protection services, the dreaded ” dirty name .”
Of course, you must have heard the phrase “debt that turned into snowball”, have not you? And that’s exactly what happens when you do not pay the debt, because interest continues to be counted until you negotiate. You already saw that, right?
The longer you take to pay what you owe, the more money you will have to fork out. So do not waste any more time: the decision to pay off your debts is more important than having the money to pay them off. Good Credit gives tips on how to get money to pay off debts:
1) Update on the amount of your debt
No matter how long you stopped paying an account: the amount of debt is no longer the same. To find out the amount of your current debt with late payment interest, contact the creditor and ask for information about the unpaid account, such as days past due, interest percentage, and current debt amount.
You can also request information about trading: do you have cash discount? What are the installment options?
In that first moment, write everything down in a notebook to be able to plan for the repayment of your debt.
2) Make a financial diagnosis
Now that you know the current value of your debt, even if it is in the red, you need to clarify your current financial situation. Did not the credit card get paid? Are you using the overdraft?
Clarify the values and how much money you need to pay off your debts , the amount of your monthly budget (salary + extras) and the main expenses, such as energy and water bills, supermarket, among others.
Financial diagnosis is important in understanding what is going on with your financial health, for example if your spending habits are not in your pocket.
3) Cut Unnecessary Spending
Take advantage of the complicated time to rethink the superfluous expenses. If you have debt, a good way out is to save some of your money that has been spent without any control.
After the financial diagnosis, it is easier to identify what you can reduce or cut, at least until you pay your debts.
You can get out of debt by earning little : you just have the goal to pay off your debts and get rid of debt once and for all!
Take the time to find out what your financial profile is when it comes to spending money and what to do to correct potential failures that hinder your financial growth.
4) Look for sources of extra income
Do you have debts and do not have the money to pay them? A good alternative is to seek sources of extra income and direct the money you earn towards paying off your debt.
And how to do that? Simple: what do you do that can help ensure extra money at the end of the month? You can sell a product or provide a service that helps increase your income at least in the period in which you need to pay off your debt.
How about becoming an individual microentrepreneur? You can have a steady job and undertake at the same time. Take the opportunity to balance your budget.
5) Ask for a personal loan
The easiest way to pay off your debts without having cash is by using a personal loan. In addition to getting the money you need to pay off your debt once and for all, you’ll need to worry about only one installment (on your loan installments).
It is a way to organize and also to balance your budget because the value of the monthly installment comes out less than if you had to pay the installment of all the debts.
Good Credit knows you need a quick solution to pay off your debt: now ask for your personal loan online, 100% free and secure.
6) Anticipate payments to get discounts
Have you negotiated your debts or applied for personal loan to pay off your debts? Whenever possible, anticipate parcel payments to get discounts and thus pay cheaper.
In addition to the discounts, you are more likely to get a new credit later, after you have met your agreement.
You can also do credit portability (debt migration to another bank) if there are more advantages to your pocket.
Do not forget that the payment in day (until the maturity of the installments) is important to not lose the discounts granted in the negotiation.
7) Control finances to avoid new debts
Keeping personal finances under control is essential not to incur new debt. So keep track of your spending closely and watch for signs that you are losing financial control .
Start to save money for emergencies if you do not have the habit. You can start by saving a small amount a month and gradually increasing.
And if you need urgent cash, avoid making the most of your credit card and overdraft, as these modes have the highest interest rates on the market. Know alternatives to the credit card and overdraft .