Apr 08

I drown in debts, Help me!

As I write this entry I remember several conversations with friends, acquaintances, colleagues and the university with which we have deepened the subject.

I have heard the most creative excuses:

It’s exciting to say, what is life if not every week you are calling the bank to charge you?

It’s that I have credit card for emergencies, only lately all this week has been emergencies.

I do not think so that I can manage my finances, people are born with the quality to do it and I certainly do not own it.

Of course I tried to get out of debt but you try too many times.

And many more from the most ridiculous to the most serious, but leave it clear that we can all have a problem with debt.

It’s horrible and I say from experience that they call to collect, to report to work, that any property or wages garnished or coming to your home to collect, that is what we gain by having a debt and we are all exposed to make a mistake and pay dearly for such financial error.

But how to get out? The output of the debts is not a magic trick that today and tomorrow are in debt disappeared (I know there are exceptions, but few) miraculously. Getting out of debt is a difficult process in which we have to show patience and determination truly want out of debt.

While there is no proven formula or a thesis I hope these tips can help.

Prioritize your debts: Evaluate your debts and determine which are necessary for immediate payment, try giving priority to debts that already have substantial arrears.

Order your money: Be ratio of the money it needs (clothing, food, utilities, rent, etc..) To continue to generate more money, organize your finances and allocate a percentage of their income to debt repayment, provided that percentage will not affect or impact much on their family finances.

Reduce costs: The best way to reduce costs and generate extra income to resolve debts is rid of these “luxuries” or unnecessary expenses we have, can be difficult so make small transitions.

For example: If you are a coffee fan and searching only “Coffee Shop” the highest prestige and pay $ 4.00 or $ 5.00 for a coffee, change a little and look for a “Coffee Shop” friendlier to your pocket, very little Be the savings ($ 0.50, $ 1, $ 1.25, $ 2.00) for a little notice the difference ..

Take things you no longer use: If you do not use any appliance or computer technology because it has a higher model or because they no longer intend to use it, try to sell it and take advantage of something that you no longer use and that money can be used to pay to some (s) debt (s) pending. Eye not go to extremes and sells all that he has, that’s not the point.

Show that wants to honor its commitments: From the moment you put your signature on the contract (credit card, loan, mortgage, purchase a product, a service acquisition, etc.) You made a commitment and try to honor him in the best way if you are in a financial rut. Face, introduce yourself and negotiate a responsible manner that is safe payment for the company or organization that lent the money, goods or service (as it is important for them to get paid the debt) without being left in ruins .

As a last resort debt consolidation: Being the subject of credit to pay credit seems somewhat ironic, but it is often the last resort, if the obligations can not find a lender who can help with a loan consolidation debt. That although delay your time to become debt free, will help you not have many problems. But as I have said this is ultimately is when the options were exhausted.

Well I hope these tips help you out a bit of their debts will remember not the overnight, but rather will be a long process, so I wish him the best of luck.

My best wishes to you.