To get rid of debts, if there are a lot of them, you can use the bankruptcy procedure for individuals. However, this method has a number of disadvantages: it deprives you of part of your property and many rights, and also has an extremely negative effect on your credit history. Get out of the situation without resorting to at least the following tips.
Stop harboring illusions
If the debts have exceeded not only your income, but also began to threaten your property, then it is too late to drink Borjomi and hope that it will pass by itself. The situation is out of control, so it's time to pull yourself together. Be honest with yourself and your loved ones. Even if family or friends cannot help you financially, they will support you on your way to getting out of debt.
Assess your position
Calculate your income and expenses, first of all, constant, and then enter into the table and variable indicators. This will help you navigate the specific deadlines and amounts that you must provide in order to change the state of affairs for the better.
Try to find additional funds and save on spending.
Most likely, there is no one to borrow from, and it is not worth it. But to find another part-time job for a free morning, evening or weekend is quite real. See if it is possible to rent a room in an apartment or a garage, rent a car to a taxi service, or sell old mobile phones at least for spare parts. And do not forget about simple savings: negate bank commissions, treat rent payments and taxes responsibly so that you do not charge penalties. Not to spend is to acquire. Think about it.
Move forward with a clear plan
Set a goal and set milestones on the way to achieving it. This will help you evaluate the results of your work on yourself and your financial well-being. The problems will not be solved right away, but the implementation of part of the plan will be an excellent motivation to continue on the path.
Don't stop and get distracted
Laziness and apathy can become the main obstacle to overcoming the crisis. But this is not the time to give in to the blues. Rationally allocating resources of time and energy, you do not leave yourself a minute for despondency, only short breaks for rest. Having got rid of some of the debt, start rebuilding your financial flow by acquiring assets and liquidating liabilities. Stability during the transition period of the economy may not be at all stable, and only investments in the future can create a sufficient “safety cushion”.
Thus, the main thing in getting rid of debt is to assess the situation, set a goal for us and follow the intended course. It is good if there are additional sources of income in the form of a side job or renting out unused property. Consideration should also be given to savings that can reduce some of the costs for the rational use of funds. And, of course, it is important not to stop and not be distracted, motivating yourself with tangible successes.
