The reasons people go into debt can be different. Someone borrows to buy a necessary, planned thing. Others take out loans and spend them on spontaneous purchases. When a lot of such loans accumulate, a person runs the risk of falling into a debt trap. If this happens, it is important not just to solve the problem with debt, but to learn a lesson from this for yourself.
Instructions
Step 1
First, assess the extent of your debts and personally admit to yourself that you have borrowed a lot of money. Then write a list of those who need to be repaid. After that, promise yourself that you will no longer take out loans and borrow money.
Step 2
Divide debts by urgency. Put bank loans in the first place, because if you do not pay them on time, you risk getting an increased interest rate or a subpoena. If you don't pay your bills on time, your utilities may be cut off. Therefore, it is important here to pay everything on time, while with your relatives you can agree on a deferral and give them the money later.
Step 3
First, give back the overdue debts with which you are in serious trouble. Then pay off loans with high interest rates, then pay off large cash loans.
Step 4
Calculate all your money, allocate the amount that will be required for food and travel. Leave the rest to pay off debts.
Step 5
Start saving. Set aside a small amount of money every day. For example, $ 1, then in a year you will have accumulated as much as $ 365, which will become a good financial resource.
Step 6
Make it a rule to save a certain amount of money. You can, as mentioned in the previous example, save a fixed amount daily, or allocate money as a percentage, for example, replenish savings by 10% every month. This is especially important when large expenses await yours.
Step 7
Learn to categorize your money. Let one amount of money go to necessary household needs, another to pay bills and debts, and the third to savings. The last category at this stage should be small, but regular, and as soon as you pay off all the debts, increase the amount of savings and now repay the debts to yourself, and not to someone else.
