A debt trap can pull you in more and more. If you do not want to get into a situation where there is no opening behind a huge number of loans and credits, learn how to properly distribute personal finances and quickly get rid of debts.
Instructions
Step 1
Pay each month more than the minimum payment if you have a loan from the bank. Due to the fact that you will deposit an amount that is at least slightly higher than the required amount, you will be able to gradually cope with the loan. Otherwise, you will give the financial institution a lot of money out of your own pocket. Be smarter and don't fall for his bait. Pay off the debt, not just the interest on the loan.
Step 2
Prioritize correctly if you have multiple loans. First you need to get rid of those with higher percentages. Having reasoned logically, you will probably agree that with this option your losses will be minimal. Therefore, carefully study the information for each loan and determine the order of repayment of loans.
Step 3
Be realistic about your capabilities. If you, striving to settle accounts with creditors as soon as possible, will give almost all your earnings to them, you will simply have nothing to live on. Be wiser, understand that instantly changing your lifestyle is unrealistic. This takes time. Calmly think about where you can save, and what you shouldn't deny yourself.
Step 4
Don't use your savings to pay off debts. Deferred funds can be useful to you. If you feel the need for them, when the savings have already been spent on loan installments, then you will have to borrow money again. So, having quickly dealt with one problem, you will start living in debt again. If you are not saving even a tenth of your income, start doing it, even if by increasing the maturity of your debts. There must be a safety deposit for emergency cases.
Step 5
Refrain from large purchases until all debts are completely eliminated. An exception may be basic necessities. However, temporarily impose a moratorium on luxury purchases and expensive vacations. Believe me, the enjoyment of life's blessings, without the burden of monetary obligations, will be the most complete.
