There are several reasons that can lead you to become defaulted. You may lose your job, have some unexpected illness, shop on impulse, do not plan your household budget well, etc. So in this post we will show you how to get out of debt.
After all, it is much better to avoid getting into debt than having to solve the problem after the debts have been created.
Listed below are 4 practical tips to keep your financial life healthy. Check out!
The first step is to have at least the minimum organization in the finances. If you have already entered the list of defaulters, the need for discipline is even greater.
Try not to postpone the preparation of financial planning, so that your debts are not even higher. There are free, easy-to-use financial managers for you to organize your budget, such as My Money and My Savings.
However, if you are not very easy to handle this type of tool, no problem! It is worth to use a notebook.
The important thing is to keep track of everything you earn and all your expenses. After all, relying on your memory is not a good decision, as it tends to fail rather well.
Know what the expenses are
In order for you to save, you must first understand how you are spending your money. Once you do this study, you will be able to better analyze what kinds of expenses are being excessive or unnecessary.
Usually the expenses that can be controlled, representing a good monthly savings in your budget, are those related to buying clothes and shoes, restaurants, beauty services (hairdressing and manicure, for example) and superfluous items in the supermarket.
So stop and think about how you can reduce your expenses. There’s always something to cut, believe me!
Have an emergency reservation
As the well-known popular saying goes, it’s always better to be safe than sorry, is not it? For this reason, it is essential to have a financial reserve for emergencies.
Financial experts advise that you have saved at least the amount needed to afford the 3-month expenses. However, the ideal is to have a financial reserve that covers 6 months of family expenses.
This way, you will be able to keep track of your expenses, avoiding entering the list of defaulters.
If you already have debts getting out of your sleep, the best way forward is to seek renegotiation. By taking the attitude of proposing an agreement with your creditors, you have a good chance of lowering the value of the installments, as well as lower interest rates and longer terms.
If you make a proposal for cash payment, even better! You can be sure that the discount on the total amount of your debt will be very attractive. The important thing is that you make a deal that fits in your pocket to not fail to honor with the commitment made.
Another option is to look for loans to exchange more expensive debts for cheaper ones.
In this blog post, we explain to you simple and effective tips on getting out of debt, including drawing up financial planning, mapping your spending, saving resources for emergencies, and renegotiating debts.
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