How to Get Out of Debt from Christmas and Other LoansOn May 22, 2019 by Delores Espinal
Are you paying off installments from a Christmas loan or do you want to get rid of the debts you made last year? Take a look at 7 practical tips to help you grow your debts.
In the past, Czechs may have collected stamps or beer mats. But recently, debt collection has grown. What to do to keep this infectious debt “entertainment” out of the black humor category? Be inspired by our advice to get rid of the debt burden as soon as possible and make you laugh again.
1. Declare war on disadvantageous interest
In a troubled life situation, you hastily needed to borrow, and maybe you were just cursing the terms of theloan agreement with your eyes and not even looking at interest rates. But later you found that the interest rates on your loan are definitely not among the lowest on the market.
So do you think that you can only obediently repay the unfavorable loan with clenched teeth? The opposite is true, you just need to refinance the loan. You simply give your old lender a basket and transfer your entire loan to another bank, offering you lower interest or other more favorable terms.
2. Don’t train for a debt marathon
Is the day when you have a monthly loan installment on your bank account, but don’t you have a slow rent or meal bill ? Certainly do not address the situation with a new loan that will help in the short term, but will only make your original loan more expensive in the longer term.
Instead, start solving your financial problems directly with the bank. When lenders see your efforts to resolve the situation, you are very likely to agree on a repayment schedule or an extension of the repayment period, so you will have a lower monthly payment.
3. Say goodbye to credit cards
While credit cards are one of the ways to borrow money, they are more suitable for short-term loans that the consumer can easily repay. Otherwise, interest rates are rising at the rate of the sprinter. If you are deep in your pocket, do not try to solve your problems with credit cards.
4. Get rid of costly habits
You still haven’t found a strong enough motivation to stop smoking, drowning savings in bookmakers, or other vices that make money? The threat of high penalties for late loan repayment may give you lost will.
5. Kill more debt with one shot
When you pay more than one loan at a time, it’s no wonder it’s hard to find money to pay for your current expenses. The solution is to merge overdue debts into one form of loan consolidation. You will save on bank charges and at the same time you will be able to change the repayment period or regular installment.
6. Make sure you don’t throw your money anywhere in the window
The habit is an iron shirt. Therefore, many people pay unnecessarily high service bills from inertia, which they use much less than when they were set up. Examine your bank account statement or phone bill.
Do you really use all the toll services, or is it time to save money by changing a more convenient mobile tariffor current account?
7. If you don’t know where to go, go to an expert
If you seem to be slowly but surely slipping into a debt spiral, seek professional help from one of the debt counseling centers. How do you know a true expert? You won’t want money for your help. Debt Counseling Centers operate as non-profit organizations. If someone charges you an hourly rate for consultation, it is a fraudster.