Let’s face it. We live in a world set in motion in debt, and for many to be in debt – the usual everyday matter. For them to acquire loans for christmas and gradually get them later – a way of life. Many in general loans.
From the point of view, it is quite understandable when it comes to real estate or a reliable car. It makes sense, but nowadays consumer loan in many ways has become an everyday factor. It is spent on buying clothes. it’s the same debts, If you’re working, you can’t make it.
You might wonder why debt It is conducted on a resource of survivalists. We should discuss tushnyak, cartridges and bandages? Not always. I (the author of the article, Gay levy – approx. transl.) sincerely believe that the closing debts in fact, it should be a priority for anyone interested in self-sufficiency. It is not self-sufficiency
Debt Relief will require a lot of composure and perseverance. I hope this is “dry”, without “water” (yeah, right now. Editor’s note), So here we go.
Editor’s Note. This is a guide for the middle class. That is, it is formally the middle class. But there is no insensitive to crises. But everyone will, especially, those who wish “normal people!”, Will have to tighten their belts. Actually, the article is dedicated to them. In the case of the middle class, especially the “white collar”.
How will debt relief
It is a rule of thumb. Every time you get something, paying with a loan instead of cash, you increase your monthly financial obligations. If something goes wrong, then you can fall back into a situation. You will be able to survive.
If you don’t need to be able to find out if you’re searching for a new ear. But this allowance is received earlier. And if a disease takes it into circulation, it becomes worse.
So you find yourself in a situation of survival. In such a situation, it is vital to reduce costs to the most necessary, such as: shelter, food, medicines, insurance and utilities. Remains your debts. Less your debt, when you are in a situation of survival.
If you are deep bogged down in debt it can be saved to save all expenses. But they can still start calling debt collectors, It is a property of This is not a very pleasant situation, even with the maximum effort. What is why? debts or even get rid of them.
You probably say, “Okay, I understand. What should I do now? ”The answer is that you need to find out your position. What are your costs? Collecting such information is not fun. This can actually be unpleasant. But, if you don’t US government, but that’s another story).
Bills, bank notices, etc. Where your money goes. List the following:
- Rent / Mortgage
- Communal payments
- Car payments
- Car expenses (including fuel, repair)
- Credit payments on cards, etc.
- Phone / Cell Phone
- A television
- the Internet
- Active recreation for children and grandchildren
- Active leisure adults
- Eating out
- Purchase of food for the home
- Training Costs
- Entertainment expenses
- Collective family expenses – monuments, etc.
- Miscellaneous (all that does not fit into the above categories)
Now divide it all into the following categories:
- necessary expensesThis is the main thing that every family needs is to pay, housing, food, insurance, utilities, taxes;
- secondary expensesThere are different kinds of things that you can use. For example, it becomes necessary;
- debt expenses: Credit cards, car payments, payments for real estate, loans, reinsurances.
It is the minimum charge for the “operating expenses”. You need to survive.
A quick way to get out of debt
You will need to make a firm decision. limit your spending and make some budget adjustments to get out debt swamp.
The best method I know is “Snowball method”, described By dave ramsey.
That is its essence:
- Write out your monthly debt payments in order from the smallest to the largest.
- Let the full payment of debta, the smallest in volume, as soon as possible. For the rest debts pay only the monthly minimum.
- When is the smallest debt in addition to pay the next debt, which has now become the smallest in terms of volume.
- When the second debt paid off, the money first debt, pay them third debt, the smallest in volume.
- Repeat until payment itself large debt.
How to reduce daily expenses
In the meantime while you get out of debt, Why not look towards secondary expenses in your list? You may be able to free up funds on debt repayment, freed from some unnecessary costs.
Daisy luther He writes on his own account It was not a disaster. Here are some suggestions for reducing costs.
Ask yourself questions:
- What can you change in your life?
- Where can you reduce your monthly expenses?
It’s a lot of people who want to change anything. ” But you can find your life.
As mentioned above, each has its own situation. You can be mortgaged for a huge house. The same can happen with your car. Explore all the options to get out of the shackles – it’s worth it.
Where are you announce personal default and refuse. In the most desperate situations, you have to think about it. Of course, it’s your choice. Remember, however, that in these situations, it is helping people to help banks, but not ordinary citizens. Before you go, you should be aware of all the possible consequences, including the seizure of property blocking accounts, etc.
Here are a few items to consider:
- The house is smaller. It was not a single child.
- Moving to a smaller city. Is it a profitable way to get a cheaper city? This is a case in point.
- Get rid of your freshest car. You can pay in cash.
- Reduce your fleet. You will need to pay for it. It depends on your specific situation, in particular, the location.
- Stop using credit cards. It applies to you. Stop accumulation debts.
- Stop eating out. Limit food per month, or special occasions. It is better than the house; it is not the same food prepared by you. And of course, homemade food is much healthier and healthier.
- Look for free or low cost entertainment. Physical activity. Go to a picnic, go to a picnic, go to a picnic, go to a picnic Learn to enjoy constructive hobbies, such as burning, embroidering, etc. Instead of cable television, refer to the online movie.
- Use the envelope method to finance purchases. From “back to school” to purchases at Christmas, determine how much you want to spend. Put this money in an envelope. As you purchase each cashier’s check, put it in an envelope. When the money ran out, they ran out. If you want to give it up, then you need to give up for that. Be firm and steadfastly keep your line of conduct. This has another advantage – teach your child to plan a budget.
- Cable TV, cell phones, home phones and / or gym visits. Find out where you’ve made each month.
- Buy stock accumulation method. Buy on sales and simply replenish your stock. Of unexpected twists and turns.
- Eat what’s left in the pans. Have you ever thought about how much food you throw out each month? If you want to use it.
- Stay home Spending more time at home will spend less money. You will not need to buy your car. Learn more about your time than money.
It will not be a complete list. How much can you cut? Imagine the difference if this money goes to pay debts.
Editorial note for Americans. So the question: “How can I, I’m damn it, save, if I’ve been followed?” Remains open.
And now orient again
Paying the debt once, it is easy to fall into the same trap again. In the blink of an eye credit account can increase dramatically, will come down at once.
Instead purchases on credit, collect your monthly amounts debt (including interest), and fold them under the mattress. Make it a rule to pay in cash debit card – approx. translator.) live without debt.
Exceptions to the rule
As with the most rules, there are a few exceptions.
Purchase of real estate for cash. You need to be so lucky to make such a rare deal. Even if you are forced to climb into bondage, property is still less than for renting. This can be a reasonable exception. life without debt. Naturally, you must be sure that you can pay it off!
Another exception in certain situations is car loan, although it is not acceptable. Do you need to find out about an expensive new car? If you’re on the other hand, then it’s important to get a car.
Carefully weigh go into debt it is worth it. Again, try pay the debt get paid and get rid of this burden.
Debt free can change your life. I know, I live without debts twenty years. This is what I dreamed about. “Debt will”, as I like to call it.
If you will strive pay off debts If you’re a nerd, you’ll get some trouble for your troubled times. Deciding to live economically, making purchases debts, you will be able to compare, taken on credit.
Original article – No nonsense: Guide to getting out of debt
Advice and preparation for emergencies