Financial literacy: how to get rid of credit debts?

It so happens that the availability of credit products plays a cruel joke with those people who do not know how to spend money and plan spending. Consequences - debts, negative credit history, frustrated nerves and the question: "How to get rid of debts?" However, from any situation there is a way out. Let's consider the procedure for re-crediting.

First, make a list of your obligations: to whom, how much and when to return. The item "total", most likely, will be horrible, but the first step has already been made.

How to get rid of credit debts, if there are a lot of them? Start to repay debts correctly. If there are many loans, first of all you need to calculate the most "expensive" of them (with a high interest rate).

At the same time, one should not allow delinquencies for the remaining ones, at this time low-cost credit cards can be paid with minimal payments.

If there is a low-interest credit card, repay it with debts with higher interest.

As soon as the most expensive loans have been repaid, start to "pay off" one "small" debt to the maximum. You will see that the number of loans is decreasing, which will positively affect the mood to win over other obligations.

If possible, try to pay an amount greater than the minimum payment for credit cards, because interest is accrued on them every day. Do not stretch the repayment of the credit card with the least payments, since they fully include commissions and interest. The main debt in the monthly minimum payment is a meager share, which prolongs the time of using money and increases the overpayment of the borrower.

If you see that you can not manage without delays, put the bank in notice. Attempts to hide and disappear are useless, since you will have to get rid of debts only to you and no one else. Today, many banks are meeting the borrower if he pre-warns about the situation and does not refuse to pay his debts. This procedure is called a debt restructuring - a reduction in the amount of monthly payments due to an increase in the loan period or interest rates.

The next answer to the question of how to get rid of debts is to put your budget in order. The main principle of managing personal finances is less spending, more income.

First, start recording your costs. Create an excel table in the excel program and make each ruble every day, dividing the costs into groups (for example, products, clothes, entertainment, children, . A few days after the start of the financial diary, there will be a desire not to spend too much. Count how much money a month goes for each item, and what is its share in total expenses. Think about whether it was possible to reduce them, identify reserves for savings.

Avoid casual and unplanned purchases. Think for a couple of weeks, let the emotions calm down. If a well-considered decision is taken that a thing is still needed, compare prices, read reviews and buy.

How to get rid of debts? Live within your means, spend less than you earn. Replace the delivery of pizza and rolls at home dinner, a subscription to the fitness club - gymnastics or jogging, going to the club - a night sleep. Stop drinking and smoking - you will also save on medicines.

Increase your income: find a second job or a part-time job, do your job on the current job so that you raise your salary, grab for difficult projects, be active and hardworking.

Sell unnecessary or unnecessary things.

After making the last debt of the ruble in the bank, do not take any more loans, as getting rid of debts is a long and difficult thing, and the joy of buying lasts less than the payment schedule.

Yes, loans are needed. You can save for large purchases until old age, but you want to live now. The loan is justified if it is aimed at long-term improvement of the financial situation or the acquisition of vital property. For example, a mortgage instead of monthly rental payments and a car loan for the work and daily transportation of the family.