Debts, depending on the reason that led you to have them, can be a relief or a concern in your life.
However, they all have something in common: you must pay them on time
Regardless of the reason that made you acquire a debt, you should keep in mind that compliance is the basis of success and no concern in this situation. However, we know that, like many of us, sometimes you are struck by the debts that you must cover and these accumulate causing great imbalance.
That is why today we want to share you with an effective plan that, if fulfilled perfectly, will help you out of trouble in less time than you think. Pay attention to the following information:
1- What is your saving capacity?
The first thing you should do is separate at least 10% of your monthly income. Do you think you can’t do it? Check how much you spend on ant spending such as morning coffees, cigarettes or going out with friends.
It’s not that you stop having fun, but you will have to make some sacrifices to achieve it.
2- Write all your debts
List all your liabilities. For each of them you must do the following operation: the amount of the debt between the monthly payment or the minimum payment. The result is the months it will take to settle the debt.
3- Hierarchy the debts detected
Put first the debt that requires the shortest time to pay according to the previous operation.
4- The solution
In the case of the number one debt, pay the minimum plus the 10% you managed to save with your spending cut. Repeat this step until you fully pay off your first debt. Meanwhile, it is very important that you do not suspend the minimum payment of the rest of your debts.
Although it is generally recommended to avoid the minimum payment to the maximum, in this case it is used under the assumption that you cannot make a larger payment.
5- Follow in order
Now that you no longer have the number one debt, you must go to the number two debt. To this liability you must allocate the minimum payment, plus the amount you made for debt one (minimum payment plus the 10% you obtained from your spending cut). Repeat this step until liquidated.
We also know that sometimes you need extra help that gives your income more fluidity, at that time our advice is that you acquire loans that really help you out of trouble, credits that you assume intelligently.