Anyone can fall into debt. Axel Lindholm tells us how to get out of a bad financial situation.
The level of debt of the population is growing from year to year. And this is a worldwide trend. But what should a person do when he sees that there are too many debts? Actually, there are some working techniques that will help in this situation, and at the same time, it is not necessarily that you will have to cut your expenses too much.
Whatever you are promised by the advertising agents of credit organizations, but the first step to get out of debt is to reduce personal expenses. Carefully analyze your budget, look at exactly what you spend your money on. When you go shopping, make a shopping list in advance so you avoid spontaneous purchases. Look for places where you can get cheaper. By the way, users will be able to find frequent casinos at https://royalparksthlm.com/casino-utan-svensk-licens/. Some players will manage to reach six-figure payouts even with minimal bets.
Take a part-time job
Yes, you’ll probably have to do this too: work harder. You can go two ways here:
- Simply look for second and third part-time jobs, increasing the hours you work;
- Improve or even change your profession completely.
The first option can lead to more health problems, still a person needs to rest a sufficient amount of time. But if the debts had to be repaid yesterday, this is a more realistic option that will help to get out of debt faster.
If time allows, it is better to improve your skills, become a more valuable employee and therefore start earning more with the same number of working hours.
Consolidate your debts
If you have a large number of all sorts of debts, even a financially literate person can get tangled up in them. Different deadlines, interest rates, late fees, all of these can easily become an overwhelming burden. In these cases, debt consolidation can help.
Debt consolidation is a bank line of credit that works like this: you list all of your existing debts and take out one loan from a financial institution, agreeing on a term and interest rate for the transaction. When you get the money, you resolve all old unresolved issues and make a single commitment with a specific date and scheduled due date.
Debt consolidation makes financial planning easier because a person will only have to worry about one debt, but be careful, the interest on the new debt can easily exceed the total interest on the old debts. Therefore, before signing up for a new obligation, carefully calculate exactly how much your old debts are costing you.
Restructure your debt
In simplistic terms, in most cases, this is an increase in the length of time you have to repay your debt. For example, you had to pay off an old loan in 24 months. You go to the bank and arrange to pay off that loan in 36 months. This way you reduce your monthly burden.
But be careful here too, the amount of interest will be higher when restructuring, which means that the loan will cost you even more.
In addition, unlike consolidation, in restructuring you only change one debt, for another one debt, and not change all the old debts, for one new one.
Negotiate directly with each creditor
Even the big banks can make concessions and, if necessary, go out of their way to help you. For example, they may agree to some reduction in interest, cancel the penalty for late payments and so on. If among your creditors are small private individuals, then with them the more it will be possible to agree on various concessions.
Use the bankruptcy law
If there is no way out, and you see that you can not get out of debt, then think about personal bankruptcy. If you are declared bankrupt, credit organizations will stop charging interest and penalties, and you will gradually be able to pay off all your debts.
But bankruptcy has a downside: generally speaking, for 5 years after that, in any application for a loan, you will need to indicate the fact of your bankruptcy. Essentially, you are unlikely to be granted new credit after that. Another consequence is a three year ban on working in management positions.
Debts can be a real headache and it is better to initially control your expenses carefully and avoid too much debt. Also, while you may have some debts, it’s also better to have some cushion of money at all times that you can spend in case of unforeseen problems. But even if you are already heavily stuck in debt, there is no need to despair, because in the vast majority of cases, all of these problems are solvable.