A lot of debt is sure to make the soul restless and nervous. Every individual cannot escape from being burdened by debt. High discipline and the most important will to settle the debt immediately. But how many are really committed to doing it until the debt is completely resolved.
But don’t worry, every problem has a solution. Debt can be managed more effectively so that you have better control over your financial situation. Mistakes owed to the past, consider it as a lesson in life and act immediately to avoid bigger mistakes in the future.
Let’s look at the steps on how to settle debts one by one in an orderly and wise manner.
· List the existing debts
By listing, it can help us to see the entire debt from the smallest amount to the largest amount.
· List All Types of Income
Regular and side income every month.
· Fixed Monthly Commitment
Including internet bills, monthly car payments and so on need to be listed one by one.
· Resolve Large Debts First
If you have a lot of loans to pay and give priority to debt payment This is because, based on the interest rate you have to pay for the debt will affect your finances worse than the return you get from the savings account.
· Temporarily Stop Using Credit Cards
It is better to reduce or stop the use of credit cards for a while. If you cannot afford to limit the use of credit cards, it is better to stop using credit cards until you have finished paying off the debt.
· Stop Adding New Debt
If you add debt, it’s like digging a big hole (debt) to cover a small hole. So until any time the debt is not paid.
Debt may not be eliminated immediately but debt can be managed more effectively so that you have better control over your financial situation. We all don’t want to go into debt because it can lead to years of stress. When you have paid off all your debts, that is the happiest moment in your life. Hopefully the tips we share help you plan your finances better for comfort in the future.