Statistics say that millions of Poles are in debt and have no savings. Most of them live from month to month, under constant stress, whether they have enough money to pay off debts. And when it comes to losing your job – the situation is really very bad. However, remember that the debt loop is not the end of the world and you can leave it! Below are six practical tips.
What to do to get rid of debts?
Instantaneous loan, non-bank loan, overdue credit card and account limit – many people have financial problems and do not know how to solve this problem. The first step to getting straight is to get a grip on yourself and develop a sensible plan to change this situation.
If you want to get out of debt quickly, you must be consistent in your actions. First, think about your current financial situation and ask yourself: where did your debt come from? If you come to the conclusion that all these debts are related to your irresponsibility, low financial awareness and impulsive purchasing decisions – be sure to work on changing bad habits and expand your knowledge of home finances.
How to break the debt loop?
Try not to borrow again until you pay off your previous obligations! You’re already in a bad situation. However, it is true that in practice it can be difficult because you simply can’t afford to pay the installments. The only solution is to drastically cut your daily living costs and get extra money to pay off your debt. They can come from various sources, e.g. extra work after hours or from the sale of all unnecessary things (another smartphone, CDs, expensive car, watch and even jewelry). It is also worth considering a consolidation loan, thanks to which you will get additional cash, but you will pay one installment instead of several, which will significantly simplify paying off your obligations.
Overpay your debts!
An effective solution is the so-called overpaying of current debt, i.e. paying installments in a higher amount than it results e.g. from the provisions of the contract. Everything to finish it as soon as possible.
To make the most of it, your home budget should be well-planned. Therefore, it’s best to write down all your expenses on a piece of paper. Also remember to give up pleasures that you don’t need to live:
- Limit or give up all types of entertainment such as cinema, theater, bowling or shopping for some time – this is not necessary.
- Reduce food costs – don’t eat out. A meal prepared at home will save you a lot of money per month.
- Plan shopping – always go to the store with a ready shopping list and don’t buy anything outside of it. Also, try to prepare meals with good prices (you don’t have to eat shrimps and drink champagne ?).
Try to limit your bills
Check how much you actually spend on utilities, electricity, gas, water and telephone. Find out if other vans have a better (cheaper and more affordable) offer. You will reduce electricity expenses by using it wisely. Therefore, put on energy-saving light bulbs and turn on the light only when necessary. You will also use less water, giving up long baths in the bathtub and instead simply taking a shower.
How to create a debt repayment plan?
Familiarize yourself with your obligations. Read the loan and credit agreements and see which debt is more troublesome (for example, “on notice”). Go to a bank, loan company and try to settle with them.
Finally, remember that you can get out of any debt, and you need a good plan, willingness and determination.