Times to buy things on credit or obtain loans
The great ease in these times to buy things on credit or obtain loans, has caused many people to borrow quickly.
If you are up to date in your installments, there is no problem, but when you fall behind and the debt starts to grow, it is a symptom that you are spending more than you earn and you have not identified those “gaps” in your financial situation.
Here are a series of recommendations to cancel our debts efficiently:
1) Reduce your superfluous expenses. They can be those of entertainment: trips, trips to the cinema, purchase of unnecessary clothes and shoes, among others.
2) If you have several debts, start by canceling the smallest one, so you will quickly reduce your debts. Then continue with the next in size.
3) Look for new sources of income. It can be an extra job or a small home business.
4) Request a loan from a relative to pay your higher debts. Do not forget to be very satisfied with the payment dates.
5) Extend the term of the payment of your debt to adapt your quota to your ability to pay, which must be 30% of your monthly income.
When you ask for loans or take out things on credit, remember that the amount should not exceed more than three times your monthly income.
With these tips you can pay off your debts and avoid headaches.
And what would happen if I didn’t cancel my debts?
It will increase the interest rate and commissions, you will ruin your credit rating against the banks, your debt will increase due to interest and the bank will block your credit card or reject a next loan request.