Debt-Free Tips

Posted by admin on Jul 16, 2009

Mostly people or family has their own debts. Even a state or country does debt! Companies also have debts in financial balance sheet. Actually debts are needed to meet our financial goal sometimes in particular. How can we own a house or any good stuff? Surely with debt. Although there is monthly or regular income, it will not enough cash to purchase or buy it. Or saving? Until when? Thus, debt is a quick and easy solution, yet we can pay it by installments. May be correct, but remember if you do not discipline, we will be drowning in debt interminable.

The interminable debts sometimes arise out of our control and expectation. Difficulties often occur, and potentially damage the financial stability of families. In fact in some people, debt will keep continue chasing him until death. So there are several useful things can do to avoid such this situation on your financial.

• Calculate the amount of debt
Count all the debt including interest and the time period required for the full paid. Collect all the monthly notes and make a bill list. This is important so that you do get a comprehensive illustration of the debt obligations that must be fully paid. Make some kind of summarize of debt including the rest time period, interest rate, purpose of debts, and other information.

• Priority scale of paying
Make a priority scale of paying debts. The tips is put the high value debts or high interest rate and important debt for day-to-day activity in the first order priority. For example installment loans, home or car must be placed on the first order. And for the debts that related to the interests of the family, for example, children school loan or any other secondary loan, placed on second priority.

• Financial Planning
You need to know the expenditure purpose of your money. Try to evaluate and summarize the needs you pay for. Reduce unnecessary expenditure or less useful. Then make a wise financial planning (as required) each month. This is important to avoid waste of your financial life.

• Negotiate with the bank
Try to apply the interest rate reduction of your credit loans to banks. Tell your difficult financial condition, so need to get interest relief. Each bank usually has a few alternative methods of loan payment that you can choose according to your financial condition. Pay attention carefully for the interest rate changing pattern on the bank where you loan some money. Do not get stuck in the pattern of loan initially visible light, but that interest rates will rise in the months following. If the bank objection to your application, consider moving the credits to other bank with more light interest rate.

• Searching for additional income
If the amount of expenditure is greater than your income in your daily financial life, try to look for side jobs. There are many side jobs we can try to work for, for example, an insurance agent, course teacher, business owner, etc. Or you can also try to following online internet business, so you can work from home and it is automatically run.
The point is to get extra income to meet your extra expend.

• Selling your luxury goods
Selling your luxury property can also be done when there is no other way. For example, sell jewelry, cars or motorcycles. If forced and there is no other way, sell your house, and buy a house with a cheaper price. But remember this is just last way out of your financial problem. There is still family member to think first before deciding something.

• Consulting with expert
If you still not get the best solution to overcome the financial problems, it is a good idea to consult a professional financial planners or experts. In this way you can know what steps should be done next.

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