The dilemma arises when we are not earning enough to pay all our debts ... even sometimes just to pay the minimum payment. If so, then how? Thus, this article will discuss how to cope with debt that wrapped around us.
Then, how can we payoff our personal debt?
1. Make a list of all our debts.
Make a list of all personal debt. List of debts must be sorted from largest to smallest. Be sure to include the interest rate applicable to each debt.
2. Prioritize payment
Pay the smallest debt first. Pay off so as not to further burden to us. While the minimum pay for a larger debt. If a small debt can be completed move on to bigger debt. We also can solve high-interest debt first, then payoff low-interest debt. Experts also recommend us that pay at least twice the minimum payment so that our debt will be completed in less than three years.
3. Do not settle debts with other debts.
In other words, do not sing up credit card debt to settle debts of the past even with the lure of free balance transfers. (Except if the free transfer was followed by free interest. This also is to be done with the advice of experts).
4. Close of unused credit (card).
If you have completed your debts, we must take firm steps by closing unnecessary credit cards. In addition to saving expenditures cover the annual fee, credit card we will certainly reduce the temptation to spend excessively.
5. Cut out your credit card
If we fail to curb our willingness to spend, it's good for cutting up our credit cards. High-interest debt is like cancer. Cutting card is painful, but it will make us healthier finances.
6. Do not owe more
When we paid off debts successfully, never try having a personal debt again. Forget debt! Pay every bill on time. Never repeat our mistakes.
Congratulations if you can resolve your debt :)
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