Archive for the ‘Debts’ Category
Get out of debt: how to make your own map out of the minefield
Credit Cards
If you are suffering from the balances and consumer loans, is not unique. What to do:
-Start a statement.
Determine your monthly income and expenditure, putting them in separate columns. Sounds simple, but how many do? Take your notes wherever you go. Write down all the numbers around by check or purchase order to have a file of your expenses. There is software that can help you keep track. Once you know the reality of your spending, it’s time to see which might be avoided.
-Start with the youngest.
Some experts recommend making a list of who is owed and how much, plus the minimum monthly payment and interest rate. Then focus on the smallest debt (all feels lighter starting with the easiest). When started with the task of paying the first, use the rest to start collecting money for the next debt. Other thinkers recommend starting by debt with the highest rate of interest.
-Consolidate (note that not all countries or cases you can).
Shop for the lowest interest rate credit card that can find and group all your debts into one credit card. But be careful, you need discipline, otherwise you start to borrow again and fall into a worse situation. An offer can promise 2.8% for first six months, which then goes to 18%, loading of an exorbitant interest balance transfer. If you do not pay the debt before the rate increase, you can get in big trouble. Group all your debts into a credit balance is likely to give you a tax deduction. Also consider taking a loan with low interest rates unless it can offer a guarantee.