When going to incur debt and then make a benefit Considered to have good money management effective For example, borrowing money to buy a pickup truck to drive to pick-up students Or borrow money for education, etc. Importantly, when in debt, then have to pay the debt as scheduled. On the contrary, many people may have a habit of overspending. until he borrowed money to spend extravagantly Or swipe your credit card to enjoy shopping. causing the debt to increase rapidly until it becomes an endless debt Especially during the crisis, the income is dwindling. But the cost remains the same or may increase. and there is a chance of liquidity jamming causing no money to pay debts
Warning “Don’t run away from debt” because when you are in debt, you have to pay back. And here’s a simple trick. that reduce debt
1. Stop being extravagant (seriously).
The main issue that causes many people to be in excess of debt is that they do not know what they are paying for. need to cut unnecessary expenses Stop shopping for luxuries, stop traveling, then start recording income-expense accounts. to know what they spend each day and then use the remaining money to pay off the debt.
2. Clear high-interest debt and eliminate non-performing debt.
Write down all debt information. To know what type of debt, outstanding balance, interest, debt repayment period. conditions in case of default, collateral, etc. Then quickly clear the debt with the highest interest first. to reduce the interest burden each month and find a way to get rid of non-performing debt For example, credit card debt caused by installments of luxury goods. Most importantly, do not incur more debt. Then use the remaining money to pay off other debts.
3. Reduce the standard of living down.
during normal life Income comes in as usual. Allocating expenses would not be a problem. have smooth debt repayment But during the crisis, the income decreased. But debt still has to be paid. The way to survive is to live in a low standard. Spend less to maintain liquidity
4. Negotiate with creditors
During the crisis, such as the Covid outbreak, financial institutions, including the government sector, will issue measures to help debtors. Therefore, as a debtor, you must study the information. and contact the financial institution staff to request for an adjustment of the repayment conditions
No one wants to be in debt for the rest of their lives.
But when going to take out a loan must comply with the conditions And when I know that I have started to have a difficult income and affect the payment of debt. You have to adjust your spending behavior. and manage debt as efficiently as possible