Avoid getting involved in financial commitments
Take funding constantly to maintain your lifestyle ⇒ Your expenses more than your income
⇒ Take funding ⇒ Pay most of your income to payoff the debt ⇒ All your income go to pay the installments
Nothing left for you!
To find out how to avoid getting into this trouble, make a master plan to get out of the debt cycle
It is very easy to get involved in Debt cycle, but it is very difficult to pay it off. It may take just a few months to accumulate financial obligations, but it can sometimes take decades of time to pay it off.
We offer you a strategy to help you overcome it
1. Stop having more leveraged
Don’t get involved in more debts.
2. Create an emergency savings fund
This helps you not to get involved in more debt by helping you when an emergency occurs and the ideal emergency fund consists of 6 to 12 months of living expenses.
3. Choose one of your debt and pay it all
You can make progress by depositing a large payment to pay only one of your debts per month until the debt is fully pay it off. In the meantime, pay the minimum amount to pay off your other debts. And then follow the same method with any other religion. Then the next, until you payoff all your debit.
4. Pay the highest cost obligations
Higher cost rates keep you in the cycle of financial obligations for longer.
5 – Try to think of ways to help you allocate more money to pay your debts
The more money you have to pay off your debt, the quicker you will pay it until you finish it. You should also set a monthly budget to manage your money well if you receive some extra money, for example a bonus at work or otherwise. Try to payoff your debt early.
6. Request a rescheduling of your debts
If you are unable to meet your monthly financial obligations, ask your bank for help. They may offer you a rescheduling plan at a lower cost and for a longer period. Be careful to increase the duration as the cost increases.