One of the worst feelings is running out of money before the fortnight; If this is your case, it is necessary to change your perspective to get out of debt. With the preparation of budgets and savings plans you allow yourself to better manage your debts. Asking for a loan can be useful, but it is necessary that you organize so that a burden is not returned.
Tips to get out of debt
You need to know where you can save
For this, the budget is necessary: to your leased income, your savings in case you can still contemplate it, and your expenses. What is left over is your ability to pay, in case you don’t overdo it and on the contrary you lack it, it is very urgent that the plan remains as soon as possible.
Categorize your expenses
once your expenses have been identified, you need to divide them into categories: health, education, house maintenance, home improvements, transportation, insurance payments, cars. This not only serves people who earn the minimum, so do those with a much higher income.
The categories help you identify where you can save at least 10 percent. Another very important point is to analyze how much you pay monthly in all types of debts, remember that there are debts to months without interest and other ordinary ones.
Disposition of the debtor
By this time you must be very clear that the objective of this whole series of steps is to eliminate or reduce your debts, so you will have to take steps to achieve it, and you will begin by reducing part of your daily expenses that are not essential in your life.
Creativity will help you save the reason? Very simple, you will have to manage to do your daily activities without spending the same as always. You can start by bringing food to work instead of going out every day, you can also eat at home and then go out to a park or other place without spending too much; Share the car with a coworker, pay between the two of you gasoline and if you live near your home what better, this does not mean that your social life ends, you can see your friends at someone’s house and cooperate for what They will drink or eat.
Proof is the key
in this last step it is important to specify how much time you need to pay each of your debts. Once you have listed your debts, you should focus on the one you will finish paying in less time, in addition to making the minimum payments of all. To this you will add the 10 percent you have saved from your income, so it will be easier to reduce them because this amount will go to capital and you will not only pay interest. So with each one until you finish paying.
Once you have finished with your debts it is important that you continue saving that 10 percent, the best of all is that you will have generated the habit of saving almost without realizing it, now that money will not be spent and you can even invest it in some business.
Having control of debts is essential to maintain healthy finances, you need to remember that you should not commit your income more than 30 percent in debt.