How to get out of debt pits

At first sight «Long Yama» Nowadays only speech figure. But in reality to get rid of the burden of debt is not easier than getting out of the real pit. We are looking for ways how to solve the question

Everyone knows that it is impulsively taken into debt and overly use credit cards is dangerous. However, an increasing number of people have been doing lately, trying to maintain their status. The result may be very deplorable.

Long pit in Various loans very quickly carries consumers. And get out of it is very difficult.

Despite the fact that you have to save and sacrifice the usual life routine, get out of such a trap. In order to assess its position and find a suitable solution, it is worth assessing the main common mistakes made by people crabming in debts, and find the most optimal way out of the current situation.

Errors made by people who drive themselves in debt

Many, taking advantage of one loan subsequently can not stop and climb into more long debts.

To determine how deeply you are mired in debts, we advise you to consider 4 major mistakes most often performed in such situations:

• Making only minimum payments;
• Payment of small debts;
• Access to the bank to increase the credit limit;
• Consolidation.

On loans bank always offers «profitable terms» With a small monthly payment. A small amount of minimum payment seems attractive only when the salary does not allow large amounts.

In fact, it is beneficial to banks, because one even a small loan under such conditions can be paid almost all life. With each month and the year interest increases, which means that the amount of total debt increases.

To avoid this, it is recommended to pay as much as possible. Remember, the faster you pay off your loan, the less you have time to overpay interest for the use. However, no bank will call you monthly, and warn about this trap.

If the loans are taken too much, and you no longer know how to get out of the debt pits, then do not think that the overlapping of small loans is primarily the best solution. This approach though visually reduces the number of loans, but is fundamentally incorrect.

Psychologically a person is difficult to manage numerous loans, especially if they are taken from different lenders. But if a priority is a goal – how quickly get out of the debt pits as soon as possible, then it is better to approach this issue and analyze all the loans you take.

Take the situation in your hands

First you have to create a program on a computer or a table in Excel with all data enabled. This will help visually simplify control over debt. So you will clearly know when and what amount you need to pay for a specific loan. And also you can independently calculate the balance of the payment and the time you have for repayment.

Next, it is important to assess the situation on existing loans, and calculate the most unprofitable, that is, with high percentages. Such a debt and should stand in priority. It should try to repay first.

If interest rates in existing loans are not particularly different, then you can pay attention to the acceleration of debt payment with the lowest amount. Only in this case this approach will play the role of excellent motivation.

Demanding pit very negatively affects human psyche. We really want to look attractive, beautifully equip your home, but you have to find it often in debt.

When there are too many of them, we constantly feel guilty for your own inconsistency and be in poor mood. And this can lead to serious problems with mental and even physical health.

The third mistake is to appeal to the bank asking for an increase in the limit on the existing loans and cards. On the one hand, it seems that a small increase in interest will not affect the general state of the budget. However, so you will run out even deeper, and besides, the temptation will appear even more. This is an exceptionally psychological factor, arguing with which is meaningless.

Separately, it is worth mentioning the possibility of debt consolidation. Under this complex thermal means replacing several small loans for one common, with great interest and increased maturity.

On the one hand, this approach may allow to pursue less payments. However, when comparing the interest rate of the outcome loan with the amount of previous debts, it may be that your long-lasting yam increased in two or three times!

There is always a way out!

Now it should be carefully discussed how to get out of debt pits.

The action plan may consist of only three steps, but they all have to be clearly observed:

• Get credit confidence;
• Crop your own finance;
• Increase income.

If such a deplorable situation occurred, when the debt was so absorbed you that there are not enough funds to pay off the minimum monthly payment, in no case should be hidden from creditors.

Remember that the contracts you have prisoners are a significant reason for the transfer of the case. Therefore, in this case, it is better to immediately contact the bank, which provided a loan, and describe the current situation.

Remember that the lender is a person, not a robot. He can offer you other conditions approved by the Bank, and will help to cope with the situation. Banks are not profitable to take money by force, so they always provide for spare options, including delay.

To start the second step, how to get out of the debt pits, have to strictly control your expenses. At first, it is enough to take a supervisory position, describing all your expenses every day. It is also important to write a monthly income and analyze where most of him leaves.

In fact, it turns out that the disorder in finances appears precisely because of impulsive and unnecessary purchases. Therefore, if you really want to know how to get out of the debt pits as soon as possible, then be prepared for what you have to save on many things. In principle, it may be that they are not particularly needed to you.

The approach to the last third step means that you will have to get out, and you have already made a lot of strength in order to deal with our own money, eliminate extra costs and are ready for progressive actions. Such actions are ways to increase income.

If you want to quickly pay loans and start living in your own pleasure, then you are simply obliged to include your brain and make it come up with additional earnings. It is not necessary to try to open your business and go to search for the second job. To begin with, your favorite occupation and evening hobbies can help.

If you love in the evenings after work, sitting in a cozy chair, embroider or knit, then why not try to sell your creativity? By the way, such unique products made by your own hands and in a single copy are in great demand.

Even in my environment there are people who are so fascinated by the sale of their hobby, that this was their main job. Try, try, control yourself and everything will be able to!