How can I pay off my debts?
A person may be exposed in his life to a financial crisis that causes him to borrow in one way or another, such as borrowing money from a bank or any person to pay off his debts, and this makes him enter into some mazes that hinder the arrangement and organization of his income in order to pay off the accumulated debts and get rid of them as soon as possible and without affecting in a way.
Big on the rest of the expenses and obligations, and in this article we will mention several methods and tips to pay off these debts and get rid of them.
Ways and advice to pay off debts Determine where the money goes
This is a very important step to start paying off the debts, as this method determines where the expenses go, where the money goes, what is important in these expenditures and what is not important, so you can bring a piece of paper and a pen and count the expenses for at least a whole month and write down Everything that is spent starting from the price of a cup of coffee and ending with the magazine and ending with the largest expenses.
After that, you can determine what fixed and important expenses and what are the unimportant expenses that can be dispensed with.
Getting rid of the extra expenses after counting the expenditures and determining the comparison with the monthly income of the individual, and if these expenditures are less than income, then he uses the extra money to pay off the debts, but if these expenses are higher than income, then the increase in expenditures is excluded to equal income.
Reducing fixed expenses, as fixed expenses are the ones that consume the largest part of the income to cover them, and if the income is not enough to pay the debts, these expenses must be minimized, for example, household bills can be reduced, such as the electricity bill and the phone bill by reducing electricity consumption as needed, as well as reducing calls The phone is only necessary, and the mortgage can be refinanced to reduce the interest, or if the individual has a good history of repayment, the debtor can be asked in order to reduce the interest even reducing it a little.
Searching for a way to improve income
A way must be found to raise income or find a door to additional income, and attention must be paid if there is a high tax refund every year, this means that there is a large deduction from the monthly salary, and here the issue must be discussed with the employer in order to reduce the deduction rate And use it to pay off debts.
Writing debts: The accumulated debts and the interest rate that they owe must be recorded and documented, and arranged from highest to lowest, in order to know who is the first and most important to pay them.
Transferring high-interest accounts.
High-interest credit accounts actually can be turned into other accounts with some or less interest, as well as attention to all the existing conditions for that new account, as there are some offers to transfer accounts that are low interest and for a specific period, but they return and rise dramatically after the end of the specified period. All debts are on the same card, which lowers the credit score.
Paying high-interest debts first After determining the debts and arranging them in terms of interest and determining the percentage of increase in income that can be used to repay the debts, and with high interest should start first, then the lowest, and go like that.