Debt Consolidation | How to deal with debt?
“A simple habit does not borrow” – this proverb certainly knows everyone. It does not only apply to people who are not willing to lend money to others, but we can also translate them into the debtor’s situation . At the beginning there are non-bank payoffs for installments or loans and an optimistic perspective of paying down low installments. However, over time, an unexpected problem arises in the form of job loss, longer illness and we lose our creditworthiness and the ability to settle our liabilities in a timely manner. The first prompts with reminder of payment of arrears and first calls for payment of overdue installments appear. We submit a request for debt restructuring in the bank. If the creditor refuses our request to spread the loan into smaller installments , “debt loans” and private lenders appear on the horizon of the debtor’s debt – it’s a straight road to the debt loop – repaying the loan with a loan.
A quick response – it’s not a solution
It would seem that a payday loan can solve the debtor’s problems. Nothing more wrong! Remember that credit payday is one of the most expensive ways to raise cash, and its real cost can reach up to several thousand percent per year. Unreliable loan companies often try to prey on the ignorance of people and, thanks to their lawyers, they can construct a contract in such a way that it looks correct at first glance. A consolidation loan at a bank would be a better solution, but in a situation where we cease to pay the previous liabilities, we cease to be a reliable customer in the eyes of the bank and we can not count on such a loan.
How to get rid of debt?
First, a thorough analysis of household budget expenditures and a limitation of consumption reduction is recommended. Of course, electricity bills will not disappear, but we can give up spending on entertainment . Instead of going to the cinema, we can watch something at home, and the money saved in this way to spend on repayment of credit obligations. Poles are also willing to own and collect unnecessary things, so it’s worth considering to put up for sale. It is not only about small personal use items but also a car or even a flat. Keeping a car costs money and that ‘s not enough . Expenses for fuel, repairs, loss of value of the vehicle, when all this is counted, it turns out that we spend unnecessarily several hundred zlotys a month – let’s change to public transport. Of course, for many of us, making such a decision is usually a last resort, but let us consider whether it is better to sell your property yourself, or wait for the bailiff to do it for us. His actions also generate costs, for which we will pay for ourselves.
What else to do?
Provide additional income to your home budget. Look for additional work . Of course, you will have less time for your family, but thanks to this you will get out of debt faster. Remember that you need to approach the debt problem together with your partner. It will not work without cooperation. When you repay a loan and you manage to save a certain amount, it is worth not to lose it and use it to pay off another installment. By implementing such a tactic, you can get rid of debts much faster and more effectively, because you can see how your list of commitments is shortened.
Head up – every loan can be repaid
Only by facing the fight against over-indebtedness you have the chance to win it. Being a debtor is certainly not easy. Creditors, bailiffs and debt collectors surround you on each side. “Drowning razors are catching up” – do not be fooled by unreliable loan companies in this situation, which willingly use the opportunity to drive you into another loan. Remember that it is not a shame to ask for help to get out of debt. Ask your family, tell about your situation. Perhaps they will offer you interest-free money for your problems and wait a certain period of repayment.