Are you a reckless spendthrift? Or, is your rising debt hindering your monthly finance plans? Well, if it's so, time is ripe that you check your monthly expenses before you are late and down with heavy loans. With the rising demand for materialistic acquisitions, resorting to loans or debts have become almost imperative. But, the accumulation of outstanding payments to your bank or finance companies, finally result in a financial breakdown. Above all, the advent of the credit card system has further aggravated the issue. Persuasive credit offers, discounts, and lucrative schemes attract you to use credit cards and finally get stuck in the vicious trap of debt. To avoid this, and to manage your debt efficiently follow these five tips to evade loan traps.
1. Seek debt management advices: While you may not consider this to be a useful way to solve your debt problem, but the advices of the debt management companies work. There had been various instances where people have even come out of bankruptcy after they consulted a debt consolidation and management company. So, if you are on the verge of going bankrupt, it's time that you seek a debt management advice without further delay. Right from sparing debtors from humiliating phone calls from creditors, to providing you with expert advices to overcome debt problems, these companies are complete professionals when it comes to managing and reducing debts, or even providing you financial advices to prevent debt problems to reoccur.
2. Paying the minimum isn't enough: With a credit card in hand, you can always get your favorite suit, dine at your favorite restaurant or even puff up your ego by riding a luxury car. But remember, all these are all part of your debt and should be returned on time. A common way debtors use to avoid payments is by paying the minimum payment of their card balance every month. However, this further worsens the situation as the interests on your unpaid amount tends to get higher every month. Therefore, make it a point to pay the entire amount on time. If not the entire, at least pay more than the minimum.
3. Repayment plan: Obviously, there might be times when you get carried away by all the glamorous brands in the market. That's nothing unusual - 'come one, we all are humans!' However, what you do next to neutralize your loan is what matters most. Therefore, get serious now and make a repayment plan to avoid future repayment hiccups. Make sure you chalk out a plan - a schedule - to pay the unpaid amount every month no matter what. Lapses in payment may create severe payment problems for you as the interest rates tend to get higher every month. So you are your best judge to decide how much to pay and when to pay. Planning is a must for this.
4. Plan you Budget: While repayment plan is always the foremost step required to prevent debt problem, a budget plan can't be ignored either. Controlling your expense is the best way to sort out a budget plan. Obviously, no one is stopping you from buying the necessities, but try to cut your expenses on the optional items - which are not essentials. The plan is simple, control your extra optional expenses, save money and utilize the saved money to repay your outstanding payments.
5. Raise your Income - an obvious riddance: This may not be possible all the time, but always look out for extra money when ever possible. A freelance job, a part-time work or even a small in-house business would be fine to make monthly repayments. A better job with a higher pay is always welcome.
Though all these tip are perfectly fine to manage your finance and debts, but the real effort to save yourself from debt accumulation lies in you. Debts are temporary issues and can be overcome easily if you play fair, make regular repayments and (of course!) control your desires.
1. Seek debt management advices: While you may not consider this to be a useful way to solve your debt problem, but the advices of the debt management companies work. There had been various instances where people have even come out of bankruptcy after they consulted a debt consolidation and management company. So, if you are on the verge of going bankrupt, it's time that you seek a debt management advice without further delay. Right from sparing debtors from humiliating phone calls from creditors, to providing you with expert advices to overcome debt problems, these companies are complete professionals when it comes to managing and reducing debts, or even providing you financial advices to prevent debt problems to reoccur.
2. Paying the minimum isn't enough: With a credit card in hand, you can always get your favorite suit, dine at your favorite restaurant or even puff up your ego by riding a luxury car. But remember, all these are all part of your debt and should be returned on time. A common way debtors use to avoid payments is by paying the minimum payment of their card balance every month. However, this further worsens the situation as the interests on your unpaid amount tends to get higher every month. Therefore, make it a point to pay the entire amount on time. If not the entire, at least pay more than the minimum.
3. Repayment plan: Obviously, there might be times when you get carried away by all the glamorous brands in the market. That's nothing unusual - 'come one, we all are humans!' However, what you do next to neutralize your loan is what matters most. Therefore, get serious now and make a repayment plan to avoid future repayment hiccups. Make sure you chalk out a plan - a schedule - to pay the unpaid amount every month no matter what. Lapses in payment may create severe payment problems for you as the interest rates tend to get higher every month. So you are your best judge to decide how much to pay and when to pay. Planning is a must for this.
4. Plan you Budget: While repayment plan is always the foremost step required to prevent debt problem, a budget plan can't be ignored either. Controlling your expense is the best way to sort out a budget plan. Obviously, no one is stopping you from buying the necessities, but try to cut your expenses on the optional items - which are not essentials. The plan is simple, control your extra optional expenses, save money and utilize the saved money to repay your outstanding payments.
5. Raise your Income - an obvious riddance: This may not be possible all the time, but always look out for extra money when ever possible. A freelance job, a part-time work or even a small in-house business would be fine to make monthly repayments. A better job with a higher pay is always welcome.
Though all these tip are perfectly fine to manage your finance and debts, but the real effort to save yourself from debt accumulation lies in you. Debts are temporary issues and can be overcome easily if you play fair, make regular repayments and (of course!) control your desires.
Good insight on managing expenses. Ideally a good strategy always help specify the expense to be inclined in a proper manner. Tips defined here are explicitly meant for a better understanding of expense management. But then if things get lined up with the help of tools, then definitely there will be a process streamlined as such.
ReplyDeleteBeing in the industry of sales and development, its been a hard core learning from my end that managing expense requires a lot of inclined effort to get those on track. And with that same thought I have been using the cloud based expense management software in my profession.