Worse of all expenditures are then financed with debt included in consumer debt through credit cards or unsecured loans that lately more and more frequent and widespread once offered. Interest consumer debt, especially credit cards so great that makes you will get into debt if you are not careful in using it.
But if you already owe (hopefully not in debt) can read some of these tips so you can be debt-free and always clear of debt.
Step One: Stop Spending, Start Paying
Will be in vain if you try to pay and pay off your debt while you’re still making new loans. Begin by calculating the total debt you already have. Take a piece of paper and make 4 columns in it. In the first column list the name of financial institution (bank) where you have a debt. In the next column enter the amount of your debt from each bank. The third column where you write down the interest rates charged and you pay for each credit card. And in the last column of the input minimum payment each credit card.
Try to rearrange the list of your creditors with creditors who menggenakan greatest interest are listed at the top and Pay the debt and costs (interest) at a big advance. Ration of debt your monthly mortgage payment, pay the minimum payments to other debts and the remainder is paid to the largest nominal debt with the highest interest as above.
Selling your valuables, thawed and deposit your savings and pay all these assets to pay off your debt now. There is no point you have millions of rupiah deposits with interest of 7% per year if you have to pay credit card debt with interest 42% per year which means your money minus 35% per year.
Step Two: Borrow More Money Again
What is meant by borrowing more money aka debt is to pay the old debt with a new one with a note:
- The amount of new debt should not exceed the old debt and
- The new interest rate debt should be lower than the rate of the old debt.
With the increasingly intense competition for good customers who want to get into debt, credit cards and financial institutions competing to offer loans with lower interest rate than before. Many credit cards now offer a balance transfer facility, aka moving your debt on a credit card the old to the new credit card with the lure of lower interest rates. If you are observant and can take advantage of this facility does not rule you will be able to save on interest charges.
You should always remember is this step is a form of temporary settlement for the short term so that you are not burdened with considerable interest. Your final goal is still to eliminate your credit card debt. In doing this transaction be careful and always read the written offer submitted by the credit card issuer. Do not get caught into the trap of cheap interest rates for a certain period (short) which will then rise to far more expensive than the interest rate you are bertama debt. Edges that you will be harmed.
Step Three: Do not engage in debt again
The key word is: self-discipline. The moment you begin to repay your debts in accordance with the first and second steps do you feel satisfied with the success you so that you begin to add new debt. It means if you use a credit card again then immediately pay a sum of money that you use at the time of invoice payment due date. If you can not use the discipline to do this course charge card or debit card so that you no longer in debt.
The last strategy is called the management of the envelope which means it is when you need to use a credit card (when you do not carry cash) then you at home soon after arrival inputs will be paid cash to pay for your purposes into separate sealed envelope and put in place a is locked. Use these funds when your credit card bill comes.