- Calculate the total amount of your debts: The first step you should take to get rid of your debt is admitting you have debts, and be willing to get rid of them. Carefully calculated the total amount of money you owe. First get rid of debts with higher interest rates, this will help you save enough money. It is very difficult to solve your problems if you’re not sure what your financial situation.
- Avoid adding even a single euro to the amount you should: It’s time to stop wasting money so you have to change your habits when it comes to spending. Watch carefully how much you earn and your basic expenses and try to reduce expenses as much as you can. All this means a change in your lifestyle. Avoid by all means add even one euro to your already crippling debt, for example, use a debit card instead of a credit card, so you can use the card only if you have money in your account.
- Squeeze any extra money and accelerate your debt payments: Cut your lifestyle and use any extra money you receive to clear your debts faster. Remove a growing debt, get rid of the one with the higher rates of interest first, which will save much money.
- Choosing the right to cancel your debts method: There are several options to solve your debts, but selecting the most appropriate option is the most important, because a misstep can ruin the future. The choice of method to solve your debts must depend, ideally, the type and the amount of debt you have.
- Choose the right company: The companies debt consolidation are popping up like mushrooms in Spain, so it is very important to get help to solve your debts in a suitable company.
- Delete your credit card: once you’ve finished paying the debts of a credit card account canceled immediately. Leave credit cards at home to avoid the temptation to use them. Never pay the debts of a credit card with another, as it has some disadvantages. Each credit is a source of potential debts. Keep in mind that introductory offers can be very tempting but not so good after a certain period of time.
- Watch out for the interests of your mortgage: Interest on mortgage loans are much lower compared to the interest charged by credit card debt. In addition, mortgage interest are deductible, so many people use money from their mortgages, however, if the money is used to pay the debts of credit card debt fires again.
- Hire professional help: For some spending money is a psychological problem, it can be a habit or an addiction like alcohol, gambling or drugs. Social problems such as divorce and job loss or unavoidable emergencies like illness can also be a cause in such cases it is advisable to seek professional financial advice.
If you follow the above tips, you will consistently get successful economic performance in the future. Look at your current situation as an experience to learn and soon you will be free of your debts.