Did you start January with debts? Don’t worry, you’re not the only one. Although the recommendation at the end of the year is to be careful with the money you spend, put together a budget and do not spend more than you can afford, many people end up being victims of excessive purchases and getting into debt more than their due.
Christmas passes, the New Year party too and the panorama they find is not entirely encouraging. On the contrary, they begin January with accumulated debts and committed money, with problems to fulfill their obligations and the spirit by the floors due to so much debt.
What options are there in those cases?
How to start controlling finances, reduce expenses and finally get rid of debt? It is definitely necessary to acquire better financial habits, and this starts with having a budget and eliminating excessive expenses. Perhaps it will be necessary to cut some tastes such as meals outside or reduce outings to the cinema, at least for a few months.
But this is not the only thing you can do. Another option has to do with applying for a loan. Now, how will asking for more money help you pay off debts? The idea is that, if you have outstanding accounts with several entities – different cards, a loan, etc.-, requesting a credit (or requesting a portfolio purchase) will help you to consolidate all debts.
Among the available alternatives, one of the experts’ favorites is the draft credit. So instead of applying for a personal loan, free investment or a portfolio purchase, you could opt for this type of credit. And what makes it so popular?
Basically, it is an easy credit to acquire, with relatively low interest rates and with a low debt risk, since it has a special dynamic: it is deducted directly from your salary.
Why should you request a payday loan to recover from debts? By consolidating all your card and additional debts into one, you will save interest, since everything will be ruled under a single rate; In addition, you will save on sending account statements, paying commissions, paying insurance, among other points.
You just have to remember one payment date, instead of having to deal with several, and the same goes for documents.
Calculate how much you need
The idea is that credit allows you to unite all the debts you fell into during the holidays. Prepare the budget to see how much money you need and so you will know how much to ask for. This is not the time to start including some purchases that you had planned, much less. In other words, don’t ask for more than you need. Focus on canceling debts and keeping one payment. Do not forget, it is not extra money, it is a credit that will be deducted from your salary month by month.
Check what they can discount you without putting your obligations at risk
One of the most important parts has to do with how much money will be debited from the account monthly. The idea is that it is only what you can pay, without risking money that is destined to cover your obligations (housing, services, food, transportation, among others). You may have to limit some additional expenses and pleasures, but you should not compromise your needs.
Try to get it in the medium term
Don’t look to pay the minimum, but also not the maximum. The ideal is to select a medium term, which allows you to cancel the debt in a prudent time. Paying the minimum implies that the interest will be higher and also that you will be limited in your expenses for a long time. On the other hand, choosing a very high fee can lead to not being able to meet your regular expenses or that your budget is severely cut. Ideally, you should seek balance.