Everyone who is heavily in debt must manage his debts. If you only have a little debt, you must continue to pay and make sure it doesn't get out of control. On the other hand, when you have a lot of debts, you must make more efforts to repay the debts and handle the outstanding debts carefully.
1. Know who you owe and how much you owe.
List your debts, including creditors, total debts, monthly repayment and maturity date. Print a form and list the debts clearly. All the debts in front of you will help you always understand the complete debt relationship and consult the debt list regularly, especially when paying. As the total amount of debt changes, the list will be updated regularly.
2. Pay the bills on time every month.
Delaying payment will make it more difficult to pay off debts, because you have to pay a late fee for every payment you miss. If you miss the payment twice in a row, your interest rate and financial expenses will increase.
If you use the calendar system on your computer or smartphone, please enter the payment and set a reminder a few days before the due date. If you miss the payment, please don't wait until the next due date, which may affect your credit history. On the contrary, once you forget to pay, pay immediately and call the creditor to explain the reason.
3. Create a monthly bill payment calendar
Using the bill payment calendar can help you allocate the funds in your hand reasonably and how to allocate the time to pay after you get paid. Remember to write down the payment amount of each bill next to the due date on the calendar. If you have income (salary, etc. ) You can use the same calendar every month on the same day (such as 5th and15th). However, if your income date is unstable, you must remember to update your calendar in time and create a new calendar for each month.
4. Minimum repayment amount
If you can't afford more expenses, please pay at least the minimum repayment amount. Of course, the minimum payment can't really help you pay off your debts. However, this can prevent your debt from increasing and keep your account in good standing. If you miss the payment, it will be difficult to catch up, and eventually your account may be in arrears.
5. Decide which debts to pay off first.
Paying off credit card debt first is usually the best strategy, because the interest rate of credit card is higher than other debts. Among all your credit cards, the credit card with the highest interest rate usually gives priority to repayment because it will cost the most money.
Use your debt list to prioritize your debts and sort them in the order you want to repay them. You can also choose to pay off the debt with the lowest balance first.
6. Give priority to paying off affordable debts.
When you have limited funds to repay your debts, please concentrate on maintaining the good reputation of other debts, and don't sacrifice your positive account for those debts that affect your credit. On the contrary, if you have the ability, pay off those overdue debts.
Please note that your creditors will continue to collect debts from your account until your account returns to normal.
7. Reserve emergency funds as the backing.
If you have no savings, you will have to go into debt to pay for emergency expenses. In order to deal with emergencies, you need to develop the habit of saving in your daily life and establish an emergency fund account.
Saving 500- 1000 yuan per month is a good starting point. Over time, in the face of emergencies, you won't feel that the sky is falling.
8. Make a good expenditure budget.
Getting into the habit of budgeting helps you ensure that you have enough money to pay your monthly expenses. If you don't have enough money to pay the bill this month or next month, please take action as soon as possible and make a budget plan before the bill occurs. With a budget plan, you can have extra money to use after completing the plan, which can help you pay off your debts as soon as possible.
9. The helplessness of debt relief
If you find it difficult to repay your debts and other bills every month, you may need to negotiate with your creditors to see if it is possible to get a certain amount of debt relief, provided that you have a practical repayment plan. Other options for debt relief include:
Remember, in the face of debt, it is not feasible to turn a blind eye and fantasize about escaping. The premise of the solution is to face up to the debt, don't complain, and must act immediately. Dally about the debt problem will only make you pay a higher price, because the longer you delay, the higher the interest and the bigger the problem. Try not to let the debt rise to the level of legal proceedings or affect the credit investigation. I hope you are heavily in debt and realize "debt-free" at an early date.
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