Wednesday 25 November 2020

What You Should Do If You Are Trapped In A Debt Vortex

The key to debt problems is the lack of knowledge on how to manage the debt (money management). Financial problem for most employees is credit card debt that is piling up along with the increase of time. Over the years, more and more people are trapped in a vortex of credit card debt. In this article I will describe some tips that can be done to overcome this debt type.

What You Should Do If You Are Trapped In A Debt Vortex

  1. You need to collect all the credit card bills
    You need to understand what you are getting. The basis of this understanding is to collect every piece of credit card bills you have. You need to record the nominal and the origin of any debt you owe and by doing this step so you can know your track record in using your credit card. By knowing your own track record, then you can formulate the steps that need to be done to pay off all your debts.2. Eliminate your credit card
    You have to neutralize various debts. You need to be selective in paying off them. Start from debt with the largest interest rate because large interest rate can plunge you into debt bondage. If possible you can make extra payments each month, for example, you pay two or three times the amount of all monthly installments and in this way you can cut your debt range significantly. If you make extra money always prioritize it on your credit card debt settlement.
    3. Close your credit card that has been repaid
    You should control yourself by cutting credit card you have. Once the credit card has been paid off then you can switch to another card. In other words, you are limiting yourself to get stuck once more into credit card debt bondage. Evaluate every purchase you make every month and as much as possible avoid using credit card. You can switch to a debit card that will directly cut your account.
    4. Debt negotiation
    You can negotiate your debt to the bank where you owe. You can apply for an extension of time to pay, or you may request a debt consolidation that you combine multiple debts with high interest rates into a single loan with much lower interest rate. This step can improve your focus on paying off your debt. Today, there are various companies that offer debt negotiation services. You can find them on the Internet with ease. Choose a company that has a good reputation over the years in providing best consolidation loans.
    5. Looking for a side job
    Side job is a great solution to accelerate debt repayment. You can become a freelance writer, online seller, or just about anything as long as does not interfere with your main activity. By getting extra income then you can immediately break away from the shackles of debt.

    I hope the five tips above can guide you in solving your problem. What you need are determination and consistency in paying your own debts. Good luck!

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