Debt is a very common thing. But just because it is common, it does not mean that people are ok with it. Debt is more like diabetes. People have started to accept it as a common thing. But they would really love not to have it in their lives.
According to the statement from the experts, in most of the cases debt is the result of poor financial management and planning. But there can be certain exceptions where things are not in control of the individual and hence they would end up borrowing money as dept. In a few countries like Singapore, there are actually firms that offer financial assistance to get out debt with a very low interest rate. To know more about these firms search for Top 10 best debt consolidation plans in Singapore to get a better idea.
No matter what the situation is, by following a few steps you can easily come out debt. They are
Stop borrowing more money
If you think that this process is going to help you get rid of your debt, then you are certainly wrong. It is not going to help you in any to get out of debt. It just helps by not worsening the situation. It is not a saving account where you keep adding, it is the exact opposite of it. Whatever might be the reason, borrowing more money when you are already in a difficult situation cannot be accepted.
Increase your monthly payment
Many have this perception that paying a small amount every month will not have much of an impact on the monthly expenditure. It is true, but you are failing to see the bigger picture. When you keep adding the number of months you are actually increasing the interest that you are paying. Hence it is better to cut down on a few things every month and complete the payout at the earliest. By doing this, you will be actually saving a considerable amount.
Pick one debt at a time
It is a hard situation that one person is in multiple debts. The common mistake that people do in this situation is that they pay small amounts to every debt. Have you heard this Russian proverb “if you chase two rabbits you will catch neither.” So all you need to do is concentrate on one debt at a time, clear it and then move to the next. This is not an easy task to do, but if you are able to pull this off, you can easily get rid of any number of debts.
Request for lower interest rates
We all know for a fact that the higher interest rates keep the debt for a long time as more amounts need to be paid. You can actually request the credit issuers to lower the interest rate. But understand the fact that it is not an easy thing to reduce the interest rates. One of the important things that they will consider is payment history. If you have a good payment history, the possibilities of you getting a low-interest rate is high. If not, you need to stick on to the regular interest rate.…