Sometimes we are very enthusiastic when purchasing certain products and services. We believe that, at the end of the month, the money will be enough to cover all the expenses we made and if this is not the case, the problems begin, since it becomes very difficult to assume the payment commitments. Don’t worry, everything has a solution. Anna Lenka Jáuregui, specialist in Personal Finance at ABC of BCPoffers you a plan that could help you reorganize your financial life.
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1. IDENTIFY THE ENEMY
Ask yourself where your debts are generated? Then, make a list of all the fixed payments you make each month, whether for basic services, transportation, food, rent, etc. Next, write down the money you spent on the purchase of clothing, footwear, accessories, movie tickets, among other expenses. Finally, add it all up and since the total amount will most likely exceed your salary, evaluate what kind of savings you can generate, perhaps by spending less on clothes, hobbies or entertainment. Keep in mind that, as you just found out, those purchases are causing you problems.
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2. BEWARE OF THE ROLLING
Do not use the cash from one credit card to cancel the debts generated by another and, what is worse, apply for more cards with the same objective. “You fall on a painful carousel that may have no end”.
3. BETTER, APPROACH THE BANK
Allow the bank of your choice to verify all the debts you have contracted with the cards. This bank can offer you to pay them in exchange for all of them being unified in that entity, and it favors you because it reduces the interest rate of the total debt. “In this way, you can start from scratch, without having to pay for several in parallel. Just check that your new monthly fee is adapted to your ability to pay”.
4. CONSIDER APPLYING FOR A PERSONAL LOAN
If you need an exact amount of money to get out of debt, then apply to the bank for a personal loan, which generally has a lower interest rate than credit cards. Just don’t ask for more money than you need because your payment fees will rise. Do not forget that your goal is to get out of the financial crisis in which you live.
Once you free yourself of your debts, start allocating a small percentage of your salary to savings. That money that you accumulate will always be a lifesaver in case of an emergency. This way, you’ll never live on the edge again.
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