How can I make a new start? –And how can you remain without debt?
Consumer Loans Independent Advisory Agencies Association President Jonas Dunes said, “The focus of getting rid of your debts lies in making a budget.” says.
For this, you can start by first matching your monthly income and expenses, and you can add the minimum payments that you have to pay on a monthly basis. To help you get organized, you can also consider using the bank’s online and automated bill payment services for your recurring payments every month. Then, check out what your regular expenses are, such as cable TV or eating out.
Then, see how much money you have every month after your monthly recurring payments with the highest interest rate on your credit card statement. For example; If your card has a debt balance of 6,000 USD, which applies an interest rate of 18 percent, instead of paying 200 USD per month, pay 300 dollars and thereby close your debt in a faster period of 17 months, and you will save over 800 USD from interest.
Consolidate your debts
Consider transferring all your debts to a card with the lowest interest rate, rather than running around and stopping between a few cards. For this you will have to pay a transfer fee – usually 3 percent – but in this way you will reduce your total interest burden. Meanwhile, it will be easier for you to manage your debts, and because you also have a single card, you will reduce your risk of skipping any payments.
Claim a lower interest rate
You might be surprised when you see how flexible card companies can be. You have a very high chance of turning off your phone with a significantly lower interest rate with a single phone call. This will save you hundreds or even thousands of USD – and help you end your debt faster.
Once you see your debt balance at zero, always try to keep it at zero
Promise yourself to cover all of your credit card debt every month. Keep keeping your budget, so you won’t spend more than you earn. Also, keep an amount of money to cover your few months’ expenses easily, keep it separate, so that when you encounter an emergency or dismissal, this will prevent you from returning to the debt swamp.