By Manuel Tovar, June 14 – Hispanic Solutions Group
Today we bring you some “Steps to Get Out of Debt” that keeps you worried.
Contributing with the best orientation to users through its specialists, Hispanic Solutions Group, sends you the following information in order to achieve your financial goals in a positive way and knowing that the vast majority of people are in debt for some reason with a provider, we recommend the following:
But, before talking about how to get out of debt that overwhelms the vast majority of people, it is essential to tell them that, as long as you do not contain your fierce appetite to buy and consume, no one will be able to help you and we ask you to learn to spend!
Count of all debts, the first thing to do is put everything one owes “in black and white”, from credit cards, personal and payroll loans, to pawns and what is on loan at the corner store. What should be noted is: the interest rate; term (credit cards do not have it); amount owed; institution; type of contract (which can be a financial or commercial institution such as department stores). Put as debt number one, the credit that charges you the highest interest rate, not where you owe more and so on.
Negotiate.The institutions to which you owe do not want to seize you because the process costs them a lot of money and they recover less than what you owe them. What they are looking for more is to charge you, that is, they want constant and sound money, therefore, negotiate and ask for restructuring and payment plans tailored to your pocket.
Consolidate.Many financial institutions “buy” your debts, which means that they give you money to pay off your other debts with special conditions in terms of rate and term. Check this option as it becomes extremely attractive.
Liability Mortgage.We reached the final step that before explaining I tell them that if they do not have excellent advice, do not even try. The idea is that if you have any real estate (house, apartment) you can mortgage it so that the interest rate drops a lot, you have more term and at the same time you know with certainty your monthly payment that will surely be much less than what you were paying in all the other credits. I insist that if you decide on this liability mortgage option you must be fully aware of what it means because if you do not stop spending on unimportant objects and stick to a budget, you may even lose your home.
And remember that: “The one who earns more is not the richest, but the one who knows how to spend,” said an expert.
Now that you are getting out of debt, you have to KNOW HOW TO SPEND. Consumption habits, as well as the customs that one has when making use of our resources can make the difference between spending and wasting.
What you have to do is assign priorities in your expenses, this is a very efficient strategy to face changes and price increases, for which expenses must be divided into three items, which are:
1. Priority expenses. These are immovable and are the ones to which the largest percentage of our resources should be dedicated, for example, housing, education, food and transport.
2.Cost of comfort and status.The middle class is susceptible to these comfort expenses. Take taxis, eat frequently outside the home or pay withdrawal fees at ATMs that are not of our bank.
3. Vanity expenses. They are the most superfluous expenses and they have to do with entertainment and enjoyment, such as going to the movies every weekend, gambling or going to the beauty salon or personal grooming.
The comfort and vanity expenses are the first that can be cut without leaving for it, to have fun, which in the end we work for. But, with a reduction of unnecessary expenses you can save at least 4% and in some cases up to 20% of monthly expenses.
In the first case, stopping eating out so often or leaving home with more time can save us a good sum per week. In the case of entertainment, going to the movies once a month instead of three or four, making use of services such as Netflix or movie rentals, as well as spending time with the family visiting a public park.
Finally. Knowing how to spend does not mean that you stop having fun or doing what you like, but doing it based on your pocket. Also, do not stop doing an analysis of your money outflows and arrange them in a suitable drawer to correctly manage your resources month after month and after a year you will see a great saving that will relieve you a lot financially
We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram to find more information related to finances. Also on our YouTube channel The Credit Channel to learn how to improve your credit. If you need help in disputing debts that do not belong to you, call us at (612) 216-1599.