How to overcome debts?

[Yotamion]

Of course, the most popular advice across the Internet on the debts management is considered being the following: “Do not take debts”. It is true. Nevertheless, there are different people with their individual stories, who cannot see any other way as to take a credit or loan.

[Bambale]

Well, I would give an obvious advice – spend less money. Many financial experts advice to save as much money as you can during your lifetime. The basic rule for saving money is to take 20% and put it on your deposit account or maintain the other individual format of savings. When you have a credit, you should remember that if you want to be successful in regular payments, you should spend less money, than you earn.

[Yorkie11]

Cut your credit cards as Rachel in “Friends” movie did haha :)

[Yotamion]

Yep, Yorkie11, that would change everything :)

[Yorkie11]

But talking seriously – for many people credit cards are considered being stressful parts of their life. If you have a particular credit limit, it means that you are free to spend it on the new products or services, go out to eat meal or have a drink, etc. The main tip here is to get rid from your credit cards. It will help you to plan your personal finances more accurately in the future.

[Terence]

Well, there’s another thread with a personal budget topic which I suggest you to go through. Because personal budget is very important in this situation as well. If you are spending everything you earn – you do not have a budget. It is zero. Try to create a particular personal system of tracking your expenses as well as revenues. It will help you to organize everything and exactly know how much you can spend during the particular time.

Reduction of the debt payments is considered being a long-term process, which requires high patience as well as a particular sum of money. Do not panic, because it will not help you. Try to organize everything and be efficient in your personal budget planning.

[Georgie]

Also the key thing is to think about what are you going to do during the retirement. Basically, what is your lifestyle is about now and what are you going to do with it when you are 60+. When you are close to the retirement, you should start thinking about your lifestyle as well as needs. There are numerous directions, which you should cover while planning your retirement expenses besides living. For instance, you should carefully think about the travelling or purchasing houses or any other products and reflect on the unexpected situations, which can influence on your health. If you are going to work part-time during your retirement, consider this as well.

[Yorkie11]

Agree with Bambale about spending less money. When you have debt, try to revise your budget, especially the part, which is connected with expenses. You should remember that you cannot predict the future and if you are facing the debt today, you should plan your personal budget to close the debt successfully as soon as possible according to the conditions and terms.

Go through your budget expenses and handle the part, which is about what you spend. You should think about the future of your current debt as well as the overall structure of your personal finances. If you can overcome the first debt, you will learn how to work with the personal budget for the future.

If you are dealing with the problem debt, you should always talk about it with your lender – financial organization, local commercial bank or any other private lender you are working with.

[Yotamion]

Thanks, Yorkie11! Good advice indeed. I am trying to keep my budget safe :) And usually note every expense I have. Nowadays there are less and fewer people, who cannot solve their debt problems and more of those seeking perspective solutions to maintain the positive track. So this topic is familiar for me as well.

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