The moment you decide to pay your debts permanently, you seek to bring peace, stability, and confidence into your life. However, it's generally known you should stay away from strategies that make you end up with unpayable interests. Balance your debts with a loan? It may not be the best option because you can't borrow more. Neither is stop paying or fleeing the country.
So what are the best strategies to pay off your debts effectively and without panicking?
We understand that not all debts are solved in the same way like in Same Day Fin. In fact, we know it so well that we have simple ways to get out of your economic problem and in the right way, depending on the situation you are in.
Let's start ...
Understand Your Financial Context and Educate Yourself Financially
The first thing you should do is analyze your financial situation - how much do you really owe? Is that a lot? 5 thousand dollars or 10 thousand dollars? These types of numbers can still be manageable if we apply good strategies on our financials. However, debts above 35K or those that exceed 100 thousand are more complicated because interest accrues at such a speed that it multiplies the original figure.
How to Pay Small Debts?
If your debt is not that big and still controllable, then you probably just need to improve your financial education to better manage your money. Therefore, I recommend you visit Same Day Fin company, where you will find recommendations, analysis, and guides that will help you better understand the world of finance. You can apply these tips in your daily life and see how soon your debts will disappear.
Do not think that the subject of money is something reserved for a particular category of people (the rich or the well-connected). We always seek to communicate in a clear and accessible way. For example, if you are looking for how to pay off your debts in 6 steps or how to generate extra money, you will surely find useful and applicable information to your situation.
Tips and Advice to Cover Loans
The best practice is to consider a plan that allows you to get rid of debts and, more importantly, keep you away from them. For that, we list four tips that will help you get out of debt in 2019.
- Make an annual budget.
- Make a list of all the safe income you will have during the year. Salaries, maintenance, government aid, etc.
- List all the expenses you have per month. You should aim from the biggest ones like the mortgage or the rent of your home to the smallest ones like the subscription to your gym or your streaming service. Don't forget about the special expenses for the summer holiday season, back to school or winter vacations. This way you will know how much time you have to reserve extra money for these dates.
- Start a savings fund. This savings fund must be included in your annual budget. Take a percentage of your income (experts advise 20%) and set it aside from the rest of the money. A savings account in your bank may be an option.
Is It Possible to Pay Your Debts with Another Loan?
I understand that this idea may sound risky, but here we mean finding better payment terms so you can cover the debts you already have. Imagine that you keep up with your accounts but the interests are very high, wouldn't it be great to reward your good behavior? If you find yourself in this situation, a private lending platform would be the best solution.
How Does This Service Work?
You apply for a loan to pay off your debts, which is known as consolidation. But, if you want to apply, you need to meet some requirements that will be evaluated to corroborate that you have the possibility to pay back what was lent (for example, you have a fixed income). The advantage of this process is that the interest rate is personalized and does not exceed 29%.
And, If the Debts Are Already Late?
At Same Day Fin, we've already seen how small debts can be met (and even those that are larger but still under our control). However, what happens to those we have stopped paying? Is there a solution to those accounts that are in default? If you find yourself in this situation, do not despair put your trust in us to manage and settle the case.
A diagnosis will establish your financial capacity and generate a savings plan tailored to your needs. This money will be accumulated in an account in your name, while we are in charge of negotiating with your creditors to get discounts of up to 70%. Once the best deal is achieved, you will take care of what you have saved to settle and go! No more debts.