The consumerist society in which we live drives us to buy more and more. It is never enough, we always want something new. Elaborate marketing campaigns convince us that we need things that we really don’t need at all. And what do most people do to pay for things they can’t afford? Get into debt So today we are going to talk about how to end your debts ?
Access to foreign money is simple and, at least in appearance, cheap: credit cards, personal loans, 0% financing … It is very easy to get into the debt spiral, but very difficult to get out . When you are finally aware that the sum of your debts undermines your solvency and that you work from sun to sun to return the money they have lent you, it is already too late.
In this article we will develop a method that will allow you to end your debts (really) in just five steps. The method itself is very simple and you will understand it first. The difficulty lies in putting it into practice. You are ready?
This is what you have to do if you really want to end your debts
Mentalize that you have a problem
It seems silly but it is the most important step of all to end your debts. To tidy up your personal finances and end your debts you will have to make a great effort and many sacrifices. Without the right mindset you will run out of energy in the middle of the journey. And that is not what we want.
Try asking only two questions:
- Is this the economic situation you’ve always wanted to have?
- Will it get better or worse if you keep doing what you have done so far?
You already know the answers. Now we take action.
If you have trouble reaching the end of the month without putting your checking account in red, you have to make numbers to analyze what happens. It is essential that you know how much you earn and at what expenses you get that money you earn.
This time forget about mobile applications to manage budgets and Excel sheets. You are going to do it by the traditional method, which is much easier: write down your blank income and expenses for a normal month. Also write down the sporadic expenses that do so much damage to you when they touch, such as insurance, taxes or that wedding you have pending.
Reduce expenses to start saving
If you have never made the effort to reduce your expenses, the short-term results will be spectacular. You can start by saving at home, on the phone bill, on Christmas purchases that are behind the corner, on health insurance, etc.
Believe it or not, there is always room to spend less and start saving some money. The excuses are useless.
Look for at least one extra income
It’s not about working giving overtime to earn more. The goal is not to work from sun to sun as a slave to pay off debts. What is involved is to implement an extra income that does not require a titanic effort on your part.
In this article we explain some proven ways to earn money from home. In this other how to make money online with passive and semi-passive businesses. And in the latter we focus on how to make money writing in a blog.
Pay your debts one by one
If you have followed the above steps to the letter, your situation should be as follows:
- You are aware that debts are devouring you and you want to change.
- You know exactly what you spend the money on.
- You are starting to reduce your expenses.
- You have obtained (or are in the way of obtaining) an extra income.
The result of spending less and entering more each month is that now you have extra money, call it monthly savings , which you will use to pay off your debts.
Do not try to pay them all at once. Our advice is to focus on the smallest of all. When you cancel, go for the next one. And so on until ending all.
It has been shown that this is the best way to end your debts and clean up your domestic economy.