1.Check all debts you have such as from your credit cards, loan statement and others. Then calculate all together, so you know what exactly amount of debts you have.
2.Calculate the percentage of your spent on non-housing debt and then calculate the percentage again but this time including mortgage payments.
3.Discuss with your spouse or whoever is responsible the debts with you on finding the best way to be free from debt. But if you don’t know or can’t find the solution, we have a few effective suggestions:
Accept that it’s normal to have debt, I don’t mean let’s have debt because it’s normal but I mean it’s not a big deal, you can deal it and get through it since you are not alone because many are just like you.
Secondly, Assessing your debt. See if your debt is too much or not. It’s too much if you have to pay rent or mortgage more than 30% of your monthly pay. If you are in that situation, you better try to clear the debt as soon as possible. What’s more, sometimes some people don’t know how much debt they own because they pay the minimum balance due on credit card or even not make any payment for it.
If you know that you are in those cases, don’t get panic and don’t think that it’s too much. You just have to start from small things such as adjust your spending habits or in other words be greedy before spending your money on anything.
Write down all income and expense you made each month. At the end of the month, sum up the expenses and divide it into two categories: essential and nonessential. Writing down your spending habit can let you see things clearly which is like you observe your own behavior with consideration. The point is to reduce current spending that you can put those spending on pay off your debt instead.
When you pay debt, try to pay off high-rate debt first. The more your interest rate, the more debt you have. Or you can manage it by transfer high-rate debt to lower-rate cards. You can consolidate all of your credit card debts to a single.
Last is trying to use your credit card on things that can gain value later such as home, washing machine, and necklace and so on. At least, you will have those things around when the debt is paid off.
[ad#etoro-300×205]
