I know that my financial problems will not disappear overnight, I would like to formulate a plan to get out of debt and stick to it, because it is impossible to live any longer. Please help.
Debt problems are on the rise!
The problem with the debts of many Poles is growing to extraordinary proportions, more and more people have problems with timely repayment, the amounts of debt are increasing, and in addition loan companies and parabanks are lowering their requirements for borrowers!
These three most important factors describing the state of the loans and payday loans market give a serious signal that from year to year we have more and more debts with a simultaneous increase in the number of loan companies, this is a very unhealthy situation with serious consequences .
I apologize in advance for old data, but in 2015 BIG published a report saying that every 10 Poles have problems with timely repayment of loans and credits! BIK, on the other hand, published a report in which as many as 3.5 million consumer loans were added only in the first six months of 2015! scary how many of us have to take the loan right?
How to create a debt recovery plan?
We count on debt!
A debt recovery plan must start with this step! you need to have a clearly defined amount of debts, you just need to know exactly what we are dealing with, what amount of debt.
Write on your card all your debts starting from the smallest commitment to the largest. Making a list of debts will allow you to carefully plan step by step to get out of debt and stick to your decisions!
Debt repayment planning
You already know your debts and which loan company you have the largest of them. Now you need to create a repayment plan. Create a hierarchy according to which you will make payments for loans previously incurred.
I advise you to enter at the top of the list loans or payday loans, which are the most expensive, which generate the most costs, ie those with the highest interest rate.
If you have past due loans, they should be at the top of your list to prevent debt collection at all costs.
Home budget + saving
Time to think about how to start saving, and monitor what your monthly household budget is going to do, and try to find expenses that you can safely give up (at least for the period of debt repayment). You have to accept that for some time you will have to say goodbye to your current lifestyle and the comforts that you have worked so hard for.
For example, selling a car and switching to public transport or, if this is not possible, replacing the car with an inferior and older model, or canceling a subscription for a large TV program package, or a high subscription for a mobile phone. If you look around well, there are a lot of saving options!
The confrontation with creditors is not easy. If you have fallen into a spiral of debt, then be better prepared to talk to a bank, loan company or parabank employees. Remember that they also want to recover money. Establish contact with your creditors and negotiate new debt repayment terms, don’t run away from them!
Try to increase your income!
Looking for savings is a very good step, but taking extra work or doing overtime is even a better idea! Any extra money in your situation is at a premium and you should care about getting an additional source of money!
For sure it will be difficult for you to save a few hours a day for additional work or overtime, remember that this is only a temporary period and the more you earn extra money, the faster this period will end for you, but for now, your debts have priority repayment should be focused!
Putting money away for a rainy day should be a habit for every adult. A financial cushion will help you in the event of unexpected sudden expenses, and will also protect you from taking more quick loans that are not cheap.
Very often, the financial pillow transforms into considerable savings and then you feel really relieved and satisfied that you have more money than you originally expected to have.
Getting out of debt is difficult
Getting out of debt is very often a monotonous process, which is accompanied by numerous sacrifices. To go through this difficult period, it is necessary to realize very quickly that we have prepared this fate ourselves and that through only our bad decisions, we are at the point where we are.
Debts are very many people, some deal with them, others don’t, I hope that my reader who wrote to me will be in a group of people dealing with debt and will not get into debt any more. Best wishes, good luck!