When it comes to debt Anyone who would not want this to happen to themselves. But when this happened One thing we should do is Finding ways to get out of debt that can be easily followed from young coach “Change Debt to Financial Freedom” book, Jakraphong Ariesphan has given you some practical advice on how to get rid of debt .
1. Stop the cycle of creating additional debt.
One of the main factors of ever-ending debt is the never-ending debt build-up. The way to see if we are building debt or not, it looks easy. Or pay in full every month 2. The installment money of everything is now more than 50% of the income received. 3. Start borrowing money from people around to spend. Or borrow money to pay off other debts If it’s going to be like this right now. Try asking yourself a question. “What are the solutions to solving the debt problem, how can I get the money to pay off my debt without having to borrow more?” These questions will help you manage your financial life more.
2. Check to see how much debt you have right now.
No matter how much debt you have right now What is important is Accepting the truth that How are we finances now? Because one of the main problems is that most people don’t admit that they are in debt. And think that this is not a big deal Making for a long time, it started to accumulate steadily So one of the best methods is Schedule all entries By filling in all details of what items are What are the types of it? Credit card, friend borrowing, home loan, car loan, and write who the creditors are. How much is left What are the interest rates each year? And how much is the minimum payment in each month? By doing this, we can get a clearer picture of how much we will spend each month. And how to spend enough money.
3. Find ways to earn more.
Once we know how much debt is right now And what’s there Then let’s see if in the future there will be a chance to receive lump sum money such as bonus and commissions. Or different types of money That is a lump sum to be paid There are three simple principles for closing all debts.
– Close the debt one by one: By spreading the money to pay everything, it does not reduce the debt in any way. Because we will be able to pay only the minimum of each item. The good way now is Paying the debt one by one to reduce the amount paid as soon as possible.
– Choose to pay the debt that can reduce the interest rate : in the payment it will have a fixed interest rate. If we go to throw money on it The balance has not decreased. Or the flower remains the same But if we have a lump sum of money and use it to pay the debt that can reduce the interest With principal Will help the balance to be reduced.
– Choose to pay the debt with high interest rates first: If we assume that we have enough bonus money to be able to close it. Select the item with high interest first. Or if that amount is not enough money Then choose to pay at the lower interest respectively See how much money you get to pay off your debt. Do not forget to choose the highest interest rate.
4. Use refinancing methods to help
Refinancing is not going to reduce the amount of money owed. But it will help in terms of financial liquidity to reduce the monthly installments. Because the available principal remains the same Which is the criteria for selecting refinancing The interest rate on the new credit must be about half less than the original one. And choose a place to pay for long-term installments In order to reduce the monthly installment amount But doing this has some precautions. Not going to think that the creditors are diminishing and will return to the old habits. Actually, the balance is the same. We just gathered it to be the same person. So if we do this already Should also give up the habit of spending more money than you In order to get out of debt faster.
5. Bring the remaining money to pay the principal.
This is if we pay the minimum amount of the loan. Then make the difference payment on the same day that the installment is collected And this part of the money will be deducted directly Causing our principal amount to be lower than normal installments In addition, when the money in that portion is gradually declining, the result is that the interest available will also decrease. What is important is that we pay that portion one by one. In order to be able to close the balance individually And in order not to confuse ourselves as well.
All these methods are simple debt relief methods that we thinks everyone can actually use. And try to apply it to your own daily life that is suitable for any type And the best way is When it comes to debt, don’t try to make more of it. But think about how to unlock debt quickly.