Easy Plan For Reducing A Debt

Posted: 29th January 2015 09:56

Have you ever tried to manage your finance by your own or just made your debts decrease? If it is so, you understand that there is no sense to pay for such help to some agencies or experts. You can decrease your debt on your own jut following these easy rules:
1. Understand and calculate your debt
To manage the finance you need to have all documents on your hands. So collect all financial agreements and regular credit reports. Also you should visit one of the online services to understand your credit score. Many people are afraid of such information and choose not to see it. But if you want to control your financial life, you should obviously get this regular report. When you have necessary information you will need a piece of paper to write down all your debts and interest rates. Also you should notice some extra conditions, such as additional payments for missing the repayment date. Pay attention to your short-term loans at first, to cover them and have only long-term obligations.
2. Manage your budget
When you have all your debts listed, you will need to understand how much money you have to cover them. You need to write down all your income and then subtract necessary payments, such as utility bills, taxes, insurances, food expenses. Then you will have the amount of money you can use to cover debts. If this amount is too small, you will need to consider about possible ways to reduce your expenses. You may think about turning your cable TV or using public transport some days a week. The other possible way is to find additional income.
3. Create a plan
When you have such detailed list of all your payments and income, you may think about the possible ways to reduce your debt. At first you need to repay the loans with the highest interest rates, and then your situation will get easier.
But you need to understand that this is a long process and you will need to control your spending regularly. Also be attentive to special conditions you might have on some loans. If you have no salary yet, but your regular payment must be done, you can use PersonalMoneyService to get a loan online and cover the necessary payment to avoid additional expenses. You should always be very attentive with short-term loans and control the repayment date.

4. Use possible options

You should also contact your lenders to become aware of any possibilities to decrease your interest rates. You may have some financial propositions, so it is better to know about them. You can be proposed to move your debt to the other account with decreased interest rates. Be sure you use all available offers to make your debt less.
5. Follow your plan
You should understand that the plan need to be done. This means that you need to make all points of your plan every month to get rid of your debt. You should be prepared to this hard work with the obvious result in the future. So try to be wise and control your budge, follow the plan and soon you will become completely debt free.