The year 2016 has barely begun and a lot of people are already over indebted. Let’s agree that with the crisis that shakes the country – high interest rates, rising unemployment rates, inflation – it’s much harder to get out of debt.
However, you can not live on the edge forever. With organization it is possible to get out of the red and gain control over your financial life. Those people who have a habit of planning for their spending, with discipline, can achieve savings of up to 30% in their budget.
To show how to organize debts in 2016, we separate six tips that may help you compose your planning and your posture to get back on top of debt. Check out:
Analyze and plan your spending: see your budget
First of all, it is important to think and plan. It’s no use simply to post revenue and expenses on a spreadsheet, you have to look at the values and analyze them as a whole. In this situation you can identify if all your fixed expenses are needed or even if you are paying for services that you do not use, such as the monthly tuition you get once a month or the landline phone that you do not even use but pay a monthly fee .
You can reduce some values by simply committing
This tip concerns all the little things one can do to reduce consumption. For example, do not take long baths, do not forget the light of the bedroom and not sleep with the TV on. There are several other services that you can evaluate that, if best used, can make a significant difference in your budget.
Do not create more debts: avoid plots to lose sight of
Falling into the temptation to buy that 52-inch plasma television can be difficult if paid in 60 months. And change the car, then? Only 120 parcels. Often all the purchased plots, if added, end up taking a good part of your budget. Allow yourself, when you have enough money, to enter into some agreement to pay for the remaining installments and to have financial advantage of it.
Do not enter the revolving credit to pay the expenses
Treat the credit card and the overdraft as debts, which is what they really are. It’s no use paying the minimum credit card or paying the bills with the overdraft limit, because next month those amounts will be charged with interest – and high interest. This type of credit should only be used in an emergency and so you run the risk of getting more involved and not organizing debts.
Exchange expensive debts for cheaper
If you are having expensive debts such as the overdraft and special credit card, it pays to take out a loan at cheaper rates and take away the costly debts. The payday loan is usually the one with the lowest interest rates, followed by personal credit.
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Learn to Save: Deal With Serious Debt
After balancing the budget, you will have another challenge to face. Money may begin to emerge, and when that happens, keep in mind the importance of keeping. With this, you can save as if you had a debt, saving a fixed amount per month, for example. The important thing is that you can build a reservation and redirect it to when you really need it. And, speaking of savings, another way to save is to separate a part of your 13th for expenses or even to save.
After we’ve come up with some tips on how to organize your budget, you can start your financial planning and use strategies to achieve your spending balance in 2016! Always remember to review your expenses by making revisions in your budget.