The one thing that can literally drive a person to his knees and would force him to do the unthinkable is incurring flooding debts. Now in the life of a person, one way or another he will have to incur some debts due to loans which will turn sour if not handled properly. So for those who planning to take up loans or have existing loans, here are some strategies in debt-elimination.
Now before anything else, it is best to point up that before one takes up a loan or incurs a debt, he has to have a proper mindset. First of all, he has to have the mindset of having a goal in mind like wanting to own a house, maintaining it, or wanting to own a car. Second, he must always have a safety net just in case.
Now after that, one has to make sure that he would categorize all of his debts into order of importance. Now obviously the interest bearing once have to have top billing because they need to be paid first otherwise interest will further incur. These kinds of loans would include car or bank loans.
Once the basic segregation is done, then the next step would be to even further categorize them into priority with respect to due date. Of course usually the one with the nearer due date should be concentrated on further. However, one should also prepare for the next ones on the list while he is planning his for paying his current one.
Now do take note that certain debts such as the monthly ones like the phone bills and other utility bills will get a least important ranking in the priority list. The reason that being they have no interest that could be incurred and that they can be delayed for a time period too. However, these utilities will of course be cut off.
Once the debts have already been segregated, the next step would be to review all the terms of payment of each debt. Based on each loan, one has to prepare the amount of money he needs to pay for the first debt and then the next. This would be to ensure that one has a payment schedule so he knows how to ration his money.
Of course if one is already incurring too much debts and does not have the money to pay it all off, then the last thing that one should do is declare bankruptcy. Of course if one would want to do this, then he has to first consult his lawyers on how to go about. Do remember that this move would have a lot of consequences which is why this should only be considered if there is absolutely no other option.
These days, there are so many people who are not very good at handling their debts which is why there are seminars to educate these people. In fact, a lot of financial centers in Moncton, NB offer lessons on this. When handling debts, always remember that proper planning is key in order not to drown in debt.
Now before anything else, it is best to point up that before one takes up a loan or incurs a debt, he has to have a proper mindset. First of all, he has to have the mindset of having a goal in mind like wanting to own a house, maintaining it, or wanting to own a car. Second, he must always have a safety net just in case.
Now after that, one has to make sure that he would categorize all of his debts into order of importance. Now obviously the interest bearing once have to have top billing because they need to be paid first otherwise interest will further incur. These kinds of loans would include car or bank loans.
Once the basic segregation is done, then the next step would be to even further categorize them into priority with respect to due date. Of course usually the one with the nearer due date should be concentrated on further. However, one should also prepare for the next ones on the list while he is planning his for paying his current one.
Now do take note that certain debts such as the monthly ones like the phone bills and other utility bills will get a least important ranking in the priority list. The reason that being they have no interest that could be incurred and that they can be delayed for a time period too. However, these utilities will of course be cut off.
Once the debts have already been segregated, the next step would be to review all the terms of payment of each debt. Based on each loan, one has to prepare the amount of money he needs to pay for the first debt and then the next. This would be to ensure that one has a payment schedule so he knows how to ration his money.
Of course if one is already incurring too much debts and does not have the money to pay it all off, then the last thing that one should do is declare bankruptcy. Of course if one would want to do this, then he has to first consult his lawyers on how to go about. Do remember that this move would have a lot of consequences which is why this should only be considered if there is absolutely no other option.
These days, there are so many people who are not very good at handling their debts which is why there are seminars to educate these people. In fact, a lot of financial centers in Moncton, NB offer lessons on this. When handling debts, always remember that proper planning is key in order not to drown in debt.
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