Apr 08

How to get rid of debts

Most of us have several loans: mortgage, car loan, perhaps an extension of mortgage for a second home and staff to give us some credit that whim that we could not afford, but given the economic boom as we drove and the ease with which banks gave us money, decided to hire confident they could cope with all payments, loans completed with a credit card.

However, after the housing bubble burst and plunged into the current economic downturn, the situation has changed so much, that for many families all these loans are a burden which is very hard to shake, and the situation worsens when, leaving trouble, ask another loan to pay previous loans, which we see with the water neck and without knowing how to get out of the situation.

The first thing you have to do is take stock of expenses and income, so that we have a clear idea of ​​what our financial position and with what funds we have.

Then we have to work on two fronts: one is to limit expenses and another increase revenue. We must dispense with all unnecessary expenses and limit ourselves to the strictly necessary. On the other hand, we find a second job or activity you provide extra income to help us get out of debt.

Finally, we record all our loans along with the interest rate they have. The will order from highest to lowest, and start paying the highest interest, which will be the most even of our economy. We will pay the fee and any extra income we get, we will use it to repay the loan, which will finish ahead of schedule pay. Then go on to the next credit, and pay the same fee to which we will add the fee we paid for the loans interest. In this way, we can go rid of loans one by one.