When we manage to get a loan, the next and the next frequently appear, followed by the question how to pay it all back. It is easy to borrow, but worse, with the repayment of debts, especially when you have more. Usually, we wonder how to get out of it and be clean with all financial commitments. It’s good to know how to take on our debt.
- Do you pay back loans by loan?
- Consolidation of a loan to fight debt
- Credit debts and bailiffs
- Start controlling your expenses
- Get rid of credit cards
Do you pay back loans by loan?
Banks often take advantage of favorable cash loan offers that are ideally suited to our needs. This, however, often causes that one loan does not end and more are added. With several loans, the sum of installments to pay off is much higher than our financial capabilities, and here both the banks and parialers have the perfect advice – a cash loan to repay the obligations. Is this a good solution? No! In this way, we will pay off debts, but we will make new ones, and the sum of our debt will not decrease at all.
It might seem that taking one loan is better than paying off a few loans, but this is only an apparent benefit when dealing with non-bank companies that usually have worse and riskier offers. A better solution would be to admit to the bank that you have financial problems, and that you can prepare for it and offer us better and more real terms – and this is good for both us and the bank.
Consolidation of a loan to fight debt
If we took a few loans or credits and we have a problem with their repayment, you can go to the bank and try to consolidate. It will be a much safer solution than taking another debt into repayment. In the case of a consolidation loan, all financial liabilities are taken into account, they are added together and, on this basis, new repayment terms, usually more favorable and with a lower installment, are determined. The bank repays our existing liabilities, and we have only one loan on our heads. Of course, you have to be careful here, because consolidation may not always be beneficial or possible, especially in the case of high indebtedness.
Credit debts and debt collection
A debt collector or even a debt collector is something that everyone is afraid of – means entering into an account and a significant deterioration of the financial situation. However, there is nothing to run away from, importantly, it is advisable to get along with the debt collector or creditor in order to establish a repayment plan that can be realized. An attempt to negotiate may have positive effects, for example a new repayment schedule, redemption of some or all of the interest accrued due to delay or withdrawal of the claim to court. Having the worst thing that can be done is to run away from it – our situation will not improve, and it can only be worse. It will destroy us not only financially, but psychologically, especially when the bailiff enters the action.
Start controlling your expenses
If you have a loan or credit, you have to take into account that part of our payout must be used to pay off the obligation. It will of course mean that less will be left for the rest, including pleasure. You need to be able to manage your home budget reasonably, so that you determine what is really necessary for us to live (medicines, for example), and we can give up (eg car and sale, limiting the purchase of clothes, if not necessary, expensive holidays abroad) e.t.c.). By selling some things, we can dedicate such income to repay part of the debt and thus reduce your liability.
Get rid of credit cards
Credit cards can be a big help, but also a big burden, that’s why it’s good to make them order, and it’s best to get rid of them completely. Unfortunately, easy access to cash is too tempting, especially when our financial liquidity is limited and we are looking for solutions that allow you to make purchases. This, unfortunately, will not help in anything, but will only increase our debt – as in the case of taking loans for debt, so the use of credit cards will only further drown us.