Debts, especially credit card debts, have become a real part of the modern day life.
Many of us had fallen to the trap of this modern day slavery – perhaps of our own doing or due to some outside forces that we have little or no control of. Nevertheless, these debts have been putting a lot of stress in many peoples day to day lives – directly affecting the quality of their lives.
With this video, Registered Financial Planner Marvin Germo discuss some tips that we may follow to get out of this unwanted financial mess.
Here are some insights that our worth highlighting.
Take inventory of all of your debts
To further understand the facts of our debts, laying them all, written in a paper will allow us to see clearly our current financial circumstances.
Also, this activity will help us see the debts that charge the highest interests, which we should prioritise to pay, and manage those that are not interest-heavy.
Marvin and the hosts also talks about an option on making compromise with the lending institutions in removing the interests on existing loans, but emphasized that this route is not easy to take.
Though it may be true that nobody gets to jail by not paying debts, having bad credit records will forgo future opportunities of borrowing funds for future endeavours like buying a house, a car, and so on.
Sell unnecessary stuffs at home
In most households, there are items that just idle in closets, cabins, and many areas of the house. Marvin suggested to just sell those stuffs and use the proceeds in paying off debts.
We may use OLX to sell these pre-loved items.
Look at your budget
Debts are often incurred due to how we spend and on the things that we spend on. It is very important to look at our budget and remove the unnecessary expenses.
What’s important is that we do things regularly and consistently for a long period of time. As long as we have the drive and determination to be debt-free, everything is possible.