Bank debts torment many people in our country. The reality is that banks and certain financial institutions tend to make it “very easy” when it comes to lending money. It is tempting to get hold of capital to finance purchases or some quirk from time to time. The problem arises when you can not cope with payments on a regular basis.
If they taught us how to balance our finances at the institute, fewer people would end up in financial difficulties. Not only the prescription of bank debts is an inconvenience. When the return date of a loan happens, it usually brings interest or arrears. The number one rule to reduce debt is to cut costs. Number two is paying the installments in a timely manner.
The best ways to eliminate bank debts
The origin of bank debts
Financial institutions offer loans with attractive conditions to customers on a daily basis. If in the past you undertook, but you did not succeed, you may find yourself facing the challenge of facing a debt. The reasons may vary, but the conditions are similar: you have to cover a few installments each month until you settle the total amount of the debt. It is not easy to face the payments if you do not have economic stability.
Not all businesses succeed or last long enough to generate profits. However, if you put the lock on your activity, the debts do not disappear. You will have to face them, even if you do not have a reliable source of income. If you are not in this situation, but you want to start, try to have enough savings to have a margin of action in the face of unforeseen events. Normally, savings to cover a couple of months of expenses are enough to be in the safe area.
How to adjust the belt without dying in the attempt
Being honest, almost all of us have some dispensable custom that involves recurrent spending. For example, in my case it is coffee. I like to drink coffee and I usually invest about 50 euros a month, sometimes more. Well, when I had to adjust the belt a little I cut this expense. Did I stop drinking coffee? No, what I did was to change habits. Instead of drinking coffee outside – the comfortable but more expensive option – I brought the thermos with coffee made.
With a simple change in my routines, I was able to save a large part of that expense. This allowed me to settle my outstanding debts more easily on those occasions. When you prescribe a bank debt you feel freedom because you do not have to face that payment again. I was able to enjoy the cafes again wherever I went. And you, do you have any hobbies or habits that involve unnecessary expenses?
If you have ever thought “I can not pay my bank debts”, the first thing you need to analyze is your expenses. Everything that is not essential can be cut back. There are many possibilities to encourage savings, but you must find those that best suit your lifestyle and tastes. Smokers have a heavy burden with tobacco, which can cost more than 150 euros per month for a habitual smoker. However, for non-smokers this is not a concern.
How to get out of a successful bank debt
The time it will take to get out of the outstanding bank debts depends on your financial situation. But, do not underestimate what you can get by adjusting your belt for a while. If you cut the expenses to the minimum you will have more solvency to pay the installments before the prescription of those bank debts. As the old saying goes, there’s no harm that does not come, right?
Of course, you will get out of the rut if you have a regular and stable source of income. However, the situation is not so simple for many people in our country. The self-employed or those who have temporary contracts – or seasonal contracts – are the ones who have more uncertainty. To get to the end of the month, you can resort to quick loans with little cost. Cratchit family is one of the entities that offer this type of services online from their page.
To leave behind the bank debts, you must establish an action plan that lasts until you make the full refund of payments. If you can not get a stable job, you may be able to get more than one temporary source of income. Some months, I have arrived at the end of the month with more ease due to specific work that I have been able to complete in parallel to my main activity.
When you have more than one source of income, it is unlikely that you will all fail at once. However, if you have only one temporary job and you lose it, you will be in the air until you find another one. It is possible to achieve economic stability through moonlighting. In addition, today it is possible to combine a job doing tasks on the computer from home (such as writing articles) or selling things you have at home. Years ago, I tried the purchase and sale of technology accessories, such as mobiles and batteries, with good results.
Mission to make ends meet
In this section, I am going to comment on what I consider to be more advanced techniques to obtain money to pay bank debts. On the internet, there are countless ways to earn money, but all of them require something: dedication. The positive side is that the investment is usually very low. For example, creating and maintaining a page that generates benefits with ads can cost around 100 euros per year. Start a YouTube channel could leave for free, you just have to record with a mobile or computer on a topic of interest.
So, where is the downside? These business models require a time to start generating regular benefits. However, there are no businesses that can start with less investment. An affordable alternative is to ask for quick repayment loans to plug holes at the end of the month. Those months in which it costs you more to pay the debts, supporting you in a mini credit can be the key to stay afloat.
To get paid a previous loan, not only does it matter when it prescribes a bank debt. It is also relevant to consider your needs in the near future. For example, will you have to pay for your studies? And if you need to pay for a medical treatment? You always have to have some margin for unforeseen events that can occur when you least expect it. If you do not have savings, you have to opt for personalized financing to get out of a rut.
Settle your bank debts soon
When the goal is to reach the end of the month and pay your fees, all the resources you have are worth. Remember that cutting your expenses is not enough, you will also have to have regular income to make monthly payments. You must work on these two fronts at once to meet your payments in a timely manner. As an additional asset, accounts with online loans such as those offered by Cratchit family.
The conditions of this financial loans are compatible with the payment of outstanding debts. It is even possible to obtain financing with ASNEF to pay urgent amounts. You have all the information about the services available on the official page of this financial institution. Check today the conditions to have an extra help for your payments.