Have you come to the conclusion that what you earn is no longer enough to cover your monthly expenses? Unfortunately, you’re not the only one. Many people lose control of the budget and, when they least expect it, find themselves in a situation where they do not know how to get out of debt by earning little.
The first thing to do is to review your way of dealing with money and recognize that you are solely responsible for being in trouble and you also have to be responsible for getting out of it. Keep reading our post, we can help!
Deal with creditors
You want to pay and your creditors want to get paid. So go ahead with courage, negotiate, ask for discount and installment. Whether it’s the bank or the friend who lent you money, your creditors want to know that you are striving to honor your commitments and look after your name. Show that they can trust you and take on the responsibility of repaying debts in the shortest possible time, even if you have to sell some good to fulfill the agreement.
Consolidate all debts into one
You already know that overdrafts and credit cards charge the highest interest in the market, right? Unfortunately, it is very easy to curl up with both because the money is there, at your disposal to use. The best solution, in this case, is to exchange these expensive debts for a cheaper one, that is, they cover lower interest rates. Consider then taking a paycheck loan or a personal loan that covers a lower interest rate. Inside the Caring Mommy application, you can make a comparison with several institutions that offer personal loans, some like Just with very attractive rates.
Consume only what is needed
It is time to tighten your seatbelts and accept that you will spend time without purchases, without travel and without making new debts. Before you buy anything, ask yourself: Do I really need it? Can I wait two or three months to buy these new clothes? Take a minimalist attitude for a while, consuming and using only what is really needed.
Credit card is not always bad
If you learn to make conscious use of your credit card, you can take advantage of it. Choose a card that offers point programs that turn into merchandise, travel, or hotel rates. Concentrate all purchases on the card. Over time, accumulated points may yield products or other advantages. But never, ever, never fail to pay the full amount of the monthly bill! If you are not able to do this, it is preferable to cancel the card so you do not run the risk of getting into debt again. Or else, break the card into pieces and just ask for another when the situation normalizes.
Generate new recipes
To balance the household budget, you have two options: either you cut expenses or generate revenues. And when have you cut all possible expenses? There is still the alternative of generating extra income. Think about your talents! Make cakes or salty to sell, take care of the children of the neighbor, volunteer to take care of gardens or pets, announce that your vacant room to rent, start giving private lessons. There are numerous activities that turn into booster for the budget.
Use budget control apps
You need to keep a clear view of the household budget, know exactly where the larger spending is, control your bank accounts. This task does not have to be complicated or unpleasant: there are great applications to make it easier to control your financial life and, consequently, help you get out of debt, even if you earn little. Caring Mommy can help you – in just 2 minutes you see where you are spending.