How to reduce your debts?

It’s a matter of fact that economy is not healthy and can’t assure a solid welfare condition. As a consequence of all this general financial paralysis more often people find themselves unfortunately in a very hard condition of asphyxiating debts. The worst part of the affair is that, certainly, these debts are not due to their own will or fault. It’s still a matter of fact, everybody has the right to have a house to live in, to have a daily meal and a normal life, despite this some unpredictable and unmanageable events and circumstances have caused people owing much more money than they can give back. Don’t give up! There are solution to reduce debts and to have finally relief from them.

Surely there are various ways you can choose to reduce debt, the one you may consider valid is the result of more occurring elements: a personal way of being and contingencies. Having said that, the following are some methods to get rid off problems experiencing a “new life”.

Your DebtsFix precisely everything you can to check deep into your budget gap. Take note of all your debts, interest rates, household expenses, and all the money you are currently planning to spend. Try to be the most accurate as possible with every cent and make sure you list and write down income voices, liquid assets you may have that you can invest to lower your debt.

Do not forget to set highest priorities that are primary needs in ordinary life, such as home rent, food, clothes, water, utilities and medication for a lot of people who need health care. You may also need a vehicle to get to work if you live distant from your job, so you have to consider also the cost of the gasoline and mantainance.

It’s really important that in this scale of needs primary necessities come first than other things, but do not panic it is not necessary to stop with life and it’s not forever.

First of all you have to consider priorities and following all the rest things like in a pyramid where less necessary items are at the last stage. Remember that our aim is to reduce consumer debt so when you evaluate what really matters, try to imagine your daily life without some comfort such as technology obsession in TV, mobile and other status symbol. If you really mean to reduce your debts and to get back to life, try to consider you don’t need to conform to the mass. You need to understand the importance of living for a higher purpose and not for trivial goals.

Try to reduce the amount of your debt all at once by talking to your creditors, who may consider to pass over late fees and to lower interest rates and even to remove other penalties if they do occur. If it is not possible, there is the opportunity of a debt consolidation loan which will have the same effect.

Pay your debt eight times faster! How? You should consider to pay as much as possible, increasing the amount of money you give for your debt, so that it can be fixed quicker. The result is that you can avoid the effect of compound interest. We have outlined some advices you can take seriously into consideration to lower your loan and your debts.

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