Here’s How to Overcome Debt Without Causing Problems

Linda D. Garrow

Debt is not something bad. Debt is a promise that must be paid, almost everyone has been in debt. Of course, every debt must be repaid, as high and as much as the debt. Therefore, you need to have the right strategy so as not to cause problems in the future. Because delaying debt payments will only make the debt pile up.

How to deal with debt without problems? Come on, see the full review below!

Type of Debt

Before discussing further how to deal with debt without problems, you should first know the type of debt. There are dual categories of debt, specifically:

Productive debt

It is a debt activity for financial purposes that will bring benefits in the future. For example, in debt to buy a house or business capital.

Consumer debt

This type of debt is the opposite of productive debt. Where someone is in debt to meet only consumptive needs, for example buying a new cellphone, or going on vacation. For more information: click here

10 Ways to Overcome Debt Without Problems

Arrange all debts

The first way to deal with debt without problems is to make a list of all debts. Don’t miss anything, big or small. Arrange all debts based on a priority scale to be repaid first. Preferably, arrange by maturity date and interest rate.

Pay off the debt with the highest interest rate or the closest maturity date.

Evaluate income and expenses

Seems trivial, but making financial planning is very important. Use the previous month’s expenses as a reference. Record items of routine expenses, then set aside to pay debts. 

The rest is utilized to gather other necessities.

Recording every expense will help you find out some expenses that are not crucial. So that these funds can be trimmed or diverted to pay debts.

Smart when shopping

When you are in a period of paying off debt, you should think smart when shopping. In a sense, you have to be frugal and be able to separate what is a need and what is a mere desire. Some people borrow money not because they need it, but just to fulfill a lifestyle desire. It’s a loss if your lifestyle causes you to be chased by debt collectors.

For example, when you usually eat snacks in the office canteen, you spend Rp. 20 thousand per day, try to replace it by bringing lunch from home. Snack money post temporarily diverted to debt post.

Find Additional Income

If you still have free time after work, there’s nothing wrong with taking overtime hours or looking for other jobs to get additional income. Match the job with the skills you have. You can join many freelancer platforms on the internet.

Being a freelancer makes it easy for you to earn extra money without interfering with your main job. For more information: learn more

Not Postponing To Repay Debt

One more approach to dealing with debt with no trouble is not to postpone doing payments. Adjust your main concern scale, every single time you get an income, repay off debt first before spending for other simple needs. Wherefore is that?

For the reason that, when you postpone debt payments, you will likely be persuaded to utilize the money for more consumptive desires. At the same time as a consequence, the allowance to repay debts turns into less / tired and outcomes in the probability of failure to pay.

Stay away from “Dig Hole Cover Hole”

The proverb “Dig Hole Close Hole” is not a solution to repay the debt the amount of debt will not decrease, it will increase. Try to be a smart online loan debtor with a focus on closing other debts without debt. After successfully closing the debt, you should immediately delete the online loan application so you are not tempted to go back into debt. For more information: debtconsolidation.com

Selling Some Valuables

If you want to repay the debt immediately, you have to sell valuable items in the house. For example, decent clothes or something else. This is because the public’s interest in preloved goods is currently increasing, especially since these goods are still in normal condition. You can sell them through social media or thrift shop platforms.

If you have a car or motorbike, you can consider selling it too. So that the debt can be repaid immediately.

Don’t think about it every time

As we know, being chased by debt is not wearing. When you are already in debt, then face it wisely. Debt is not to be thought about or lamented about all the time. Paying off debts must be pursued with maximum effort. Because it’s useless to think about debt to stress but you don’t take any action.

All you have to do is think about how where to get extra money to pay it off. If you haven’t found a side job even though you’ve been looking everywhere, then cut expenses and live frugally for a while.

Asking for Family Support

Support from family is very helpful when in debt. Do not cover debts from family or spouse. If necessary, invite your partner or family to also make savings until the debt is paid off.

Debt Restructuring

You can contact the creditor, to request a restructuring. Immediately contact customer service to find a joint solution in the event of default. Usually, the lender will provide special conditions. You can ask for an extension of the loan tenor so that the time you have can be used to find additional income.

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