HOW TO REDUCE BEBT.
HOW TO REDUCE BEBTU.
ChangingSpot
8.tips to reduce your debts
This sum includes all the household debts (mortgage, car loans, student loans, credit cards, etc.). Of this sum, a certain part is made up of good debt such as the mortgage, which constitutes an investment. The other part, meanwhile, consists of anything that depreciates like a car or spending on credit cards.
Julie Pombert, Senior Director, Payment Solutions at National Bank explains that often people get into debt because of a lack of knowledge of balanced financial management. According to her, the key is education. So, to equip you, we have put together eight tips that will help you reduce your debts.
1.Start now
The longer you wait before creating your debt repayment plan, the more the debt will grow. As these interests accrue, the actual cost of your purchase will increase. Start paying off your debts now so you don't have to pay avoidable costs.
The consequences of forgetting to pay minimum debts are far greater than just increasing the debt. Failure to pay your credit card minimum balance repeatedly can seriously affect your credit rating, which will make it harder for you to borrow in the future.
5. Pay off larger amounts on high interest debts
Prioritize debts with the highest interest rates. You will therefore eliminate the debts that cost you the most in interest which will decrease the amount you owe more quickly. Julie Pombert explains that by doing so, you will recover your monetary capacity, which means that you will have more money to put on your other debts.
6. At equivalent interest rates, prioritize lower value debts
It’s just for motivation. At equivalent interest, you should focus on the debt that represents the smallest amount. Seeing your debts disappear will motivate you and you can then tackle the bigger pieces. Also, closing a debt is good for your credit report.
7. Consider the consolidation loan
A consolidation loan is a loan granted by your financial institution allowing you to repay all, if not most, of your debts. This makes it possible to centralize the amount to be paid so as not to forget the payment, but the main advantage is that the interest rate of a consolidation rate is often lower than that of credit cards. However, you must act quickly if you are no longer able to pay your debts, because a bad credit rating will harm your chances of obtaining a consolidation loan.
8. Build a personalized repayment plan
The best way to get a personalized repayment plan is to talk to your National Bank professional. He can guide you in achieving realistic goals as quickly as possible.
How to manage financial problem
8.tips to reduce your debts
This sum includes all the household debts (mortgage, car loans, student loans, credit cards, etc.). Of this sum, a certain part is made up of good debt such as the mortgage, which constitutes an investment. The other part, meanwhile, consists of anything that depreciates like a car or spending on credit cards.
Julie Pombert, Senior Director, Payment Solutions at National Bank explains that often people get into debt because of a lack of knowledge of balanced financial management. According to her, the key is education. So, to equip you, we have put together eight tips that will help you reduce your debts.
1.Start now
The longer you wait before creating your debt repayment plan, the more the debt will grow. As these interests accrue, the actual cost of your purchase will increase. Start paying off your debts now so you don't have to pay avoidable costs.
2.. Keep an eye on your daily expenses
If your lifestyle does not allow you to repay even the minimum payment of your debts, you should review your habits. Take the time to think about ways to cut your everyday expenses. To help you, write down everything you buy for a month, and at the end you will see what could be changed.
In addition to keeping close track of your daily purchases, there is also a list of things you could consider to cut back on expenses.
negotiate and compare the services you pay for monthly such as insurance, telecommunications services or car payments
bring your meals to the office rather than eating at the restaurant
favor public transport rather than the car
avoid unplanned expenses
stop smoking
make a shopping list before going to the grocery store to buy only what you need
opt for house brands in grocery stores
Repair items when they are broken rather than replacing theminstall smart thermostats to save on heating costs
take advantage of the sales to redo your wardrobe.
3. Avoid "buy now, pay later"
According to Julie Pombert, to avoid debts, it is better to stay away from the "buy now, pay later" payment formulas. Often these promotions have the effect of giving buyers the impression that they have money that they do not have. Consumers therefore spend more than their means allow, which adds to debts.
5. Pay off larger amounts on high interest debts
Prioritize debts with the highest interest rates. You will therefore eliminate the debts that cost you the most in interest which will decrease the amount you owe more quickly. Julie Pombert explains that by doing so, you will recover your monetary capacity, which means that you will have more money to put on your other debts.
6. At equivalent interest rates, prioritize lower value debts
It’s just for motivation. At equivalent interest, you should focus on the debt that represents the smallest amount. Seeing your debts disappear will motivate you and you can then tackle the bigger pieces. Also, closing a debt is good for your credit report.
7. Consider the consolidation loan
A consolidation loan is a loan granted by your financial institution allowing you to repay all, if not most, of your debts. This makes it possible to centralize the amount to be paid so as not to forget the payment, but the main advantage is that the interest rate of a consolidation rate is often lower than that of credit cards. However, you must act quickly if you are no longer able to pay your debts, because a bad credit rating will harm your chances of obtaining a consolidation loan.
8. Build a personalized repayment plan
The best way to get a personalized repayment plan is to talk to your National Bank professional. He can guide you in achieving realistic goals as quickly as possible.
How to manage financial problem
Comments
Post a Comment