The end of the month is approaching and with it the payments for services, cards and some monthly payments for your holiday purchases. If it was time to face all those debts that you postponed or could not pay at the time, and do not know how we share the following methods to settle them once and for all:
# 1 Totalero method
It consists in liquidating at the end of the month all the debts or credits that you have acquired. This method is ideal to settle the debts of credit cards or personal credits that you have, since this way you avoid generating interest for non-payment. Perhaps it is one of the most difficult methods to follow, since you must allocate a good part of your income to the payment of debts, and cut off all those unnecessary expenses or that you can do without.
Tip: Keep a check or record of your expenses, whether you do it every fifteen days or per month, the purpose is to learn what expenses are recurring and which ones you can avoid. Also, a rule is to not get into debt for more than 30% of your income.
# 2 Agreement method
If you have a loan and you have not paid for it for a while or you do not have the possibility to settle it but you are willing to look for alternatives to pay off the debt, you should know that the banking and financial institutions are willing to renegotiate the debt in order to find options to compensate the debt to them. Some ways in which you can renegotiate are to pay a lower monthly payment and thus settle your debt in a long time or, request the withdrawal, here you will reach an agreement to settle a certain amount of the debt according to your possibilities.
Important: This method is perhaps one of the most dangerous, because if you stop paying or get an agreement to pay less than you really should, your credit history is stained and before any bank or financial institution you are a bad prospect. If you come to request another credit, it is safest to reject your request.
# 3 Priority method
This method focuses on prioritizing the debts you have according to factors such as the interest they charge, the term and the amount to be paid. If you opt for this method, this is how you should rank your debts:
More expensive debts. That is, those that generate more interest if you stop paying them or if you fall behind a few days in the payment. Prevent the debt from increasing.
Debts of the greater amount per month. They will be those debts that represent a greater expense or outlay of money.
More flexible debts. Will be all those debts that do not generate interest for not paying on time or that they charge a low rate, those that do not involve a large outlay of money or have a longer time to settle them.
When acquiring a debt, make sure you can cover it in a timely manner, and know the consequences of not paying.