How to honor your debts
From ArticleWorld
Take action
If you are besieged by the weight of credit card and loans take action. There are two immediate things you can do: make a budget, and/or look for a second job. If you make a budget, plan on keeping a record of your income and purchasing habits for one to two months. When looking for a second job, part-time work might be the way to go. If you can only work for one night a week at $50 dollars, that is $3000 a per year which could help you pay off a minor loan Or the money could be use to overpay and clear a debt, and this will leave more money for another loan.
Pointers
- First, if at all possible try to cut your spending in half and get a second job. The ability to do both will help you to reduce your spending by $100 or $200 per month while bringing in the same amount. Therefore, your financial circumstances will improved faster.
- Second, think about asking a lender for help. If you do so, explain to them why you need their help and be honest. Do not lie, when it comes to money, and other parts of your life, be honest. This also extends to family and friends, if you need help do not be frighten to ask for it. If they offer you support, financially or emotionally, accept it gratefully.
- Third, treat people (experts) who offers you financial assistance well, the odds are you are not paying them much or not at all, so treat them with the respect they deserve.
- Fourth, always pay everything on time, all the time. Finance is all about the money and the amount, but remember that real live people, with real feelings control the money.
- Lastly, you will need support during your debt circumstances. Make sure you get people you admire and trust to help you, and who are on your side.
Don'ts
Don't start paying off the bigger loans first, begin repaying the smaller ones off. By getting rid of the smaller ones first, you will free up the income that was being used every month to pay off the interest of these debts. Also, overpaying every month will help you get out of debt faster, which will give you a much needed feel of accomplishment, which will keep you motivate toward your goal of paying off your debts.