Tips for getting out of a debt hole. How to get out of a credit hole? Ways to get rid of credit debts
It is not difficult to find yourself in a difficult financial situation: every missed payment on a loan or a loan is a new step to the debt hole. It is foolish to wait for the end or to pin hopes on the bankruptcy procedure for individuals: the first requires remarkable patience and willingness to communicate with the bank's security department employees and, even less pleasantly, with collectors; the second is the presence of a considerable amount, which would be enough to pay off obligations to the lender. In addition, the credit history of an unscrupulous or irresponsible non-payer will be corrupted for several years in advance - which means that he will no longer be able to count on the help of the bank.
Faced with a problem, people usually often start to panic, making chaotic movements: someone is trying to soap or soft toys, someone is hurrying out of the city or even leaving the country. It cannot be said that these methods do not bring results at all, but it is much easier and safer for the nervous system to develop an action plan and try to negotiate with creditors. What to do to get out of the debt hole, and how not to get extra loans again - let's try to figure it out.
How to get out of a debt hole?
The main advice for a person who wants to get out of loan debt is not to build too long-term plans and act on the situation. On the Internet or in stores you can find enough books with tips for beginning entrepreneurs - future billionaires; in addition to the general doubtfulness of the recommendations contained in such literature, it should be remembered that they are not adapted to Russian realities.
But do not despair: even a hopeless, it would seem, debtor can get out of the situation as a winner by looking at the problems from the right side and abandoning deceptive hopes and prejudices. To build the process with the least losses for yourself and still get out of the debt hole, you should adhere to the algorithm below. It is conditionally divided into five steps; some of them, depending on the state of affairs, can be divided into smaller elements, while others can be skipped.
There is no single “universal and error-free” way to get out of a debt hole. There are many people, the circumstances under which they take loans, no less, and the requirements of the lenders vary greatly. So, if Sberbank or VTB 24 is confined to reminders for a long time, and sometimes they even allow themselves to call a borrower who missed one or two payments, then smaller and more aggressive financial institutions, not to mention microcredit companies, will surely remind of themselves - and, as you can see from the testimonies of their former customers, in the most intrusive and at the same time stupid form.
Important:although in domestic practice there are enough examples of successful “silent” evasion from paying loans and borrowings, it is impossible to resort to such methods without really serious justification. The Russian legislation is undergoing permanent, unpredictable and not amenable to analysis, and a person who today does not risk anything but the reputation of the borrower, may tomorrow become a defendant in a criminal case. And taking into account the percentage of acquittals, in this case it is unreasonable to count on a favorable outcome.
So, you need to get out of the debt hole, communicate with creditors - too, but lurk in anticipation of a miracle - no. Now, having taken these provisions to heart, we can proceed to the first step - understanding the problem.
Analysis of the situation
Before starting to act, the debtor should be aware of what happened to him and how he got to this. It is not difficult to answer the first question, omitting irrelevant details: he ended up in a debt hole. The second is of biographical (rather than practical) interest and is more needed in order to tune a person to the right wave. The answers here may be arbitrarily many, but not one of them will be a sufficient argument for the lender and an excuse for the borrower.
The bank is not interested; a person ordered a credit card because he wanted it faster, or because of temporary setbacks in his own business; this is not the subject of a loan agreement. It's simple: the borrowed funds were provided by the lender, and the borrower must return them in full and on time.
Now, having finished with reflection, you need to analyze the problem that has arisen, answering the following questions:
- What is the total amount owed? The number of lenders now does not play any role: a person who finds himself in a debt hole on loans and borrowings, through more or less complicated calculations, calculates the final value (with all percentages, fines and penalties) and writes it on a piece of paper. This result should be further repelled.
- How many total lenders? Next (on the same sheet) you need to write down all the lenders in a column (from large banks and microfinance organizations to private individuals - professional loan sharks, acquaintances and neighbors). There is no need to give a discount on personal acquaintance or once friendly communication: most likely, over the past time the relationship has deteriorated, and although a private person who did not have the forethought to take a receipt from the debtor will not be able to sue, he will have enough ways to ruin the life of others by the way. To streamline the picture, creditors need to be listed in the above order - from large to small. The finished list will look something like this:
- Sberbank
- Uralsib;
- Permdrovbank;
- MFI Take Money;
- MFI Give Money;
- Ivanov Semyon Petrovich, private investor;
- Nikanorov Lev Abramovich, colleague;
- Shchekin Nikolai Ivanovich, a neighbor in a country cooperative.
- What danger does each of the lenders pose? It is possible to reformulate a slightly frightening question differently: who first of all needs to return the borrowed funds? A person who has already found himself in a debt hole should approach the problem from a purely pragmatic side: one should not count on restoring friendly relations, but one must strive to resolve the situation in pre-trial order. Based on this, lenders should be the first in the payment list:
- with the most stringent credit conditions - repayment periods, penalties and fines;
- with a large period of delay - in other words, those to whom the debtor appealed before the rest;
- promising - in which a person who finds himself in a debt hole expects to be credited in the future.
- What are the current debtor opportunities? It is clear that all income (if any) goes to pay for utilities, food and other urgent needs. However, before folding your hands and finally falling into despair, you need to at least write down the articles of income and expenses - this will help in one of the following stages.
- How many people are able to allocate to pay off debts (debts) now? This question is directly related to the previous one - and for the reasons stated above, it may remain unanswered at the “preparatory” stage.
- Who has the opportunity to help with the payment of debts? It should be considered only people who are ready to act free of charge and without any motivation, since the repayment of the obligations of a private person from the practical side is not interesting to anyone, and therefore, is not necessary. You should not count on it - only if the debtor does not have the exclusive gift of persuasion or cannot offer a worthy business project in exchange for the service. Persons who can be contacted should be listed on a separate list - as well as lenders.
- Is legal assistance possible? In answering this question, only trustworthy organizations or private lawyers with a sufficient number of positive recommendations should be considered. Since a person who finds himself in a debt hole has no or almost no money by default, the services should be either free or have a minimum cost. In no case should you borrow the next amount in order to get advice from an advertised company: either fraudsters or incompetent lawyers can work there - the money will be thrown away, and the debtor will have to pay several thousand rubles more to creditors.
Tip:in order not to get confused, records can be kept in electronic form - in a text document or a table. The latter option, for example, using the Microsoft Excel editor, is most convenient, since it allows not only to supplement the document and make changes to it, but also to make calculations using the capabilities of the software. Another advantage of the spreadsheet is the flexibility of settings: the user can make an unlimited number of notes on one sheet or create a multi-page document.
Dialogues with creditors
Now, having carried out an initial analysis of the situation, we can proceed to the next stage - the preparation and conduct of negotiations with creditors. With the exception of emergency situations, hiding from lenders, whether they are banks, microcredit companies or private individuals, is not necessary: \u200b\u200bthis will only lead to complications with law enforcement agencies, but it will not help to rectify the situation.
Important:lenders should not be afraid either. The vast majority of them adhere to the norms of the law in their activities, and getting their money back is more important for them than it is for the borrower to repay the debt. In Russian reality, filing a lawsuit with a court is fraught with numerous difficulties, loss of time and expenses for lawyers, and therefore, even banks practice it only when a significant amount of loan debt is achieved. The ability to negotiate remains almost always - you just need to get together and start acting.
To build a dialogue with the creditor is necessary based on its status, size of the debt and other relevant circumstances. Conventionally, we can distinguish the same three categories of lenders: banks, microfinance organizations and ordinary people. In order not to improvise along the way, you should prepare a conversation scheme with each of them in advance - or use ready-made options, slightly modifying them in accordance with your own needs.
When you first talk with the creditor bank, you should:
Having a payment schedule in hand, a person trying to get out of a debt hole can safely proceed with actions. If the bank nevertheless filed a lawsuit in court, the process will be delayed and, most likely, the debtor will have to deal with the Federal Bailiff Service.
In this case, you need to pay attention to the order of execution of the decision: the court order, due to the ease of receipt - a favorite means of creditors, has two drawbacks. Firstly, it can only be received in respect of a small amount of debt; secondly, it is automatically canceled when a borrower submits a protest - and so on until a new review, an infinite number of times. If the bailiffs act on more substantial grounds, the debtor will not only be forced to pay, but will remain without valuable property that goes under arrest.
The procedure for communicating with a microcredit company is similar to that presented above, but there are several exceptions:
- Taking into account the specifics of the work of MFIs, the degree of respect in a conversation with its representatives can be reduced until communication becomes constructive. Do not be shy - as has been noted more than once, the need for establishing relationships is more experienced by the moneylender than the borrower.
- If the lender decided to involve a collection agency (usually his own subsidiary), you need to remind him of the current legislative restrictions on their activities, stressing that you are not going to tolerate illegal actions.
- Quite often, a microcredit company offers to take a new loan from her or from her partners in order to pay off the old one. This should not be done, unless the debtor has a desire to acquire additional obligations that will be more difficult to fulfill than the original ones. It is better to insist on the preparation of a payment schedule or to offer the moneylender to file a lawsuit in court; in 99% of cases this will not be done, and the debtor will finally achieve fair repayment conditions.
The way to build a dialogue with a lender - a private individual depends on his status and previous relationships with the debtor. In general, for productive communication with the lender, it is enough to follow the following algorithm:
- Find the right person and, recognizing their wrong, offer him to solve the matter peacefully. In this case, it already makes sense to tell the creditor about the troubles that have occurred: perhaps he, having penetrated, will forgive a part of the amount or offer more favorable payment conditions. Do not skimp on the details: the clearer the state of affairs for the lender, the more likely it will be to meet the borrower. However, caution must be exercised: too keen on details, a person who is already in a debt hole risks being left without sympathy or being included in the category of liars. Then, of course, he will have to pay the money immediately and in full.
- If funds were issued against receipt, ask the lender to show the document and clarify the willingness to destroy it after paying the debt. However, even if the money was provided without paperwork, you should not neglect your duties - at least in order to maintain good relations with the creditor.
- Once again emphasizing his respect for the lender, to offer him to draw up a schedule for payment of arrears, if the full amount is not returned at once. The repayment plan can be made both in the form of a spreadsheet (its benefits were described earlier), and on paper. A notary is not required to certify a document, although by agreement the lender and the borrower can take this step.
Having solved organizational issues, you can proceed with payments - and where to find funds for this will be described in the next section.
Cost and income control
To give money, they need to be taken from somewhere. A person who decides to get out of the debt hole should make a full list of his income: official (salary, pension, other social benefits) and unofficial - for example, from selling handmade souvenirs or providing minor repair, cleaning, and other services.
Important: in order to plan payments for accumulated debts, there is no need to communicate with the Federal Tax Service - which means that the list should list all sources of budget replenishment as honestly as possible, no one will know about them except the debtor and his proxies. Also, don’t be afraid to show the calculation sheet to creditors: they are interested in fulfilling their obligations by the debtor, and not in the efficiency of tax collection.
The next step is to compile a list of monthly expenses; they can be divided into several categories:
- Payment of utilities, rental or rental housing. Funds for this item must be allocated immediately, without trying to save on obviously necessary costs - otherwise a person who is in a debt hole will not only not be able to get out of it, but will go even deeper, contacting this time the management company.
- Necessary expenses. It is still necessary to purchase medicines, household chemicals, hygiene items and cosmetics, and it is highly discouraged to save on them, at least in the first paragraph. Debt on loans is, of course, unpleasant, but not fatal, but from improperly selected analogues of expensive medicines, a person may lose the opportunity to solve their problems on their own.
- Urgent waste. If the last jacket has deteriorated or the labor tool has broken, you will inevitably have to go to the store for a new item. Costs are significant, but usually one-time - so you can put up with them.
- Money for repayment of loan obligations. The required amount must be postponed immediately - otherwise, most likely, by the time of the next payment, nothing will remain on the debtor's account.
Unaffected funds should be distributed “for life”, using, for example, the “five envelopes” method. The amount is equally divided into four envelopes, each for one week of the calendar month, and the balance is spent for the remaining days according to the “28 + 1, 2, 3” scheme. Every seven days you should spend money from only one envelope, without looking at the rest. If a certain amount remains at the end of the “reporting period”, it can be used to:
- entertainment and recreation;
- investments in one's own future: purchase of securities or placement of funds on deposit;
- increase in the amount of the subsequent payment for one or more debts.
Typically, the lender offers the debtor the possibility of early repayment of the loan. No need to neglect it: the faster a person can get out of a debt hole, the easier it will be for him to return to normal life.
Search for financial sources
Sources of financing for a person who finds himself in a difficult life situation and seeking to pay off loans can be:
- Own salary or other income, directly dependent on the actions of the debtor.
- Means ready to help relatives: salaries, pensions, benefits, unofficial income and other accumulations, as well as, if necessary, liquid assets: a house, an apartment, a car, and so on.
- Sponsor or stakeholder money. It is difficult to obtain them, the philanthropist does not receive any guarantees, therefore, if the debtor is lucky, you should not forget a good deed: at least you need to compose and send it immediately after solving the problem.
- Involved funds. Of course, taking a new loan to repay the old one is far from the best option, but sometimes the only one possible.
Finally, after talking with creditors and finding funds, a person who finds himself in a debt hole can begin the most pleasant stage of getting out of it - reckoning.
Drawing up a debt repayment plan
The loan fulfillment plan is drawn up individually. Both parties must participate in the process - both the lender and the borrower. Both of them are interested in a favorable outcome of the negotiations, and therefore, in order to get out of the debt hole with the least losses, one does not have to give up the opportunity to take matters into their own hands.
Tip:to create a payment plan, you can involve a professional in the banking sector or an economist. This will help (at a certain cost to pay for its services) save time and avoid errors in the calculations.
How not to be in a debt hole again?
In order not to be in a difficult situation again, the former debtor needs to adhere to the principle of reasonable savings and not spend money on unnecessary acquisitions. It is much more reasonable to invest them in promising business projects or store them in a bank on a deposit account. Then, having the right amount in hand, a person will no longer be forced to take another consumer loan - therefore, he will save himself from the danger of getting into another debt hole.
To summarize
The first rule of the debtor is to contact creditors. Refusing to communicate with them and hoping for the expiration of the limitation period is not constructive - it is better to proceed with active actions. To begin with, you should contact the lender and, explaining the essence of the problem, offer to determine the total amount of debt with accumulated interest and make a schedule of payments.
In the future, the borrower should determine a list of monthly income and expenses, taking into account the amount necessary to fulfill loan obligations. The schedule of contributions is compiled individually - based on the preferences and requirements of both parties to the contract. In the future, in order not to fall into the debt hole again, you should control your expenses, set aside part of the proceeds on deposit and not take new loans unless absolutely necessary.
Get rid of debt - one of the first and important steps towards financial independence. I managed to do this. My method is suitable for someone who has simply large debts (exceeding your income per month by no more than 10-12 times). Thanks to God, I didn’t get to the huge debts - I started to act in time.
Step 1.
Honestly admit that the difficult financial situation is your fault. Yes - it’s yours. The easiest way is to relieve oneself of responsibility and complain to oneself and to everyone around: “the parents are poor, the country is poor, the salary is small, there is no justice”, etc. etc. Someone even enjoys this. Or repeat "happiness is not in money."
It is difficult to take responsibility for your financial situation. But without this, one cannot get out of a debt hole.
Step 2 Love the money. Thought is material and we, without realizing it, attract to ourselves what we really love. And pushing away what we don't love.
Step 3 Write down all your debts - to the bank, friends, relatives. Set priorities and maturities. If there is an opportunity to agree on a deferred payment - use this opportunity. If the deadlines are running out, but you understand that you will not be able to pay soon, take a loan from a bank. If the credit history is still clear, the bank will gladly give you this loan. But take this issue seriously. On the Internet you can find a loan calculator and compare the conditions of different banks. Choose the optimal for the term and amount of the monthly payment for you.
Important notes on this item:
- when agreeing on a deferred payment, you must know the period by which you can certainly pay off the debt. You can calculate this with an error of 2-3 months if you read this article to the end and follow the recommendations.
- the amount of a new loan should in no case exceed the amount of today's debts. It is better if it is 10 - 20% less. Do not fall into the trap of "I will take a loan to pay off debts (for the last time! - honestly) and to buy vacation tickets, cars, fur coats ...". This is a snowball and you cannot get out from under it.
- the date of the monthly loan payment should be 1-2 days after the salary or advance payment. If you are used to living from paycheck to paycheck, it’s easier to pay.
- you take this loan in order to pay off all debts of the current moment, reduce the amount of the monthly payment and postpone the date of the final settlement.
- in the terms of the loan agreement there must be a clause on the possibility of early repayment of debt without penalties.
Step 4
Take control of your expenses. No need to deny yourself everything and tremble over every penny. From such savings, depression and self-pity intensifies.
There are many programs for home accounting. But I do not advise spending a lot of time searching, installing, studying. If you have minimal experience with Excel’s, a simple sign is enough. My file can be downloaded. The main thing is to learn not to throw away checks and write down expenses for a month every day. How to work with the file I described in the article.
Priority payments every month - utilities and credit. Within the remaining amount, buy everything as usual (we are talking about food and basic necessities - there is no money for larger purchases).
Step 5
At the end of the month, allocate 3-4 hours for cost analysis and budgeting for the next month. Think about what you can refuse, what you must buy in the next 6-12 months (fridge, boots, coat, suit, etc.) and select a new column in the “purchase” expense.
You can draw up a plan from the first, but I advise you from the day of salary. It’s easier to plan.
After one or two months, you will find that you are making purchases less and less on the principle of "and I'll take this just in case." And at the same time, you do not feel left out, just sound control of expenses is included.
Step 6
After 3-4 months, open a savings account in a bank. Do not be surprised - it is funded. The fact is that you will pay off your debts.
But that is not the point. The main thing is financial independence. Getting rid of debt is only the first step. From this moment, you will receive another top-priority monthly payment - “For Yourself”. Not to be confused with the “buy” column. These are different things. Usually advised 10% of income. You can start with 5%. But be sure every month. What you need to pay attention to when choosing a deposit can be found in my article.
Step 7
Constantly educate your financial literacy. Books, Internet, trainings, webinars, experience of successful people.
This article is based entirely on my personal experience. Two years ago, the amount of my debts was 10 times the monthly income. Now there are no debts, and the positive balance is several times (I will not specify exactly how much - this is my trade secret) more than monthly income.
Before developing my personal plan for overcoming the financial crisis, I read a lot of literature. In the following article I will tell you exactly which books helped me.
If you have experience getting out of debt - share in the comments.
I wish you success and prosperity!
It’s very easy to get a loan today: banks are ready to give them out even without certificates and guarantors. This attracts more and more customers willing to take a money loan. Unfortunately, soon there comes a moment of reckoning for their thoughtless actions, and citizens begin to look for all possible options in order to repay the loans. However, it is not necessary to go to the bank. The passion to borrow money from friends and acquaintances also does not pass unnoticed for the family budget. How to get out of debt will be described in this article.
Assess the situation
First of all, when the question of debt arises, it is necessary to correctly assess the current situation. Depending on who you borrowed, from the bank or from relatives, further actions will depend. For example, if there are debts to relatives or friends, the problem is much easier to solve. By applying for a deferred payment, you can find a side job and pay off in the near future.
If there is a debt to the creditor, then you must act immediately. For example, having obtained a loan, a person relies on his strength and capabilities, but unforeseen situations can always happen, and at the most inopportune moment. That is why, faced with financial difficulties, you should immediately contact the bank with a request for a deferred payment. As a rule, credit organizations meet and do not charge a fine for a small delay.
Where to wait for help?
Having asked the question "how to get out of debts and loans," the debtor must know that he can always be helped. For example, in the case of debt to friends or relatives, you can always turn to someone else for help, re-pay money and repay the debt. Of course, such a step is an extreme measure, because in any case, this does not solve the problem. You still remain financially dependent.
If the creditor is a bank, then guarantors can come to the rescue. Most often, financial institutions insure issued loans and issue loans only if the borrower has a guarantor. This, of course, concerns large sums, not small consumer loans. In this case, the surety is now the main solvent person and repays the debt for the main borrower.
In addition to these options, you can often see ads: "Help get out of debt." The role of assistants here is played by individuals or microcredit organizations, which, having paid off your debt, will issue a new one, only at huge interest. The real bear service. That is why it is better to avoid such help.
Action plan
First of all, you need to get rid of small loans. So, paying off small debts, it will be easier to focus on larger ones. To make decisions easier, you should put things in order in financial matters. It is precisely because in home accounting that chaos reigns and credit debts appear. Thus, taking control of all your income and expenses, you will be able to further navigate in which direction to move. If the income level allows you to pay bills on time, but some budget items do not allow this, then it will be best to temporarily or completely remove them from the list of necessary ones.
Further, having understood your financial capabilities, you can proceed to action. In a situation where there is clearly not enough money and the credit limit has been exceeded, new sources of earnings should be sought. This may be an additional part-time job or a new type of business, or you will need to take overtime. But in no case can you arrange a new cash loan.
Having allocated money for a month, you can proceed to planning the next. So you will see where there are still problems, which means that it will be possible to move on to solving them.
Ways to pay off debt
The best way to become debt free is to give up on them in the future. That is, after paying off all debts, the temptation to purchase a thing on credit should be avoided.
Having a debt to the bank, you can ask him to lower the interest rate or to achieve restructuring. At first glance, this seems too complicated, because financial institutions do not intend to simply lose profits. But in fact, lenders are interested in at least returning the issued money: this is better than declaring a debtor bankrupt and losing all their funds. That is why, by contacting the manager with a request to change payments, you can get a chance to pay off debts in a more convenient form for you.
If this method does not help, then the insolvent citizen may ask for a delay. During the time that the bank or lender allocates to not pay the debt, the debtor must put his financial situation in order.
How to get out of debt quickly
If there is no possibility or desire to wait long and constantly worry about your financial situation, then there are two options. In the first case - to sell collateral and pay off debt. Then the creditor will immediately write it off, and the borrower will have no credit obligations. If a money loan was taken not from a credit institution, but from friends or acquaintances, then you can also sell any valuable thing. The proceeds will go to repay the loan.
The second answer to the question "how to get out of debt" is to declare yourself bankrupt. This is an extreme measure leading to the fact that in the near future a person will not have the opportunity to take loans anymore. The court declares the insolvent citizen bankrupt and writes off his debt to the bank.
How to get out of credit debt
In the event that the borrower does not want to appear in the black list of banking organizations, you can try several more solutions to the problem. For example, some individuals apply for several loans at once. In this situation, a good way out is to ask for a deferment of payments at banks with lower interest rates. Thus, by paying off the proceeds of the entire debt to the organization with high interest, the borrower frees himself from more urgent obligations. After this, the remaining loans should be paid off in order (also in full). When one debt remains, it will be possible to pay it off normally or, if circumstances allow, to close it completely.
Magic to the rescue
Caught in a difficult financial situation, people begin to look for unconventional ways to solve the problem. For example, those who believe in magic try to read the plot. It is unlikely to be able to get out of debt in this way, but it will help instill confidence in one's strengths and give hope. Signs of cash can also help. There is a superstition that at night you can’t take out the trash from the house, otherwise the money will cease to be found. Perhaps someone checked this method on himself, he really helped and answered the question of how to get out of debt. However, the whole point is not in magic, but in revising a person’s attitude to his income and expenses. Financial discipline and increased efficiency can work real miracles.
Many citizens who take loans do not even read the terms of the contract. But in vain! There are several ways to save and not pay too much. For example, with early repayment, you can save more than one thousand rubles, but when using bank cards, on the contrary, you can spend extra money.
Some debtors sometimes even hope for a miracle. There is an opinion that there are rich Muscovites who help get out of debt. Of course, it is theoretically possible to imagine a situation where a good uncle decides to repay your loan. However, what will he demand in return? Break into new debt? Or work out at his enterprise? Before looking for information on such solutions to the problem, think: do you need it? As practice shows, it is better not to believe rumors and various fables, but to try to pay off your debts yourself.
To summarize
The reasons leading us to a debt hole can be very different. Sometimes, really the only chance to get out of a difficult situation is to get a bank loan. Then, to insure yourself, you should seek the help of guarantors. Thoughtless and unreasonable processing of loans may soon turn into a problem, and then another question will need to be solved: how to get out of debt? Prayer in this situation will help little. You can only strengthen your belief in an early solution to the problem, but in reality it is only necessary to attract additional income and reduce costs. In order not to become a hostage to eternal obligations, it is necessary to stop using light loans.
Andrey Lipov
A debt hole is one of the worst things that can happen to a person. Obligations to creditors hang like a stone on the neck, do not allow you to rise, straighten up, breathe in a completely financially independent chest. Every day, interest, penalties and fines are dripping. The noose is already tightened. Instead of the usual thoughts about rest, a car, housing, the only dream that remains for a person is the dream of freedom. You need to get out of debt at all costs. Fortunately, this dream is achievable.
The problem of the credit noose is that it lies very softly and imperceptibly on the neck. We take a mortgage, then we want to update the car, and together with a car loan without proof of income, we agree to get a credit card in addition to the three that are in our wallet. And it quietly turns out that loan payments occupy such a huge part of the monthly budget that it becomes impossible to endure. In this case, we recommend that you think about one or more of the following methods of getting out of a debt hole.
1. Try to use prepayment
The fact is that banks specifically try to make you stretch your agony. Still would! Every month you pay them interest. If you pay ahead of schedule, firstly you will reduce the amount of the monthly payment, and secondly, if you manage to reduce the loan term in this way, you will save tens of thousands (and in the case of a mortgage - hundreds of thousands!) Rubles simply by reducing the number of monthly payments.
It goes without saying that you should not rush thoughtlessly to extinguish ahead of schedule. First, find out how much you have left to pay. Then you must reread the loan agreement. What penalties does the bank assume for such an operation? Remember, because it is not profitable for him, so he will interfere with you. Therefore, it is necessary to calculate - what amount of early repayment will be beneficial for you, and which will not be enough.
2. Do not put money in the bank, better repay the loan
This advice is closely related to the previous one. Its essence is as follows: what is the point of waiting for interest from one bank if you yourself pay interest to another bank? Think about it: what does the bank do with the money you brought to it for deposit? Yes, he just gives them in the form of loans to other people! There are banks that do just that. Do you really think that in this situation the bank will issue deposits at a loss ?!
So, if you have a goal to buy a good car in a year and you save money for a deposit, at the same time paying off a consumer loan for equipment, you should consider the following option: remove all the savings and put them to early repayment. The amount of monthly payments released in this way will be directed to “car” savings. As a result, there may be much more if you continued to save and pay at the same time.
Again, the advice is not always fair. It all depends on the conditions of the loan and the deposits available to you. Such a scheme may be psychologically uncomfortable, but the goal of getting out of debt requires decisive action.
3. Get to know avalanche techniques and refinancing
If you have debts on several credit cards, a consumer loan and something else, you just need to optimize the payments for this entire economy. You want to get out of debt faster, don't you?
Arrange all loans in order of increasing interest rate. Think about whether you can refinance, that is, convert a debt with a higher rate into a debt with a lower one? For example, early repayment of an expensive consumer credit credit card with a lower rate? The goal is to make sure that the largest amount of borrowed money falls on a credit instrument with a lower rate.
After you refinance, start aggressively repaying the remaining loans, starting with the most expensive. That is, try to early pay off the debt with the highest rate, and for all the rest, make only the minimum payments. Thus, you will avalanche decrease the amount of your payments.
Be careful. When sorting loans, use not nominal, but real (effective) lending rates to take into account all possible sanctions of banks for such actions. But despite the obstacles, anyway this method will be beneficial for you.
4. Borrow from friends and relatives
Your loved ones may borrow money and not require any interest. But you must use this money for one of the above techniques.
It is clear that this question is extremely dependent on your ethical beliefs and relationships in the family or with friends. Remember, no debt hole is worth your relationship with loved ones. Never jeopardize this relationship, no matter how bad you may be. Because if you happen to sink to the bottom and fall through it, only they will help you.
Be that as it may, good relationships with people can be a source of interest-free loan for you. If you are unsure of yourself, enter into a written contract with the one who gives you the money. Use them wisely. Calculate so that you repay this new loan with savings on payments on other loans.
5. Sell off property
As a final option, start selling items and directing money for early repayments. It’s early, because if you get so bad that you’ll be forced to sell things to the bank by selling things, there’s little that will save you.
There is an institute of personal bankruptcy abroad, but with us, unfortunately, this is not applicable. Instead, we have a court that will describe all of your property at a price much less than what you could help out on Avito. And the bank will take these things from you, not even at the expense of interest, but at the expense of penalties and fines, which you will manage to charge.
Therefore, you must act in advance. Sacrifice material comforts for getting out of a debt loop. Psychologically, it is very difficult to part with your favorite car or summer house. But understand, if you are threatened to plunge into a spiral of penalties for non-payments, the outcome of this spiral is only one - you still lose your things. Only in the first case you can return them much faster.
How to get out of debt - your main task
The first and absolutely necessary step to financial independence is to get rid of the liabilities that are pulling you to the bottom. Your allies: a sober mind and the right calculation.
We are all subject to emotions and desires. We take loans privately without thinking about how they threaten us. To hell, it's safe. But when this feature is passed, the task of how to get out of debt should be your main goal.
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Debt is the reason why you can’t save money and plan for the future. When you owe money to someone, all efforts are made to pay off the debt and continue to live in peace. Debts do not allow to develop, to dream, lead to depression and scandals. But everything is not so bad, of course, if you did not delay the return of money to the Sicilian mafia. There is an algorithm thanks to which you get out of debt and adjust your financial situation. It remains only to read.
Think where debts came from
This is the first question that you must answer yourself. Perhaps the crisis was caused by your inability to save and rationally distribute funds. Being a lover of a walk as it should, you spend finances, not thinking about tomorrow, driving yourself into bondage.
But not always a crisis can be caused by waste. Sometimes the reason may be a small salary, payment for medical services or other urgent investments. Understanding where the entire financial flow goes will help to deal with this problem in the future.
Cut waste
Not all spending is as necessary as you think. To understand what you are overpaying for, you need to do the following: calculate how much you pay for housing, utilities and daily meals. Subtract this amount from your salary and calculate what the rest of the money is spent on. Suppose if a lot of money is spent on clothes, a car, or a rented apartment is too expensive, then these items can be reduced. It is not necessary to move to live under a bridge and ride a camel. Just find a more modest accommodation and stop wrapping circles around the city at night. Romantic, but not affordable.
Arrange debts
Find all the lenders and understand what debts you need to deal with first. If you owe money to banks or other credit organizations, then focus on paying off them first. Otherwise, a penalty may be added to the amount already available, which will increase the already large debts. With secondary lenders, such as family members and friends, agree that you will return the money a little later, because these people can enter your difficult situation.
Determine how much you can allocate to pay the debt
In order not to starve and not to beg, while you will pay off debts, it is necessary to identify the optimal amount that you can allocate for settlement with creditors. Subtract the necessary expenses from your income, such as: food, payment of medical bills, payment of housing, transportation costs. What remains after these calculations is the amount that you can. But keep in mind that sometimes unforeseen expenses will occur, and sometimes it is simply necessary to allocate an amount for small pleasures.
Build a debt repayment plan
You must understand what debt must be repaid first. As we said earlier, some debts can be pulled even larger, so deal with those that are subject to interest.
Then calculate the amount that you will give monthly. It is best to pay debts on one of your accounts, and not on all at a time, so that the amount of payments is tangible. Yes, and pay in this mode is much easier. You will understand who and how much is left to return, the main thing is to agree with creditors on the terms of payments.
Calculate the time for which you will pay off your debts. This is necessary in order to build a plan and understand your prospects. Use the debt repayment calculator to determine the optimal time it will take to pay the account and the amount of the monthly payment. Pay attention to the fact that if you pay too much debt repayment, then over time they will not decrease, but only grow.