How to get out of debt and organize your pocket: useful keys and tips

clear debts

It is important to clear the debt. “Do an audit. Determining the dimensions of your debt helps you set priorities and be realistic,” He says. This task involves making clear how much you owe, who you owe, and the cost involved. This way you can discover where you should start paying.

Why do we fall into debt?

It is necessary to understand why we are in debt. “Debt does not appear spontaneously. You have to be decisive to accept why you have reached this point.” Macias warns. She is convinced that if we do not find out this reason, it is very likely that we will become repeat offenders.

We have to pay

Accept that you must pay. “Any solution other than that, it will have future consequences,” he explains. The most obvious thing is that it will stain your credit history, and you will most likely not be able to access financing when you want to take on a big project like a home or a business.

Income and expenses

Be honest with your income and expenses. This way you can determine the true amount you have to pay off your debts. “If the amount is less than what you may need to speed up the payment of your debts, first try to reduce expenses or find an alternative source of income,” the specialist explains.

Pay off as soon as possible

If you have many debts, it is always best to pay off some of them before allowing them all to grow. Even if you have to renegotiate the amount owed, leave the removal (offering to pay less than what you owe in interest) as an extreme resource, as Macías warns that it will also hurt your financial history.

Pay and save

It not only pays off debts, but also saves. “It happens to many that they pay well, but they quarrel, and because they have no rank, they fall into debt again.”

Click in the mind

Reprogram your mind. Macías says we should have the premise that everything can be accomplished, but not at the same time. Plus, it highlights that the only positive thing about having debt is that you gain experiences to be more careful later on and have a better financial life later on.