In the first episode, we advised on how to choose a secure loan. In the second one, we came up with advice on what to do if you have problems. So we have to analyze a situation where problems, most often in the form of executor, are already tapping on the door. This time we have 4 hints for you .
However difficult the situation is, you will not help panicking or ignoring the problems. Clench your teeth and don’t let your debts pull you down to the very bottom of your spiral, where you lose the roof over your head and recover your family members.
Contact your creditor and inform him about the problems
We have mentioned this point last time, but it is important enough that we reiterate it. Regular contact with the creditor, if honest, can prevent execution.
Tip: Remember that a lender doesn’t want to make your life a primary, but he wants his money back. When they see that you are dealing with the situation, they prefer to set new terms with you rather than call the bailiff.
Reduce any unnecessary expenses
Take an inventory of your monthly expenses and think about what is really necessary. And be honest with yourself. You can go to work by public transport instead of by car, you also don’t have to go to the cinema every week. Grocery can be bought in action and you can do without cable TV for a while.
Tip: Spend your inventory all day and calculate everything properly. Introduce the results to the family and agree to save.
Find extra earnings
While spending restraint is important, an important part of the fight against the debt trap is mainly an increase in revenue. Find a weekend job or work in the evenings to clean up. Use your earned money again to clear your debt.
Tip: Regularly browse offers in the press and on the Internet and place your own ad. For example, tutoring is well paid.
Avoid further loans and debt relief companies
Two jobs are challenging, farewell to things as well, but everything is better than a loan to repay the loan . If you have only been one foot in a debt trap so far, you will jump on the head with this step. If you were unable to repay one loan, it is certain that it will be even worse with the other.
Tip: Debt relief will not solve your situation, but will only make it worse. However, do not confuse private debt relief practices under the Insolvency Act No. 182/2006 Coll. Personal bankruptcy is an extreme solution, but it can help you with a new start.
Remember that no one will pay for your debts, and only you can solve all your problems. Therefore, stand up to them responsibly and do not let yourself be swept away by a debt spiral. You can do it!