It is inevitable sometimes debt is the thing that saves us from a precarious financial condition. Debt of course must be paid so as not to disturb our financial condition in the future. Well, so we can manage finances and pay off debt quickly, then we should avoid these things when we have a debt:
1. Choose New Debt with Flowers Higher
Dig a hole, close the hole. When we are entangled with the conditions of maturing debt, sometimes we begin to be tempted to start taking a new loan from another party with a higher interest rate. It gives us more losses because they have to pay off a loan with a higher interest rate.
Would not it be better if we just have the obligation to pay back the loan rather than to owe to the value of interest exorbitant?
2. Luxury Lifestyle
Luxurious lifestyle that we run when we have the debt will only lead to the scorn of others. Because revenue is always enough to make a living, but not to fund the lifestyle. Better a simple life while trying to pay off debt rather than a luxurious life but has a lot of debt.
After a simple lifestyle makes us able to pay off the debt, then start from the beginning by organizing a more stable financial conditions again.
3. Debt on Credit Card
When not have the cash and want to buy or pay for something, usually a credit card is often a mainstay tool for debt. Credit card debt is easier process, but we must remember to pay off credit card debt as soon as possible to prevent swelling debt becomes greater.
When we have enough money to pay credit card bills, try not to pay a minimum fee. Because it makes the minimum fee paid our debt on a credit card is getting bigger and make it difficult in the future.
4. Create New Credit Card
The new credit card is usually regarded as a savior at a time when the old credit card has reached maximum usage limit. Though actually create a new credit card will only add to the financial problem because it means that we have to pay off debt will accumulate.
No problem if you want to have one or two credit cards, but we should not depend on the financial condition of the credit card.
5. Rely on Friends or Family
Good friends or family who would lend money to us when we want to owe. But it instead it could damage the good relations that have been established. When we trouble paying debts, friends or family would feel bad for the charge. Though they may also need money to make ends meet.
This often causes misunderstandings and ends with Loosening our relationships with friends or family. If you want to owe to friends or family, make sure we can pay it off in a timely manner.
6. Making A Statement Fail
The latter problem may be related to the professional business world. There are still many opportunities to improve the financial condition before we chose to make a statement bankrupt or insolvent.
Choosing to make a statement only bankruptcy will impact on our reputation and good name. In addition, the history of which is recorded in the bank’s bankruptcy would make us difficult to make a credit application in the future. Think back losses we will experience when we’ve declared bankrupt and unable to pay the debt.
Learning from the past when we pile up debt is very good indeed. Because we can learn to keep their promises and pay off debts before arranging a more stable financial condition. Due to the stability of the financial conditions not only for ourselves, but also for the people we love.