No matter how hard you try but there would be a point in your life when you would be in debt. The debt trouble is very stressful and this can be confusing as well. If you want to lead a good life then you have to get under debts at certain points of your life. Taking a loan or getting under debts is not a bad thing but fixing the issue of debt has to be a frustrating thing. If you would not have good plans to return your debts then things would be very hard for you financially. Fortunately, there are some amazing ways to fix your debt trouble. Financeshed has brought some of the ways listed that you can try out for sure:
Reasons people face debts trouble:
Sudden loss of income:
This pandemic has taught us a lot and a sudden loss of income has to be one such thing. So many employments have gone in this pandemic and this has left many people in huge debts. If you are trying to survive your sudden loss of income then the debt trouble would be real for you. This would be a huge problem for you if you don’t have future debt plans ready for you.
Too many loans:
The loan has become a very common thing these days and people take loans to fix the financial crisis. If you have also taken too many loans then things would be very hard for you. Not planning loan repayment can lead to great trouble for you. Even if you are taking a loan then also you should plan for it so that it could not trouble you that much.
Too many EMIs at a time:
We love to buy things and EMI helps us a lot in getting things that are slightly above our budget. People always get things in EMI so that they can pay the amount later or they can even split the amount in different months. This is a good option if you can manage your EMIs. It is always good if you run one EMI at a time. You should never take products on EMI that your income doesn’t permit you. Debt planning is very important in this case.
Unexpected medical emergencies:
2020 has taught us a lot about medical emergencies and it is clear that medical emergencies are real. You cannot say not to medical emergencies if there would be any in your home. This would drag to your debts but if you would have debt planning then things would be better for you. It is always better if you would make your health and treatment safe at any cost.
Some ways to follow to fix your debt trouble:
Know about your debts of the month:
It is very important for you to at least know about your debts. If you would not know about your debts of the month then planning for it would be very hard for you. Here you have to gather the bills of the month along with the EMIs so that you can plan the repayment of the bills.
Tally your debts with that of your monthly income:
If you want to know about ways to fix your debt trouble then you should know about your debts and income as well. Your debt should always be way too low than your income so that you don’t have to face any financial crisis. You should always balance income and debt.
Always try to have some saving:
If you would not have any savings then things would be very hard for you. Your monthly budget needs to be made in a way that you should at least save some money. The savings would help you in times of emergencies so that you don’t have to face too much debt trouble.
A credit card with less interest is a good idea:
Always make time to know about the credit card that you are about to have. You should compare different credit cards and at last, you should choose the one that offers your least interest. In this way, you don’t have to pay as much as your credit card interest.
Always pay more than your credit card bill:
We know that you have to pay a distinct amount as your credit card bill but paying more than the bill is always preferable. This would help you in those months when there would be a real money crunch. This would also make sure that you don’t have to face a lot of debt trouble.
Always focus on earning a lot of money:
Nothing would help you in this case if you would not focus on earning money. Your money spending should always depend on how much you earn. It would be great if you would try to earn more so that you can always make your finances stable.
Always plan a monthly budget and obey the plan:
Managing your debts would be very easy for you if you would plan a monthly budget. You should never exceed the monthly budget otherwise financial crunch would be real for you in this case. If you would spend less than your planned budget then you would be able to have some savings.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.