How to get out of a credit pit? Ways to get rid of credit debts

In our time to take credit is easy. You can make a loan in ten minutes, and there are options when for this you will not need anything but a passport. On the money you can buy everything you want: a car, home appliances, an apartment. But what if the situation got out of control at some point and you were on the verge of bankruptcy? How to get out of a credit pit? Let's give some practical advice on this.

Minimum payment

Credit card holders often make one mistake. Often, banks provide an opportunity to use a credit line , provided only interest is paid. This is the minimum payment. It would seem that such a scheme is very convenient. With this you can agree, but only it is profitable for the bank, not for you. If you make only minimal payments every month, then the question of how to get rid of credit debts will never cease to be relevant for you. Experts estimated that a person who took 300 thousand rubles from the bank at 18 percent per annum and makes a minimum payment every month will have to repay the debt for 26 years, and in the end he will give an amount that is almost twice as large as the original one. Do not want to puzzle over how to get out of a credit pit in the future? Then immediately try to allocate as much money as possible to repay the loan. If the minimum payment is five thousand rubles, pay ten, in general, as much as you can, but most importantly - more than the bank requires.

Small and large debts

If the error has already been committed, and you are still swallowed up by a credit pit, do not make new mistakes. So, many borrowers, having got into a difficult situation, first decide to repay small debts, and then already think about large ones. The logic is clear: firstly, it is difficult for a person to keep information about all loans in his head, especially if there are a lot of them, and he wants to get even with some, and secondly, it is psychologically easier for many to have one big loan than a bunch of small loans. However, such arguments are fundamentally wrong! In order not to forget about any debt, you can transfer the information to the computer. Now there are a lot of special programs for accounting for finance. Start an electronic ledger, and it will be easier for you to manage not only debts, but also money in principle. Remember: it is more profitable to repay large loans first, those that are taken at the highest interest rates and imply the biggest overpayments. But if the interest conditions are the same for all loans, then, really, it is more expedient to deal with small debts first - this will be a good motivation for further payments of large loans.

Credit limit

Many of the way out of the predicament are seen in the increase in the credit limit. Let's say at once: this is not the way out! So you just delay the time, give yourself a reprieve, but the situation does not change for the better, but only exacerbate. The increase in the limit will entail an increase in the loan term and a mandatory monthly amount to maturity.

Consolidation of debts

Some borrowers looking for options on how to get out of the credit pit, go to the bank and ask to combine a number of debts into one big loan in order to increase their maturity and reduce the monthly payment. In principle, the approach is reasonable. But there is a problem. Such a scheme is settled in Western Europe, we only have refinancing loans, that is, getting a new loan to pay off old ones, and there are no any preferences and discounts. But the main thing is that the refinancing process implies the payment of various fees and commissions, so in the end, efforts may be useless, and the amount of debt will only increase. Such a solution can be beneficial only for long-term loans, for example, mortgages, and only if the loan was taken at very high rates.

Crisis Plan

Now we go directly to the story about how to get rid of credit debts. The first and most important thing is to enlist the trust of creditors. You will not be able to avoid paying in any way. Therefore, you should not hide from banks and individuals that you owe. Tell us about your troubles frankly, make it clear that you are not going to avoid obligations. Perhaps you will meet, and you will find a way out of the difficult situation.

Order in finance

If you are the owner of numerous debts, then you do not know how to keep records of personal money, and in financial affairs you have a complete mess. Start controlling costs and revenues. Daily write down all your expenses to know exactly what the money is going to. Try to keep such accounts department for at least a month, and then analyze your financial situation. Pay special attention to costs, perhaps, any of them can be avoided and thus save. Then make a budget for the coming month. Indicate all possible income, as well as planned costs (refer to the accounting data for the first month). No matter how hard, stick to the budget and do not spend more than it is planned. So you can clean up the finances and maybe find a way to get out of the credit pit.

Increase in income

Pay debts, when you already live from salary to salary, of course, it is difficult. Where in this case to find additional funds? Perhaps it makes sense to take on more responsibilities at the main place of work, of course, for an additional fee. If this is not possible, it will be advisable to find outside work-outs. Having properly organized your working hours, you can certainly increase your income.

Money in debt

The thought of new loans from debtors causes a shudder and bewilderment. How to get out of a credit pit if you borrow more and more? In fact, this option may be a very wise decision. Only borrow money from people who do not demand high interest from you. Do not hesitate to contact relatives and friends with the words: "Help get out of the credit pit!" People who are dear to you, if possible, will certainly help. In addition, they will not require you to return the money in a strictly scheduled time, so you will not have a precise framework for paying off debts. But, of course, to undermine the trust of loved ones is also not worth it. At the earliest opportunity, return the borrowed funds.

Buy Sell

The hero of the famous Soviet cartoon, Uncle Fyodor, said: "To sell something unnecessary, you must first buy something unnecessary ...". We can not disagree with this statement. But you can sell and what at first glance seems necessary. For example, a TV, especially if you have a plasma and expensive. So you can not only save additional money, but also free up time that used to go to watching TV and movies, for something more useful, for example, thinking about how to get out of the debt hole. Perhaps it makes sense to abandon the car for the time of crisis. You will not spend money on its maintenance, repairs, fuel and so on, and you can start saving money to repay loans.

Finally

Now that you know how to get out of the credit pit, start acting actively! And when the financial nightmare is over, forever forget about the credits! It is better to save first, and then buy. And still, if you need money and you decide to borrow again, remember the limit: loans should not exceed fifteen percent of the annual income.

Before taking a loan, carefully study all the conditions of the bank, the size of possible commissions, the terms of payments and so on. Calculate how much you really will get a loan, think about whether you can pay it off, whether your family budget will sustain such a burden. Be financially literate! Good luck!