In this article, we want to show you what to do when you have accumulated so many loans that it seems that you will work 24 hours a day, just to pay off debts. We will talk about how to get out of credit card debts, what to do if we have personal loans or have made money loans outside the financial system, when is a good time to consolidate, to refinance and how to break the financing cycle in which we can be locked up
Before starting, it is essential to clarify that there is no single way to get out of debt such as payday loan debt. Everything will start from understanding precisely what your level of indebtedness is, what type of loans you have at this time, what are your conditions and, from this analysis, make the decisions that allow you to leave the dependence on credit to generate savings and increase your heritage.
There are many ways to understand what a problem is; However, the first step to your solution will always be to define it.
When we think of how can I get out of debt? We usually do it based on the urgency of everyday life, the dissatisfaction caused by the feeling that we are working only to cover the loan installments, or the anguish of living Thinking what juggling we will do to meet the credit card payment this month. If we want to live without loans, the first thing we have to do is have the most comprehensive and brightest possible picture of our financial situation to give it the urgency and importance that this requires.
Doing so can be uncomfortable and generate fear and anxiety because it involves facing the outcome of many decisions we have made in the past consciously or unconsciously. However, it will be a meeting that is necessary to have if our deepest desire is to generate a real change in the way in which we are managing our money and fulfilling our deepest goals.
Not all loans have the same impact on our finances. First, because a consumer credit (credit card, free investment, liberty) is not comparable with a credit that was used for the purchase of long-term assets (mortgage or vehicle, for example), or against a free credit. Second, because there are credits with much higher fees than others. Third, because they have different interest rates and annual costs, among others. Finally, because the habits that each one of us has in front of debt end up conditioning their impact on our economy.