If we have a large debt which is not allowing us making ends meet properly, we should consider change the way we have been acting lately and our behavior regarding your economy into a responsible and sensible one, otherwise we will be in danger of committing the same mistake again and again.
We know that modifying our habits is not something easy. Therefore, we are going to help you out being more organised. The next advice is going to give you the keys to manage your debts and your household savings and economy:
1. First of all, you should write down your monthly income, deposits and expenses in a notebook or in a Word document, if you prefer, so that you can have a list with all the information you need to know how well you’re doing and how healthy is your bank account. This information is going to help you make the right decisions, since you will know every time which money is available and whether we are spending too much or not, that is, we are going to have a proper control of our economy. You can ask someone you trust for help to make the list.
2. Cut off unnecessary expenses. When you take a look to your monthly list and you can figure out your budget, you will realise there are some shopping you did that maybe you didn’t need that much. Eating out, going to the theatre or to the cinema, excessive travelling or too many clothes shopping can be some examples of this unnecessary spending which we should reduce. At the beginning you may find it difficult if you are used to make a lot of shopping, but in due time you will get used to buy less and to adopt a more responsible attitude and be more prudent.
3. Try to increase your monthly income by getting a second job or by another activity which you believe can make you earn some money to pay part of the debt.
4. You shouldn’t ask for more credits to pay off the debts you already have. This will only make worse the situation you are living.
5. If you cannot pay the debt, ask your bank for help and for advice. You may be able to negotiate and reduce the amount of money paid monthly and consider alternative ways to pay it.
6. If you do not think the bank is going to help you, you may consider getting help from a non-profit counseling agency. If reducing expenses and increasing our income is not possible, the counselor can recommend a debt management plan to pay off our debts.
We believe if you take into account this advice your situation will get better and you will learn how to live your life more sensibly and according to your income.
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