It is common to observe that people borrow money to make the respective payment of their debts. However, this may not be the best solution to your problem. Sometimes it is seen as an extreme measure, as if it were the only answer to your problems when trying to pay off your credit, just like a card.
In case you find yourself in this situation and you are worried that you are about to lose control of your finances, there are alternatives so that you can gradually pay what you owe. An instrument that can work for you to orient yourself in a plan to get out of debt is the Condusef Payment Accelerator method, we will tell you how it works.
For this model to help you, you must stop your indebtedness, that is, you no longer acquire commitments to pay, starting today. That will be the starting point and believe it or not, with this strategy you can gradually reduce your debts until they are fully paid, according to information collected from MiBolsillo.
1. Cut expenses and start saving
10% of your net income needs to be set aside. In case it is impossible, you can check your expenses to identify savings options. Therefore, according to information collected from MiBolsillo, the Condusef recommends the following:
- Confirm the expenses you made in the last month.
- Make a list of all your expenses and select which ones you can allocate less money to. That money that you are not going to spend now, save it until you reach the 10% of your income that you need.
In case it is difficult for you to do these steps, you can ask yourself:
- What do I spend the most money on?
- Do I need everything I buy?
- Are there ways to satisfy my needs and wants while spending less?
The intention is not to stop spending, but to do it more moderately and judiciously, as well as selectively.
You can make small changes that will make a big difference:
- Take food to work, to avoid eating on the street, so you can save a lot.
- Stop smoking, you will save too much.
- Avoid excessive spending on electricity, you can disconnect the appliances when you are not using them and turn off the lights when leaving the bedrooms.
2. Make a list of your debts
List all your debts and for each of them perform the following operation:
How much I owe / Monthly payment or minimum payment = Months it will take to pay the debt
3. Organize and list your debts
Prioritize the one that you can pay in less time, so that you pay it according to exercise 1.
4. Pay off the debt 1
If you have four debts, of debt 1 (the lowest) pay the minimum payment + 10% of your net income (what you saved in step 1). Repeat this month after month until you pay it off completely.
5. Pay off debt 2
Once debt 1 is paid, go to debt 2, cover the minimum payment + 10% of your net income – the minimum payment that you updated to your debt 1. Repeat every month until you pay all of your debt 2.
6. Keep saving
When you have already paid off all your debts, keep saving 10% of your income and turn the payment accelerator into a savings accelerator.