Pay off debts: follow our tips and opt for debt centralization
Paying off debts is a heavy burden for a family. After all, it limits your financial breathing space and options. In this blog, we give you some tips to settle your debts quickly. We also let you discover the concept of debt centralization.
First of all, you need to know which debts you have to pay off. Of course, that makes sense. Yet we notice that those who are in debt often owe it to different parties. An ‘accident’ never comes alone. The one debt leads to the other.
Do you have various loans? Just think of a car loan, a mortgage and maybe some credit card debts? Then make a list of the monthly amounts to be paid, the duration of the loan (s) and the total amount borrowed.
List all your expenses
In addition to your debts, you naturally also have some fixed expenses each month. Just think of the electricity and gas bill, a telephone and internet subscription, food, drinks, the school bill, and so on.
All these expenses weigh on your monthly budget and also limit your financial breathing space. Moreover, you must prevent that you can no longer pay these monthly expenses because then these parties will also become a creditor.
Make a financial plan
Now that you know exactly what debts you have and what expenses you are confronted with every month, you can prepare a financial plan. Subtract your fixed monthly expenses from your monthly income. This way you have an idea of your financial options.
You must then determine which debts are a priority . You should give it priority over all the rest. You can then see how much you can pay each month to pay off those priority debts.
Save where possible
When paying off debts, you will have to sacrifice certain ‘virtues’ in your life. Do you really need that expensive telephone subscription with unlimited internet data? Also, consider economical alternatives to social activities. And that doesn’t mean you have to give up your friends!
Do debt centralization
What if we were to tell you that there is a method to centralize your various loans in one convenient loan? Not to pay interest on all your current loans, but only on one loan?
This concept is called debt centralization. The big advantage of combining your debts is that you only have one loan, one monthly repayment amount and one interest rate. This gives you a better overview, fewer interest costs, and less stress.
Pay off debts? Let Good Credit @ Good Finance help you
Are you interested in debt centralization? Good Credit @ Good Finance is happy to discuss with you how we can merge your debts into a single, well-arranged loan with a low-interest rate.
Feel free to drop in. In a confidential conversation from person to person, we together look at your financial situation, your needs and the possibilities that present themselves.
Moreover, you can always go to one of our offices whenever it suits you.