Get Rid of Debts: Here Are Some Practical Tips
Practical tips to get rid of debts.
Complicated mission, but it can be done.
Becoming aware of both the state of one’s finances and one’s own way of spending is an indispensable condition for reversing the trend and getting rid of debts. Knowing the amount of your debts, noting deadlines, monthly incidence compared to your salary and above all, who are the creditors [some don’t even know it!] And how much the outstanding debts, if any, is absolutely essential.
What to do if I don’t remember how much the debts amount to and with whom I have them.
When it comes to debts to banks or financial institutions, all bank statements can be requested from the institutions themselves, with a simple registered letter.
It is important to ask how much the remaining debt is, but even more important is to make sure you have a copy of the contracts and the amortization plan.
This is because it is not unusual to find contractual anomalies , which make it possible to obtain, in some cases, important repayments.
It is also necessary to make an analysis of the general state of indebtedness, asking to be able to access their data, stored in private databases, also called sic or credit information systems.
Where do I find the references?
Do you have any current leases? You need to check the Assilea database. If you have mortgages or loans or debts exceeding € 30,000 or you are aware of having been reported to be suffering from a bank, you will also need to check the CR – Bank in Italy risk center. Or, if you have not paid credit cards in full or in installments (Revolving) you must check the Bank Alarm.
Finally, you also need to know your debts to the tax authorities or to the regional or municipal authorities that have mandated Revenue Collection Agency.
Some practical tips:
1) Divide your salary as soon as you receive it: Set aside the money for the necessary expenses [rent, bills, installment payments, etc.] maybe using envelopes, on which you will write what the money is destined for, and use it only for that . Address an envelope to UNEXPECTED.
2) Privilege cash: Use debit cards only for expenses and make it essential to use them. Use credit cards only for emergencies. AVOID AS THE PESTO THE REVOLVING CARDS, (THOSE AT RATE) HAVE RATES OF SCANDAL INTEREST.
3) Keep a diary of purchases: In addition to marking the expenses, mark also the situation in which you shop [example Sunday afternoon in a shopping center] and the mood at the time of shopping [boredom, depression, anger, etc. ]. Doing it regularly you will find out what factors trigger the uncontrolled impulse to shop.
4) Look for alternative interests: Hobbies, sports, cultural circles, and other activities can make up for the time spent on expensive shopping, and restore yourself from the accumulated stress.
5) DO NOT LITIGATE FOR PAYABLES: if you are part of a family unit, fight against debts, perhaps looking for additional sources of income, instead of blaming each other for shortcomings.
6) DO NOT BE DEBIT TO PAY OTHER PAYABLES : The so-called “debt settlement”, that is, to make a single installment of a lower amount, but in the long term, in most cases is not decisive, indeed often, it does nothing but make things worse, increases economic exposure and longevity of risk. Ask an expert or someone who has already been there to confirm this statement. There are specific cases where it may be worthwhile to use this tool, but they must be assessed very carefully (preferably with the help of an expert in debt management).