Get Out From The Debt?

The first principle to settle your debts and the way to a debt free, but it is the priority in your debt. What you need for now and what you need to immediately clear, is the first step on the path to debt management. A good debt management and prioritization of loans you get settlement of debts. This article will give you some information about your driving debt management.

What loan?

* Logically, the one with the highest interest rate is the one who quickly extinguished.


* Two types of loans, which will be deleted as soon as possible are personal loans and credit card loans.


The interest rate on these loans is the highest. On credit cards, it amounts to about 24% per year (at 2% per month). A personal loan should be around 18%. Even if the personal loan at a discount, it would be approximately 14% per year.

The loans can be operated in the course of time?

In your debt management process, there are loans that you need to prioritize them to be paid off first, but there are also loans that can service them over time to reduce your loan repayment burdens. These loans can be operated in the course of time:

1st Loans with low or no interest

2nd Loans with tax advantages


Home loans, and education loans offer tax advantages and can evolve over time. The same applies to loans for the family or friends who either interest-free or at a very low interest rate.

The loans, which now include

If you are in the bad debt situation, it is vital for you to conclude how much credit as possible in the short term. Look at your asset list and see if you have loans to these assets. For example, take a loan for a car assets, which the car. In such a case, you can sell the car, and close the loan.

If you are really struggling to pay their credit, moving to a smaller home or more economic situation is the solution.

Switch to other loans

As you know credit card interest rate is high, and you may not be able to clear it in a short time, then, after an alternative and turn it to a financier, you will receive a lower interest rate.

For the credit card, there Service Call balance. Let's say you pay 2% or 2.25% per month on your card. You can contribute to a different credit card. You pay back the bank and the transfer of loans to the new card. For the first six months, they will give you a lower interest rate. Say 1.5% or 1.75% per month. The lower interest rate will help you get back pay.

For credit, there are loan packages that have a very loan interest rate in the first 3 to 5 years, some even 0% interest rates in the first 1-2 years. Take these benefits by refinancing your home loan.