How to repay debts?

You are in debt to several creditors and at the end of each month you realize that it is increasingly difficult for you to face the tied up expenses of daily life and to repay your debts. To avoid no longer being able to meet the repayment of your debts, here are some practical solutions to get out of this thorny problem.

What are the practical tips for paying off debts?

Here are some tips to best repay your debts and make the necessary payment when due.

Set a clear budget

Set a budget upfront to better stick to it later. So, to avoid being in the red in the middle of the month, avoid resorting to excessive spending on non-essential things in life such as free time, even if they are mentally difficult to implement. Knowing that you have a clear understanding of the expenses you will have to incur makes it easier to take responsibility for the expense in order to save as much as possible.

Find a way to earn extra income

As long as possible, try to earn money by doing a different activity than the one you currently practice. You can try taking another part-time job to meet your monthly payments at the end of each month. Otherwise, don’t hesitate to rent one of your rooms through Airbnb, for example to earn some money. You can also sell an asset that you no longer need to deal with this delicate situation.

Talk to your creditors

Sometimes creditors can make you aware of your delicate financial situation and give you a little more time to pay off your debts. Sometimes some lower the interest rate slightly if conditions allow. Be honest with your situation, banking organizations will be all the more attentive to take your plight into consideration. How to make ends meet?

Prioritize your debts

It’s best to start by paying off the debts that have the highest interest rate or those that are due soon. Most financial experts consider paying off loans with the lowest balances first. Once you finish paying off an early debt, you’ll be less “strangled” at the end of each month.

What are the banking solutions to repay debts?

The repurchase of credit is the ideal solution to make it possible to repay one’s debts. Salvage and unexpected solution of the last possibility, allows you to escape the infernal situations of over-indebtedness. The repurchase of credit must above all take into consideration your financial situation. Indeed, as long as you don’t find yourself in a situation of over-indebtedness with the Banque de France, it is possible to buy back credit and pool your debts in a single monthly installment.

Credit buyback consists of pooling all your current credits and collecting them in a single monthly installment to be paid at the end of each month. In these loan collections we also talk about real estate loans and consumer loans. This is an ideal solution, because you see more clearly and you also have the possibility of spreading your loan over a longer period than the current one. In this specific case, to find the right banking organization, don’t hesitate to do simulations with banking organizations or ask a broker for help.

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