Debt life has become synonymous with Croatia. The citizens of Good Finance are in charge of far more than their counterparts in the European Union. More than 300,000 blocks are a testament to the whole story. Debt reduction is only possible if you admit to yourself that you have a debt problem. A good portion of people continue to live the style they used to live before debt, so the minuses just pile up.
The first step to reducing your debt: Get control of your income and expenses
The first step in reducing your debt is to take control of your finances. The most important thing is to look at it from the realistic side and see how much money you have available. It may sound banal, but that’s where the problems lie. People are not aware of how much money they have left after they have paid off everything they need. The most important thing is to list all income and expenses in one table. Then you will clearly see what you are spending the most money on, where money is leaking from your pockets without you even being aware of it and how to get out of debt.
Step Two in Debt Reduction: Cancel any membership fees you do not use
Money goes to things we don’t even use, instead of diverting the same amount to reduce debt. Most often these are various bank card fees that we almost never use, gym or library memberships that we forgot about, and the like. On a monthly basis, several hundred kunas are collected on such items, which can be used to reduce debts.
Step Three in Debt Reduction: Record all debts under a common denominator
The third step in reducing your debt is to take out a loan that will put all your remaining debts under the same denominator. With one loan, debts are easier to track and repay. When there are more, people simply lose their will and let go of what causes their debts to accumulate. Lending companies have fast loans in their offer that are intended to save the home budget. It is a kind of financial injection that helps to regain control of the finances.
Step Four in Debt Reduction: Work on Financial Literacy
Debt Reduction – It is only a remedy for the problem, but sooner or later it must be tackled at the core of the problem. Financial literacy in Ours is low, but this should by no means be an excuse. There are a variety of savings articles on the internet, and banks offer guidance on how to stretch your home budget as much as possible while saving.
It is best to start with the minimum figures that will not overburden the budget and then gradually increase the amount. Over time, you won’t even notice that you are “missing out” but will learn to live with less. Savings can be used for black days or unpredictable situations, and you set the intensity according to your options.