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Some ideas for reducing debts

If the results of the above test have helped us see our financial situation more clearly and we come to the conclusion that it is serious, we must also be aware that the first step to solving financial problems (as in the case of whatever problem) is to be aware that they exist. To know the exact financial situation in which we find ourselves, is the first step to trying to solve it

Some consumers do not take into account their financial problems, and underestimate them. But in the majority cases, consumers tend to overestimate them, that is to say, give them more importance than is due and do not look for possible solutions
Comisión EuropeaEscuela Europea de ConsumidoresGobierno de CantabriaMAG (Estudios de Consumo) S.L.IFAVConsomation et Logement Cadre de VieAssociation d'avocats

 

The most important step is to have a clear idea that if he wishes he can get out of the situation. For this it is necessary to draw up a plan and a budget, which must be stuck to.

  

The most important step that a person with debts can take, after having recognised that they exist and knowing their extent, is to have a clear idea that if he wishes he can get out of the situation. For this it is necessary to draw up a plan and a budget, which must be stuck to. Sometimes it may be necessary to seek help to draw up the budget

To draw up the budget some points must be clear

- Once we clearly know how much is owed and how much is to be paid monthly, it is   vital to   make the reduction of the debt the top priority of the budget.

- We must clearly identify all possible current and future sources of income.
- It is important to identify necessary expenses that cannot be done away with (rent,   gas,   electricity, food) and unnecessary expenses (eating out, going to the cinema,   drinking out,   unnecessary purchases, etc.) Some times it is possible to find more   economical   alternatives for some expenses.
- We should not buy on credit again.
- All available money and what is left over at the end of the money (if this can be   achieved   by following a strict budget) must be invested in reducing the debts.
- It is important to find ways of obtaining more income (looking after ill persons,   working   overtime in our regular job, looking after children, ironing or washing clothes   at home,   doing other jobs at home for certain shops, etc)
- Note down on a daily basis the budget, expenses, income, dates when debts are   due.
- When the budget has been clearly structured is the right time to negotiate the new   form of   payment with the creditors. If we inform them of our new situation they will be   prepared (for   sure) to give us more time to pay off the outstanding debts. It is even   possible to get them   to accept lower payments, which will act as considerable relief.   In this situation we must not   make promises that we cannot keep

 

Those people who have a good plan (if they are advised by somebody better), keep to it carefully and patiently, will soon see the fruits of their effort and how their debts are brought down and disappear