Are you going through a season of skinny cows and don’t know how to pay off your debts? Take these tips into account to deal with difficult times.
Meet basic obligations and also pay off debts
The time of skinny cows can come at any time, and if we have not prepared in advance, we will experience some problems. One of the main dilemmas that arise is when the money is no longer enough to meet basic obligations and also pay off debts. What should you do at that time?
Although it is an unfortunate situation, if it is necessary to choose between what debts to pay with the money you have available, these are some points to take into account:
1. Look at interest rates
The advisable thing is that you organize a list of all your debts, locating the amounts, the term, the monthly installment and above all, the interest rate they have. So you can see what is the “most expensive” debt you have, and probably best to start with one of those.
2. Think of the ones that are “hooked”
Another point to consider is that there are some debts in which yes or yes cannot be delayed, and this is because they have some good as collateral, for example, vehicle loans or housing loans. Failure to pay them could result in the loss of the good you are paying, so it is always advisable to have them in the first place.
3. Join them all
Additionally, instead of choosing among them, you can consider the idea of requesting a portfolio purchase, in this way you will unify the debts and end up paying a single monthly fee. Ideally, you should negotiate with the bank, so that you can obtain an affordable amount and a convenient term.
Remember that it’s about choosing which debts you could pay first, so it doesn’t mean that those you don’t choose won’t be canceled. Ideally, find a way to negotiate with the bank to continue making the payment and not generate a bad credit history.
Are you looking for extra money?
One option available is free investment loans but under no circumstances should you apply for them if you do not have how to pay them. For a better idea, compare the alternatives here.