Because of debt, the family can become tense and even fall apart. For example, researcher Jeffrey Dew suggested that couples who owe less and less enjoy being together, fight more often, and are less happy. Compared to other problems, debts over debt and finance usually last longer, cause more beating and yelling at each other, and are easier to spread to other problems. So it’s not surprising that the main cause of divorce in the United States is disputes over money
1. Analyze your budget. Keep a record of all the money that goes in and out for two weeks — or a month, if it’s more practical. Also note the expenses that are not often, such as taxes, insurance, or clothing, and calculate the average per month.
2. Increase in revenue. You can work overtime, do seasonal work, give tutoring, or make your hobby a business. Be careful: Don’t let work get in the way of more important activities, such as spiritual routines.
As a family, look for practical ways to deal with debt
3. Reduce expenses. Buy the items you need, not just because they’re being discounted. Because it will help you see whether the item is really needed or just a desire. Here are some additional suggestions.
Home: If possible, move to a house with lower monthly repayments. Reduce routine costs by saving electricity, water, and gas.
Food: Bring supplies instead of buying food. Shop at stores that sell at wholesale prices and take advantage of offers at special prices. “I can buy fruits and vegetables cheaper in the market right before they close,” said Selma, in Brazil.
Transportation: Sell vehicles that are not needed, and care for the vehicles you have instead of exchanging them for new ones. Use public transportation, or walk as much as possible.
After reducing expenses, you are ready to make the best use of available money.
4. Debt analysis and take action. First of all, for each debt, make sure the interest rates, additional fees, penalties for being late or failing to pay, and possible bills that are past due. Pay attention to statements on loan or bills documents, because creditors are sometimes cunning. For example, one short-term loan service in the United States states that interest rates are 24 percent, when in fact more than 400 percent.
Next, according to Oklahoma debt relief advice determine the order of debt payment. One way is to first pay the debt with the highest interest rate. Another way is to first pay off a smaller debt because with fewer bills that come every month, you will be more confident. If you have debt with high-interest rates, maybe you can take advantage of new loans with lower interest rates to pay off existing debt.
Finally, if you cannot fulfill your obligations, try negotiating with creditors about a new payment plan. You can request an extension or a lower interest rate. Some creditors may want to reduce your debt if you want to pay it off at once now. Be honest and polite when explaining your financial situation. All agreements should be made in writing. Even if your first request is not successful, you should persistently ask for leeway if necessary.
Of course, you must be realistic in managing finances. Even the best plans can fail because of things you can’t control because money is often “winged like an eagle and then fly to the sky”.