How to pay family debts?

Has paying off debts taken your sleep away? Imagine it’s 4 am and you couldn’t close your eyes all night. You feel a lot of pressure because you don’t know how to pay off your credits and are afraid to talk about family debts . However, you know that this is already unsustainable and you must make a decision.

Why do we prefer not to ask for help to pay debts?

Why do we prefer not to ask for help to pay debts?

Humans do not like conflict, so we try to avoid it at all costs. We are afraid of being exposed and it is even worse if it is in front of our family. However, at times when paying debts fills us with anguish, it is better to be honest and speak clearly and directly with others. This is particularly important if you have economic dependents.

According to information on Solve your Debt, in 2018 the average client profile was of a married man of 43 years, with a debt amount greater than 135 thousand pesos in 2.4 accounts and with 1.5 economic dependents. This implies that your financial situation does have an impact on your own lifestyle and that of someone else.

How to pay family debts?

How to pay family debts?

We know that it is a very complicated situation, so below we will share the steps you must follow to be able to communicate your financial situation and settle your family debt:

Be honest with yourself

No one can change a toxic situation to a healthy one without first admitting they have a problem. It is better first to raise awareness about your difficulties in paying debts.

Dimension the problem

You can access the Credit Bureau page to access history through a special report and learn how serious your financial health is.

Track the expenses you make with a credit card

Review the expenses made with this form of payment. You can do it accompanied by your loved ones, so you will not have to hide the situation and you can make everyone aware of the responsible use of credit.

Try to increase your income

You can do freelance jobs, get an extra part-time job (like driving an uber). You also have the opportunity to sell something or pawn a good, in order to take advantage of that money to reduce your debt.

Cut expenses

This is a very important part and it is something you should discuss with your whole family. Find out what aspects of your current lifestyle you could change and thereby reduce your expenses.

Prioritize debts

Accommodate debts from lowest to highest, try to make the minimum payments on your cards, while focusing on liquidating the smallest. Once resolved, allocate that amount to the next and gradually until all liquidated.

Never stop saving

If all the previous points have taken effect, you will have been able to pay debts. Therefore, take advantage of your new financial habits and deposit or invest the money you used to use for your credits.

Set financial goals

An important part of staying motivated is to set short, medium and long term goals. This will not only set an address for your savings, it will also set amounts and dates that you must meet to achieve it.

What happens if, despite the recommendations, I cannot pay debts?

What happens if, despite the recommendations, I cannot pay debts?

Although the recommendations are focused on helping people who, with or without family, need a solution to pay debts, the expected scenario is not always met. There are those who despite these efforts fall behind and feel helpless in the absence of options to resolve their situation.

Fortunately, in Solve your Debt we support people who want but cannot pay. That is why we generate a personalized plan with which you can settle your debts without requesting an extra credit. If you believe that you can no longer pay your debts, come to us and we will give you the advice you need.

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