Manage Your Debt Well so It Doesn’t Become Disaster. Here’s How
Do you currently have a debt or loan? Make sure you manage it well. If not, it can lead to big financial problems that will shackle your life. You don’t want it?
Basically, applying for a loan, whether it’s a Unsecured Credit (KTA), Multipurpose Credit (KMG) facility or an online loan (Pinjol), is fine as long as it is for productive activities, such as building or renovating homes, school fees for children, opening or developing a business.
But many actually face chaos when the loan is not managed properly. For example using debt is not according to plan, but for consumption, such as buying new gadgets, traveling abroad, eating in restaurants, buying clothes, and others.
As a result, you do not get the results of loans that have been used because consumptive activities are only a waste of money. It’s different if you use a loan to open a business, for example. You will get income and profits that can be used again to pay the loan repayments until they are paid off.
1. Have the right debt management
You must have an appropriate debt management strategy. How to use debt for productive things, do not dig new holes or add new debt, cut corners or cut expenses that are not urgent so you can set aside more money to pay debts. So it will pay off quickly. Another way, increase income, one of them by working side.
2. Pay bills before the due date
Managing loans or debt can also be done by paying bills on time. Make debt a top priority every time you receive a monthly salary or earn an income.
If you need to pay the debt bills before the due date. So that you don’t incur interest charges and penalties for late payment of bills. So no need to spend money that should not need to be spent.
This can also prevent you from rushing. Pay bills before the due date so you don’t feel like you’re being chased. Avoiding undesirable events, for example the payment due on the 10th of each month.
Right on the 10th, you have to do a pile of work that comes in deadline, so you forget to pay it because of busyness. Therefore, paying bills before the due date is much better.
3. Be careful of credit scores
Credit scores are influenced by how you manage your debt. If you are late paying the loan or debt repayments will greatly threaten the credit score. A bad credit score will be a bad record for you to be able to apply for another loan at a later time.
4. Negotiations ask for interest rates to fall
Loan interest rates move volatile. You can negotiate with the bank or lender to reduce interest rates. Tell them about your condition and ask for interest rates to be lowered. Of course, low loan interest rates can affect the amount of installments you will pay.
5. Discipline and commitment to set aside money
In managing debt, you must have a strong commitment and discipline in setting aside money from monthly salaries, bonuses, and income earned from the business. The portion to pay debt installments is 30% of salary. If it’s not enough, then you need to work hard again by finding additional income to cover these debts.
In this way, your debts are guaranteed to be paid off. The mind becomes calm, sleeps more soundly because the financial burden is gone. Remember, the key is commitment and discipline. Don’t be tempted to spend money on useless things.
Debt or loans are not a scourge
Loans or debt that are not well managed will be disastrous for the borrower. It may be that you are forced to continue to dig new holes to patch old holes.
Gradually, you have no other way but to pawn or sell valuable assets to pay off these debts. So do not get the wrong step, debt is an obligation that must be paid.
While good debt management can get you free from the debt trap. Debt is not a scourge, but it must be controlled and monitored for its use, so that it becomes something useful.