If you do these 6 points, you can easily get into debt

1. Understand the reasons for debt

Various reasons in life may cause us to fall into debt, such as high consumption, medical expenses, education loans, etc.

You can find the reasons for your debt by reviewing your spending and seeing where your overspending is the most serious.

Only by understanding the reasons for your debts can you better formulate a repayment plan and adjust your financial management methods.

If the debt is caused by high pressure in life, you can try to cut down on some unnecessary expenses;

If it is due to investment failure or business failure, etc., you need to carefully sum up experience and lessons. Avoid making the same mistake again...

2. Sort out all debts

Although many people know that they have debts that have not been paid off, they have no idea of ??the specific amount. I just paid the minimum amount when the repayment deadline came, trying not to overdue.

To get out of debt as quickly as possible, we need to list all of our debts.

List all the IOUs and credit card bills one by one, and calculate the total amount and the interest rate.

Understand the principal, interest rate and repayment term of each debt.

This can help us fully understand our debt situation and formulate a targeted repayment plan.

3. Develop a repayment plan

According to the debt situation, formulate a reasonable repayment plan and pay off the total debt in installments, step by step!

When formulating a repayment plan, you can consider the following points:

Prioritize debts with high interest rates, such as credit card debts, and gradually pay off other debts

Try to spread the debts of different creditors Debt

At the same time, make sure to pay the minimum repayment amount on time to avoid overdue penalties and other additional fees

After formulating a repayment plan, you must stick to it and not give up halfway~

4. Analyze financial status

Many people think that keeping accounts is useless, but it is really important to understand your financial status clearly.

A cup of milk tea today or a piece of clothing tomorrow may seem like nothing, but many things add up.

Keep a detailed record of all income and expenses for a month to see where your money is spent and what expenses can be cut.

Only by knowing where your money is spent can you avoid unnecessary expenses, use the money saved to pay off debt, and speed up the repayment process.

5. Subtract from your life

Divide your current expenses into two types:

Necessary expenses (rent, water and electricity, three meals a day, transportation, etc. )

Non-essential expenses (social entertainment, shopping, etc.)

In the process of paying off debt, we must learn to make subtractions in life and temporarily cut back on some non-essential expenses, such as Shopping, traveling, etc.

Only by properly controlling consumption, living a simple but stable life, and using more funds to pay off debt can you get rid of the trouble of debt as soon as possible.

6. Find ways to increase income

If you want to go ashore as soon as possible, in addition to controlling expenses, increasing income is also an effective way.

On the premise of ensuring salary income, you can increase your income sources and pay off debt faster through side jobs, part-time jobs or improving your skills.

Those who only have physical strength can work part-time as delivery food, running errands, or working as a Didi driver.

Those who are capable can try to take orders on the platform, write articles, produce PPT, take photos, etc.

In short, you must find a way to increase your income and take action immediately. If you earn more, you can pay it off earlier.