Can’t pay debt. Increasing Expenses. Lack of Money. OMG! “When will those problems be solved” might be a question for those who have debt and worry about paying debt. Today we have a simple, systematic solution to solve a debt problem which it’s over in four stages. Who wants to get out of the debt loop can miss this! Let’s start!
It is the present obligation of a person or enterprise which is caused by an action in the past. It means that we have used our future money, so we have to pay it back. For example, bank loan, car or house installment or any other debts. Debt can be divided into 2 groups; current debt and non-current debt.
Current Debt: It is paying debt in 1 year such as 1-year limit of loan, account payable, a dividend in arrears, a short-term loan, etc.
Non-current Debt: It is over 1 year debt paying such as long-term loan, liabilities etc.
Those who have insufficient income to pay debt should contact the bank and negotiate for an extension of the repayment period. Those who are laid off, have no income or have a need to spend in emergency times should negotiate for a reprieve for a debt. The bank will consider for approval case by case depending on appropriateness.
Paying more debt each month and reducing other expenses. For example, reducing electricity and water use by using a fan instead of turning on the air conditioner. Reducing the spending on shopping or expensive food. Find other ways to earn income according to the personal talent such as cooking, designing or online bag selling.
The suggestion for a high rate of interest is negotiation with the bank for a lower interest or default interest rate. Another way is changing the high interest rate to be the low interest rate. Refinance to reduce the interest is good too.
Observe and appraise existing assets and sell them, then use those money to reduce the principal and it will also reduce the interest rate in the future as well.