Tips for saving and debt reduction

Do you have debts to settle? Follow these effective tips for saving and you’ll be released sooner than you expect.

The problem with many families is the lack of money. And what is the reason for this? The lack of financial education. If you don’t know the exact amount of money you spend and where you spend it, then it is very likely that money will direct (or consume) your life.

Educate yourself for savings

Educate yourself for savings

Take some time to read about personal finance. Most of the time a debt overload is imposed by the ignorance of the matter. It is better that you begin to train in financial education, the more you know about your own economy, the greater the security you will have.

Creating a financial plan can help you reach your goals.

Check your credit regularly

Your credit report is like an archive of you and your credit history. Basically, it tells lenders what risk they acquire with you, and whether or not they should lend you money. If your credit report is in good shape, it is a way that you can qualify for good rates.

Create a habit of checking your history regularly.

Make a debt relationship and attack

Do you really have any idea how much you owe? Do you have it under control?

Create a relationship between each and every debt.

Make a budget

bank

If you really want to fix your economy and take the lead financially, you must allocate time and energy to update your budget every week. By making a budget you learn about your money, your expenses, and your habits. It is the best way to educate yourself in finance. With a well-made budget, you keep track of expenses and decide where your money goes.

The 4 Reasons why it is absolutely ESSENTIAL to start preparing a budget

  1. Is plan better: Do you want to travel, buy a new car or renovate your home? With a good budget, you can follow the progress to achieve your long-term goals. This will motivate you to reduce expenses on less necessary things, to spend money on something you really want.
  2. Reduce debt: If you have debts and want to pay them, start with the budget. The budget will tell you exactly where you can reduce expenses and how much money per month you are willing to spend paying your debts, to get rid of them as soon as possible.
  3. Retire in conditions: Do you really think that the state pension money will give you to live?
  4. Living in peace: a budget is your best option to have control of your finances, you will sleep peacefully without worrying about financial problems.

Create a family budget to balance your economy

Pay debts

Make a plan to pay all your debts as soon as possible. Start by making a list of all your debts (credit cards, car credit, educational credits, etc.). It includes the current balance, the minimum payment per month and the interest rate. Then check your budget to determine how much money you can add to debt payments.

Consider options such as microcredits or Financial Credit Institutions credits for urgent things that allow you to advance your financial independence plan.

From there you can do research on strategies to reduce debts so that you confirm that you are paying them in the most efficient way possible.

When you are working on debt reduction, it is important that you have a “mattress” to pay for any emergency that arises along the way.

  • To request a debt reunification click here
  • To apply for an Financial Credit Institutions credit for immediate debts click here