Everyone knows about the need to weigh their capabilities before applying for a loan. But in practice, thoughts about the immediate solution of monetary problems with a loan are so inspiring that I don’t want to think that you have to pay for everything.
Then there are difficulties with the payment. A man is frightened, breaks into new debts, but the problem is not solved, but only grows like a snowball.
What can be done in such a situation? How to get out of a debt hole? Actions, methods and tips - all this is presented in our article.
Pull yourself together
This is the first thing to do. There is always a way out, but in a state of panic a person does not see him and drives himself even further into a dead end.
We will not only talk about how to get out of a debt hole for loans, but also indicate what should not be done. You just have to choose the suitable option and clearly move towards the goal.
Do not be afraid of collector threats. It’s hard to listen to them psychologically, but these are just words. You should be afraid if the amount of your debt is in the millions, but this does not concern the average resident of our country.
Even less should be afraid of the court. If you really have nothing to pay, the bank will only lose from this lawsuit. You will be freed from fines and assigned the amount of monthly payments that you can afford.
We also understand that you are very nervous now and want to see not abstract advice, but clear instructions on how to get out of debt if there is no money at all. Therefore, you will probably find that the tips below are not your case. But understand that a miracle happens rarely, and money from heaven does not fall. Calm down, be patient and follow the recommendations. There are no other options.
Arrange with the lender
The most obvious way that Russians rarely use for some reason. If you are unable to repay the loan, notify the bank immediately. If you do this BEFORE you allow the first delay, it will be much easier to agree.
Do not pretend to be unhappy and try to pity the management of the bank. On the contrary, radiate confidence and convince bank employees that you perfectly know how to get out of a debt hole, what and how to do - you can imagine very well, but it takes a little time. It may not be so, but you must assure the bank that your financial difficulties are temporary and completely solvable. Then he will calmly approve the debt restructuring.
In what form this very restructuring will take place, depends on the policy of a particular financial institution and the success of your negotiations. You can be granted a deferral of interest, increase the loan repayment period (this will reduce the monthly payment), change the payment date, etc.
Refinance Debt
Another civilized way is to take on more favorable terms a new loan designed specifically to repay current debts. We emphasize that it is necessary to obtain a targeted loan for refinancing!
Do not change the flea, issuing new consumer loans for any purpose. Firstly, this way you will only gain some time, but the problem will not be solved. Secondly, if you are experiencing difficulties with money, then the risk is too high that after receiving “live cash” there will necessarily be “more important” and urgent expenses. Then, how to get out of the credit hole, you will think in the last turn.
Also, the refinancing procedure allows the combination of several loans into one.This will not only help reduce overall costs due to lower interest rates, but also reduce psychological stress.
We advise you to immediately go to a bank that is not your lender, since banks do not like to refinance their own loans.
But before applying for such a loan, calculate the associated costs. If they are significant, and the difference in interest rates is small, then the game is not worth the candle.
Pay more
At first glance, stupid advice in a situation where a person is in debt like silk. But think logically: if you have been swallowed by a debt hole, how to get out of it if you do not pay debts? No way.
Review your expenses. Believe me, there are many things without which a person can live. Replace meat with poultry, buy less sweets, refuse the services of a fitness club for a while, do not purchase new clothes yet, do not use the Internet, finally. Ideally, if in addition to the saving mode you find a side job.
Due to savings and additional earnings, increase the monthly payment. So the debt will be paid faster and with less overpayment.
Maintain home accounting
Compliance with this recommendation simplifies the implementation of the previous tip. Become your own accountant. Clearly plan your spending and follow this plan without allowing yourself too much. Rich people are rich because they don’t spend money on all kinds of nonsense and do not succumb to momentary desires.
An important nuance: there are no trifles when accounting for expenses. Record EVERYTHING! 200 rubles for lunch in the dining room, 30 rubles for drinking yogurt for dinner, 20 rubles for chewing gum, 7 rubles for a package in the store - these are small expenses, but in total they cost a pretty penny. After two or three months of scrupulous accounting, you will see this.
Soon you will receive a detailed report on your regular expenses and understand where you can “squeeze”. The saved money will go to pay off debts.
Group debts by priority
If there are several debts, then after the appearance of "extra" money to pay off, think which ones are more appropriate to close first. First of all, these are loans at high interest rates and those for which delay has already been allowed.
As for whether to pay a large debt first or a small one, here everyone chooses what is more convenient for him. If you first pay off the largest loan, it will become easier psychologically, and more money will be released.
Small loans are easier to eliminate. Then they will not distract from paying off large debts, and getting rid of them will give confidence that they will deal with large ones soon too.
Adjust your financial situation
Who can really get out of the debt hole is a person who is realistically evaluating his capabilities and striving for financial well-being. This is understandable without words: if you start earning more, it’s easier to pay off debts.
It is possible that you are now waiting for miracle tips on how to earn a million dollars a month and erase information about loans from the databases of creditor banks. We will not tell you this and do not recommend believing those who promise to tell this secret for a "symbolic" fee. Just because there is no such way.
You can win the lottery, suddenly get an inheritance, marry a millionaire, find a treasure, but this is rare luck. Financial problems will have to be solved independently, and all my life. To do this, you need to work hard and learn. There is no other way, unless criminal. Always look for a higher paying job, learn new skills. Do not be lazy, and everything will turn out!
To start, just find a small part-time job. For example, become mystery shopper get a weekend salesperson, do tutoring.
Sell something
This is from the extremes, but also an option. For example, in our time it is quite possible to live without a TV. You can call from a simple phone for three thousand rubles, and not from an iPhone.You can also use public transport, rather than driving around in your own car, which requires gasoline, oils, a car wash, a third-party liability insurance, new rubber, and much more. Or you can sell an expensive car and buy a cheaper one, and send the difference to repay the loan.
We repeat that this is an extreme option when the situation is completely "awful." If tolerated, then the sale of property does not make sense. There is no need to sell a car and pay debts with this money, if in the future you still want to buy a car, for which you will have to get a new loan.
Don't do stupid things
Today on various portals you can find all kinds of tips on how to get out of a debt hole for loans. Some of them are strange and stupid, while others are traps of scammers at all.
You can stumble upon the ads of "magicians" who promise to get rid of loans with the help of spells or at least "trick" a high salary (of course, not for free). Or run into the so-called "lenders", assuring that for a nominal fee (from 15 to 90% of loan debt) they will save you from all debts.
Remember: there are no easy ways in this business. If you fall into the tricks of false mages and scammers, you will only aggravate the situation and lose even more money.
Preventative measures
So that in the future the question of how to get out of a debt hole for loans no longer arises, take a few simple rules into service:
- Live within your means. Each time you apply for a loan, think ten times whether you really need what you borrow money for.
- Keep track of income and expenses. So you eventually unlearn from irrational spending.
- Form a financial airbag. It is imperative to save at least 10% of each payday for a rainy day. You may object that you do not know how to save, or that your salary is too low, but these justifications are hardly serious. You just have to start. 10% is not so much, but in the future you will have a margin for making another loan payment in case of force majeure. Unless, of course, you need a new loan, because the habit of putting off will in most cases do without it.
- Never pay with credit money for holidays, household appliances, clothes, minor repairs and mobile phones. Such expenses are rarely sudden and urgently needed.
- Avoid credit cards. You can get one just in case, but do not abuse this tool if you are not able to pay during the grace period. It is proved that when using credit cards a person spends more and is more often inclined to impulsive purchases, because he actually does not see his spending. Having cash on hand, you will once again think about whether to give your hard-earned money. If the payment is made using a card, it seems as if the money was not spent. A person gets used to an imaginary “freebie”, and even the bank increases the limit for the active use of a financial instrument, and significant debt can be formed. And, as you know, closing credit card debts is the most difficult.
We have provided basic recommendations on how to get out of a debt hole for loans, and we hope that they will help you. Use the tips provided and consistently go to the goal.
We warn you that you will not quickly solve the problem, but you probably didn’t get into debt in more than one day. But when you get to the finish line, in addition to closed debts, you will have an honed skill in handling money in your assets.
