Getting out of debt is among your promises for 2015? So check out the tips from GuardPayment so you can reach your goal by Christmas next year. With discipline and determination, it is possible to solve your financial situation once and for all


1. Map your spending

money spending

Make a list of all your expenses to get the true size of your monthly cost. To do this you have two options: manually fill in a monthly spending sheet or have an automatic financial tracking tool like GuiaBayment, which automatically pulls and categorizes all your bank movements. in less than two minutes.


2. Set goals for your expenses

Based on the 50-15-35 rule, set goals for all your spending by dividing them into three categories: 50% of income for essential spending (housing, food, transportation, health and education). )), 15% for financial priorities (if in doubt, paying them off, if not saving) and 35% for lifestyle-related expenses (bars and restaurants, gym, beauty, shopping, travel and clubbing).


3. Find out the total amount of your debt

debt amount

Contact each of your creditors and ask about the amount to pay off your debt. This amount must have interest discount and any fines. If you have access to a cheaper line of credit (such as payroll or secured or auto loans), consider replacing all small debts with one. only with lower interest rates.


4. Renegotiate with lenders

If you are unable to replace all your debts with a single one, it is worth contacting the creditors and making a counter proposal for the payment of the debt. It proposes lower interest rates and longer repayment period, so that the installments will fit your budget and you will not get into debt again.

Be persistent! If the lender does not accept your proposal the first time, maintain frequent contact with the renegotiation center and save the amount you would pay in installments to make a new proposal up front, giving part of the payment as input.


5. Create an emergency reserve

5. Create an emergency reserve

Once you have your debts in order, your next financial objective should be to create an emergency fund of three salaries to protect yourself from life’s unforeseen events. This money should be kept in savings so you don’t get hold of the overdraft every time you go through some tough time.