When personal and professional problems tend to accumulate, it becomes complicated to pay off debts and the financial situation can become increasingly delicate. In this case, it is still possible not to declare bankruptcy. Find out how.
A reorganization of your budget
This first tip is both simple and complex. In fact, you must list all your expenses and evaluate them according to a degree of priority. Those at the bottom of the ranking will be eliminated as much as possible, while those at the top will be unavoidable. For example, energy bills can’t be cut, while Friday night outings are something you can do without until your situation improves.
Among your unavoidable expenses, think about reducing them as much as possible, which will contribute to further improve your situation. For example, if energy bills can’t be eliminated, you can minimize them by saving energy.
Resell superfluous goods
Take a census of all your belongings at home, especially those in the closet and in the storage room. Then sort out the ones you don’t think are essential, as well as the ones you haven’t used for a long time. Sell them right away to recoup cash and make room in the house.
If you own a car, you can also consider selling it. In your current situation, it would only result in additional fuel and maintenance expenses. Instead, buy a bike that is healthy, economical and environmentally friendly.
Negotiate with creditors
When your financial situation becomes really delicate and you are almost unable to meet your repayments on time, you can contact your creditors and try to negotiate.
By explaining your situation, you can ask for an extension of your repayment period, a reduction in the interest rate or a reduction in the amount you have to repay. Once negotiations are complete, please document your agreements.
Consolidating your debts
Debt consolidation involves obtaining a loan from a financial institution that will be used to pay off all of your outstanding debts. However, the majority of these must be unpaid credit card balances or high interest debt. With this solution :
- Vous pouvez privilégier d’un taux d’intérêt moins élevé ;
- Vous n’aurez plus qu’un seul paiement à effectuer ;
- Votre dossier de crédit ne sera pas entaché.
For this to work, it is important that you do not use the credit you paid for.
Subscribe to a voluntary deposit
This is an alternative proposed by the Code of Civil Procedure and offers the possibility to facilitate the repayment of your debts. By using this procedure, you will have to pay a portion of your salary to be distributed to your creditors until your debts are paid in full.
In addition, the interest rate is set at 5%, which is advantageous.