Revenues at half-mast, rising debt: how to react?

 

Loss of employment, illness, divorce: your monthly income is down significantly. At the same time, you must continue to pay your mortgage and car loan. How to get out of the rut? Here are some tracks.

Savings time has come

Savings time has come

Before you panic, calculate your debt ratio. The total sum of your monthly repayments of credit must not exceed 30% of your income. You go over? This is the time to reduce your lifestyle to stay in the ability to pay your charges. All the moves are good: review your internet subscription, install new eco-sustainable rules, suspend your registration at the gym, track down the bargains at the merchants. Also capitalize on your car through car-sharing.

Take good resolutions!

Take good resolutions!

After optimizing your resources, fight your bad habits. Compulsive buyer? Set a budget not to be exceeded and avoid outings in shopping malls.

Rather than paying by credit card, withdraw the sums to visualize concretely what your purchases in cash represent: the effect is immediate! In the same vein, revolving credit is a financing solution to use sparingly: do not multiply purchases through this way at the risk of losing contact with the reality of your cash flow.

Study the credit buyback offers

Study the credit buyback offers

You can not do it anymore? Two solutions: if it’s a bill that breaks the tide, consider the possibilities of spreading the payment. And if you are committed to several loans, now is the time to learn about the purchase of credit.

Your bank or other lender is able to consolidate your loans and calculate new monthly payments that you can honor. The short-term benefits are very significant: you are no longer asphyxiated, you pay back at your own pace.

In return, the repayment period is lengthened which often opens the way to a total increase in the cost of credit. Before pronouncing, we must therefore compare the various offers of redemption. Check that the total cost of your new credit is only slightly higher than the sum of the costs of the old canceled credits.