Debts are one of the biggest concerns of people and with good reason, have you ever thought about how much of your salary goes into paying them month after month?
According to our study “Use of credit cards 2021”, different countries spend, on average, 25 percent of their income only to pay their cards, which, we don’t even have to tell you: it’s a lot.
And if in addition to this, they have other credits, for example, for, mortgage, personal or automotive and as well 무직장대출, imagine how much of the income goes to pay debts!
But, as most of the time we are not clear about this, because we are absorbed in the routine of paying and not thinking about it, we will help you to know it exactly in three simple steps:
1. Make a Count
Take a sheet and divide it in two. Now, on the left side, write all the income you have per month: salary, rents, investments, extra jobs, and so on. Not only do you write the amounts, but you will need to name everything, so it will be much easier to detect them.
Then, on the right side, write all the debts you have at the moment and the monthly payment for each one. As in the previous point, remember to name them to easily detect them.
2. Get a Percentage
Once the above is done, you must add up all your income and write the amount at the end of the page. Then do the same with paying your debts.
Now, take the amount you spend on your debts, multiply it by 100 and divide it by your total monthly income. How much does it matter? Well, that is the percentage of your income that you spend month after month to pay debts.
3. Get to Work
We are sure that the information you just obtained shocked you, so it is best to take a deep breath and take a walk to clear yourself.
Since you did that, it’s time to get to work, because now you know who is taking a good percentage of your income and they have you on the tightrope month after month.
So, the best thing is that you create a plan to be able to reduce your level of debt and improve your finances and here we leave you two options:
Plan A should be to look for a credit that helps you consolidate your debts, that is, change several of them to an institution that charges you much less interest and helps you pay them off with fixed payments.
For this, you must have an excellent history and credit score and the objective is to find an institution that helps you save, to the point that even your monthly payments can be reduced.
2. Pay one Debt at a Time
If your record is not the best, your plan B may be to pay one debt at a time. How? You can choose the most expensive, that is, the one that is charging the most interest, and start paying capital or pay a little more than the normal monthly payment.
This process will be a little longer than the previous one, but with perseverance and discipline, you can achieve it.
Regardless of which of the two plans you decide on, avoid going into debt while paying your current debts and create a savings and investment plan, with the aim of really improving your finances in this process.
Did you like the article? What percentage of your income was going into your debt? Share your comments with us!