Filipinos may be free from colonizers, but many are still grappling to achieve a different kind of freedom which is freedom from debt. Getting out of debt is not easy but it is possible. It is important to be humble enough to accept that you have debts. Have the courage to make things better for you and your family. So how do you start?
1. MONITOR YOUR DEBTS
Make an inventory of your debts, the interest rate and the amount that you pay for each month. Take a look at short term and long term debt. Short term debt is usually paid off within a year and consists of credit cards, medical bills, and consumer loans. Long term debt has a longer payment term and may have collateral like your home or car. This will start to give you a picture of your debt.
2. CHECK OTHER SOURCE OF PAYMENT
Identify which assets can be a source to clear debts. If you have assets that you are willing to sell, such as a car, jewelry or other valuable items, you could consider selling them.
3. FIND AN AMNESTY PROGRAM OR LOAN RESTRUCTURING SCHEME
This can help you minimize or eliminate the loans should none of your assets can be used to pay off debts. Through this way you will just allot specific amount every month or depending on the terms you’ve agreed with your debtor.
4. BE DISCIPLINED
Finally, the best prevention that you can do is to avoid borrowing any more money until you have repaid what you already owe. And always remember to LOAN for what you really need.
If you are in debt, you’re certainly not alone. Reaching out to a financial coach can be a great help too. Robocash hopes you see that the reasons for working towards debt freedom are so fulfilling. Don’t live beyond your means. Although it is pretty easy to do these days since we live in a time when buying on credit has become the norm. But just because it seems normal doesn’t mean you should be doing a disservice to your current and future well-being.Apply now