Debt repayment loans First Debt

Borrowing and life on debt is a trend in recent years. People affected by ad massage want to buy everything immediately regardless of their financial situation. In addition, when you can easily borrow – even just via SMS! Sadly, only a fraction of people are aware of the risks of a debt trap (spiral) that destroys life and lets a person fall to the bottom.

What is a debt trap?

A debt trap or a debt spiral is a process whereby a person becomes over-indebted and is no longer able to repay his claims. The debt is constantly growing.

How to get into a debt spiral simply?

How to get into a debt spiral simply?

The answer may be: “very simply.” Most human stories begin with a loan and hence a commitment. Then there is an unexpected event that will rapidly reduce the ability to repay this commitment. Most people deal with these situations with another and another loan in the vision that they will be better. If they stop paying their obligations on a regular basis, they will find themselves in the debtors’ registers. This in practice means that for all banks these people are already taboo.

That is why these people, in the last hope, turn to various wizards and speculators, who are able to turn them on the little that remains. People in distress are able to pledge a house, apartment, or sign an empty bill to survive the next month. At the same time, debts continue to grow with new penalties, contractual penalties and other expenses. One gets into a debt spiral from which there is no escape.

Especially when you combine multiple types of credit – such as purpose-free consumer loans, hire-purchase or fast-paying loans – you will be absorbed by the debt trap. All you have to do is get sick, lose your job or divorce with your partner, and the burden of your commitments will put you down.

Watch out for loans

Before setting up a loan, carefully consider whether you need it at all. Is it really necessary for you to procure for the money you earn? Also, due to a vacation loan, you can lose your roof in the extreme. Here are some basic tips:

  • Do not borrow unnecessary items such as consumer electronics, designer clothing, holiday, expensive gifts (cigarettes), cigarettes, alcohol, gambling, etc.
  • ” Don’t wedge a wedge ” – that is, do not take a loan to repay existing debts. Thanks to interest, it is impossible and you just owe more.
  • Before you borrow, try to wonder if the current situation could be solved otherwise – without a loan.
  • If the loan is necessary, set a clear goal to buy the money you borrow. Don’t borrow any extra money – it’s very disadvantageous and useless!
  • The amount of the installment must be such that you are able to repay it without any problems . Otherwise, do not borrow.

Can I borrow?

Can I borrow?

Behave responsibly and list all receipts and expenses before arranging your loan. If your earnings are higher than your expenses, you have a reserve and you can repay the loan. However, if the reserve is small or even negative, do not take the loan under any circumstances.

 

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