Getting the goods we want is not as difficult as it used to be, we can even get them without capital. Yes, this cannot be separated because of the many loans offers available out there. Unfortunately, many people abuse this loan facility. Not even a few who make it a field to accumulate debt. So when the payment date arrives, the person cannot even pay, so the debt will accumulate. The question is, how do we know if there is too much debt? If you have too much debt, then your ability to meet basic needs will automatically decrease along with the decrease in your maximum credit score. The food menu, which was delicious and healthy, suddenly turned into a fast-food menu that was cheaply priced. This is because the salary that had been allocated for basic needs has gradually changed its function to pay debts.
So that your sacrifice is not in vain, it’s best to take this method seriously. Discipline yourself to pay off debts, so that debts are paid off quickly. You can also return to meeting basic needs as before without missing a thing. Whatever the amount of salary, but if the debt has already accumulated, it will be difficult for you to pay monthly installments. Even though you have cut several expense items and even created a new list of expenses, the salary is still lacking because the portion of the debt is no longer proportional to your salary. You need to know, the maximum percentage for debt is 40% of salary. More than that, believe that you will find it difficult to pay off debts. Try installments from the largest nominal, then proceed to the smallest nominal and do it in a disciplined manner until the debt is completely paid off.
If your debt is too much, then you will find it difficult to pay it yourself. Even though you have money, you will be confused about which payment to prioritize. If you choose the wrong choice, the debt will increase due to too high-interest rates. Not only that, you will often make minimum payments so that the debt repayments can be paid off one by one. Even though this method has the potential to increase debt, not reduce it because the debt that is successfully paid is only 10% of the total bill per month.