Do you have more debt than your finances can handle? You are not alone in that. Today, almost half a million Swedes have debts at enforcement authority. Here are 5 tips for injecting new hope into your economy.
1. List and keep track of all your debts
The first thing you need to do (if you haven’t done so already) is to get iron on your debts. However difficult it is, you can’t make an economic plan without knowing in detail what debts you have. List them by amount, monthly payment, interest and “status”. With status I refer to whether it is the question of ordinary repayments, debt collection or whether they ended up with the enforcement authority.
You can also do a fifth column to set the priori debt. Acute debts – such as those on the way to the Debt Collection or enforcement authority – have a high price.
Note: all debts must be paid and thus have the same high price. But if you are about to be evicted from your home because of unpaid rents, this is of course a debt with a high price.
2. Aim for debt at a time
If you have many different debts, your mapping can be disappointing. But remember that you don’t have to be debt free overnight. The most important thing is that you get together a budget that works on a monthly basis and that does not result in your total indebtedness growing.
Mao: aim for one debt at a time. Prio should be on unpaid bills on fixed expenses such as electricity, rent, insurance or mobile.
Then you aim for your credits. If you have several small loans, you can try to get a mortgage loan and thus lower your monthly costs. But keep an eye on the interest rate – and take just as big a mortgage loan you need.
3. What can you sell?
This is perhaps an “obvious” measure, but which many still overlook. Take a holiday, go through your inventory – and see what you can sell. Maybe it will not settle all your debts. But even if the sale only helps you to settle small loans, it can mean that you have the necessary respite in your finances.
4. List necessary and unnecessary expenses
When you list your debts, set a price and sell off what you can, it’s time to make a total budget. Here you can go through your monthly transactions, at least the last 3 months, and based on it to map what you have for expenses.
Distinguish between fixed and variable expenses. Fasting is one that you cannot influence in the short term. Such as rent, car, electricity, mobile, TV fee and the like. Moving years that you can influence, such as food purchases. When you are aware of this, it is time to make a budget. And now there is room for creativity and discipline.
5. Be consistent, don’t give up!
Becoming “debt free” is an expression that requires certain reservations. There are almost no Swedes who have bought housing and who are by definition “debt free”. Most people have home loans, and in other words, are not debt free.
Therefore, it might be better to define debt-free as a condition where you can pay your bills every month.
If you have been in financial trouble, it may take a while to get there. But don’t give up. The tree wins as it is called. So also when it comes to financial challenges.