Debt life has become synonymous with Croatia. The citizens of Our Beautiful, to be more precise, those who have remained and did not seek a better future beyond the borders, have learned to live in the negative. More than 300,000 Croats are blocked, and their debt exceeds several million. Too little pay and high cost of living are what drives people into debt. The cost of living on a monthly basis exceeds the minimum wage of USD 1,000. In one-person households, this difference is much larger. Many are wondering how to get rid of them, so it is not surprising, therefore, that the term ” debt reduction ” is increasingly appearing on search engines.
Awareness of the problem
The first step to reducing your debt is to accept the fact that you are too deep. It may sound banal, but people have a hard time coping with such a situation and are unable to admit that they spend money without any plan. Once you become aware of this, debt reduction will become a goal that you can commit to without any problems.
Put your finances on paper
The next step in reducing your debt is to gain control of your finances. It is best to put all of your income and expenses on paper. This is the only way to get an insight into the real state of things. Many are unaware of what their money goes to until they see it black and white.
Cash helps control finances
Credit cards are best replaced with cash. Paying with credit cards creates the illusion that money is not going out of your pocket. As a result, people are not even aware of how much they are actually spending. Cash provides better control over finances.
Divert your money into repayment
Debt reduction is more likely if you get rid of unnecessary expenses. Cost reduction is inevitable if you want to get out of the minus as soon as possible. Once you have determined how much money you really have, you will easily see what things can be solved. For example, these may be cards that you do not use, but still pay for usage fees, various gym, library, and other membership fees. That money can be diverted to reduce debt .
In paying off your loan, a realistic goal is your ally
If it is a loan, try to determine a repayment plan. It is best to keep the plan as ambitious as possible so that you do not give up early. More realistic goals will make you stick to them, as the effort will be seen very quickly. Equally, a reduction in loan debt can be covered by a quick loan or an online loan that can be repaid. These types of lending are offered by credit houses that provide access to their services exclusively online.