We have always dealt with the difficulties of Italian families in repaying their debts, especially in the event of financial problems that could lead to insolvency and other legal complications.
Clearly, the only way to resolve their debts is to pay their own fees, through the various instruments available to the debtor, from the repayment plan, to debt consolidation, to the transfer of the fifthand many other alternatives.
Today, however, we want to dwell on the actions that the debtor can take to optimize their savings, their income and their outputs, in order to get rid of their debts in an easier way. Here are some practical tips.
In the first place, it may seem trivial, but the improvement of one’s family budget must start right from the debts with two simple actions:
do not accumulate further debts;
pay debts with higher interest rates first.
Then there are other simple tips to facilitate the return:
decrease or eliminate lunches and meals outside the home ;
evaluate the purchase of a used car instead of a new vehicle;
postponing their purchases to the sales period, trying to stay informed about the various promotions and initiatives of their trusted shops;
use free public services such as libraries;
replace or eliminate expensive and unnecessary services with cheaper services, such as satellite television; there are less expensive alternatives, such as many online (legal) streaming services;
carry out some work initially entrusted to other people (ex: house cleaning, babysitting, gardening).
In general, however, it is useful to implement a real family budget practice, where all family income and expenses are recorded, so that they can monitor and apply corrective measures. In this case it may be useful, above all with regard to expenses, to subdivide the latter into categories, not so much in relation to the object of expenditure, but according to the necessity of that product / service.
There are for example basic expenses such as those for food, rent, medicines; others can be useful, but at the moment you can do without them (ex: clothes to go to work). Others are not necessary even if they can improve the quality of their lives; they are renounceable and, if avoided, they can allow to set aside a reasonable monthly sum to repay debts (restaurant, cable TV, various subscriptions).
As trivial as it may seem, it is often very useful especially at the psychological and motivational level, to share its experience with other people, perhaps in the same condition. For example, online communities can help, but they can maintain a certain anonymity without exposing themselves to friends and family. Relationship with other people and other debtors allows not only to get motivational support, but also to accumulate advice and ideas from the stories and stories of others.
Another suggestion that can be very useful is to set aside an emergency fund to be used in case you find yourself in trouble repaying your debts. The fund must not be used except in the case of a real emergency, when it is not possible to meet its obligations with the normal current account.
However, a concept becomes fundamental and transversal to what has been said previously: sustainability. In fact, you do not have to cut all your expenses and drastically reduce your standard of living. The reorganization of one’s financial situation must be guided by the real necessity of the moment, eliminating the superfluous in expenses and avoiding the contracting of unnecessary debts.