10 Suggestions for Fighting Your Personal Debts

Our personal debts are increasing. Turkey’s economic situation is known. The dollar, euro, gold prices are increasing day by day. The declared inflation rate is 13 percent. However, if we focus on all aspects we can say that the life is expensive 30-40 percent more than last year. For example, the rate of inflation in kitchen is at least 30 percent. The cars brought from abroad and electronic products also increased approximately 30-40 percent due to the rise in foreign money exchange value. Gasoline, natural gas, and electricity hikes will also cause every product price rise again in the markets where pressure is already exacerbated by rising exchange rates. All of this means that the debts burden on millions with credit cards, credited deposit accounts and debts already increases. Unfortunately, the vast majority of our country has lived on borrowing since people start to spend much money than they earn. People take loans from banks, bought a house, bought a car, spent their money with his credit cards, which they did not actually own. Now many of us are having difficulty paying back. Because the salary we receive is melting by inflation and hikes. So what can we do? How can we fight these debts. Here are 10 things you can do to avoid sinking.

1. Personal debts cannot pay by debt

You can take breathe for a few months if you pay your debts by more debts. However, withdrawing a loan from the bank with current interest rates and closing your debts like credit card, credit, credited deposit account and so on will never offer you a solution. On the contrary, you will have difficulty another 2-3 years in the future. So do not try to borrow money by borrowing a loan and getting into interest. For example, you have a loan of 25.000 TL for 36 months, with the 2,09 percent today’s banks montly interest rate and you have to will pay back 38,253 TL in three years. So you should pay 13.000 TL more just for interest. In addition the bank also charge money for the cost of the file expenses . So you should not borow more loans in this economic conditions.

2. Reduce your expenses

If you can not fight with your personal debts, the most important thing to do is to reduce your unnecessary expenses. Except for rent, food, transportation, telecommunication and all other expenses that are essential, what luxury do you have in your life. You should choose minimalist life. Do not buy anything unnecessary. For example, if you have 3 jeans and if they are are sturdy, don’t buy a new one. If your shoes are good enough, do not take a new shoe until you feel yourself comfortable. Do not eat food outside much. Choose cheap markets. Cook at home. If you have children, reduce your costs as much as possible. If their age enough to understand, sit down and talk with them. Indicate them you have in a trouble nowadays and want support from them. Do not go to expensive holidays, try to live in the minimum conditions as much as possible.

3. Try to find additional revenue

If you are working in a paid job from 8am-5pm or 9am-6pm yes it is a little difficult. However, in difficult circumstances, sometimes the person is compelled to self-search for new income opportunities. So it is useful to think “what can I do for an additional income?” You can get some freelance jobs on a subject that is your expertise. You can try to find jobs that you can do as brokerage. You can take away the things that you are not using at home an sell them on internet. You can buy and sell online somethings in lower level. Now, obviously, we can’t do a right and exact thing for that. However, if you can think of “what I can do for find a job” that can bring you at least 1,000-1,500 TL additional income per month, you can feel yourself a little more relaxed.

4. If you have a little money, put it on the bank

If you have more money in your pocket, at least in the case of a plus you absolutely put your money on the bank. The best investment now is to deposit your money into a bank that brings good interest on your money deposits with today’s interest rates. There are solutions that allow you to pay as much as you like at any time, giving you daily interest. For example, if you receive your salary and you have more or less left behind after you pay off your debts, consider your money at the bank that offers such a solution. Dollar and Euro value are growing day by day. Yes it is true. However, if you have really a little money, it has risky than the interest rates of the banks. Because if your money is in foreign currency you can never feel yourself as comfortable such as if you have invested in Bitcoin. In this type of investment tools you have to follow the market very well, know where to buy and where to sell. This will put you in a stress. If you have a job, you can not concentrate fully because of following up all day currency. This can affect your performance and also may you fire from your job and you loss a little more income. Therefore, the best solution now is to evaluate your money in interest on the banks, so you will feel yourself more comfortable.

5. If you bought a home and do not earn enough income, sell it

Real estate sector in Turkey last 5-10 years exploded as never before. People thought it was the best investment to take home. Even if they have a home, they bought second for investment. They thought, I can pay morgage with rent. Eventually the real estate bubble burst. Currently, there are more than 2 million free houses in the country. The rents are low. No one can afford to pay higher rents under these economic conditions anyway. So no one will hold you when you set a high rent on your house. The rent incurred for the apartments, which are taken in approximately one million TL in most of the currently constructed sites, is only 2,500 TL per month and at most 3,500 TL. If you put this money for one year o an bank you will get 164.000 TL at the moment. By dividing this into months, you will earn an average of 14.000 TL per month. So, if you invested in a real estate balloon and invested in the house, you can get a much better profit if you take it out of the way and pay your money in interest. But this is all true if you did not buy home with morgage. If you bought it with credit, just drink a glass of cold water.

6. Owning a car is a luxury, if you have too much loans

If you have a car and you have debts, selling your car can be a logical decision. Because the car is a luxury when you are in debt. There are expenses such as tax, inspection, insurance and traffic insurance. Moreover, maintenance, repair and other costs can also occur where it stops. If you do not have parking, you may need to pay 300-400 TL per month. If you sell it, you will be saved (if you do not use it too much) at a minimum cost of 4,000-5,000 TL per year, and you have closed your debts with a small amount (maybe even the entirety). Do not think that I can not get a car again. In the future you will get a car that will keep your money on the ground when your conditions are again affordable.

7. Pay attention to installment paying traps

One of the most important reasons for debts is getting into the installment paying traps and buying things that you do not need. You say “I will pay only 200-300 TL per month“. This type of expenditure accumulates over time, if you look at the monthly installment payment you start to pay 2,000-3,000 TL every month. Something ends up, somethings starts. So do not bleed into traps like 7-9 or even 12 months of installments. Use cash as much as possible. If you have a credit card, choose one shot. Do not take anything that you do not really need as we have explained above.

8. Never buy anything on the phone

In such periods of economic crises, most of the company become more aggressive. Anyway. They steal your phone number all the time, and try to sell you a lot of things you do not need. Banks, in particular are always calling you for selling you more money to pay your installments, to get rid of your extracts. Everything you accept will return to you as a lost. So be resilient to the sales pitfalls made with phone. You should known to say “no”. Already a lot of companies are searching for your phone from somewhere, even though without a legal permission. So you do not have to be too polite. The best tactic is, “Where did you get my phone number?” When you use this sentence, you already take the control. Say “I do not need that” if you give the permission to them before, and turn your phone off politely. Never give a permission for “Just listen me for a while” sentence.

9. Disable the credit cards you do not use

If there are any credit cards that you do not use, turn them off. They can have annual fees and encourage you to shop more. Ideally, you should have at most one credit card. So close the others.

10. Be positive

The most important recommendation is that you never thing bad. The end of every known darkness is absolutely light. And your most important asset in your life is your health, your family and your close friends. You should know their worth. You should be patient. Remember that this is not just your case, and that almost 80 percent of the people is on the same terms as you. Never lose your confidence in yourself. Keep working and never give up. You promise yourself that you will never repeat the same mistakes once you have succeeded in overcoming this crisis, you will not spend a lot of money, and that you will save a little money per month for hard times. You should know worth the money in your pocket, because money is an increasing asset when you know its value.