Indebtedness leads to more indebtedness. You start with a credit card, then another, later a personal loan and in the end you end up with a mortgage. Without realizing it, you have entered into a spiral of debt from which to leave will not be easy for you. Is this situation known to you? But … How can you get out of payday loans?
Today we will explain the final method to end your debts, a method that will make your debts fall one after another as if they were domino pieces. As you will see below, the method is quite simple: first, you eliminate one debt, the smallest of all, then another, then another and so on until you end up with them all.
The great secret to end your debts
The great secret of this method is that the money we stop paying to eliminate the first debt will be used to eliminate the next debt and, once eliminated, we will also use the money that previously required us to continue paying off debts. Do not miss, we will explain it step by step and with an example so that there is no room for confusion.
- The first thing we have to do to apply this method is to order all the debts that we have from a smaller amount to a greater amount. For example, if the smallest debt we have is a credit card of 2000 euros for which we pay 100 euros per month, eliminating it will be our first objective.
- To eliminate this debt we will use a part of the money we save. For example, 200 euros. In this way, each month we will amortize 300 euros of debt, 100 euros of the monthly payment and 200 euros of our savings, which means that in less than seven months we will have canceled the debt of 2000 euros that we had.
- Once this first debt is canceled, we will have 100 euros of extra money to pay off debt number two. For example, if this is a personal loan of 4000 euros for which we pay 200 euros per month, now we can amortize 500 euros per month (200 euros of monthly payment and 300 euros of our savings). In just eight months we will have canceled this debt, so we will have 200 euros extra to cancel the third debt.
- If the last debt that remains to be paid is, for example, another personal loan of 8000 euros for which we are paying 300 euros per month, now we can allocate 500 extra euros to cancel it, so that the total monthly amortization will be 800 euros. This will allow us to cancel the loan in just eight months.
How long can you end your debts?
As we can see, we have managed to cancel three debts of 2000, 4000 and 8000 euros respectively in just 23 months (7 months the first, 8 months the second and another 8 months the third). If you make numbers you will realize that if you had not applied this method you would have taken a few more months to get rid of the debts. In addition, during that time you would have lived overwhelmed with them and you would have paid many more interests.