Huge debt is one major cause of stress for a lot of people. If left unmanaged, this can lead to problems that can affect your health and relationships. This is why financial options like Citi Personal Loan can become the answer to money problems and allow you to manage your debt and clean your finances.
Before you work on consolidating your debt, you need to do manage what you owe first. Doing a financial inventory is the first step, in which you determine your overall financial state. You need to list down your assets and liabilities and then write down your regular expenses and monthly income.
Cutting off non-essential expenses is the next step. These include cable TV subscriptions and gym memberships, which takes a considerable slice of your monthly income. While you’re at it, look for opportunities to earn extra income, such as buying and selling stuff online or doing freelance work.
Check your assets and see which you can sell immediately. These include your car, gadgets, and appliances. The money you earn from this can already cover a considerable amount of your debt. Consider everything that you can sell, including your home.
If you’re already eyeballs-deep in debt and the compounding interests are wreaking havoc on your peace of mind, it’s time to consider these debt management options to get you out of your financial rabbit hole.
Consider debt amnesty
This can be done by contacting your creditors and negotiating for an amount lower that your debt, which you can promise to pay on agreeable terms. Amnesty means you won’t be slapped with interest fees, thus preventing your debt from ballooning. If the fixed amount you’re given in still too big for you to pay one time big time, you can ask to pay on an installment basis.
If you have more than one credit card and you have debts in all of them, you can arrange to have your balances transferred to just one card and pay off just one source. The trick here is to transfer your balances to a card that has a much lower interest rate compared to your existing cards. If you manage to do so, you should now close the other cards to prevent you from spending again and also to make it easier to manage your payment.
Apply for a debt consolidation loan
Most commercial banks in the Philippines offer this one, such as Chinatrust Personal Loan. These come with annual interest rates ranging from 13.20% to 22.70%. This is like transferring your balances to a card, only in this one, you are actually applying for a loan to repay your debts. What you need to do is to compare the loans available and choose the one with terms and requirements that you can easily comply.
If a debt consolidation loan is your preferred option, check out Citi Personal Loan and offerings from other banks so you can compare their rates and terms. Putting all your loans in one place and managing your payment from there can be your first major step towards financial freedom.