Calculate your total debt
Sometimes, debt and the assorted needs of daily life can create an unclear financial picture. If so, as a first step, you need to get a complete picture of your financial obligations. Make a list of all your debt amounts so that you can determine the overall sum.
Inform your creditors
If you’ve done everything that is seemingly possible but find yourself still unable to meet debt obligations, talk to the creditors. Discuss and explore alternatives. Stay informed about the possibility of a time extension, settlement, or consolidation of installments to decongest interest rates.
If you owe a variety of debt amounts, you can consider debt consolidation, bringing all your existing debts together into a single loan with a lower interest rate. This is a preferable solution as it enables you to deal with one loan, making your situation more manageable, both practically and emotionally.
Don’t increase your debt level any further
Unavoidable expenses are a definite reality. But there are other costs that can be minimized, top help you contain your total debt. Similarly, taking out more loans is not a solution for loan repayment and should be avoided. Additionally, there are daily expenses that may not lead to debt but prevent you from saving money and achieve a faster debt repayment. It is best to find out such expenses and limit them.
Set priorities
Focus more on debt with higher interest rates, without, however, skipping your minimum installments concerning lower-cost debt. You don’t want to fall behind on payments. Categorize your debt sources, into expenses (credit cards, consumer loans, etc.) and investments (mortgage loan, corporate loan, etc.) and prioritize the each one’s repayment. Some bills, if left unpaid, have more serious consequences compared to others. The same is true for payment obligations to the state, which, if delayed, can have dire financial repercussions. Good prioritization is therefore essential.
Find out about debt consolidation
If you owe a variety of debt amounts, you can consider debt consolidation, bringing all your existing debts together into one loan with a lower interest rate. This is a preferable solution as it enables you to deal with one loan, making your situation more manageable, both practically and emotionally.
Find out about NBG’s Weight Off Your Shoulders debt consolidation product. It promises relief by enabling you to bring together consumer loans and credit cards for repayment installments that are noticeably lower than the total amount you may currently be paying.
Stress and anxiety can lead to panic and denial, which, in turn, can prevent you from having a clear, full picture. Get organized and you will be able to take advantage of all available solutions. At the same time, it is crucial to remain punctual with payments once a debt settlement has been reached. This will help you to keep practically and psychologically getting closer to your goal.
Remember that composure, decisiveness and organization are your effort’s main attributes. It is not always easy, but it is possible.