The story of debt repayment 1.3 billion VND
How to deal with big debt
One mother shared a story of paying off a debt of 53,000 euros (1.3 billion) with the help of a “one year no-spend” financing method. Amber, a mother of three living in Ontario, Canada, decided to try a strict spending rule to help get herself back on track.
A “zero spend” year means she doesn’t spend money on any luxuries like clothes or going out. The only cash she has to spend is on necessities like food, bills, and expenses for commuting to work.
Amber explains: “It really helped our family get out of debt. Initially, when we started the zero-spend challenge it was around the middle of the year. I made this decision because I felt I was in debt too much. Most of the pay goes to the credit cards and loans we owe, there are months just to pay the interest“.
Amber, a mother of three living in Ontario, Canada, decided to try a strict spending rule to help get herself back on track.
As part of their one-year “no spending” challenge, the entire Amber family stopped eating out, didn’t go to the movies, and just paid rent, bills, food and insurance.
As part of the “no spending” challenge, Amber’s family has chosen not to go out to eat, not to go to the movies. She only pays rent, bills, food and insurance.
Amber also sells unused items around the house to help pay off debt faster. She sells sofas, kitchen tables and TVs. Even wedding rings and engagement rings. Amber said:Anything that I don’t find that I like or don’t need or use anymore, I’ll sell. After that, I made quite a bit of money just selling things that were lying around the house. I used that money to pay off the loans.”
Amber realizes this
If you are also struggling with debt like Amber, the first thing to do is share it with family, friends, and co-workers. Because the sooner you deal with your money problems, the sooner you will return to a clear financial life.
There are many ways to get out of debt, so it’s important to find the right solution for you based on how much you can afford. There are certain debts you should always prioritize, such as rent or interest-bearing bank loans.
As a basic rule, you should start by looking at your finances and making a list of exactly what you owe, to whom, and how much you have to pay each month. Once you have a specific list, then the plan will be much clearer when it comes to seeing the debts that need to be resolved.
According to mirror.co.uk. Image source: FBNV
at Blogtuan.info – Source: Afamily.vn – Read the original article here
