How dangerous are debts. People lose their home mortgage, states start wars. The negative effect of debts makes our lives and economy at risk. Debts exist at the beginning only on a paper which commits in a contract to pay a credit. If not, the bank seizes it, for example your home. Who gets into debt to buy a car, buy a home or pay for vacations, is at greater risk.
Who is indebted to invest, for example as a lessor can and even have a profit.
From debts, a whole financial industry subsists. They negotiate with debt instruments and bet on bankruptcy.
A country is seriously threatened when its debts exceed its gross domestic product.
Likewise, a person is at risk when requesting credits that he cannot pay.
When we cannot pay the bills, it is there that the negative effect of the debts takes its course.
The risk increases over time. Not paying on time will cost you more interest.
Tips to free yourself from the negative effects of debts
– Cut expenses. This means making sacrifices, not giving us as many tastes as we used to.
– Restricts the use of credit card. Rather try to pay as much as you can to lower interest rates.
– Reduce trips to restaurants or parties. If they invite you, nothing will happen if you say no.
– Compare prices of home or personal services such as the internet or your cell phone plan.
– Spend less, invest more. Find a way to use your money to make investments and even just what is necessary.
Manage a family budget and plan for tomorrow.
– Do not waste, on the contrary it saves. Saving will be essential to achieve a dream like buying a new house or a new phone.
– And finally, work with the cash culture