Paying debts and achieving financial freedom requires making structural changes in the lives of individuals, and making decisions that must be consistently adhered to so that they do not get out of control, while being careful to avoid bad debts that will not yield returns on investments and drain the wealth in the long run.

Here are the top eight tips for controlling debt and dealing with debt in the new year, according to the nonprofit Credit.org, which specializes in providing financial advice:

Renegotiate

There are several ways to rearrange debts and improve levels of ability to pay them, by inviting creditors and trying to ask for a lower interest rate, especially for customers who have a good track record of payments, so they can save money in this way, and the balance can also be transferred to transfer debt from high-interest lenders, To lenders providing a lower cost benefit.

Payment options

When looking at how to pay off debts, the snowball method can be used, and the smaller balances paid first, then this mechanism can be applied to larger debt payments in the next stage, or those with a high interest can be paid first and so on, while the first method contributes to building momentum and stimulus More to comply with the budget, the second method will save customers more money in financing fees in the long run.

Automatic payments

You should make sure to prepare the method of paying the monthly invoices, including debt payments, so that they are paid automatically from the bank account, to avoid delays or forgetting one of the payments, then make additional payments every month according to the budget, and put an additional amount as possible on the basic debt every month until Be paid off.

Track spending

Monitoring spending is one of the most important tips to take into consideration while setting the budget in the context of debt repayment. Some people resort to blogging, and others adopt spreadsheets, or applications for smartphones. Smart, and continue to make sure that the budget is working perfectly, until it becomes an ongoing habit for individuals.

Written budget

Once spending is tracked, individuals have the information they need to create a new written budget. Budget guidelines should be flexible and realistic, because conditions are constantly changing. People who resort to writing down their financial goals are 90% more likely to achieve them, as they have more accurate data and information about their financial situation.

Credit report

To find out how to handle debt, individuals need a full assessment of their financial situation, and the best place to start is by examining the credit report that shows all the accounts, including what they owe, and there may be errors in the report that must be corrected.

Financial consulting

In the context of debt processing, bank delegates can provide clients with a set of options for adjusting payments, interest, or payment schedules, etc. Here all conditions must be confirmed and professional assistance will be obtained by advisors who will provide assistance in drafting the best debt handling plan and creating a budget Fit payments and interest rates.

Flexibility of plans

With the passage of the first months of the new year, most people will forget and abstain from their decisions on the pretext of the difficulties they faced, and to avoid this fate they should be flexible by reassessing their financial position regularly, and adjusting the budget to help them respond to any changing conditions they may face.

Eight tips:

Re-negotiate.

■ Select payment options.

■ Ensure that the method of payment is billed.

■ Monitor spending.

■ Create a new written budget.

■ Financial evaluation.

■ Financial advice.

Flexibility of plans.

There are several ways to rearrange debt and improve the ability to repay it.