Financial services .. Tips for prioritizing debt repayment

The customer must set a good plan that determines the priority of payment on the due date.

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Borrowing or resorting to debt is one of the financial solutions that help people obtain sufficient financial liquidity in order to achieve their financial goals or face temporary financial pressures.

The burden of these debts may increase in the event of multiple borrowing sources, that is, the customer obtains more than one financing product, in addition to using the credit card balance or other costly borrowing methods, and he is unable to organize the payment of the amounts due.

Therefore, the customer must set a good plan that defines the priority of repayment to ensure that none of the payments are forgotten or late in their due date, in addition to reducing the cost of those debts as much as possible, according to an awareness leaflet issued by the Central Bank of Saudi Arabia, which indicated some steps that help Individuals prioritize debt repayment.

The bulletin stated that when developing a plan to repay debts, the goal should be to get rid of the total outstanding debts, so the size of the debts and their sources, such as credit card debt, monthly financing installments, personal advances, etc., must be determined, and then classify those debts in terms of their size and the financial burden imposed by On the monthly salary, in addition to preparing a list of due debts that are arranged according to cost, as the arrangement starts with the highest cost and ends with the lowest.

For example, the cost of the amounts due on credit cards is usually higher than other financing programs such as personal or real estate financing, while the cost of personal finance may be higher than real estate financing, in addition to the possibility of considering setting the minimum payment if commitment to payment cannot be made. All the sums due, as a result of an emergency or due to an increase in necessary spending in some months of the year.

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