It is a norm in the society to borrow and lend money when needed. Depending upon the conditions, people may or may not be able to pay their debts on time, in some cases may be never. There are many steps to help you better manage your debts. But whatever the conditions may be, it is important to keep a track of the amount you owe.
You should keep a record of your finances especially debts to save yourself from embarrassment in front of the debt collector in Singapore. We bring to you some simple steps and methods that will help you keep yourself updated with all your financial dealings. Here are a few suggestions!
1. Make a Self-Assessment
Quite often, when people have to borrow large amounts in form of debt, it doesn’t come from just one source. Therefore, they often end up losing track of who credited how much.
According to finance experts, people face much difficulty in paying debts just because they avoid keeping track of their expenses and debts. Knowing ways on how to pay off your debts simply would be an advantage.
However, experts suggest that debtors in particular should keep record of their credit cards loan, utility bills, mortgage and student bills etc.
Here is a simple way of doing it:
- Keep a diary dedicated to your expenses. You can even do it through your smartphones and tabs.
- Note down the name of your credit the instant you borrow money.
- Interest rate (if any) alongside the due date when your debt has to be paid.
- Manage your credit card debts
- Make calculations for your debt you pay from monthly salary and your annual interest payment.
2. Seek for the Causes
You should always keep an eye on where your finances normally go. Check whether you are spending on needless things. If you are supporting your family, there are chances you will miss out on tracking your expenses. This ultimately leads you to spending more than needed. So here is what we suggest you can do:
- Look for opportunities of saving money
- Identify the weak points
- Keep receipts and bills and maintain a spread sheet for your expenses.
3. Include Valuable Input from Others
Getting a point of view from your family members about debt repayment is always a good option. Regardless of the fact that you support your family or not, a valuable opinion from your family and friends can help you with your debts and expenses.
If you are supporting your family, make it obvious about your saving plan and include them into it. Here is what you can do about your collective family saving:
- Emphasize on bad effects to kids about overspending.
- Explain your kids the difference between needs and wants.
- Do not open your financial details to your kids but encourage them to give suggestions about saving. This will motivate them towards your cause.
A collective saving is always helpful for quicker debt repays.
Implementing these simple but effective techniques can help you save valuable money which will in turn help you manage your debts efficiently. It will help you pay your debts on time saving you from embarrassment in front of your debt collector.