Most of us will have debt over our lives, whether we like it or not. Borrowing loans is a huge responsibility and unfortunately many people struggle to service their loans properly. Like most things in life, it’s nice until the bill comes, right?
If you are one of those who swim in debt then you should read the next few sentences extra carefully. Here are 3 things you didn’t know about debt :
1. You are not alone
Relax, you’re not alone. You may feel like you’re the only one in the world struggling with debt, but an increasing number of Norwegians are in exactly the same situation. Stop pitying yourself and take control of your finances. The first step in the right direction is to come up with a plan for how to repay your debt.
2. Knowing how much you owe is the key to taking control
Be honest with yourself. Do you actually know how much you have in debt? This includes credit debt, consumer loans, mortgages, student loans, car loans and other debts. There are many who state when they find out how much they owe, but don’t worry, this is the key to taking control of your debt. Calculate your total debt, classify the various debts and set up a payment plan where you pay off the most expensive loans first. Expensive loans will often include credit cards and consumer loans – which normally have an annual interest cost of over 20%. This debt must go away first. Are you able to refinance? Talk to your bank and explore your options. Here is a lot of money to save!
3. Your plan is not carved in stone
Whatever strategy you have set up to repay your debt, it is important to remember that the plan is not carved in stone. Make an ongoing assessment as time goes on and make sure you are always moving in the right direction. Unforeseen events happen all the time and it has to be flexible.