The world where you can take a loan is a lot better than the world where you cannot do it. However, often citizens, having obtained a loan and not having calculated the budget, get into debt. This process turns into a vicious circle. We give 5 tips on how to stop living on credit and deal with the current state of financial affairs.

1. Take control of your finances. Calculate the total amount of debt. Write down on paper how much money you owe to friends and relatives, how much you need to allocate to pay a loan. This way you can see the full picture of your financial situation and draw conclusions.

2. Set a goal to get rid of all your debts within a certain period. Soberly assess your capabilities. If you pay all the loans and repay your debts at a time, then the chance is high to stay aground and get into debt again. Better if you pay off your debts for several months in a row.

3. Make a plan for a comfortable time: a month, a year, a decade. Put large purchases, repairs or a trip abroad in the plan for the period that will allow you to approach it fully financially prepared. In this case, you definitely will not get into debt.

4. Learn to distinguish your true needs from those imposed by aggressive advertising. Whenever you intend to spend a large amount or get a thing on credit, ask yourself two questions: “Can I purchase and be satisfied with a less expensive thing?”, “Can I bear up and purchase it later, when I save the necessary amount?”

5. From now on, just stop. The debt or loan that you obtained the last time, let it be the last one. We do not exclude force majeure and emergencies, however, having repaid all the debts, you can start saving to secure yourself with a financial cushion, thanks to which you will be ready for such situations. In the previous news we advised on how to start saving.