3 Ways to Deal with Debt


Debt is part of life for most of us, but there are times when it becomes powerful and unmanageable. It is important that you face the situation and do a complete audit of your debt. Try to find ways to reorganize your budget to make sure you’re not left on your payments. If you’re having trouble, be sure to ask for a counselor or a debt counseling charity.


Method 1
Consider your debt

Method 1 Consider your debt

 1 Evaluate the situation. The first step to facing your debt problem is to make an honest valuation of all your outstanding debts and the amount they charge you. Start writing down all the debt you have and try to include as much information as possible. You will not be able to progress until you have a clear picture of your financial situation.

  • Pay attention to key information, including interest rates, principal, monthly payments and any guarantee offered to guarantee the loan.
  • It can be a stressful and difficult experience, but it is essential that you do it.
  • Once you have all this information at hand, you can understand your problem and determine a way forward.
  •  2 Determine your guaranteed and unsecured debt. Once you have compiled a list of all your debts, make certain judgments about the most important and most urgent debt. Start by determining which debts are guaranteed and what not. This is important because it shows you what debt you can lead to quickly losing property, such as your home.
  • Guaranteed debt is the one linked to a specific asset, such as your home or your car. If he fails to meet his payments, the debtor may lose his right to settle the guarantee he has filed to secure a loan.
  • Unsecured debts are those that are not linked to assets and usually include things like credit card debt, health insurance accounts, and single signature loans.
  •  3 Prioritize your debt. The next step is to review and prioritize your outstanding debt. Although all your debts are important, some are more important than others. The most important are usually those that can lead to the loss of your assets, such as your home, your car and other physical property. These debts may include any rent that you owe, mortgage payments, local or state taxes, and utility bills that you did not pay.
  • Renting and utilities are owed when you’re late in your payments. This can result in you being cut off from public services and losing your home so that you should treat it as a priority.
  • Lower priority debts include credit card accounts, some installments or rent-to-buy arrangements, bank overdrafts, family loans, or other unsecured debts.
  • If you prioritize your debt, look for those with the highest interest rates. If you can pay the debts that pay the highest interest rates quickly, you will get rid of these costs and get a better chance of handling your other debts.
  • If you have savings, use them to pay expensive debt. The interest you will pay for the debt will be higher than you can get in your savings. However, be careful not to spend all of your savings, as this will leave out emergencies that may be needed in the future.
  • It is common for companies that offer lower priority debt to be more aggressive in their collection practices so be aware and keep your focus on the highest priority debt.
  •  4 It determines whether you are in a debt crisis or not. If you have determined all your debts, you should judge early on how serious your problem is. There is no definite definition of “debt crisis” but to determine your position, ask yourself two questions. First, do you have trouble paying basic expenses to cover your debt? This can be mortgage payments, minimum credit card payments and utility bills.
  • Then ask yourself whether your debt (excluding your mortgage and loan payments on your car) is greater than your annual income after tax.
  • If the answer to any of these questions is yes, your debt problem can be very serious and you should immediately make an appointment with a non-profit debtor or credit counselor.
  • Remember, no matter how big your debt is, the important thing is whether you can fix it or not.
  •  5 Don’t get expensive loans. For many, debt can become an endless cycle that gets worse over time. Often, if you have an expensive loan amount, you can be pressured or encouraged to get more loans to pay off existing loans. This is especially common with the companies of loans until the day of payment. You need to add more expensive debt at all times. In some cases, you can get a cheap loan with low credit union rates.
  • This can help you pay for expensive debt and replace it with affordable debt. However, talk to an independent credit counselor before doing so.
  • Be wary of debt consolidation loans. These loans may require you to offer your home as collateral and offer no collateral. However, a debt consolidation loan can be beneficial if you work with a respected borrower and can get a lower interest rate than you currently pay. Just be careful not to add more debt.

Method 2
Graph a way forward

Method 2 Graph a way forward

 1 Developing a Budget Once you have a clear picture of all your debts, the next step is to determine how much you can pay each month. Write a detailed budget that covers all your income and expenses and determines how much money you have available for your debt. Think about how you can reduce your expenses by saving and reducing unnecessary expenses. If possible, consider how you can increase your income as well.

  • Once you have a budget, you need to get a realistic and affordable figure that you can set aside each month to pay off your debt.
  • Join your priority money list and see how much you can pay.
  •  2 Contact your creditors. Now you need to contact your creditors to discuss possible ways to restructure and reorganize your debt. If you can give them detailed information on how much you can pay each month, you can agree on the terms of your loans. For example, you can agree with a new payment plan that reduces the amount you pay per month, but spreads the payments over a longer period.
  • It is important that you can reach an agreement with most of your most problematic creditors. The other debts will be easier to settle if you take care of these creditors and reduce the payments you need to make.
  •  3 Access to credit counseling. If you were unable to negotiate new payment plans, or if all the information overwhelmed you, make sure you make an appointment with a credit counselor or nonprofit debt counseling organization. There are a number of charities and other non-profit organizations that specialize in providing free and impartial advice to people who have financial difficulties. Here’s what steps you can take and how to deal with creditors.
  • There is lots of useful information online, but always try to get a meeting personally.
  • Many universities, military bases and government branches have non-profit credit counseling schemes.
  • Credit unions, civil service offices and housing authorities can also help.
  • Make sure you visit a respected organization with a solid background. “profitable” does not always mean “free”.
  •  4 Consider a debt management plan. In some cases, a credit counselor may suggest registering for a debt management plan. The advisor will rather suggest it if you cannot pay your debt. The plans usually involve paying money to the counseling organization, which will then pay you different debts without guarantee.
  • Think carefully about this and make sure you talk to your creditors.
  • Do this only if an adviser has thoroughly reviewed your finances.
  • In most cases, a counselor should give you advice on the budgets and management of your debt without paying attention to one of these plans.
  •  5 Try the debt account. The debt settlement programs involve working with a company (usually a for-profit company) to pay your creditors a set amount less than you owe. The creditors will only do this if they believe it is a better result than to prosecute you so that you will pay them in the future. The company will pay the payment, but must pay a specific amount of money for a long time to a savings account. It can help to pay off your debt, but it can be a risky approach.
  • If you consider it, make sure you can make the monthly payments indefinitely.
  • Keep in mind that your creditors are not obliged to make an agreement with the debtor.
  • Debt settlement companies usually encourage you to pay them instead of your creditors. As a result, your credit rating will suffer and there may be other consequences.
  • If you do not pay your debt, you may incur additional fees and charges that you would not incur if you paid the creditor directly.
  • There are many scams related to debt settlement and not all companies will keep their promises.
  • Before enrolling, the company is investigating a lot and always getting free and unbiased advice from a nonprofit credit counseling organization.
  •  6 Investigate debt consolidation. You can reduce the cost of your debt by consolidating it against a new credit card, such as reforming your home. These plans will generally use your home as collateral, so if your home is not at risk for your debt, think carefully if you put it at risk.
  • Beware of consolidation schemes with variable rates. What could be cheaper at the beginning could be more expensive if the rate rose.
  •  7 Consider bankruptcy. If your debt is completely unreliable and you can’t get a way to move forward, it’s time to consider declaring bankruptcy. This is an important decision with lasting consequences that should not be taken lightly. Bankruptcy can make it very difficult to gain access to credit or to buy a home in the future.
  • In general, you can declare bankruptcy in two ways, depending on where you live, one of which is simpler and faster and which results in the elimination of most of your debts. But not everyone may qualify for this type of bankruptcy.
  • Bankruptcy should in most cases only be considered a last resort.
  • In some cases, bankruptcy can give a new start to a person.
  • Discuss your options in detail with a credit counselor and a lawyer specializing in bankruptcy and credit problems before making decisions.

Method 3
Handle emotionally with debt

Method 3 Handle emotionally with debt

 1 Recognize your debt problem. A general reaction is even to blame for the seriousness of the situation. The debt can be something difficult to handle emotionally, but it is essential that you recognize the situation and its impact on you. There is a growing number of evidence showing the impact of debt on stress and mental health. So it’s not something you should ignore.

  • Denying your debt can make the situation worse and slow down your response.
  • Don’t wait for an important event, such as an exclusion notice, to acknowledge your debt problems.
  •  2 Talk to someone about your stress regarding your debt. Debt can have a great psychological impact on you, so try to talk to someone about your situation. Talking to friends or family can be difficult, so seek the help of a therapist if your stress on your debt causes you real trouble. This is an important part of recognizing the situation. Only when you recognize your financial situation can you take the necessary steps to deal with it.
  • Always seek impartial advice from a credit counselor, but do not neglect the psychological impact of the debt.
  •  3 Take measures to feel more positive. It’s quite normal to be anxious and stressed over a difficult financial situation, but you can take steps to make you feel more positive. Of course, it is important to work with debt and come financially, essential, but you can also try to improve your spirits. It can even help to handle debt and focus on finding a way forward.
  • Try to stay active. Get lots of exercise, but also spend time with your friends and do daily tasks.
  • View your fears by getting advice on debt and accepting the problem.
  • Try not to drink much. Some people use alcohol to deal with stress and anxiety, but drinking can increase your problems.
  •  4 Know when to get help. If your feelings of stress and anxiety are not relieved and have an impact on your ability to live your life, make an appointment with your doctor. If your negative feelings last for weeks, your doctor may recommend seeing a therapist to give you more support.
  • If you feel that you cannot handle it emotionally, or that it is not worth living, seek help immediately.
  • Do not let the situation deteriorate. Contact your doctor or call a helpline.

Consolidation loan selbank

Additional cash for any purpose

Additional cash for any purpose

selbank’s offer from competing consolidation loans distinguishes the possibility of increasing the debt by additional cash, which the borrower will be able to spend on any purpose. This additional possibility has been available for a long time, but recently selbank has increased the amount by which the consolidation loan can be increased to 100% of the balance of all consolidated receivables. By consolidating loans at selbank, we also have the opportunity to benefit from the promotion of liability insurance, however, unlike most other banks’ offers, borrowing does not impose such an obligation on us.

Interest, amount and repayment period

Interest, amount and repayment period

In selbank we can take a consolidation loan for 8 years for the maximum amount of PLN 180000. Both the repayment period and the amount have recently been clearly raised, making selbank’s offer even more attractive. The terms of the consolidation loan at selbank will be the same for both the customers of this institution and for outsiders, moreover, all activities can be carried out via the internet, which is an extremely convenient solution. To calculate the loan installment, we can use the calculator available on the transaction website – a very easy to use and functional tool. The loan interest rate ranges from 8.79% to 9.89%. The commission for providing the service is a maximum of 9.99% of the total transaction amount.

Consolidation loan at selbank

Consolidation loan at selbank

Actually, the only downside of selbank’s offer is the existence of more advantageous offers on the market in some respects. If we spend some time comparing the proposals for consolidation loans, we will easily find loans for larger sums, with a longer repayment period, with a lower interest rate or commission. Selbank’s offer is undoubtedly very beneficial and not without reason many experts indicate it as the best, but if any of these parameters is more important to us than the others, then we are able to find a bank that will offer us a consolidation loan better suited to our needs.

3 Ways to Collect Debt from a Small Business

Small businesses rely on a healthy flow of income to maintain their solvency, especially since the Federal Small Business Development Agency reports that more than 50% of new businesses fail within their first 5 years of existence. Debt is often referred to as “debtors” in accounting terms. In a tax agenda, a list of accounts receivable consists of the payments owed to the business. In the case of small businesses, a pending debt can mean the difference between profitability and net losses. There are several things you can do before sending an account to increase the chances of receiving the payment. You must also follow protocols if the debt is not paid for a long period. Debt collection can be a difficult and sometimes controversial process. Read the article below so you know how to collect the debts of a small business.


Method 1
Avoid bad debts

Method 1 Avoid bad debts

 1 List the “expiration dates” of each account you send. Many accounts “expire at the moment of receipt.” You can also use the “15 net days”, “30 net days” or any other period in which you expect someone to send you the payment.

  • Placing an expiration date in an account is often part of the billing cycle of a person or business. If you do not set an expiration date on the account, the business may decide to wait one or two months, especially if the accounts are adjusted.
  •  2 Do not wait 30 days after the date of delivery of the service or the product has been delivered to send the accounts. Leave your accounts every 15 or 30 days. The best thing to do is to be aware of the schedules and monitor the company that owes your money.
  •  3 Communicate with each company. If possible, send each account to the person making the financial decisions and make sure you have your phone number and attachment.
  •  4 Create a debt-handling procedure. It should be easy for the whole company to understand, so anyone who talks to the debtor understands what to ask or do. It determines at what stage actions should be taken, what steps should be taken and what procedure the company should follow after determining that the debtor is trying to prevent payment.

Method 2
Collect debt

 1 Call the debtor to talk about the pending account. Identify yourself and report the reason for your call. Tell the debtor when the payment is due and ask when you will receive it.

  • Don’t hurt the debtor, be straight. Always use a civilized tone and try to express your desire to maintain a positive relationship. You can talk about the consequences later.
  •  2 Call back in 15 or 30 days if the debtor has not yet paid the debt. Ask why the payment has been postponed. Ask if the debtor wants to pay through a payment plan to avoid interest.
  • Most debtors fall into two categories: they may have financial difficulties and cannot currently pay, or they spend monthly payments based on their priority. Try to find out why they don’t pay in a way that isn’t critical or personal, so you can find a solution that both parties agree. However, a business with financial problems cannot discuss its possible lack.
  •  3 Suspend all the services you lend to the debtor. The amount of time it must take before this happens must be set out in the policies of your company. Call them and send them a warning letter before the non-payment service is suspended.
  •  4 Investigate to see if your state allows you to collect interest on the debt. Many recent laws have limited the amount of interest that can be generated, but many are regulated by the state. It begins to charge interest when it is legal to do so.
  •  5 Keep a record of all the communications you have with the debtor. You will need the dates and times of calls, letters and any other communications, should you take legal action. You may also call these letters in the calls you make to the debtor to determine how long the debt has expired.
  •  6 Negotiate with the debtor if you feel it is your only chance to receive payment. Ask how much they can pay or offer discounts depending on the situation. If you know the business avoids payment, it will be less expensive to offer a discount and never trade than to hire a collection agency or a lawyer.
  •  7 Write letters of request for payment. They need to address the issue of the account and include overdue invoices and references to previous communications. Although they should not be directly threatened, the language should refer to increasingly serious actions if they ignore the account.
  •  8 Send a “notice before collection” to the debtor before transferring the debt to a collection service. This notice must indicate which options the debtor has and the date on which he should respond.
  •  9 Pay attention to possible bankruptcy news. If the debtor goes bankrupt, you cannot blame the business for any correspondence. You can send a legal letter stating that you are requesting payment, but the debtor does not have to pay until a federal court determines the terms of payment.

Method 3
Choose a debt collection path

Method 3 Choose a debt collection path

 1 Decide to pass the debt after a professional service. It would be preferable if the debt is large and if you found it would cost you less to hire an agency or a lawyer than to ignore the debt and report it as a bad debt in your tax. Below are other ways in which small businesses deal with debt collection:

  • Pass the debt to a collection agency. Give copies of all previous communications to a trusted agency. You must understand that you will not receive the full amount of the debt. Most collection agencies will give you about 50% of what they have collected from the debtor.
  • Take the debtor to a small claims court if he owes you a small fee, such as US $ 5,000 or less. This type of court was created to prevent too many legal fees being paid for relatively small amounts in dispute. You will have to do the paperwork to submit a smaller action, and make sure the debtor receives a notice. A trial date will be set in which your case will be determined and you will probably only have to pay small fees for the procedures. In the case of Spain, you must propose a payment procedure.
  • Try to make a reconciliation. This is often done in the small claims court. This is useful in the event of a dispute over the amount of the payment and can help you reach an agreement. You will have to divide the cost of a professional reconciler with your debtor.
  • Find an arbitration. An arbitrator is an impartial party who issues a decision on a case. If both parties accept an arbitration, the decision is final.
  • Reports to the debtor to the state credit office. You can decide to take a lawyer to make sure all the paperwork is done correctly. The purpose of this is to place the debt as a negative point on the debtor’s credit record.
  • Make your debtor into a file of defaulters. What will cause a financial closure and a blow to his reputation until he pays the debt.


  • You need to be careful because it is illegal to falsify information, such as a name or business, when trying to collect the debt. Examine the collection rules of your country or state.

Things you need

  • Company policy on debt collection
  • letters
  • telephone calls
  • Records of all communications
  • Interest accrual (if applicable)
  • lawyer
  • Small claims court
  • reconciler
  • referee
  • Report from a credit bureau

3 Ways to Calculate the Payment of a Loan

If you know how to calculate a loan payment, you can determine your budget so you have no surprises. It is advisable to use an online loan computer simply because it is easy to make mistakes when calculating long formulas in a common calculator.



Method 1

Method 1

Use an online calculator 1 Open an online loan calculator. You can use it online calculator, then open it with Google Drive or load it to open it with Excel or another spreadsheet program. Another alternative is to visit one of the following links:

  • So much Bankrate.com as MLCalc They are simple calculators that also show a complete picture of your payment schedule, including the remaining debt.
  • CalculatorSoup This is useful for loans with unusual composition or payment intervals. For example, Canadian mortgages usually accumulate every six months or twice a year. (Previous calculators assume that interest accrues monthly and payments are made monthly).
  • You can create your own loan calculator in Excel, similar to the previous wikiHow preview.
  •  2 Enter the loan amount. This is the total amount of money you have borrowed. If you calculate a partially paid loan, enter the amount you still have to pay.
  • This field can be marked as “base amount”.
  •  3 Enter the interest rate. This is the current annual interest rate that appears as a percentage in the loan. For example, if you pay an interest rate of 6%, type 6 .
  • The compound interval is not important at this time. The specified interest rate must be the annual nominal interest rate, even if interest is calculated regularly.
  •  4 Fill in the term of the loan. This is the period in which you expect to repay the loan. Use the period specified in the loan conditions to calculate the minimum monthly payment. Use a shorter period to calculate a maximum monthly payment that the loan will pay earlier.
  • The repayment of the loan will also mean that it does not spend as much money in total.
  • Read the label next to this field to determine if the calculator is using months or years.
  •  5 Enter the start date. It is used to calculate the date when you will complete the loan.
  •  6 Press “calculate.” Some calculators will automatically update the “Monthly Payment” field after you enter the information. Others wait until you “print” and then give a table or graph indicating the payment schedule.
  • The “principal” is the amount of the original loan remaining, while the “interest” is the remaining additional cost.
  • These calculators will display payment schedule information for a “fully amortized” loan, which means that you will pay the same amount each month.
  • If you pay less than the amount shown, you will eventually pay a very large one-off payment by the end of the loan term and pay more in total.

Method 2

Method 2

Calculate loan payments by hand 1 Write down the formula. The formula used to calculate the payments of a loan is M = P * (J / (1- (1 + J))) . Follow the steps below to get a detailed guide to using this formula or consult this quick explanation of each variable:

  • M = loan amount
  • P = principal, which means that the amount was borrowed money.
  • J = effective interest rate. Keep in mind that it is usually not the annual interest rate, see below for an explanation.
  • N = total number of payments
  •  2 Be careful when rounding off the results without finishing. Ideally use a graphic calculator or calculator software to calculate the entire formula on a line. If you use a calculator that can only calculate one step at a time, or if you want to follow the steps in detail below, move to at least four key figures before moving to the next step. Rounding to a shorter decimal number can lead to significant rounding errors in your final answer.
  • Even simple calculators usually have an “Ans” button. This represents the previous answer in the following calculation, which is more accurate than calculating it as outlined below.
  • The following examples are completed after each step, but the last step includes the answer you will get if you complete the calculation on a single line so that you can revise your work.
  •  3 Calculate your effective interest rate (Y). Most loans call the “annual nominal interest rate” – however, it is likely that you will not pay your loan in annual installments. Divide the annual interest rate by 100 to convert it to a decimal and then divide it by the number of payments you make each year to get the effective interest rate.
  • For example, if the annual interest rate is 5% and you pay monthly installments (12 times a year), calculate 5/100 to get 0.05 and then calculate J = 0.05 / 12 = 0.004167 .
  • In rare cases, interest rates are calculated at a different interval from the payment schedule. In particular, Canadian mortgages are calculated twice a year, although the borrower makes payments twelve times a year. In this case, you must divide the annual interest between two.
  •  4 Take into account the total number of payments (N). It is possible that the term of the loan has already specified this number or that you have to calculate it yourself. For example, if the loan term is 5 years and every year you pay twelve monthly installments, the total number of payments will be N = 5 * 12 = 60 .
  •  5 Calculate (1 + J). First add 1 + J and increase the response to the power of “-N”. Make sure you include the negative sign before the N. If your calculator cannot calculate negative exponents, write it as 1 / (1 + J) in place.
  • In our example, (1 + J) = (1.004167) = 0.7792
  •  6 Calculate J / (1- (your answer)). In a simple calculator, first calculate 1 – the number you calculated in the previous step. Then calculate J by dividing it by the result, using the effective interest rate you calculated earlier for the value of “J”.
  • In our example, J / (1- (answer)) = 0.004167 / (1-0.7792) = 0.01887
  •  7 Find your monthly payment. To do this, increase your final result by the loan amount (P). The result is the exact amount of money you have to pay each month to pay your loan on time.
  • For example, if you borrowed $ 30,000, you would have to multiply the last step response by 30,000. According to our previous example, 0.01887 * 30,000 = 566.1 dollars a month, or $ 566 and 10 cents.
  • It works for any currency, not just dollars.
  • If you calculated the entire example on a single line of a sophisticated calculator, you get a more accurate monthly payment, close to $ 566,137 or about $ 566 and 14 cents a month. If we pay $ 566 and place 10 cents a month, we calculate with the calculator less accurate above, our apartamentos a bit at the end of the loan term and will pay a few extra dollars to pay (less than 5 in this case ).

Method 3

Method 3

Understand how loans work 1 Includes fixed interest rates versus adjustable interest rates. Each loan is included in one of these two categories. Make sure you know the one that applies to yours:

  • A Loan Fixed Rate It has an unchanging interest rate. The amount of the monthly payment for this never changes as long as you pay in time.
  • A Loan Adjustable Rate Change your interest rate regularly to match the current standard, so you may be able to pay more or less money when the interest rate changes. Interest rates are only recalculated during the “adjustment periods” specified in the term of the loan. If you find out what the current interest rate is, a few months before the next adjustment period, you can plan ahead.
  •  2 This includes amortization. Amortization refers to the rate at which the initial amount borrowed (the “principal”) is reduced. There are two general types of payment schedules for a loan:
  • Loans fully amortized They are calculated so that you can pay the same amount each month for the duration of the loan, so that you pay the principal and interest with each payment. All the calculators and formulas above assume you want this type of schedule.
  • The loan pays plans of just interests they give you cheaper installments during the specified “rent only” period because you only pay the interest, not the initial “principal” you borrowed. Once the interest-free period ends, your monthly payments will rise to a significantly higher amount, as you start paying both the principal and interest. This will cost you more money in the long run.
  •  3 Pay more money to save money in the long run. By adding an additional payment, the total amount of money that the long-term loan will cost you will decrease as there is less money accruing to the interest. The sooner you do this, the more money you’ll save.
  • On the other hand, paying less than the monthly payment you calculated earlier will result in more money in the long run. Also, keep in mind that some loans require a minimum payment each month and that you may charge additional fees if you do not.



  • You can find other formulas to calculate the payments. It is equivalent and gives you the same result.



  • Mortgage loans or “adjustable rate” loans, also called “floating rate” or “floating rate”, can drastically change your payment amount as interest rates go up and down. The “adjustment period” in these loans tells you how often interest rates are recalculated. To know if you can handle the worst case scenario, calculate the loan payments that would result if you reach the specific interest rate.