How to Repay Debt When You Are Under Financial Constraints

[Mika]

The most important thing about debt payment is you need to have money. If you do not have money, you cannot pay your debt. How do you repay your debt if you are already under financial constrains? A lot of people will tell you to cut your expenses and work more to earn more to pay your debt. What if you can no more cut your expenses and you cannot also earn more? Dealing with debt requires money, and being broke poses a challenge. However, several strategies can help, including selling assets, downgrading your lifestyle, working additional hours, starting side hustle, etc.

 

[Suba]

If you want to repay debt but you are under financial constraints or you don't have the money. Then you need to evaluate your cash flow. You have to pay the accumulated debts one by one according to the agreement when you took out the debt. First, you have to prioritize consumer debt, such as purchases using PayLater in the marketplace, etc. The fastest way to raise money to pay debts is to sell valuable assets such as cars, motorbikes, stocks, etc. or you can also pawn laptops, gold, Bitcoin to pay debts. Apart from that, you can make money with a side hustle according to your skills. There are two methods that you can apply to pay off debt, such as First: Debt snowball prioritizes paying off debt with the highest nominal value. Second: Debt avalanche, paying debts based on the interest rate, the higher the interest rate, the more you have to prioritize repayment.

 

[saoussen5765]

If you want to repay debt but you are under financial constraints or you don't have the money. Then you need to evaluate your cash flow. You have to pay the accumulated debts one by one according to the agreement when you took out the debt. First, you have to prioritize consumer debt, such as purchases using PayLater in the marketplace, etc. The fastest way to raise money to pay debts is to sell valuable assets such as cars, motorbikes, stocks, etc. or you can also pawn laptops, gold, Bitcoin to pay debts. Apart from that, you can make money with a side hustle according to your skills. There are two methods that you can apply to pay off debt, such as First: Debt snowball prioritizes paying off debt with the highest nominal value. Second: Debt avalanche, paying debts based on the interest rate, the higher the interest rate, the more you have to prioritize repayment.

The problem is that banks could accord prison to a person unable to pay debt. However, it is not the ideal solution. A person who enters prison for not paying a debt could never resolve the issue. The debt will increase for all government institutions and when he leaves prison he will find every debt has increased and then he is in a hard economic situation. This is the current state of many countries that choose this type of penality. However, solutions like increase delay of paying back the debt or some solutions like providing some fiat after approval to save business could be the solution.

 

[btaliat]

It may be difficult repaying debt when we are under some financial crises but the fact is that we can still find some ways of laying off the debt of us by doing some following:

The first is seeking debt relief. There are some organizations that will render debt relief services to the members. It is easier to get this done as this will ensure that we don't have much burden of debt on our neck.

We can as well reduce spending and increase our ways of earning income. With this, we may have more money to ourselves.