The debts of Croatian citizens have not been reduced for years. There are more than 300,000 Croats in the blockade who barely make ends meet. Unfortunately, even those who are not blocked are no better off. About 1.2 million citizens of Good Finance live on the brink of poverty.
Some found themselves in the abyss because of losing their jobs, some entering retirement and incomes that were not sufficient for a decent life, and some over-spending and a way of life for which they had no cover. Many of them are wondering about how to solve financial problems .
How to solve financial problems with the minus allowed
The first step to solving financial problems is financial analysis. It is best to make a list of income and expenses. The paper will show you what you spend the most money on and what you can save. First, list your debts, credit card transactions, and be sure to consider a current account overdraft as well. The last people forget about this most often, and minus the current one is one of the most expensive ways to borrow money. Interest on current account overdrafts is up to eight to 10 percent.
How to repay existing debts
Then make a plan to pay off your debts. It is best to choose a more rational way with smaller amounts of money as the shift will be visible immediately. If you decide to take too much of a step, there is a good chance that you will not be able to respect it and this may discourage you from moving on. In the table, keep track of how much debt you have already covered and how much is left over. This will keep your finances under control and you will be well on your way to wondering how to solve your financial problems .
How to solve financial problems while saving
With a list of income and expenses, you can see immediately where you can save, and you can only know if you are spending money. Most often, we pay for library or gym memberships that we pay for, but rarely use. It can also save on reusing things and even borrowing them if you don’t need them all the time. Some things are even more worth buying used than new ones, so it’s a good idea to keep that in mind.
Cash is always a better option than credit cards
One of the simplest ways to solve financial problems is to use cash instead of credit cards. Credit cards give the illusion that we have more money than we really have. When we spend we have no sense of how much we have really spent because the money has not gone out of our pocket. This is why many people get caught up in financial problems. It is best to use cash because we know exactly how much money we really have available.
How to solve financial problems with credit
When you have exhausted all the options and can do no other, you can borrow money from loved ones or from financial institutions. The best options are short-term loans that are quickly repaid, which in turn means that interest rates are not high either. If this is not an option, you can always ask the family for a loan.
But be sure to treat it the same way you borrowed money from a bank or lender. Regulate the contract with a clear indication of the amount, repayment period and possible interest. This will avoid the inconvenience that many families have fallen apart.