Debt -Debts are better paid in time because if paid after the required time many would attract extra charges in form of penalties.
Economist believe that a debt is borrowed money which has to be repaid. And purchasing any item on credit means you just postponed the debt which ultimately will have to be repaid.
Therefore, it is advised that payment of debts should be done in time to avoid piling debts together which might become a problem settling them at once. Too many debts can be chocking.
The best way to pay your debts is by listing them in some order so that you start with the urgent or the one which came first. Prioritizing, just like in any budget, plays a crucial role in debt management.
Consider reminding yourself about what you owe people and what people owe you so that to balance your books and know where you financial standing. Always use your computer or phone calendar to monitor your debt schedule.
It is also important to always make some deposits so that to reduce the debt burden. This can also help mitigate effects of late payments.
Lastly, try as much as possible to have an emergency fund aside. This can also be referred to as fall back account which could help a great deal in sorting the debt burden levels when everything else has stopped working. Remember, as a shrewd businessmen always ask, “What happens when all the oxygen cylinders are switched off?”
Nonetheless, it is important to note that nobody can be self-sufficient; not even a government survives without a debt or two. That’s is why lending organization are getting richer by day. The industry is lucrative.
Further, businesses borrow goods to sell, same way some have to borrow loans to do business. There is completely nothing wrong with debts. But as you borrow, always remind yourself that they will all need to be repaid.
