Paying debts is something that concerns us all people, since in today’s world debts are not something negative, if they are used as a form of financing to advance in the achievement of our objectives such as, for example, buying a home to through a mortgage loan or obtain the necessary financing to start a business or own business.
One of the options currently used for this type of financing is the loan with mortgage guarantee, which allows obtaining the money needed to develop any project by placing a property as a mortgage guarantee, the amount of the loan, as well as the interest generated. They cancel in monthly installments.
However, on certain occasions the maximum indebtedness point that can be reached is not taken into account and debts begin to accumulate. Then the question arises, where to start paying debts? It is about establishing priorities that allow us to look for effective options to pay the economic commitments that have been acquired.
Know in detail all our debts
To pay debts efficiently it is necessary to make a list of them. The amount of the monthly payment (capital + interest) must be included, as well as its category; that is, if it is considered good or bad; Good debts are those that are contracted to increase our financial position, education, home purchase, start a business, etc .; They have set deadlines and affordable interest rates.
While a debt is considered bad when used to finance superfluous expenses or consumer loans. Specialists advise limiting this type of debt and try to get rid of them first.
Organize a payment plan
Once we know all the accounts in detail and we have their characterization, we can move forward in the design of a payment plan that is realistic and compliant, that allows us to establish what are the priority debts to be canceled and that also allows us to release the credit cards. Credit for commitments that generate more interest.
This plan can contemplate debt unification options to move as much as possible to a single bank that offers us better conditions or more beneficial rates, as well as explore options such as a home equity loan to cancel some significant debts.