Debt spiral – I have a loan and payday loans of $ 20,000

Hello, I fell into a spiral of debts, more precisely payday loans. I currently have one large loan at Alior Bank and payday loans for approximately PLN 20,000. Do you have any advice on how to clean yourself of it and get out of debt?

Debt spiral

First of all, I urge you to stop borrowing, because each subsequent loan you take will further deepen your already difficult financial situation.

The next thing is income. Unfortunately, you don’t mention anything about them, and they are crucial to help you plan your debt recovery. The key here is how and if you can manage to increase your income at all ?!

If you earn little, and I suppose it is, then consider changing to a better, better-paid job. People in Poland very often get used to their employer, too often, it’s a mistake …

You should constantly look for a new, better job, with better earnings, because the earnings we achieve directly determine our standard of living. Of course, you must not only measure high, but also constantly improve your professional qualifications.

You must also consider taking up extra work, doing overtime if possible, or submitting a request to your employer for a raise. Having financial problems, you must remember that every additional USD you can earn is worth its weight in gold …

The next step you should decide on is to sell your property. If you have any items, items that present some monetary value, consider selling them, and give the money you get from selling them to pay off outstanding payday installments.

You also need to scan your home budget for streams where you run out of money, money that could be saved and spent on paying off your outstanding installments.

Be sure to read two articles on household budget management here:

  • How to manage your home budget wisely ?!
  • Home budget – [EXAMPLES and METHODS] for improving the budget

Remember that getting out of debt is often a journey into the unknown, especially if you are facing debt problems for the first time …

The key is therefore to convince yourself that living with debts no longer makes sense, it is worth to list all the reasons why you are currently in such a poor financial situation and never commit them again!

The next step will be finding the motivation to get out of debt so STRONG that every morning, the first thing you will think about will be something like: ” … for xxx days and I will be financially free, I will be able to buy this … and that … go there and there … “- do you understand what’s going on?

It is also worth adding that a solid motivational kick is the testimony that, step by step, we manage to get out of these debts …

A great example of this can be listing all the loans you have, from the most expensive, with the largest APRC, to the cheapest one, and leaving the list somewhere in sight, and then crossing out every loan we can pay back …

The feeling of pride that you get, deleting the next paid loans, is really motivating, the first two loans are always the worst, later it is downhill, because everything is gaining momentum – trust me, it is a beautiful feeling … with each loan repaid, your home budget has lighter and lighter …

… and the most important:

It is not worth hiding your head in the sand, because it will not bring anything good … e.g. one of my friends, for several months now, does not even open correspondence from the bailiff, because she is afraid to face what she reads, evidently runs away from the problem, which she will face sooner or later.

… what is still important?

Admit that we have debts?

Do you hide it carefully? probably the first what? I know, it’s not easy to admit to family and friends that we are in financial trouble for now.

If you stop hiding that you have a problem with debts, getting out of them will become much easier, nobody from your family or friends will tempt you with a pizza break, a weekend break at the seaside, or another weekend party outdoors.

Friends and friends will know that you are in the phase of saving money and will try not to tempt you with these trips or other pleasures, which, as you know, are not cheap.

Don’t be afraid to say ” sorry, I can’t afford it ” or ” sorry, but I don’t go because I don’t have money ” etc. If your family or friends don’t understand the message, then you will know who your real friend is and who cares about your welfare, as it is commonly said: ” Friends are made in poverty .”