How to Minimize the debts run up

Having debt makes you overcome anxiety and fear. Currently there are a lot of bills to be paid every month, such as credit card bills, mortgage loans, car payments and other. Debt is not a frightening specter as long as you can manage finances. Debt management can be more complicated if you are not careful. In essence, by managing your debt can minimize the number of bills to pay each month. So that not one step, here are 4 ways to minimize debt.

Make Regular Budget
Habit to make a monthly budget will keep you from the conditions of debt piling up. This budget also help you to calculate how much income and monthly expenses. Discipline in the budget that you have created. Prioritizing pay all installments and bills while receiving income. Do not let any expenses that are not recorded in the budget. That way you will regularly finances.

Borrow according to ability
You want to buy equipment to complement the shop or want to attend the exhibition of SMEs. However, insufficient capital. You can borrow in advance at the bank but make sure the borrowed amount according to ability. That means your earnings at this time able to pay all such loans. Bank Indonesia advised customers not to borrow money to exceed the specified ratio of each bank, usually in the range 30-40%. This ratio is calculated as all your debt payment obligations divided by your income. For example, if you have a salary of Rp 5 million a month (ie after deduction of pension funds, and taxes), you should not spend more than Rp 2 million (40% of  Rp. 5 million) to pay your debts.

Automatic payment method
Perhaps you are a forgetful? There is a powerful way to never late paying the bill. Typically when late paying bills or loans, the bank likes to impose fines. Ask automatic payment method on the bank. Thus, the bill every month directly paid by debiting from savings. So, you will not add to the debt in the future.

Avoid excessive use of credit cards
Your debt in the last month is still piling up and you impose shopping with a credit card. It seemed this would not solve the problem of your debts. Focus to pay off the entire credit card balance each month to avoid interest charges. This is because the interest charges on credit cards are usually higher than conventional loans. If there are excess funds could not hurt to wear to pay credit card bills. Strive to make payments above the minimum payment.