It is more common than you think with debt and difficult to pay. Many people in today’s Sweden have debts of a greater or lesser nature. Some are due to the Swedes’ great ability to postpone bills.
A survey conducted by SIFO that shows that 4 out of 5 people feel bad about postponing things shows that what is most common is that postponement is just bills. They also concluded that as many as 10 participants of 1357 were ill-informed about postponing private financial concerns. Many people state as a reason why they postpone their bills, among other things, that they cannot afford, or because they have fallen into disarray when it comes to their finances.
What you need to do is regain control of your finances?
As a way to feel better and also be able to get out of a possible debt trap. Take small steps at a time and start by paying your bills. If you are in a worse financial situation and belong to the segment of less creditworthy borrowers, you pose a greater risk to the loan companies, which also means that your interest rate will be higher. If you have loans of this type in the form of sms loans with payment on the weekend (which is a loan form with usually high interest rates), make sure to pay them first to avoid expensive interest costs.
Other tips on how to best monitor your debt situation are:
- To review exactly what debts you have. If you do not have information about it at home, contact the creditors and request information regarding your debts.
- Also read about what happens to you if you are unable to pay your debts. Do this well in advance so you can avoid both debt collection and ending up with the chancellor.
- Review which debts are most urgent and take them first. Bet on them one by one.
- Make a calculation or budget of what you have for income and expenses and see how much you have to put on debt. There are now many good budget apps to help you with this.
- What changes can you make? Is there any way to increase your income, or ways to reduce your expenses?
- Make a plan on how you can repay your debts.
- Negotiate with feeding owners, make payment plans.
- Within your municipality, you can find good advisors who help you with both budget and debt advice.
Avoid the debt trap on holiday
Summer and holidays usually mean disguises in the form of entertainment, travel and you treat yourself to the chancellor more than during the rest of the year. However, this can create concerns if you have not made sure to save money before.
AllQuest Credit has done a survey which shows that as many as up to 40% of everyone in Sweden doesn’t save on monthly savings. Making sure you get a buffer on an account that is not tied up allows you to have fun during the holiday weeks and that you also have money in case something unexpected happens.
Save with low income
Even those who do not have such a large income can save a month for a buffer. Jean Fergusson, a private economist at Clear & Save Bank, says it’s more about a priority than how much you earn when it comes to saving. There are those who make a lot of money a month and still have an account at the end of the month and those who make less who can actually save a lot. This depends entirely on how you prioritize dealing with the money you earn.
According to the survey conducted by AllQuest Credit, as many as 26% stated that they would not be able to pay an unforeseen expense of USD 10,000 within 24 hours without having to borrow money for it.
This is because, says Jean Fergusson, largely because many do not put the savings into their budget. Instead, they make them pay their bills and use their money month by month and possibly put away what remains, if there is anything left over.
It is better that you then pay, put away what you want to save in another account. If you have large debts before then you should first and foremost concentrate on paying off them but still make sure you have a small saving so that you do not have to stay at zero. This can help you avoid getting into further debt. There are now many smart financial and budget apps that help you set up a realistic budget, keep track of and cut down on expenses, and get started with long-term savings.