QUESTION: What to do if you have too many debts?

Falling into a situation where there are too many debts on loans and cards requires immediate, yet calm and deliberate actions. Panic in this case will only worsen the problem, so it is important to act according to a clear anti-crisis plan.

The first step is to completely stop any new borrowing and put credit cards away so as not to further increase the total amount of debt. Stop using borrowed funds even for small everyday purchases.

Next, make a detailed list of all your debts, indicating interest rates, monthly payments, and the remaining debt balance. Analyze your expenses and cut them down to the absolute minimum, leaving only vital spending on food, medicine, and utilities.

Concurrently, work on increasing your income: look for a side job, sell unnecessary items on online platforms, or ask for a salary raise. Direct any extra money toward paying off the smallest loans or loans with the highest interest rates.

Be sure to contact your creditors and talk about your difficult financial situation. Banks often accommodate conscientious clients and offer debt restructuring programs, credit holidays, or an extension of the repayment term to reduce the monthly financial burden.