How to Get Debt Under Control After Gambling: A Practical Guide

Introduction

Debts accumulated due to an irresistible desire to "recoup" can develop into a serious burden that threatens not only financial condition, but also mental health. This article contains a clear plan of action: how to systematically reduce the debt burden, regain control over costs and prevent the re-accumulation of debts.

1. Accurate assessment of debt portfolio

1. Document collection:

Bank statements, credit card and account statements.
Microcredit agreements, receipts to friends and relatives, notifications from collectors.

2. Summary table:

Enter in one table: the name of the creditor, the balance of the debt, the interest rate, the minimum monthly payment, the date of the next payment.

3. Calculation of total amount and monthly liabilities:

Add up balances and minimum payments - this is your starting point for restructuring.

2. Prioritization and repayment strategy

1. The "avalanche" method (debt avalanche):

First pay off the debt with the highest interest rate, the minimum payments on the rest.
After closing - move on to the next rate.

2. The "snowball" method (debt snowball):

First, pay off the smallest debt for psychological effect, then sequentially more.

3. Strategy selection:

If it is important for you to grow motivation - "snowball," if the priority - saving on interest - "avalanche."

3. Negotiations with creditors and restructuring

1. Preparation for conversation:

A clear understanding of your current income, expenses and proposed payment plan.

2. Rate Cut Request:

Many banks agree to temporarily reduce interest or freeze the accrual of fines in fair negotiations.

3. Installment agreements:

Transfer the payment date closer to the salary, decrease the amount by several months with a subsequent increase.

4. Written confirmation:

Make all new conditions in writing and keep copies.

4. Debt consolidation

1. What are these:

Combining several small debts into one large loan with a lower rate.

2. Pros and cons:

single payment, often reduced rate
- possible fees and extended loan term

3. Where to arrange:

Banks, credit unions, microfinance organizations (with caution).

5. Tight budgeting and cost control

1. 50/30/20 rule:

50% of income - mandatory spending; 30% - flexible costs; 20% - debt repayment and accumulation.

2. Bottom-up budgeting:

First of all, lay the payment on the debt, distribute the balance to the rest of the articles.

3. Accounting and analysis:

Daily recording of expenses in an application or table.
Weekly "audit": where you can optimize spending.

6. Additional sources of income

1. Part-time and freelancing:

Short projects, taxis, delivery, tutoring.

2. Sale of unnecessary property:

Electronics, books, clothes - funds are directed entirely to debts.

3. Passive methods:

Minimum investments in deposits or bonds to start forming a cushion.

7. Psychological self-help and support

1. Support groups Gamblers Anonymous:

Regular meetings provide a sense of community and structure the recovery process.

2. Counseling counseling:

Working out the causes of problem behavior and developing self-control skills.

3. Meindfulnes technique:

Short daily practices reduce anxiety and help not return to excitement.

8. Monitor progress and adjust plan

1. Monthly report:

Compare the actual debt with the planned debt; Mark the repayment percentage.

2. Budget adjustment:

If revenues or expenses have changed, reallocate resources to debt.

3. Achievement Rewards:

Note each closed position or 10% debt reduction - this motivates you to continue.

9. Restoring credit history

1. On-time payments:

Set up auto payments to avoid delays.

2. Minimization of new loans:

Eliminate any new credit cards or microloans until existing debts are fully repaid.

3. Checking reports:

Ask for a credit report (Equifax or Experian) every six months and dispute errors.

Conclusion