Tips to Get Debt-credit crunch Under Control

DEBT: The debt is provided by the creditors with the expectation that it would be repaid at the time that has been specified in the agreement between the debtor and the creditor. Debts have to be repaid with interest on most occasions.

What should I do when I am in credit crunch?
Don’t be depressed, Think coolly what to do next and be so strong that nothing can disturb your peace of mind.

Better to ask yourselves in credit crunch what went wrong, how to tackle the situation of financial crisis. Self-realization- If something goes wrong, you have to realize what went wrong in your path, try not to repeat it. Most people don’t like suggestion which is against their perception. Be realistic, tackle it coolly.

Search the opportunity to come out of debt, See for positive in everything.
“Every Problem comes with an equal or greater opportunity”
Napolean Hill, author of Think and grow rich

Take a wise decision; it is crucial to make the right decision at right time. A right decision at the wrong time becomes wrong decision.

You are not Nostradamus(Greatest prophets who ever lived) to predict your unexpected happening to your life like medical bill even though you have insurance but it doesn’t cover it, traffic ticket, vehicle repair, you might lose your job, your other account frozen in error etc. You should be prepared to meet your unknown expense, Such as

Build up an emergency cash fund in your savings account. (Note that this fund should only be used only when emergency arises, not for buying TVs, vacation etc.)
Make a habit of saving in different forms like liquid cash, gold etf (exchange traded fund), fixed deposit, Systematic Investment Plan (only after curiously studying the facts and knowledge) etc.

Note that taking loans provide temporary solution to the cash flow problem. People who borrow loans assume that their problem might be solved. But that’s not the case, if you don’t have an extra $400 today, when you are going to have extra 400$.

Try to make extra money, via additional business or part time job. Give your extra work and dedication.

If you are in debt, it is better to negotiate to your lender for the other payment plan.
Debt for another debt is not advisable; you might inflate your debt by taking another loan. Try to put your debt under control by certain ways like:

be frugal (economical in use or expenditure; prudently saving or sparing; not wasteful)
Use list of household expenses to populate a basic monthly budget. You can use yahoo’s expense manager OR from Microsoft Excel Budget Worksheet
set spending priorities, like payment of your utility and card bills first and entertainment expense last
note your daily spending in excel
cut back on other expenses such as dining out or entertainment
plan ahead your spending, like make a Grocery list and shopping whole for the month, i.e. reduce number of times you visit the store
review your credit report
saving around the holidays
save by purchasing a pre-owned product if needed
use credit card wisely and make a payment more than 5% in your bill, then a minimum
frugal in gifting present

The above mentioned is certainly a bit hard to you, but to get out of this financial crisis you have to do it. Precisely you have to change your attitude to change your lives.
William James of Harvard University said “The greatest discovery of my generation is that human being can alter their lives by altering their attitudes of mind.”

Come out of the gloomy world, and take everything positive, motivate yourself, make a mind that i can do, I can do, I CAN DO.


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