Thread by @cowrywise

If you are struggling with developing a solid plan to pay back your debts, you should follow this thread.

You can also share as you never know who might need this.

#FAQFridays

Debts can steal your peace and affect everything, including your investments for the future, if not properly managed.
This thread will summarize needed steps for managing debts.

#FAQFridays

Debts at some point in life are unavoidable, given that some necessary moves require funding that we cannot afford on our own. Hence, being in debt is not always a bad thing.

#FAQFridays

Although, if you got into a disturbing debt for an avoidable and flimsy reason, write down how you feel and why you do not want to feel that way again.

Make sure you turn that note into a mantra.🙂

#FAQFridays

The four major required actions are:

1. Face the issue head-on
2. Design a crisis budget
3. Design a payback plan with your creditors
4. Avoid further debts during the payback period

#FAQFridays

“We cannot find peace by avoiding life"- Virginia Woolf

There is no peace in avoiding the fact that you owe money. Write down the amount you owe and assure yourself that it will be paid, a little but very helpful act according to Chuck Riley of @Vanguard_FA
#FAQFridays

Next, design a crisis budget and ask a trusted person to assist you with sticking to it!
A crisis budget is the minimum possible budget you can survive on. It should cover for your accommodation, feeding, utilities and transportation.

#FAQFridays

After designing a crisis budget, a repayment plan can then be designed according to a fixed percentage of your earnings over a certain period or varying amounts over a certain period.

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With a fixed %, you agree to service your debts with that % of your earnings.

For example, an agreement on 40% of N250,000 earned monthly would help Mr. Ade pay back a debt of N1,000,000 within 10 months.

#FAQFridays

Alternatively, you can break down the total loan into varying installments and spread them over a set period.
In the first month, for instance, you might agree to pay:

N115,000 out of N1,000,000,
N155,000 in the second month and so on.

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Please note that your repayment plan must be guided by your crisis budget, that way the plan would be sustainable.

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Your creditors are humans who just need to be assured through your committed efforts. So you should stop avoiding them and work diligently towards paying them back.
If you need further advice on handling debts you can send us a DM. We'd be glad to help.

#FAQFridays