In the world we live in, consumption appears to be the ultimate purpose of our existence. From all directions we are bombarded with advertising to convince us not only of good quality or price of a product, but how necessary it is to live as we should and should not be an outcast of the consumer society. Because classical society now is that: a consumer society.

It is true that it is extremely good being able to choose among multiple products, many brands, countless varieties, different establishments, and so on. But it is true that advertising has gone to teach a product to highlight its benefits and convince us that what we buy, to be a tool to create needs. That is, it tells us to buy everything we can to be part of society, and the more you buy better.

Actually, it is beneficial to choose what we buy, and we will not make apology for austerity. Each person must know what needs you have and how best to cover them. But in any case, we will highlight a number of factors that can influence our consumption is responsible, that is, we buy what we need or even a whim, but do not buy to buy, that we are not carried away by a current consumer and does not cover our needs, but needs to tell us ad nauseam that we need to cover.
Unavoidable expenditure

First, we assume that there are a number of unavoidable expenses such as housing, food, clothing or supplies (water, electricity, etc.). That must be covered.

As for housing, often the largest household expenditure. We have seen in other articles should be possible for the best mortgage or rent rather than buy more at ease to go in the future.

With regard to food, a good trick is to go to establishments that have a good assortment of products at a fair price, especially in white markings, or if you go to establishments with offers or promotions (3 x 2, for example), stick to them, they tend to be a claim to end up buying more than we need and at prices that are already emerging from these deals, so we just spend more.

Regarding clothes, you should buy only what we need and take advantage of discounts or offers, taking clear what we pledge and not buying anything we do not need to look cheap.
Unnecessary expenses

But often we do spending on unnecessary things. That’s why we list below a number of tricks you can do to not be tempted to buy things that do not need.
Credit Cards

We should not get credit cards if they are not necessary, nor is it convenient if we carry over, except that we travel, for example. Often plastic money gives us peace of mind when buying because they think that then you have to repay that money with interest succulent.

It is better to have debit cards that carry our purchases at the time, which we feel to be spending more money and will not be so happy when you buy. Never take advantage of credit to buy things they can not or will be very inconvenient to pay.

For the same reason, do not lose all sense of time is being spent, it is better to pay cash whenever possible.
Lines of credit

Similarly, we should have open lines of credit if we do not have a precise need for a true cost is to occur in the future. If we credit any credit need to be served by our financial institution.

Reject lines and credit cards that are not necessary. If you do not have them, certainly not the use to something essential.
Vacation Savings and Contingency

Equally, it is desirable for the extra costs of some importance (known in advance or not) to be given in the year, planned to have a fund to make periodic contributions to pay more bearable.

If we know that we go on vacation in September, we can start putting € 100 per month since January. Eventually, we will have accumulated 800 € to spend, which would be very uncomfortable to pay all at once.

Similarly, we can create a savings fund for contingencies. In short it is the contribution (ie € 20 per month), provided a small fund will accumulate which we can draw from more than a pinch.
Conclusion

In short: do not buy things you really do not need, we offer such cheap. Contrast between establishments in each case to see what is cheaper. Let’s find offers and promotions but we do not get out of them. Should not have credit cards or purchase if they are not necessary, because they incite to spend more (plastic money is evidence that costs us less to spend). And we have a fund for expenses. Gradually pay is always better to do at once.

With the various options we have today, resolve debt problems is easier. The twelve most common solutions to get rid of all your debts are:

* Debt Management Plans
* Debt Negotiations
* Debt Consolidation
* Debt Consolidation Loans
* Financial advice
* Refinancing
* Retirement
* Credit Union
* Loans from home equity
* Insurance
* Credit cards
* Bankruptcy

Debt Management Plan

The ideal way to start solving your debt is through a payment plan that you can do yourself.

The plan a budget and avoid any unnecessary expense are two very important aspects in a debt management plan. If possible, consider working overtime and use the proceeds to your plan and if the personal discipline is a problem, you can schedule automatic payments with your bank. More »
Debt Negotiation

With debt negotiations, a company that represents you or your negociáis same with your creditors to reduce the amount you owe.

The debt negotiation agencies working with your creditors to reduce your debt balance, sometimes up to 50-75%. Most debt negotiation companies are clear as to how much they’ll charge, but make sure there are no hidden costs in the negotiation process.
Debt Consolidation

Debt consolidation is a very beneficial process to solve numerous debts. In this process, multiple debts are consolidated into one amount, the amount being paid is through a single payment each month.

The interest of consolidated debt is usually lower than the interest in individual loans, however, if a person is using a loan from home equity to consolidate debts, your home will be the guarantee for the loan and whether that person can not pay, the lender can take the house and sell it to recover the money lent. We must also bear in mind that if the time to pay the consolidated debt is greater than the original loan, you’ll be paying more interest if the interest rate is lower.

When you contact a debt consolidation company adviser first thing he does is analyze your current debt amount and then negotiate with the creditor on your behalf and reduce the amount of debt.

In most cases reduce interest rates and occasionally also removes the late payments and taxes. After reviewing the total amount of debt, is divided into monthly installments that make it easier payment.
Debt Consolidation Loans

The debt consolidation loans help you merge all your debts into one loan. For example, you have a loan with a balance of € 2,500 (interest rate of 15%), a balance in the credit card of € 1,000 (interest rate of 12%) and a balance on a card purchase of a trade of 500 € (10% interest). It would consolidate all such amounts on a loan of € 4,000 (8% interest).

Actually the purpose is to reduce monthly payments, as interest rates or lower in the new loan or the repayment period is lengthened.
Financial Advice

Financial advisory firms to help you eliminate your debts, but not consolidated. Develop your payment plans for outstanding debts with an interest rate and lowest fees.

The procedure is that you will make a monthly income to the consultancy firm and the company is responsible for paying all your creditors. Be very careful when choosing the consulting firm.
Refinancing

This process is to refinance your home and pay your debts.

The refinancing at a lower interest rate will help you eliminate debt with higher interest rates you’re paying now. You can even develop a plan that has a lower cost than at present, since the loan can be extended to pay over time, but if you increase the time increase the interest. You need to clearly understand the total cost of refinancing, because if you do not pay you lose your property.
Retirement

If you have a retirement plan account for your business, you may be able to get a business loan from your retirement money.

This type of loan is best option to withdraw money from retirement, and that saves you pay additional taxes and penalties of up to 10%. If you can not repay the loan after a period, then you have to pay taxes and penalties. If you lose your job, you should immediately repay the loan and pay taxes for withdrawing money early.
Credit Unions

Credit unions are generally loans with interest rates and lowest fees.
Loans home equity

Equity is the difference between the value of your house on the market and what you owe on the mortgage, ie the portion of the property that is yours.

Loans home equity allow borrow money against the equity in your home, without any other mortgage. It is a fixed amount of money for a particular period.

The interest that a person pays in loan home equity is lower than credit cards and other consumer debt. Moreover, these types of expenses are deductible, so you convert nondeductible interest into deductible.

In most cases these loans also offer attractive prices and convenient payment plans, however, interest rates are often variable and you risk losing your home if you can not pay.
Certain

If you have life insurance you can borrow money from the policy to a very low interest rate to solve your debt problems. The advantage is that you have to repay this loan, but the life insurance benefits will be reduced by the amount you borrow in addition to interest.
Credit Cards

Whenever possible, it is advisable to pay the total debt of credit cards.

Consolidate your debt of credit cards is also advantageous because you can get a much lower rate compared to other types of consolidation loans.

Get in touch with your current card issuer to ask what interest rate you will be offered if you transfer balances from other cards to theirs. Ask a fixed interest rate and if you grant requests that do not charge transfer fees. Once your debts consolidated into a card, make sure the payment plan so you pay the debt as quickly as possible.
Bankruptcy

Bankruptcy should be the last option to solve your debts. Sometimes when financial pressures are enormous and can not reach the end, you have to declare bankruptcy.

Bankruptcy is a temporary relief but it creates a negative impact on your financial report that will affect future loan applications, etc..

It is sometimes very difficult to pay all our bills. The temptations make it easy to get into debts, but may not be as easy to leave them, and when more than one creditor, the situation can be quite overwhelming. One possible solution to this situation is debt consolidation.

There are times that you yourself can do the consolidation, for example, when you can negotiate a lower interest rate for credit card transfers to this card and other debts from other cards with higher interest (watch out for transfer fees ). But other situations are more complicated and for which you may not feel qualified.

* If you do not feel qualified to do it yourself, you can hire a debt consolidation company.
* A coach will analyze your financial situation: number of unsecured loans (like credit card debt), number of guaranteed loans (mortgages, car loans), total amount of debt, interest rates, etc.
* The counselor will negotiate with your creditors to try to get reduce the total amount of your debt.
* The consultant will consolidate all your debts into one payment, so we avoid dealing with several creditors.
* The counselor will talk to you to know what your budget and prepare a plan to pay your consolidated debt according to your means.

Many debt consolidation companies offer free professional advice.
Fraud debt consolidation

Due to increasing debts in Spain are seeing a rapid growth of businesses dedicated to debt consolidation, so use caution if you’re going to hire one of these companies to consolidate your debts.