5 Tips for Wise Debt Management
Debt can indeed be a solution for various urgent needs and developing a business, but debt can have fatal consequences. Debt needs to be managed better and wisely. Here are five essential rules for debt
1. Recognize the Types of Debt, Productive vs Consumptive
Before deciding to enter debt, we should identify the types of debt and their needs so that we can distinguish which ones are more priority and truly urgent and which are just desires.
Productive Debt, the kind of debt that can increase income, such as buying work equipment and things that can be used as long-term investments for the business.
Consumer Debt, the kind of debt to fulfil needs or desires, such as buying new gadgets, branded bags, and things that are meant to achieve a lifestyle.
2. Think Carefully, Do You Need to Get Debt?
Before deciding to go into debt, consider other solutions. If there is no other way, you must have a plan and commitment to pay off the debt.
3. Choose the Right Place to Get Debt.
Avoid illegal loans! Refrain from being pressured and tempted by a very easy process; you may end up getting into new problems with illegal loans. If you are forced to take on Debt, make sure the loan is registered and supervised by the OJK.
4. Manage Debt Carefully
If you are already in debt, prioritize using the loan money for the original purpose, and make a budget and record expenses so that your financial plan is carried out correctly. Remember to pay off your bills on time even if you have a debt.
5. Don't Delay Payment
Never delay payments, pay off immediately when the instalments are due, avoid accumulating fines and interest, and create an effective debt repayment strategy.
Avoid the trap of illegal loans! Take debt wisely and intelligently for a brighter future.
Source: finance.detik.com
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