Commitment mechanisms for healthy indebtedness | Personal Finance
Understanding the relationship between the rate, installment, balance, creditor and the benefit of a credit, gives us the necessary information to know what obligations it is time to leave. Improve conditions
If we do not have space in our cash flow, we can redefine, ask another entity to buy our debt or ask our entity to renegotiate the terms of our credit.
When we have space in our cash flow, we can accelerate the payment of all our obligations starting with the smallest and reaching the largest of our debts. Repairers and Insolvency
If none of the other alternatives is viable, we can go to a debt repair company and, ultimately, declare insolvency as a way to get out of debt.
What is it and how to apply a compromise mechanism?
Think for a moment what you want to achieve, or what you want to change after having gone through this entire learning path. You may want to start now with the Snowball Method , or call a bank to ask if they are willing to buy the wallet you have with your current bank, or ask a credit repair company for a proposal to start getting out of debt.
In personal finance, it is not enough to wish for things to happen, it is necessary that we ourselves make them happen , however, although we set goals and objectives, on many occasions – when the future arrives – we We realize that we make little or no progress in compliance.
One of the main reasons why we constantly fail to meet our goals has to do with the fact that in the day to day we are giving in to countless small temptations that take us away from the goal we wanted to reach. Sometimes, even, we are not even able to take the first step and make the call we have to make, or send the documents we have to send. The good news is that there is something we can do about it: design engagement mechanisms .
Compromise mechanism is a deal we make with ourselves
through which we commit ourselves to an action or a result in the future, making certain actions that could move us away from that objective more expensive or even unattainable. In other words, it is about voluntarily imposing restrictions that only affect us, to make sure we get where we want to go.