1. The minimum payment. The bank with great pleasure will attract you with "minimum payment." Paying only the minimum, you can pay it all your life for the money taken once in loan. You need to understand that the bank is beneficial to you constantly have made the minimum payments on your loans. For example, if your loan is $ 8,000, and you make only the minimum payment each month, you would need 25 years and 7 months to completely pay off the debt. Paying the loan in such a way, you'll pay $ 15,432, which is almost double the original amount.
Try to pay as much as possible. If your monthly payment is $ 40, pay $ 80 and more. If you can not afford it, then read on.
2. Payment of small debts. If you have too many loans and debts, the first mistake you can make - it's beginning to pay off all the smaller debts so they became smaller. Such actions are easily explained. The man can not keep in mind a lot of information. It is very difficult to manage all the debts and credits, if their number is large enough. So you are trying to reduce the information to a minimum, so it will be easier psychologically (which is better - to have a great credit, or 20 small debts and credits).
The second thing to do - to identify those debts and loans, the interests of which are the highest and throw everything at their maturity, leaving all the other small debts and loans (no matter how many of them there are). If interest conditions on all debts are almost identical, then try to deal with the smallest debt - it can serve as a good motivation and help to cope with large debts.
3. Consolidation of debts. Basically, debt consolidation - it is a very good move. That is, you go to a lender with a request to "replace" some of your debts (debts on credit cards, personal loans, etc.) for one big loan, plus increased maturity. Thus, you have the opportunity to pay less each month and, therefore, have a chance to get out of the credit hole. However, this is not the first method, you should apply for. The fact that a lot of banks from different corners of the world provide a concept of refinancing loans - issuing a new loan to pay off the old without any discounts and incentives. It is used primarily to long-term loans (mortgages, for example). And it only makes sense if you take a loan for a long time, in the days, when banks gave out loans at incredibly high interest rates such as 18% in foreign currency.
Remember, the process of refinancing is not free. You will have to pay various fees, services, etc. Thus, if the "old" and "new" loans differ by fractions of a percent (or a few percents), while the entire procedure may be useless in the end. Therefore, you should pay close attention to all the commissions, both first and second bank, otherwise your decision to refinance will be your next mistake.