Not just information that I grabbed from book or internet, I also want to share my way to get better financially. As my biggest problem in finance is same like most of you ‘debt’ is the challenge we need to solve. Debt is a big problem in our life and in this era we can’t avoid it. Our life could become better if we could escape from debt trap.
In this entry, I’ll share the first step I’m doing to get rid of debt. The first step is list all of debt I’ve had. This is my debt list :-
1. Mortgage . I think most of us have this kind of loan. For common people like me, we just buy a house maybe once for a lifetime and it is important to pay it in time. Otherwise the house will be sold by creditor. I just paid the loan about 7 years and have another 23 years to go. It is a long time but I’ve planned to shorten the period. As the balance still big amount, around RM19+K (at that time I’m dumb about financial and get the longest period) it is impossible for me to settle about 10 years but I’m confident I could settle in before 20 years (as I’ll retired next 20 years).
| WHAT IS MORTGAGE |
2. Car loan. It is one of the expensive loan I’ve had. I’ve paid the loan for 4 years and there’s 5 years onward. The balance is around RM 25K and if I’m really consistent I could shorten about 1 years. Hopefully I could do it.
3. Education loan. The loan that I could settle it next year. I just have about RM5K balance in loan. My education loan is PTPTN and there’s a discount if I pay consistently.
4. My father loan. Okay, it is not written or have agreement but I’ve loan from my father about RM10K to buy inheritance land. There’s no term but I must paid it in short term. Maybe about 2 years.
5. Credit card. Ops.. Fortunately, I’ve cut my credit card 2 years ago and don’t apply any new even the company tried to persuade me..
6. Electricity, telephone and facility bill. It could become a big debt if I don’t pay it in time.
Okay, that’s my first step to get rid of debt. List all the debt I’ve had. I’ll share my step in next week entry. If you have any idea or suggestion, let’s share with me. Maybe it will help not just me but all reader of your financial blog.