Accounts, arrears, and debts have been the key words in the past two years, and bosses of all sizes have basically reported to the court. The reason for this is nothing more than excessive consumption, blind loans, high medical expenses and investment failures, etc.
Therefore, it is recommended that entrepreneurs should pay attention to a problem that cannot be ignored while seeking the most profits-**debt, so what is **debt?Debts, as the name suggests, are those liabilities that are invisible on the surface, but once they erupt, they will put great financial stress on people, these liabilities are often not easy to detect, but once accumulated to a certain extent, they can have a serious negative impact on an individual's financial situation and credit history.
In recent years, with the change of consumption concept, many people tend to consume in advance, in order to satisfy vanity, go in and out of high-end hotels, and even take out loans to buy expensive items such as high-end luxury goods and luxury cars, and use credit cards, Huabei and other financial instruments for installment payment or loan consumption, but ignore the high interest and long-term repayment pressure hidden behind these loans, which leads to the accumulation of debts and the formation of ** debt.
In order not to involve other people's privacy (the names are all pseudonyms), Ah Hong not only overdrafted her credit card, but also borrowed money on multiple platforms to buy designer bags, cosmetics and travel in order to pursue the so-called "exquisite life". At first, she felt that she was able to repay these debts and always repaid them by card, but as time went by, the tightening of national policies, the accumulation of interest and the approaching repayment deadline made her feel unprecedented pressure, which is that she did not fully consider the uncertainty and emergency situation in the future. Although, with the help of her family, she finally managed to pay off part of her debts, she made her friends lose trust.
In addition to the distortion of consumption concepts, the formation of ** liabilities is also related to a lack of financial knowledge. Many people have little financial literacy, which makes it difficult for them to make informed decisions when faced with complex financial products. They may blindly apply for a loan or use a credit card without knowing key information such as interest rates, processing fees, repayment periods, etc. Not only does this increase their risk of indebtedness, but it can also trap them in a vicious circle.
Xiao Li, who runs a decoration company, chose an online loan platform at random without sufficient investigation and comparison because he was in urgent need of money. It is said that there is no mortgage, but the loan money, the interest and handling fees will be deducted first, and the rest of the money will be transferred to him, but I did not expect that the interest is compound interest, which is what we call "donkey rolling", in the end, he not only paid high interest and handling fees, but also was charged more fees because of overdue repayment. As a result, his debts snowballed and he eventually had to resort to legal aid.
Investment failure is also an important cause of ** debt. Many people want to grow their wealth through investment, but due to their lack of investment experience and expertise, they may choose high-risk investments or blindly follow the trend when the market is volatile. Once the investment fails, they may face huge financial losses and debt pressure.
Mr. Zhang, who does cake processing, heard from a friend that it was good, and in the recommendation of a friend, he tried his hand and made 50% of the profit. However, because he knew little about the operation rules and risk management of **, he soon suffered heavy losses due to the sharp fluctuations of **. Not only did he lose his savings, but he also incurred a lot of debt because of operations such as margin trading.
The rapid development of the real estate market has also brought about a serious problem - arrears of payments. Many people take out loans or borrowings to supply real estate or invest in real estate because of fluctuations in the real estate market or problems with their personal finances, which makes them unable to repay their loans or borrowings on time.
Liang Boss, who is an aluminum alloy door and window, in order to get the right to supply the real estate company in batches, he mortgaged the real estate from the bank and took out a large number of loans to supply. However, with the cooling of the real estate market and housing prices, he found that he could not pay for the goods at all, not only could he not repay the loan on time, but even the wages of the workers could not be paid, and he may face greater economic losses.
Of course, there are also some such as family changes such as illness, accidents and other emergencies caused by high medical costs, as well as to pay for high children's education costs, all require a lot of capital expenditure, if the family savings are insufficient, they will be dealt with through borrowing, loans, etc., and these expenses often exceed family income, thus forming ** debt.
To solve the problem of these ** liabilities, we first need to start from the root, and the specific measures are as follows:
Establish a correct concept of consumption: We should establish a correct concept of consumption, consume rationally, and avoid excessive consumption. When purchasing goods or services, it is necessary to fully consider one's own economic ability and actual needs, and avoid blind pursuit of material enjoyment and excessive consumption. At the same time, we should learn to create a budget and financial plan to ensure that our income and expenses are balanced. To be specific, start by creating a detailed monthly budget that includes all of your income and expenses. Make a list of necessary living expenses, such as rent, utilities, food, etc., as well as other optional expenses. Ensure that expenditures do not exceed revenues and avoid further increases in liabilities. Second, look at your spending Xi and identify unnecessary expenses that you can cut or avoid, such as eating out less often, eliminating some high-spending services that you don't use often, or looking for more affordable shopping options.
Improve financial awareness: We should learn Xi and master basic financial knowledge to understand the advantages, disadvantages and risks of various financial products. When applying for a loan or using a credit card, we should carefully read the relevant terms and conditions to understand the key information such as interest rates, processing fees, repayment periods, etc. In addition, we should also improve our credit awareness and maintain a good credit history.
Make a reasonable repayment plan: For the debts that have been formed, we should make a reasonable repayment plan and gradually reduce the financial pressure. This includes rationalizing monthly income and expenditures to ensure that debts are repaid in a timely manner, while maintaining a certain amount of emergency reserves to cover sudden economic needs. If you are facing significant debt pressure, it is also wise to seek the help of a professional financial counsellor or debt restructuring agency.
If there are multiple loans, priority should be given to repaying the loans with higher interest rates. This can reduce the interest burden on the debt and shorten the repayment period. Consider using a repayment strategy such as the "snowball method" or the "avalanche method" to choose the most appropriate method according to the actual situation.
Be cautious about entrepreneurship and investment: Investment is risky, and you need to be cautious when entering the market. Starting a business is a high-risk activity that requires adequate market research and risk assessment. In the process of starting a business, it is necessary to rationally plan the use of funds and avoid blind expansion and excessive borrowing. Before investing, we should fully understand the risks and potential returns of the investment project. If you lack investment experience or do not know enough about the investment project, it is recommended to seek professional advice or choose a more stable investment method. At the same time, we should also learn to diversify our investments and risk management, avoid putting all our money into one project, and improve our ability to resist risks.
Establish a sound family financial plan: Family financial planning is an important measure to prevent ** debt. We should have a reasonable budget and spending plan in place to ensure the financial stability of the family. At the same time, an emergency reserve account is set up to cover sudden economic needs or unexpected expenditures. It is usually recommended to target three to six months of living expenses for the emergency reserve. In this way, there is a certain financial buffer in the face of difficulties, avoiding further increase in debt, and in addition, it can also reduce the family's financial risk by purchasing insurance, etc.
In short, the formation of ** liabilities is closely related to our consumption concepts, investment behaviors, entrepreneurial attitudes, and family financial planning and other factors. By establishing a correct concept of consumption, improving financial awareness, formulating a reasonable repayment plan, prudently starting a business and investing, and establishing a sound family financial plan, you can avoid the formation of ** debt and maintain your personal financial status and credit history.