Simplified Debt Repayment Plans

After having dated for less than a year, Michael and Ronnie decided to get married. Since the marriage expenses were unmanageable, they both decide to take a loan to spend on the marriage ceremony. They haven't been able to repay yet.

How do you define a debt? Any thing that a person owes another is a debt. A monetary debt has to be repaid to the creditor along with interest which has been pre-decided.

Is debt repayment an easy task? It can be but will definitely require sacrifice and efforts to come back to a debt free status.

Due to various fixed expenses such as rent, gas, food, clothes etc., it's difficult for spouses to have enough money at any given time to pay the loan completely.

Borrowing money from family and friends to pay off your debts and thereafter collecting money and paying them back is a good option and helps you save the interest which you would have paid otherwise.

If a couple finds it difficult to plan and control their spending, the smarter choice would be to take the advice of a financial expert. Dealing and negotiating with banks and helping to consolidate the balance amount up to 40%, are some of the many strategies used by these experts.

The experts ask the spouses to list down their expenses and then they eliminate those items which seem unnecessary. Further calculations then reveal the estimated term by when the debt can be paid provided the couple sincerely works on the given plan.

Being committed to the plan is crucial but it's also important to make sure that you continue paying your other bills and fixed expenses which crop up at the month end. Else neglecting your bills and completely focusing on the savings plan can lead to more harm than good.

Efforts should be made to maintain a positive credit rating. A bad credit rating may result in difficulties in future while applying for a much required loan or a credit card.

A particular offer may excite you enough to spend but the bill at the end of the month may surprise you since you may have not read the fine prints of the offer in your excitement.

Michael and Ronnie can get out of this debt situation by borrowing from family or friends and by limiting their spending as per the monthly budget. It may require their sincere efforts but paying off the debt is the only way out for them.