Towards the end of the year, maybe some of you have started preparing to conduct an annual financial evaluation. Not to mention, usually a year-end bonus will appear which is given by the company where you work. Of course, this bonus must be utilized as much as possible to make your financial condition more healthy.
Is my financial condition healthy enough?
Before speaking further, of course you yourself must also know whether the financial conditions that you have this year are already healthy enough or not. If you are still unsure, here are some factors to identify the health of your financial condition.
Have an Emergency Fund Everyone should have an emergency fund so that they can be used during urgent times, such as getting sick or being fired from work. Emergency funds that need to be prepared are usually based on your monthly salary. You can prepare emergency funds as much as 3, 6, or 12 times the amount of your monthly salary. Usually for those who still single, just 3 times the salary amount. For those who are already married, it’s good to prepare a minimum of 6 or 12 times the amount of your salary.
It turns out that pension funds can also be a benchmark for seeing financial conditions. Try to see the ratio of income per year that you can allocate to pension funds. At least you have to prepare 15% of the income per year that you get now.
Able to Save Regularly Every Month
One benchmark for looking at the health of financial conditions is if you are able to save at least 10-30% of income, every month. If you are able to save even more than this percentage, then your financial condition is good enough. Another case if it is less or even unable to save at all. That means you have to check the expenses that have been made and cut unnecessary costs.
Have a Credit Score in a Good Historical IDI
No need to ask anymore, of course Historical IDI has become an absolute standard to see your financial condition. IDI Historic is the result of checking from the Bank MP Debtor Information System, here you can see how much your credibility score is in the eyes of Bank MP. If you have a good IDI score, such as collectability 1 / smooth, then you do not have debt in arrears at all, and tend to be easier to apply for loans to the bank. It’s different if you have bad credibility, which is a score of 3-5, of course, Bank MP will doubt your credibility. You must immediately pay off all the arrears that are still on the bank, the longer the arrears mean your financial condition remains unhealthy and increasingly doubtful.
“My Financial Conditions Are Not Healthy enough, There Are Many Debts Invalid …”
After checking the financial condition, you can begin to detect whether there are still factors above that still need to be addressed. Usually unhealthy financial conditions are best seen from a bad IDI Historical score, which indicates that you still have arrears. Besides that, it can also be seen from the debt ratio that is too much greater than the income per month that you get.
No need to worry, if you still have arrears at the end of the year that must be repaid, then all you have to do is start looking for ways to start being free of debt at the end of the year. The way you can get rid of debt is to start paying off all the remaining outstanding arrears. Since it’s already the end of the year, usually bonuses from the office have begun to scatter. Take advantage of the bonus you get to start being free of debt. To use it more leverage, see the steps:
Type of Debt Should Be Treated Beforehand
To begin to be free of debt, try to start by recording any debt that is still in arrears. Also note the amount of debt along with the interest rate charged by the bank. The greater the interest that runs, means the greater the urgency because if you continue to postpone payments, this debt becomes more burdensome in the future. Don’t forget to record installments other than credit cards or KTA that have a big influence on your financial condition. Some types of installments are for example KPR and KKB.
Utilizing End-of-Year Relief Programs
The quickest and easiest way to get rid of debt is to take advantage of a year-end waiver program. Usually at the end of the year you can take advantage of the wallowing program at the end of the year. Allocate the bonus you get at the end of the year into relief programs like this.
You can get programs like this from a debt management provider. Companies like this usually have experienced consultants who can help you get the best waivers from the bank. Not to mention, if you have multiple debts in arrears at the same time, the consultant can help you in developing a strategy to decide which type of debt must be completed first, according to the financial conditions that you currently have.
Here are some types of relief programs that you can use to start debt free at the end of the year:
One-time discount / discount
This type of relief program allows customers to reduce their total debt to smaller amounts. As the name implies, even though the customer gets a discount in his debt (generally 20-50%), they must pay directly in one payment. In some cases, this one relief program can give cardholders a discount of up to 70%.
Extended Installments with Low Interest
Unlike the discount program in one pay, this one program is suitable for those of you who are financially less. In short, customers who have credit card arrears or KTA arrears can extend their installment tenure to be lighter, the interest earned is lower than the prevailing interest rate in general. If the normal interest currently running is in the range of 2.25%, then it is possible to get interest of only 0-2%.
Another program with this one, this type of program is a combination of the two types of programs above, namely customers get a discount and the remaining payments can be made in installments. The bank will also see the conditions experienced by the customer first. If the customer has supporting conditions that make it more difficult to pay off the debt, then it is likely that they can get this program (provided that the bank in question has the program).