Financial advisor Olena Lytvyn explained how to manage loans effectively during the war
Due to the war, many Ukrainians have faced financial difficulties and debt accumulation. Experts advise not to give in to guilt, but to carry out a budget analysis to stabilize the situation. This was reported by RBC-Ukraine (Анна Шиканова), according to the portal PromPolitInform.
The full-scale war has significantly affected the income stability of many families, forcing people to use loans and installments to meet basic needs or to deal with the consequences of emergencies. Financial advisor of the Beetobee platform Olena Lytvyn emphasizes that a loan is a tool, not an indicator of personal irresponsibility.
Psychological pressure often arises due to social comparison and idealized notions of financial success. However, having debt should not become a reason for self-reproach, as many factors remain beyond one’s control under martial law.
Signs of a debt trap
A signal of a vicious cycle forming is a situation where credit funds become the primary source of financing for everyday life instead of covering force majeure expenses. If expenses systematically exceed income, it is important to acknowledge this problem in time without attaching it to emotions or feelings of guilt.
The expert warns against the chaotic use of installments under the influence of attractive promotions. Any loan requires clear study of the contract terms, thorough risk assessment, and understanding the consequences of possible payment delays.
Algorithm for exiting the crisis
To regain control over finances, it is necessary to first structure information about all existing obligations. One should write down the remaining debt amounts, interest rates, minimum payment amounts, and their repayment schedules, which will help get rid of the fear of uncertainty.
The next step is a detailed analysis of the ratio between income and mandatory expenses. The optimal burden level on a budget is considered to be allocating about 20-30% of monthly income to debt repayment, although these figures may vary depending on life circumstances.
Interaction with creditors
If servicing a debt independently becomes impossible, the specialist recommends contacting creditors for restructuring or reviewing the payment schedule. One should not try to pay off one loan with another without preliminary calculations of economic benefits.
It is important to remember that rapid repayment at the expense of depleting one’s own resources is dangerous. Basic needs and health must remain a priority, and the debt exit strategy must be realistic and consistent.
Illustrative photo: Ank Kumar / CC BY-SA 4.0
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