Most people have the wrong idea of what it is like to be in debt. According to a survey by SPC Brasil (Credit Protection Service), 73% of respondents answered incorrectly; of this 52 % said that being indebted means having an account or installment overdue and 21% believe that having a name registered with a credit service.
But for specialists in the financial area, being in debt means having installments to be due, divided purchases or loans, that is being indebted.
Now that you know the difference between having debts or being in default, we have prepared 5 steps on how to get out of debt quickly. Are they:
Write down all your expenses
Record all of your monthly expenses and income on a financial spreadsheet. We often have the wrong idea that people get rich because they have a lot of money, but in fact the secret to saving money and having a return is control. Without knowing how much you spend it is difficult to have a sense of whether you are in debt and when you will be able to pay off all installments or expenses.
The important thing in this stage is to have discipline, we realize that many people start motivated to record all financial transactions, but after a while they give up, after all it is not a very simple task. The Good Lenders Credit application can be an alternative because it is simple to use and can import your transactions directly from your bank.
Determine savings goals
Before starting anything in our lives it is important for you to understand, and be very clear in your mind, about; what you want and how you will get it. With our finances it can not be different, create personal and economic goals so that the work you had to record all your expenses is not in vain.
Carefully analyze all your finances and see where you can save. Which expenses can be reduced, such as electricity, water and telephone bills, which, unlike fixed bills, are linked to consumption, and a reduction in usage will impact the final amount of the monthly charge.
Know how much you owe
Now that you know that duty is different from being in default, add up all installments and financing. This calculation will help you to track the volume of expenses that you can bear monthly, create savings targets compatible with your reality and even outline savings strategies to be able to pay off the installments in advance. Credit card installments usually have no interest, but in the case of financing, there is a discount to prepay payments. Knowing how much you owe will help with this planning and save money to make possible investments or purchase something you really want or need.
Negotiate your debts
A very common practice in Brazilian banks is the purchase of debt, if you have done any financing with Cream Bank, you can and should consult other banks to try lower installments and interest. In some cases it is possible to reduce up to 3% of monthly debt interest. Of course, interest rates will depend exclusively on your relationship with banks and credit protection agencies.
Determine priorities for payment of debts
It is often not possible to balance our lifestyle with current debts. In this case, our tip is that you establish priorities in your life, which can save you and get rid of financing and installments faster. Often having lunch out on the weekends can be a great opportunity to see friends again, but nothing prevents you from inviting your friends over for dinner sporadically and saving.
What did you think of our tips on how to get out of debt? Do you think it is possible to pay off all your debts and always stay in the blue? Leave your comment!