Having debts is something that prevents you from realizing dreams and having financial reassurance. Everyone goes through difficult times. However, to resolve the situation of your finances, you need to devise a plan of action and act quickly. Find out how to get rid of debt:
Make an accurate diagnosis of your situation
To know how to get rid of debts quickly it is important to make a diagnosis of your real situation. Put on paper how much you owe and for whom. Do not forget to put the full amount of the debt, including the interest charged by the lender. At this point, it’s important to find out if you still have the dirty name on the market. A bottomless check or a late bill can lead the lender to get their name dirty. Do not expect to need credit or have to rent a property, for example, to find out your situation: do a search on credit protection services and protest notices.
Prioritize the most expensive debts
Non-revolving credit card debts and overdraft are some of the ones that charge the highest interest in the market. To get an idea, the interest on the credit card reaches 345.8% per year. The one of the special check arrives to 220,35% per year. Consider even swapping these debts for a cheaper one if you do not have the resources to clear them. One option is to opt for payroll loans, which, according to the Central Bank, is still the cheapest for the consumer, with a rate of 26.79% per year.
Once you take the situation right and find out which debts should be prioritized, it is time to move on to negotiation. Avoid middlemen: betting on the service of companies that renegotiate debts greatly increases the cost to whoever owes. Do not be ashamed to ask for discounts and do not give up offering a counter-offer to the lender. The important thing is that the agreement can be effectively fulfilled.
Honor the payment
After entering into an agreement with the creditor institution, it is important to honor the installment payments. Otherwise, the creditor can put his name on the register of bad payers, besides being necessary to pay the interest payment for delay.
Get Organized Financially
When spending outweighs revenues, you have to organize yourself financially. Cut unnecessary expenses, get extra income, get a second job. All of these are measures that help put the finances on track. At this point it is essential that the whole family help each other.
Have a Purpose
Having a goal helps make financial control part of the routine. Reflect on your goals and what you need to accomplish them, such as buying a good, taking a trip, saving to pay for your child’s college, etc.
Plan the payment of debts
The payment of debts should be provided in your financial planning. Depending on the severity of the problem, reserve up to 15% of your monthly income to pay off your debts.
Now that you’ve learned how to end debt, it’s time to move on and take the first step in pursuit of a quiet financial life.