If you don’t know how to get out of debt, learn how to do it quickly now!
Having doubts is something that keeps you from realizing dreams and having financial peace of mind. Everyone has a hard time. However, in order to solve your financial situation, you need to draw up an action plan and act quickly. Find out how to end 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 current situation. Put on paper how much you owe and to whom. Do not forget to enter the total amount of debt, including the interest charged by the lender. At this point, it’s important to find out if you still have a dirty name on the market. A bad check or a late account can cause the lending company to get your 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 and card protection services River of protests.
Prioritize the most expensive questions
Debt on revolving credit and overdraft cards are some of the ones that charge the highest interest rates on the market. To give you an idea, credit card interest reaches 345.8% per year. Already overdraft reaches 220.35% per year. Consider even exchanging these debts for a cheaper one if you can’t afford to pay them back. One option is to opt for payroll-deductible loans, which, according to the Central Bank, are still cheaper for consumers, with a rate of 26.79% per year.
Once you have taken the situation and figured out which questions to prioritize, it is time to move on to the negotiation. Avoid intermediaries: Betting on the service of companies that renegotiate debts considerably increases the cost to those who owe it. Don’t be shy about asking for discounts and do not give up a counter offer to the lender. The important thing is that the agreement can be effectively fulfilled.
Honor the payment
After formalizing an agreement with the lending institution it is important to honor the installment payments. Otherwise, the lender may enter your name in the bad credit register and you will have to pay late interest.
Get organized financially
When spending excess revenue, you need to get organized financially. Unnecessary Cut unnecessary expenses, get extra income, get a second job. All of these are measures that help keep finances up to date. At this time it is essential that the whole family helps each other.
Have a purpose
Having a goal helps make financial control part of the routine. Ponder your goals and what you need to accomplish them, such as buying a good, taking a trip, saving for your child’s college, and so on.
Plan the payment of debts
The payment of debts must be provided for your financial planning. Depending on the severity of the problem, set aside up to 15% of your monthly income to pay off debts.
Now that you have learned how to end debt, it is time to move on and take the first step towards a peaceful financial life.