If you are in debt or going red learn how to get out of debt without insane sacrifices but having control of all finances. Read the article …

Getting out of debt with little money seems like the dream of every person seeking to find a way to balance their finances . Although we know that some types of debt, such as a mortgage on the property you live in, can help build wealth over time when wisely administered, being deeply in debt can be stressful and discouraging.

Fortunately, it is possible for all people to get out of the grip of their debts. Of course this is not going to happen overnight – it can take time, there has to be planning and maybe some professional help, but paying your charges and debits is simply possible.

Following these steps will help you get out of debt, and make you stay with the finances free for in the future build good credit, increase score and have score to give envy in the long run – do not be fooled!

To start the process …

List everything you consider debt

List everything you consider debt

To pay off everything you owe, you first need to know exactly which ones and how much they are:

  • Make a list of all financial commitments : Include your real estate loan (mortgage), vehicle loan, student loan, personal loan, special limit and other types of financing, credit cards and credit card bills etc.
  • For loans , write down the interest rate, the outstanding balance, the mode of the loan, and the amount of the monthly payment
  • For credit cards , note the interest rate, the total outstanding balance, the amount of the monthly invoice and the expiration date
  • For overdraft , write down the interest charged in the period and how much negative balance is tied to your bank account

If you are unsure that you have listed all open accounts, especially those that may be in arrears or in default, you can check your free credit report by contacting Serasa, Boa Vista SCPC or SCP Brasil. The report will show which creditors have included you as the debtor.

In general, people do not even have the motivation to write down all their debts for fear of knowing the true amount they owe, while others, when making the notes, think the debt is so high that they will not be able to pay. However, to get rid of debt, for a period of time the indebted person needs to let go of many things that he loves most takes him to the hole.

Going out with friends to the bar and traveling any extended holiday at the expense of the credit card or overdraft will not solve the problems with the debts.

Decide how much you can afford per month

Decide how much you can afford per month

 

To settle some of the accrued debts, there are some important steps you need to take. Make another list. In this, include all your monthly expenses that are not related to financial debts, list the costs with groceries, bills of consumption, water, energy, landline and cell phone, had to cable, gasoline expenses, rent, condominium, entertainment, gym , clothing, etc.

Some of these values ​​may vary from month to month, so it is a good idea to take into account the monthly average of the months. For example, to get an average for your electricity bill, add up the total of the six months of bills and then divide the sum by six. This is your average cost of electricity in recent months.

This list represents the basic expenses you must pay each month. Now, compare that to your monthly income. Consider only the money you receive net after paying the taxes and other deductions from the salary. Subtract the total expenses from your monthly income.

If the amount left over after paying these basic and required bills is less than the amount you need to pay off your debt from financial commitments and debits, you will need to take action.

You can choose…

  • Reconsider your expenses. Try to find means to reduce expenses, cut expenses and stop spending on futilities and unnecessary things. For example, if you eat out, you go to the movies a lot, like candy and cakes, cutting out these things can save you money that you can use to pay off your debts.
  • Consider consolidating debts. A debt consolidation loan allows you to unify multiple high interest debts, credit card balances, late limits, into a single debt with lower interest rates. Reducing interest expenses can make it easier to relocate more money to other payments.
  • Increase your income. Surely this action will help you have more money to pay off your debts. You can get a second job, sell water in the lighthouse or products and utensils that you do not need to use. Look for a job that pays more.

If the amount left over after paying the basic expenses is greater than the minimum amount you need to pay for your debt, decide how much additional money you would like to reserve to pay each month. Remember, the more you can pay above the minimum, the faster you will be able to pay off your duties and obligations.

Reduce your interest rates

Reduce your interest rates

High interest rates can make your debt grow fast, especially if you have debt to the credit card. When you are paying a lot of interest, it can be difficult to pay off the principal balance.

Here are some common types of higher interest debt and some tips on how to reduce the interest you pay on each of them:

Credit cards

You have a few options for lowering your credit card interest rates:

  • You can call the issuer of your credit card to ask for the elimination of annual rates and lower interest rates. If you have a good payment history with them and a good score, they may agree to reduce some fees for at least a period of time, or even permanently.
  • A debt consolidation loan can be another way to lower your interest rates, since such loans usually charge lower interest rates than credit cards.

 

Loans at the bank limit

While certain types of personal loans may have low interest rates, and others somewhat insane, bank lending has intermediate interest rates, neither expensive nor cheap, however, it may not be at all pleasant if you do not return the amount borrowed within a maximum of 10 days.

If your limit is high and you are one of those who spend without looking at the debit balance, in a short time the interest increased very fast.

You should keep up with your bank debt by splitting this debt in case you can not reduce the gross payment you will have to be able to get a loan from another institution to consolidate these bank charges.

You can apply for a debt consolidation loan from another bank or other financial institution that combines your loans and other debts such as credit card debt.

Debt Settlement Loan

If you are looking for help in dealing with higher interest rates and difficult to manage debt, you may be wondering if total debt settlement is not a good fit for you.

Some lending companies offer special types of loans with such low rates that it’s worth taking the hiring of these loans, picking up the money and carrying out debt settlement at one go. With cash on hand, simply negotiate with the creditors the discharge rebates.

Total debt settlement can make it easier for you to reorganize your financial life, control your finances and put your CPF in order by taking it off the debtor list if that is your case – having the clean name facilitates credit.

Whenever you pay at least a portion of the rest of a renegotiation, or pay the full amount due to the lender, he has up to five days to remove the negative information from your credit report. Information that makes you negative, contributes to the loss of credit in the square and reduces the credit score.

Look for organizations that do credit counseling to help you better understand the management and reduction tactics of your individual debt, including creating a spreadsheet for compliance with the plan.

 

Pay your bills and debts on time every month

Pay your bills and debts on time every month

Paying all your bills on time at maturity each month is one of the best things you can do for your name, finances and credit. Take necessary steps to ensure that you remember to pay your financial commitments on time.

By setting payments to be made automatically or with payment reminders through your bank, this will ensure that you never miss the payout of any payment that generates charges and penalties, or more interest.

If you’re finding that you’re having trouble keeping all your bills up to date and tracking which payments to complete, some simple actions can help you, including:

  1. A new loan to unify and consolidate your debts will allow you to replace several monthly payments into one.
  2. A debt management plan will reduce the number of payments that you need to remember every month.
  3. A credit counselor or counselor will negotiate with your creditors to see if they will accept lower interest rates, some tax exemptions, or discount settlement.

Of course, you do not need the help of a professional, coach or credit counselor to create your own plan to manage your monthly debts. There are several ways to pay off debts:

  • Take extra money to pay off debts and expenses with higher interest rates. In the long run, this will reduce total interest.
  • Take extra money to pay your credit card bills or balance the amount with your bank or the card company. You will be able to pay it faster.
  • First, deal better with the debts that generate the most impact on your pocket and your personal life to avoid collections and increase interest on the principal amount, plus risk of loss of property as in the case of mortgage.

Be responsible and intelligent

Be responsible and intelligent

If you are working to pay off your current debts, it is important not to undermine your entire endeavor by taking on new debts. Avoid the temptation of asking for a new personal loan or spending on a card that has a free limit, if you do, it will only increase your debt and further damage your situation.

Each time you settle a debt successfully, next month put the extra money released to pay more of your other outstanding bills. In the months when you make the most money, out of your expected income, or your day-to-day living expenses get smaller, make the money work for you, always make extra payments to get rid of your debts.

What if you still need help?

 

Sometimes the debt is too great, and you’re afraid you can not afford everything you owe. Well, you have some options of last resort, including a debt management plan.

One of the great mistakes of many debtors is to let debts, financial commitments, and unsecured financing fall behind. The problem is not so great when it comes to unsecured loan, but when we talk about mortgages and financing with assets as collateral there the rope can tighten the neck.

Depending on the type of personal loan left behind, the information as negative will remain on your credit report for 3 or 5 years, if it goes to the notary’s office, it will be for many years. It may not be worth much to let debts lapse.

You can have all your debts eliminated when making a secured loan or a payroll loan that has interest rates of less than 2.5%, if you can not, find a valuable asset, a jewelry for example and make a pledge as a form to borrow money.

Never fail to make a plan to pay for at least part of your debt.

Once you are free of all debts, financial troubles with lenders and with clean name, start rebuilding your credit. Continue practicing good credit practices and financial management of finances.

Pay all your bills and appointments at maturity and avoid leaving balances on the credit card paying only the minimum in the month and always have ways and means without red tape to borrow money.

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