There are times when the situation tightens, the account does not close and the result is only one: the debts begin to accumulate. But running after any loan like debt can make things worse.
The best thing to do is to stay calm and invest in realistic financial planning to restore the financial situation and stay away from further damage.
If this is your reality, this article will help you get out of the choke. Check out our list of 6 strategies to solve your doubts and get back to living quietly.
1. Have a good financial organization.
Wait a minute, you want to get out of the red, but you don’t even know how much you owe?
The first thing to do is to understand the scale of the problem : how big your debt is, how many installments still have to be paid off, and of course their values and what the interest rate is.
With this scenario, you will have a realistic scenario of your financial health and will be able to draw up an action plan prioritizing debts and considering their real risks, avoiding further losses such as losing assets like cars and home, for example.
2. Make a debt management plan
Now that you know the true scenario of your debts, investing in a payment plan should be the first strategy to solve your problem. To do so, you have to look at your income and expenses: reduce anything that is unnecessary and allocate a portion of your income to debt settlement.
A good tip is to “boost your income with extra time and freelance work.” The extra income will help leverage your plan.
3. Renegotiate your debt
Renegotiating your debt is a way to prevent interest rates from continuing to increase the debt amount exponentially and, above all, to try to reduce the amount you owe.
From this renegotiation, the old debt is now extinct and a new one is opened. So if your name was negated, it might be a great way to clear it.
Contact the lender and present your negotiation proposal within their current payment possibilities. Show firmness and willingness to pay off what you owe, but remember: if you do not comply with the deal, the name returns to the default register.
4. Post Bet on debt consolidation
If you have a lot of doubts, consider consolidating them into one. That is, you get a loan with lower interest to pay the debts and you only have a debt to be paid.
The main advantage of this strategy is the interest reduction, which makes it one of the best solutions to save on debt repayments.
5. Seek Refinancing
Refinancing property such as apartment or car as outstanding debt helps eliminate high interest expense.
The great advantage of this type of personal loan which has the collateral assets is the very attractive interest rate compared to other types of credit available which allows to save in the long run and even create plans to pay off refinancing sooner.
It’s a good solution for those who are heavily indebted or with the dirty name on the square. However, you need to be careful with the installments, because if you do not pay them, the bank or financial may take your property and auction it.
Seeking a debt solution is never easy. Often staying in the red requires less discipline and commitment, but the path is one of effort, patience, and great rewards toward organized financial health.
The secret is always to seek control of your income and expenses, avoiding waste and excess , rationalizing the use of money. It’s not as difficult as it sounds and the best possible result is a life far from red.