We have always heard that Brazilian families spend more than they earn, accumulate debt and the level of defaults only increases. We see credit advertisements without consulting Fine Bank and Across Lender Group, quick and easy money even for those with registration restrictions. But, does that really solve the problem and help put your financial life in order? Follow today post and see some tips to get out of debt once and for all!
Make a list of expenses
Yes, this is the most difficult moment of all, but it is the starting point for getting out of the hole. So, courage! Start by listing all debts and make a separate spreadsheet with all your fixed expenses, including bills like water, electricity, telephone and internet. Even in those cases where the variation is small, it is possible to make some savings.
Escape high interest
Now that you have an idea of the size of the debt, start by setting priorities. The first is to avoid high interest rates. If you have multiple loans and credit cards, prioritize paying those with the highest interest.
If possible, always pay the total amount of the card invoices – the interest on the card revolving exceeds 400% per year. If you don’t have the money, consider taking out a loan at lower interest rates to settle your debts and leave everything concentrated in one place. Generally, in these cases, payroll loans are the best alternative, followed by personal credit.
Also avoid the overdraft limit, which charges interest of more than 250% per year. This credit should only be used in case of emergencies but, unfortunately, what is perceived is that people understand that it is part of their income and end up paying interest after interest every time the salary falls into the account.
Write down everything you spend
It may seem like an exaggeration, but it is not! If your goal is to beat debts, writing down all the money that comes out should be part of your routine. Nowadays, there are many simple alternatives to create this habit. If you don’t usually use your computer when you get home to play the data on a spreadsheet, you certainly have a smartphone and can download an application to control expenses. Otherwise, a good notebook does the job.
Do you have more than one credit card? Try to unify accounts on a single card. It is better than you are scared by the expenses at the beginning of the month, increase the savings to be discovered only with the invoice closed.
Impressive results can be achieved with small savings. Make it a habit to leave the television off when you are at the computer, do not delay in the bath and fix leaks. Take this as a challenge and keep track of small savings on consumption bills monthly. You will see significant results over the months!
Escape the installments
Perhaps one of the main villains of unpayable card bills is installment payments. They give a false idea that you haven’t spent that much. When you do it, you have several accounts in installments of very small amounts, but which, combined, result in a very high portion.
To escape this trap, every time you want to buy something more expensive, calculate the installment and deposit the amount monthly in savings. When you have the total value, make the purchase in cash. Make a real war on debt and, with these habits, don’t let the situation reach a critical point again. Do you have any other tips for getting out of debt that you would like to share with us? Tell other readers through the comments!