With Brazilians increasingly indebted, high interest rates, inflation and low GDP growth, it’s time to start worrying about their debt. The security and stability of yesteryear may not last now and that will be a big problem, especially for those who have debt and are not prepared for the difficult times.
We wanted to share tips for you to get rid of your debt. Imagine what it would look like for you and your family. Can you afford to go on vacation? Could you pay the college tuition for your children or, better yet, could they be taught to save and pay their own bills? For many families, being debt free means being able to afford the essentials such as food and clothing.
As you dream of a debt free future and our tips may not be enough to help you, we’ve researched the top 10 tips from the personal finance experts to help you get out of debt and not come back to it.
And have an honest look at household expenses such as cable TV, magazine subscriptions, shopping, car payments and cell phone plans. Write down all the monthly expenses and find out where you can afford to cut. You may be spending lots of money:
Cancel and rip credit cards and use the money only. If you can not afford then you should not buy. There are many people who take loans, credits and financing without even thinking about the impact it will have on their lives. Particularly in times of crisis, what used to be a simple loan can become a snowball of debt. Take note and learn from your experience.
Do you know how many credit cards you have? Do you know credit card balances and limits? Do you know the interest rates for all cards, loans and financing? Understanding and writing your true credit situation is crucial to getting rid of debt.
Find out that managing your personal debt does not mean hiring a numbers guru. There are many websites that offer instructions and tools for discovering values such as getting rid of debts and how to pay for everything you need. Basically, a personal debt is the ratio of income to debt, where you spent to spend more than your income supported. Put the numbers on a paper to start visualizing this.
Now that you have all your debts and related details written or in a spreadsheet, you can weigh several strategies to get out of debt. Two of the most popular are the snowball and the high interest strategy. The snowball strategy involves paying the debt from the smallest to the largest. High interest strategy means paying the highest interest rates first. The idea is to save money with interest. Whatever strategy you choose, be diligent with the payments and stay in the plan.
Regardless of your debt situation or strategy, it is important to start saving for retirement or future investments. Both should be done as soon as you start your professional career. There is a very real possibility for many that Welfare and the Federal Government’s medical benefits are not enough in their retirement years. Take advantage of the benefits offered by the government and your company in relation to retirement savings and other investments for a more stable future.
So you know where your money is going. If you spend $ 5 every day of the week to take a cas. In the morning and there are about 20 business days in each month, you are spending $ 100 a month or $ 1,200 a year on coffee. If you spend $ 10 each day of the week at lunch, that’s $ 200 a month or $ 2,400 a year. Think about what you could do with that money.
There are companies that will negotiate your debt on your behalf and create a payment plan with lower fees and values. This will eliminate multiple payments by consolidating them into one. Investigate the options thoroughly before signing the contract. You do not want your good intention to be squandered in a scam or financial scam. Therefore, only look for institutions and banks already known and consolidated in the market.
You do not have to shout about your debt, but talk to someone you trust, as your closest friend. Ask them to help you stay focused on the task and understand if you can not do all the things you did once. Maybe it’s a home theater night instead of a night on the town. A true friend will understand and your family, even more so.
Be more active!
Correlation between debt and exercise has been proven in studies, proving once again that exercise is good for your body and especially for your wallet!
We hope to have provided you with tips that you can apply in your life to help you get rid of debt once and for all!