When you get into debt you can end up messing up your budget. In addition, to face several restrictions when applying for a loan, if it ends up negative.
So you have to get rid of them as soon as possible and organize your finances. And always make smarter financial choices to spend less.
So, we separate some tips on how you can stop making debt
9 Tips on Controlling Your Debts
1- Put all your expenses on paper
The first step to organizing your financial life is to write down all your expenses. Doing this for a period of 30 days will already suffice for you to have a sense of how you are spending your money.
After that, identify the fixed expenses, such as: water, electricity, telephone, rent, health insurance, parcel of the house or car. It will also be necessary to stipulate what the spending limit will be for other things, such as: market, bar, gifts, travel, among others.
With organization you can understand your expenses and control your debts.
2 – Cut costs that are not so essential
Now that you’ve identified your spending and you already know that some of them are not essential, it’s time to cut or fold.
Nonessential spending, like that coffee after lunch, is usually the budget villain. It’s those little day-to-day spending you hardly realize you’re spending.
Try to get it out of your routine or slow it down.
3 – Maximum installments of 20% of your income
Not all debt is bad. For example, when your biggest dream is to buy an apartment, each installment gets you closer to it.
But for this, be aware of the values of the plot, as they should not exceed more than 20% of your income, as this may end up compromising the other areas of your budget.
4 – Exchange your expensive debts for cheaper
If you have no restriction on your CPF, a good alternative is to apply for a loan that has lower interest rates to repay another loan that has higher rates.
Some examples of expensive debts that can be paid with other loans are the overdraft and the revolving credit card.
5 – Whenever possible, anticipate your plots
Whenever you anticipate the installments of any debt you have, it is possible to receive rebates, which are the interest you fail to pay.
So, whenever you get that extra money, it pays to anticipate some installments.
6 – Renegotiate the delayed installments
Always try to renegotiate your backlog, because the longer the delay, the higher the interest on the debt.
It is best to always negotiate directly with the lender because the conditions are better. And if you think the lender’s proposal does not fit in your pocket, always make a counter proposal.
Currently, there are some trades, such as the Clean Name of Serasa or the Negotiate Debt Online SPC. Take the opportunity to renegotiate and even get a discount.
7- Make an emergency reservation
It is important that you plan to save and have an emergency reservation. This reserve will be very important so that in times of tightening you have extra money, and do not need to resort to loans.
Emergency supplies help a lot in times of tightness.
8 – Always pay cash
The best way to avoid debts is by paying cash. Avoid using credits because these debts can end up adding up in your budget. In addition, this form of payment also gives you room to negotiate rebates with the seller.
So it is important to plan your spending, know how much that good or service you want, save money so you can pay cash and then ask for a discount.
9 – Escape multiple credit cards
When the credit card is used without control and as a complement to your income, it can be a problem. Especially if you own multiple cards and use for all your purchases.
Be very careful because you may end up curling up and creating new debt. So always look to pay your purchases in cash.