Archive March 2019

Learn How to Stop Making Debts

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

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.

Loan: 7 Mistakes That Businesses Make When Making Money

Even the most experienced companies can make a few mistakes when hiring a loan. Learn from the mistakes of others and get ready to make a good business.

Loans are part of the reality of many companies as they are important to sustain or expand business. From its inception to the consolidation of large corporations.

Although they are familiar with credit operations, some entrepreneurs make mistakes that can do more harm than contributing to the company’s finances.

Here’s what are the top mistakes and get ready to make a good deal.

Close it directly with your bank without considering other alternatives

  • Choose wrong mode
  • Order less than necessary
  • Compare Interest Rates Only
  • Do not set resource target
  • Do not worry about formalizing the loan
  • Do not update budget forecasts

Close it directly with your bank without considering other alternatives

Close it directly with your bank without considering other alternatives

It was the time when it was only possible to get a loan with a large bank, in which you were a longtime customer. With the portability of credit and the arrival of startups, the market became much more diverse.

Nowadays, there are many options, including financial institutions specializing in business loans. Most of them offer online service.

It is worth consulting and comparing, as rates and conditions vary greatly between them. To facilitate use a credit comparator , a digital platform that does this market research for you. Just register to get access to personalized offers.

Choose the wrong mode

In the same way that there are many financial institutions, there are also several loan modalities. Each one with its own payment characteristics and conditions.

This means that there is a way to solve specific challenges for each company. Some are even subsidized and have competitive rates.

To find the ideal option, it is necessary to evaluate the size of the company, the sector, the financial situation, the possibility of presenting guarantees, among other things.

Order less than necessary

Before hiring any type of loan, the first thing to do is a detailed analysis of the financial situation to find out how much you actually need.

It is no use making a loan to refinance expensive debts, if the cashier will be totally committed to paying the installments, leaving the company without working capital.

In this type of situation, it may be interesting to contract a higher amount to cover the costs of the operation until the inflow of a receivable stabilizes the cash flow.

Compare Interest Rates Only

Compare Interest Rates Only

At the time of making a loan, most people are aware of the approved amount and interest rates. This is certainly very important, but there are some issues that deserve attention. For example, charges, administrative fees and payment terms.

These additional costs can raise the total amount that will be paid until the financing is repaid.

To ensure a good deal, it shares the Total Effective Cost (CET) of the operation and the final debit balance. Consult, evaluate and choose knowing all the details.

Do not set resource target

Good entrepreneurs have many goals and plans for their business. Some are delayed because of a lack of resources and lie dormant until the right time.

It turns out that when the loan money falls into the checking account, these plans awaken and can divert the focus from the most urgent priorities.

That amount seems to be enough to suit everything, but it is not. To avoid this risk, make it clear what the fate of this money is.

Do not worry about formalizing the loan

No one likes formalities, much less read contract fine print. But you can not escape it if the intention is to make a safe and advantageous operation.

This step is essential to ensure that the conditions exposed at the beginning of the process have been recorded in the contract. After all, it is worth what is in the legal document.

Check amounts, parcel numbers, fees, fines and procedures in cases of default.

This timing is also important to make sure you are closing business with a serious company. Be wary if the institution does not pay much attention to the drafting of the contract.

Do not update budget forecasts

After getting the loan many entrepreneurs settle in with the feeling of “problem solved” and forget that soon will come the first charge of payment.

However, if budget forecasts are not updated and the loan portion does not go into financial planning, the company is at risk of indebtedness. It may even fall into a “snowball” effect that will only be restrained by hiring an even bigger loan. Therefore, update the financial control to keep the cash balance.

This is also important in nurturing the relationship with the lender. In the future, this can contribute to your credit analysis and you can achieve much more attractive conditions.