Know How To Repay Your Debts

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Learn how to take out your debts and get out of the red.

Are you in debt and still do not know what to do to pay off debts? You are not alone! The number of defaulted Brazilians reached 60 million in 2017, according to a survey by the Credit Protection Service  and the National Confederation of Shopkeepers .

Experts believe that this result is mainly due to the economic crisis in the country. On the other hand, the Brazilian economy has grown again, with the creation of new jobs, allowing people to renegotiate their debts and thus gain access to credit in the market.

Do not waste time in this situation that only hinders the realization of your dreams! If you find yourself in the red and aim to get rid of your debts once and for all, here’s how this article can help you.


The first step is to take out your debts and know how much you owe!

That’s right: late payment increases your debt as a result of interest and fine. So one month ago, the value of your debt was another.

It’s time to face reality and have determination: you will only be able to know how much you really owe if you seek this information. Do it as soon as possible! Call, email, get service in one app.

If you are already receiving billing calls, take the opportunity to clarify the value of your current debt and the current conditions for debt renegotiation. In that first instance, just clarify all your doubts about the delay and discharge of debt.


Do not be afraid of questions

The first step is to take out your debts and know how much you owe!

If you are in default with your bank, credit card or overdraft, prefer the face-to-face service.

Ask management to clarify their situation: what is the value of the current debt? How much interest has already been charged? How much discount do you get on cash payment? And in case of installment, what are the options?

These doubts also serve for other debts that are in arrears. It is possible that you listen to the advice to wait a little longer to pay off the debts and take rebates. Watch out! The longer you take to pay what you owe, the harder it will be to recover from your credit score .


Make a financial planning to pay off your debts

If you have already taken the first step to pay off your debts which is to clarify how much you currently owe, do not quit renegotiating your debts without knowing how your current financial situation is.

Before seeking a renegotiation to pay off your debts, it is indispensable to make a financial planning. What is your income? What are the monthly fixed expenses that you need to prioritize? Example: rent, energy and water bills, food, medicines, among others.

Take stock of the past three months to know how much you spend on average with each item. Do not forget to include variable expenses, which are considered superfluous, such as leisure and shopping.

Cut Unnecessary Spending

Small charges for services, such as monthly subscriptions and packages, may go unnoticed, especially if they are registered in automatic debit.

Take the time to cut back and even cut unnecessary spending so that the money is directed toward paying off debts. If you still see no way out to renegotiate your debts, that is, there is no money left to pay the renegotiated installments, are you not living a step ahead of your pocket?

Who knows how to reduce their standard of living at the moment is essential for future growth. Remember that any effort is aimed at your financial health. So worth it!


Ask for cash discounts

Make a financial planning to pay off your debts

If somehow you got money to pay off your debts, be sure to ask for rebates at the time of renegotiation.

For financial institutions, the old saying “whatever comes is profit” has never made so much sense. The fact is that the lenders prefer to reduce the value of the debt and receive some payment to continue with an outstanding amount.

This is especially true if your debt is already in a third-party collection company, that is, you have been hired to perform billing calls. We can say that when this happens, the creditor has reached the last stage to not have more losses. And that is why your debt can fall quite a bit in cash. Enjoy!


Turn multiple debts into one

Turn multiple debts into one

A smart choice for anyone who wants to pay off debts once and for all is a personal loan. Once you have the value of your debt updated and carry out a financial planning (to know how much money can be directed per month to pay off debts), you can finally solve your situation once and for all.

With the personal loan in hand, you can pay all your debts in cash, turn multiple debts into one and still have discounts; pay less interest than in installments with the creditors; you organize yourself in a much easier way to pay only one installment per month and have only one installment. Good right?


Choose installments that fit in your pocket

When renegotiating debts, either renegotiating installments directly with the creditor or using the personal loan to pay off your debts, opt for a monthly amount that will not weigh in your pocket.

Although it is possible to reduce the size of parcels with higher values, do not choose this option if you are unsure with the payment. Prefer lower values ​​and longer term to pay. If this is the case, you can go ahead of the installments and thus earn discounts at the time of payment.

The important thing is if you plan to not delay payments, especially if you want to maintain a good relationship with the lender, for a future need.

Avoid making new debts

Ask for cash discounts

After you clear your debts, you must have financial control so you do not get red again. The best way to avoid new debts is to organize expenses .

To make it easier, write down the income and expenses in a spreadsheet. Do not forget to include family expenses in the budget.

To make life easier, ABC Credit has a complete expense spreadsheet, without the need to account for the time to organize your home budget. Through the worksheet, you can also organize to save money. Start now: download the expense spreadsheet here.


Make a financial reserve

It is no secret that having money saved can help you in emergencies, including taking out debt at a time of unforeseen circumstances.

When it comes to organizing finances, prioritize your debt repayments, and as soon as you are at a quieter stage, make a financial reserve so that you do not go any further.

Start by saving a little money a month and strive to increase steadily until you have a good reserve to “put out fires.”

Just as for paying off debts, saving money requires determination and discipline. Remember that having a reservation is essential for your financial health.


Pay your bills on time

Pay your bills on time

It sounds silly, but delaying your bills, even if it’s only one day, damages your pocket. When it comes to paying off your debts, arrange to start paying bills even before the due date if possible.

Payday loans not only keep your financial life organized but also help increase your credit score gradually.

Nowadays, you can include alerts on your smartphone’s calendar, so do it in advance: separate one day of the month to write down all the accounts that are to be paid and get rid of the forgetting. Include alerts days before and on the due date. You will only gain advantages with this simple task.


Count on Smile Credit

No matter your situation: Smile Credit has solutions for you to have more peace of mind. Count on uSmile Credit to resolve your debt.


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